This bill amends the New Hampshire retirement system's employer contribution structure by requiring the state to pay 7.5 percent of contributions for group I teachers and group II members, which are currently the responsibility of non-state employers. The bill specifies that beginning in fiscal year 2026, the Department of Revenue Administration will hold the state's share of contributions for municipalities (excluding school districts) before passing it on for revenue calculation purposes. The language also clarifies that the state will cover both normal and accrued liability contributions for group II members employed by the state, while non-state employers will be responsible for 92.5 percent of total contributions.

Additionally, the bill outlines that the state’s 7.5 percent share will be transferred from the education trust fund to the retirement system by the commissioner of revenue administration, with these distributions treated as part of general revenue sharing. The bill does not provide funding or authorize new positions, but it is expected to increase general fund expenditures by approximately $36.05 million in FY 2027 and $37.03 million in FY 2028, while decreasing expenditures for political subdivisions by the same amounts. The bill is set to take effect on July 1, 2026.

Statutes affected:
SB601 text: 100-A:16