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 shall be 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 will likely increase employer contributions and actuarial accrued liabilities due to the additional service credit granted to members on workers' compensation. The New Hampshire Retirement System (NHRS) indicates that costs will arise because no contributions are made during the period of receiving benefits, leading to a loss of associated investment income. The NHRS actuary estimates that if 10% of active members were granted an additional six months of service credit, the total increase in employer pension rates could be approximately 0.04% for employees and 0.09% for police, with projected increases in expenditures ranging from $50,000 to $100,000 in FY 2026 for administrative costs related to system reprogramming.

Statutes affected:
Introduced: 100-A:4