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 members, 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 or the duration of their workers' compensation claims. However, it is estimated that excluding this supplemental pay from the AFC calculation could reduce the Unfunded Actuarial Accrued Liability (UAAL) by approximately $17.5 million. The bill is expected to result in a slight decrease in employer pension rates as a percentage of payroll for various employee groups, although the exact financial implications remain uncertain due to the lack of specific data on workers' compensation claims. The bill will take effect 60 days after its passage.

Statutes affected:
Introduced: 100-A:1