New Hampshire lawmakers debate retirement bill impacting state employee benefits

State retirees in New Hampshire may soon have more flexibility in their work hours without jeopardizing their retirement benefits. During a recent House Executive Departments and Administration meeting, lawmakers discussed a proposed bill aimed at allowing retirees to work additional hours in special and extra duty roles without triggering a return to active employment status, which would pause their retirement payouts.

The bill has sparked a heated debate among legislators, with concerns raised about the fairness of how special and extra duty pay is treated for employees hired before and after July 1, 2011. Representative Sellers highlighted that the New Hampshire State Permanent Firefighters Retirement Association opposes the bill, while some police representatives voiced support. The committee ultimately voted 3 to 2 to move the bill forward for further discussion.

In addition to the retiree work hours bill, the committee also reviewed House Bill 581, which proposes a new Group 3 retirement plan for state employees hired after the bill's effective date. This plan aims to shift from a defined benefit to a defined contribution model, similar to 401(k) plans commonly found in the private sector. Proponents argue that this change could help attract younger workers who prefer the portability of defined contribution plans. However, opponents warn that it may undermine the state's ability to retain experienced public servants and could increase the state's unfunded liability.

As discussions continue, lawmakers are weighing the potential impacts of these changes on both current employees and retirees, with a focus on ensuring the long-term sustainability of the state's retirement system. The outcome of these bills could significantly reshape the landscape of public employment benefits in New Hampshire.