This bill amends the New Hampshire Retirement System's definition of eligible compensation to include mandatory overtime as part of the full base rate of compensation. Specifically, the bill revises RSA 100-A:1, XVII(b)(1) to state that for members who have not attained vested status prior to January 1, 2012, the full base rate of compensation will now encompass mandatory overtime, as defined by the employer, in addition to other forms of compensation over base pay. The bill clarifies that non-mandatory overtime pay and other specified forms of compensation are included in the calculation of the base rate, while mandatory overtime must be reported as part of this base rate.

The fiscal note attached to the bill indicates that there will be an indeterminate increase in expenditures for the state, with projections up to $8.18 million in FY 2026 and up to $8.42 million in FY 2027. Similarly, political subdivisions may see an increase in expenditures up to $15.25 million in FY 2026 and up to $15.67 million in FY 2027. The New Hampshire Retirement System (NHRS) has worked with their actuary to estimate the fiscal impact, assuming all overtime service would be considered mandatory. The bill does not define what constitutes mandatory overtime, which may lead to increased pension benefits compared to current law. The NHRS also anticipates an indeterminable increase in administrative costs due to the reprogramming of the pension administrative system in FY 2025. The act is set to take effect on July 1, 2024.

Statutes affected:
Introduced: 100-A:1