This bill mandates that 75 percent of the state's biennial surplus be allocated to reducing the unfunded accrued liability of the state retirement system. The surplus funds will be transferred to the New Hampshire Retirement System (NHRS) once two conditions are met: the balance in the revenue stabilization reserve account must be equal to or exceed 10 percent of the general fund's unrestricted revenues for the most recently completed fiscal biennium, and the retirement system must report an ongoing unfunded accrued liability. The bill amends RSA 9:13-e, II to include a new paragraph (II-a) that specifies this allocation, and it also amends RSA 100-A:16, II(e)(1) to account for the reduction in unfunded accrued liability using the surplus funds.

The fiscal impact of the bill is indeterminable as the NHRS cannot estimate the amounts that may be paid to it under this legislation. Payments made to the NHRS could indirectly lower future employer rates. The Department of Administrative Services also states that they are unable to project the amount of future General Fund biennial surplus and therefore cannot calculate a fiscal impact. The bill includes deletions of unspecified text, indicating that certain existing provisions may be removed or altered, but the specific text of these deletions is not provided in the summary. The act is set to take effect on July 1, 2023.

Statutes affected:
Introduced: 9:13-e, 100-A:16