Retirement Update 

On May 24, the Senate passed HB 653 with Amendment #1663 (the Burling Amendment) and HB 876.

**Active employees who have already filed for retirement should now have adequate information to help you decide if the time is right.  The bill just passed by the Senate will make some important changes to our retirement system.  But it will NOT change anything about the way retirement benefits are calculated.  You still can count unused vacation and sick time towards your average final compensation figures.  And your retirement benefits will still be calculated on your three highest years.  Please make your decisions based only on whether you want to retire right now.**

Highlights of HB 653

* The bill sets a July 1st 2.5% Cost of Living Adjustment (COLA) for current retirees.

* It also returns the Retirement System to the “Entry-Age Normal” method of accounting accrued liabilities, which will help ensure long-term viability of the pension fund.

* Retirement benefits will continue to be calculated the way they are now.

* The bill does NOT change the rate of contributions made by employees.

* Management representing the Local Government Center will have a trustee position added to the Board of Trustees for the New Hampshire Retirement System.

* The bill DOES repeal the option to purchase five years of non-qualified service credit.  That option will expire on June 30, 2007.  If you are interested in purchasing retirement credits, you should contact the New Hampshire Retirement System at (603) 410-3500 or toll-free (877) 600-0158 and start that process immediately.

Study Commission

The Senate also passed HB876, establishing a Study Commission to report on the long-term viability of the retirement system.  That Commission would issue its report by December 2007, and recommend changes that should be made to the system.  We expect that the Commission will focus on the procedure for funding COLAs.  

Next Steps

The two bills passed by the Senate were different than the bills passed by the House.  The House Executive Departments & Administration Committee leaders will consider whether to concur with the changes or send the bills to a conference committee.  We will keep you updated on the bills’ status.