This bill amends the penalty structure for retirees of the New Hampshire Retirement System who exceed the annual hour limit for part-time employment. Specifically, it repeals and reenacts RSA 100-A:7, II, which now stipulates that if a retired member works beyond the allowed hours, the board will impose a proportional reduction in the retiree's state annuity based on the excess earnings. The reduction will be distributed as equal monthly deductions over a 12-month period. Importantly, the bill clarifies that a retiree's entire annuity will not be suspended solely for exceeding the hourly limit; full suspension is reserved for cases of willful violations or failure to respond to inquiries from the retirement system. Additionally, retirees can demonstrate just cause for exceeding the limit, and the board may waive all or part of the annuity reduction if it finds the retiree acted in good faith.

The bill does not provide funding or authorize new positions, and its fiscal impact is indeterminable due to uncertainties regarding the number of retirees affected and potential administrative costs. The New Hampshire Retirement System has indicated that the changes could lead to increased expenditures and may complicate the collection of contributions, particularly if retirees work over 30 hours per month, which could trigger health benefit requirements under the Affordable Care Act. The act is set to take effect 60 days after its passage.