Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Retirement Cola topic
No spam. Unsubscribe anytime.
Committee hears hours of testimony on House Bill 536, a proposed permanent COLA for state retirees
Summary
House Bill 536 would grant a 1.5% permanent cost-of-living adjustment on the first $50,000 of retirement allowance for eligible New Hampshire Retirement System members; the committee heard detailed testimony from the bill sponsor, retirement-system staff, unions, firefighters and retirees and requested actuarial and fiscal follow-up.
The Executive Departments and Administration Committee held an extended public hearing on House Bill 536, a bill that would grant a permanent cost-of-living adjustment (COLA) of 1.5% on the first $50,000 of a retiree’s annual allowance for eligible members of the New Hampshire Retirement System (NHRS).
Sponsor Representative Jackie Groda told the committee the bill would give a 1.5% supplement on the first $50,000, equivalent to $750 on a $50,000 pension, and asked the committee to consider the policy question of whether retirees should receive a permanent COLA. She said the bill has appeared before the committee previously and that, historically, the legislature has sometimes substituted a stipend at the finance committee stage; in 2022–23 stipends were $500.
Mark Cavanaugh, deputy counsel and compliance officer for NHRS, provided fiscal and actuarial context. NHRS does not take a policy position but explained the projected ongoing employer contributions that would begin in FY2028: about $1.5 million for the state and $6.6 million for political subdivisions, reflecting increased normal cost and contributions. He explained that the bill’s terminal-funding language referencing the “state annuity accumulation fund” does not provide new funding and that the change would increase the system’s unfunded accrued actuarial liability (UAAL) by a present-value amount NHRS estimated at roughly $100.7 million.
Committee members pressed NHRS staff for details about how the cost affects municipal rates and the amortization of new UAAL layers. NHRS described how additional unfunded amounts are typically amortized as a separate layer over 20 years.
Public testimony included retired firefighters and representatives of public-employee associations who urged the committee to advance the bill. Speakers stressed retirees’ rising out-of-pocket costs for food, medical care and prescription drugs and argued the modest per‑person increase would be spent locally.
Opponents and cautious speakers raised concerns about long-term funding, the mechanics of terminal funding from the state annuity accumulation fund, and the fiscal impact on municipalities. NHRS and other witnesses answered numerous technical questions about normal cost, employer contribution rates, and how the UAAL would be amortized.
No formal committee vote on HB536 occurred at this session. The committee closed the public hearing and scheduled further work; NHRS provided a fiscal briefing and requested that actuarial details be made available to the committee for review by the pension subcommittee.
Ending: The committee closed the public hearing on HB536 and requested additional actuarial and fiscal analysis before taking a committee recommendation.
