This bill amends the New Hampshire Retirement System's calculation of average final compensation by excluding supplemental pay provided by employers while members are receiving workers' compensation. Specifically, it adds a new subparagraph to RSA 100-A:1, VIII, stating that any periods in which a member receives such supplemental pay shall not be included in the calculation of the average percentage of compensation paid in excess of the full base rate of compensation. This change aims to lower the average final compensation (AFC) for determining benefit levels, which could lead to cost savings for the retirement system.

The fiscal impact of this bill is indeterminable, as the New Hampshire Retirement System (NHRS) cannot accurately predict the number of members who will be affected by this change or the duration of their workers' compensation claims. However, it is estimated that excluding this supplemental pay could decrease the Unfunded Actuarial Accrued Liability (UAAL) by approximately $17.5 million. The bill is expected to result in a slight reduction in employer contribution rates across various employee groups, although the exact financial implications remain uncertain due to the lack of specific data on workers' compensation claims. Additionally, there may be an increase in administrative costs related to updating the pension administrative system.

Statutes affected:
Introduced: 100-A:1