This bill establishes a supplemental retirement allowance for certain retired Group II members of the New Hampshire Retirement System (NHRS) and their beneficiaries. Specifically, it introduces a new section, RSA 100-A:41-f, which stipulates that retirees who have been retired for at least 120 months but fewer than 240 months as of July 1, 2025, will receive a supplemental allowance calculated at $500 for each year of retirement. Those who have been retired for 240 months or more will receive a flat supplemental allowance of $5,000. The total cost of this allowance will be funded by the state general fund, with the governor authorized to draw from the treasury to cover the expenses.

The supplemental allowance will be permanently added to the retirees' or beneficiaries' base retirement allowance and included in their monthly annuity payments. The bill mandates that payments be made as soon as administratively feasible, but no later than January 1, 2027. The estimated fiscal impact for FY 2027 is approximately $269.6 million, which includes significant allocations for police and fire retirees. The bill does not affect employer contributions or the unfunded actuarial accrued liability, although some administrative costs for implementation are anticipated.