This bill increases the amount of the state retirement annuity payable upon the accidental death of a retirement system member from 50% to 100% of the member's average final compensation, but not exceeding $85,000. It also changes the calculation of the death benefit for group II members to match the calculation for group I members. Additionally, the bill provides that future accidental death benefits will be funded from state general funds.

The fiscal impact of this bill is indeterminable, but it is expected to increase State General Fund expenditures to the extent that accidental deaths occur. The New Hampshire Retirement System projects that the total amount expected to be funded from the State General Fund for current active participants in the system could be $6,800,000 for projected future death benefits. The bill will also result in a decrease in expenditures and rates for political subdivisions to the extent that accidental death benefits would have been paid by the political subdivision. The NHRS also states that there will be administrative costs associated with reprogramming the pension administration system.

Statutes affected:
Introduced: 100-A:8
As Amended by the House: 100-A:8