This bill amends current law regarding workers' compensation and creditable service towards retirement by removing the existing one-year cap on creditable service for members receiving workers' compensation benefits. Specifically, it modifies RSA 100-A:4, III(b) to state that any member who receives a weekly award under RSA 281-A for an injury sustained in the course of employment is entitled to creditable service for the entire duration of their compensation, not in excess of one year. To qualify for this creditable service, members must submit a memo of payment of disability compensation form to the board of trustees, verifying the first and last payments of disability compensation for each unrelated injury. The fiscal impact of this bill is indeterminable, as it depends on various factors such as the number of affected members, the duration of benefits, and the timing of injuries. The New Hampshire Retirement System (NHRS) anticipates an increase in employer contributions and actuarial accrued liabilities due to the additional service credit awarded to members. The NHRS estimates that if 10% of active members were granted an additional six months of service credit, there would be a projected increase in employer pension rates and an increase in actuarial accrued liability of approximately $23 million. Additionally, there may be administrative costs of $50,000 to $100,000 in FY 2026 related to reprogramming the pension administrative system.

Statutes affected:
Introduced: 100-A:4