Rep. Kevin Pratt

Maddy summaryHB 1653 amends state law to clarify how "earnable compensation" is calculated for certain public employees in the Group II retirement system who were not yet vested before January 1, 2012. The bill defines which types of pay, such as overtime and bonuses, count toward retirement benefits and establishes specific rules for limiting compensation during the highest earning years and the final 12 months of employment. It also sets an annual cap based on federal tax limits for some permanent firemen and policemen who joined the system after 1996. The legislation would have taken effect on July 1, 2024, but was ultimately not recommended for future action by the legislature.

Maddy summaryThis bill modifies how the New Hampshire Retirement System calculates average final compensation for specific Group II members who started service before July 1, 2011, and were not yet vested by January 1, 2012. Under the new rules, the calculation would cap the portion of extra pay included in the formula based on the average excess compensation earned during the member's last seven years of service, rather than their entire career history. The legislation is designed to adjust pension benefits for these particular employees without changing the state's overall funding requirements for the current fiscal year. A committee review in 2024 ultimately recommended against moving forward with this proposal.