SB 119-FN - AS INTRODUCED
2021 SESSION
21-1035
08/10
SENATE BILL 119-FN
AN ACT relative to the ordinary death benefit in the retirement system.
SPONSORS: Sen. Cavanaugh, Dist 16
COMMITTEE: Finance
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ANALYSIS
This bill allows the spouse of a deceased group I or II retirement member to receive benefits for
an member who would have been eligible for a service retirement but for his or her death.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
SB 119-FN - AS INTRODUCED
21-1035
08/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty One
AN ACT relative to the ordinary death benefit in the retirement system.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 1 Ordinary Death Benefit; Group I and II Members. Amend RSA 100-A:9, II to read as follows:
2 II. If the member has at least 10 years combined creditable service [or was eligible for
3 service retirement] at the time of the member's death, there shall be payable to the member's
4 surviving spouse an allowance, continuing until the spouse's death, equal to 50 percent of the service
5 retirement allowance that would have been payable to the member had the member retired
6 immediately prior to death, or if the member has attained the age and years of creditable
7 service to be eligible for a service retirement as defined under RSA 100-A:5, the surviving
8 spouse shall receive the maximum benefit that would have been payable to the member had
9 the member retired immediately prior to death, based on average final compensation and
10 creditable service at the time of death. In lieu of an allowance, the surviving spouse may elect a
11 lump sum benefit equal to the deceased member's annual earnable compensation, in addition to the
12 amount payable under RSA 100-A:11.
13 2 Effective Date. This act shall take effect July 1, 2021.
LBA
21-1035
1/28/21
SB 119-FN- FISCAL NOTE
AS INTRODUCED
AN ACT relative to the ordinary death benefit in the retirement system.
FISCAL IMPACT: [ X ] State [ X ] County [ X ] Local [ ] None
Estimated Increase / (Decrease)
STATE: FY 2021 FY 2022 FY 2023 FY 2024
Appropriation $0 $0 $0 $0
Revenue $0 $0 $0 $0
Expenditures $0 $0 $0 $443,000
Funding Source: [ X ] General [ ] Education [ ] Highway [ ] Other
POLITICAL
SUBDIVISIONS:
Revenue $0 $0 $0 $0
Expenditures $0 $0 $0 $1,348,000
*The New Hampshire Retirement System states it is not able to separate the fiscal impact of this
legislation between county and local government, therefore the fiscal impact is shown together as political
subdivisions.
METHODOLOGY:
This bill stipulates that if a member of the New Hampshire Retireent System has attained the
age and years of creditable service to be eligible for a service retirement as defined under RSA
100-A:5, the surviving spouse shall receive the maximum benefit that would have been payable
to the member had the member retired immediately prior to death, compared to the current 50%
spousal death benefit,
This supplemental actuarial valuation for the proposed system change was based upon data
furnished by NHRS for the June 30, 2019 contribution rate setting actuarial valuation.
Actuarial methods and assumptions were the same as those used in the annual actuarial
valuation as of June 30, 2019. In particular:
· The assumed rate of interest was 6.75%;
· The valuation method was the Entry Age Actuarial Cost Method; and
· Payroll growth is assumed to be 2.75% per year (2.25% for Teachers).
The New Hampshire Retirement System’s actuary determined the following increases:
Employer Pension Rates as a Percent of Payroll - State
Current Impact of Proposed
2024-2025 Rates Proposal 2024-2025 Rates
Employees 13.75% 0.06% 13.81%
Police 30.67% 0.05% 30.72%
Fire 29.78% 0.08% 29.86%
State Total 16.05% 0.06% 16.11%
State Estimated Employer Increase/(Decrease)
Due to Proposal
FY 2024 FY 2025
Employees $390,000 $401,000
Police $49,000 $50,000
Fire $4,000 $4,000
State Total $443,000 $455,000
Employer Pension Rates as a Percent of Payroll - Political Subdivisions
Current Impact of Proposed
2024-2025 Rates Proposal 2024-2025 Rates
Employees 13.75% 0.06% 13.81%
Teachers 19.48% 0.05% 19.53%
Police 30.67% 0.05% 30.72%
Fire 29.78% 0.08% 29.86%
Political Subdivisions
Total 19.48% 0.05% 19.53%
Political Subdivisions Estimated Employer
Increase/(Decrease) Due to Proposal
FY 2024 FY 2025
Employees $466,000 $478,000
Teachers $635,000 $649,000
Police $130,000 $134,000
Fire $117,000 $120,000
Political Subdivisions
Total $1,348,000 $1,381,000
AGENCIES CONTACTED:
New Hampshire Retirement System
Statutes affected: Introduced: 100-A:9
latest version: 100-A:9