HB 579-FN-LOCAL is a legislative bill that seeks to amend the retirement system for Group II members, which includes permanent policemen and firemen, in New Hampshire. The bill removes the transition provision from 2011 for Group II members who started service before July 1, 2011, but were not vested by January 1, 2012. It revises eligibility for medical and surgical benefits, stating that Group II members who began service before July 1, 2011, are eligible for benefits after 20 years of service and at least 45 years of age, while those who started on or after July 1, 2011, must wait 25 years and be at least 52.5 years old. The bill also amends the definition of "earnable compensation" to include various types of pay for vested members before January 1, 2012, and sets limits on compensation for retirement calculations for members who commenced service on or after July 1, 2011.

Additionally, the bill modifies the definitions of "average final compensation" and "normal retirement age" for both Group I and Group II members, with different calculations based on service commencement dates. It outlines conditions for Group II members to retire with a service retirement allowance and sets a minimum annual allowance of $10,000 for qualifying members. The bill includes legal language insertions and deletions to reflect these changes, with deletions indicating repealed sections and insertions indicating new or modified language. The fiscal note attached to the bill projects no immediate fiscal impact but anticipates increased expenditures starting in FY 2026, an increase in the actuarial accrued liability, and significant administrative costs. The Department of Administrative Services is also tasked with developing a proposal to reinstate the NHRS Medical Subsidy for Group II retirees, although the fiscal impact of this is not calculated.

Statutes affected:
Introduced: 21-I:30, 100-A:1, 100-A:5, 100-A:6, 100-A:19-b, 100-A:19-d