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AFT-NH

Legislative Update

June 9, 2008

In this issue:

ACTION NEEDED---- call, email or fax Governor Lynch!

Retirement update

It is time to put the pressure on Governor Lynch by telling him to sign HB 1436

It is imperative that you call (271-2121), send an email, or fax (271-7680) the Governor to tell him to sign this bill!

HB 1436 adds new language to RSA 273-A:12: “For a collective bargaining agreement entered into after the effective date of this section, if the impasse is not resolved at the time of the expiration of the parties’ agreement, the terms of the collective bargaining agreement shall continue in force and effect, including but not limited to the continuation of any pay plan included in the agreement, until a new agreement shall be executed.” The amendment clarified the definition of pay plan to refer only to step increases.

Please call Governor Lynch and let him know that he must sign this bill as a matter of fairness. Let him know that you will continue to work for new contracts and not use this bill as an excuse not to negotiate with your employers. The stakes are too high for you to let others act for you.

Retirement update

Both the House and Senate compromised, signed, and passed HB 1645.  Below is a short summary of the final bill.

The final step for this bill is for Governor Lynch to sign it.

Change in Retirement Age, There will be no change in Group II years of service.

Composition of Board of Trustees, There is no change to the existing board. However, several financial experts will be added to a subcommittee on investments, as the Senate had wanted. Employee representation will not change, nor will the number of board members. The chairperson of the system will be a voting member. 

Retiree COLA's , There will be a 1.5% terminally funded COLA. This will be added to a retiree’s base annuity. These COLAs will be paid on the first $30,000 of a pensioner’s annuity. There will be an additional $1,000 payment to retirees whose annuity is less than $20,000. There will be an additional $500 paid to those retirees who retired prior to 1993. The COLAs require about $50M of funding.

Medical Subsidy Allowances, Medical subsidies are frozen at the current level for the next 4 years. In 2012, there will be a 4% increase each year in medical subsidy payments. There will also be an additional payment to retirees who have worked for 15 years and participated in the NHRS of $500 for single pensioners and $1,000 for married pensioners (if you receive this benefit).

Allow keeping money in the system for non-vested members who terminate employment will earn 2% less than either the assumed rate of return or the actual rate of return, which ever is lower, but not less than 0%.

$250 million transfer from the Special account into the pension fund to pay for the medical subsidy.

Employer medical rates-- 25% employer rate will the lesser of the two, moving to the solvency amount.

Higher fiduciary duty language was added to apply to trustees and investment committee members.

Creation of a COLA and a health subsidy commission; each of these commissions will need to file a report with recommendations for any changes by December 2008.

If hired after July 2009, the maximum pension income will be $120,000 when retiring.

Regan amendment language, this applies to 125% of the following: When retiring, if the pension amount is over 125% of the average final compensation (over the highest three years) then the city or town will be billed separately to cover the cost of these items.

We have a much stronger voice when we are working together so it is very important to talk to you colleagues and encourage them to sign up for the “AFT-NH GET-ACTIVE” program at www.aft-nh.org. This way, everyone will receive updates on the retirement legislation and other important bills and be prepared to take action when needed. 

Together WE can make positive change for our members!

In Solidarity,

Laura Hainey

AFT-NH President

LEGISLATIVE ARCHIVES - 2006