This bill amends the existing law regarding the calculation of retirement annuities for certain Group I members of the New Hampshire retirement system, specifically targeting retired state employees and teachers. The new legal language stipulates that the reduction of a retiree's annuity at the member's full retirement age under the federal Social Security system will apply to any Group I retired state employee or teacher who retired before July 1, 2023, and has not reached full Social Security retirement age by July 1, 2025. The bill effectively modifies the application of retirement benefits for this specific group of retirees.

The bill is set to take effect on July 1, 2025, and does not provide any funding or authorize new positions. It is projected to have a fiscal impact, with estimated expenditures exceeding $440,000 for the state and $710,000 for political subdivisions in FY 2028. The New Hampshire Retirement System anticipates an increase in the actuarial accrued liability by $13 million due to the provisions of this bill, which will be amortized over a fixed period of no longer than 20 years. Additionally, there will be administrative costs associated with reprogramming the pension administration system, leading to an indeterminable increase in expenditures.