HB 561 update: ‘Grandfathering’ of existing retirees

Nov 27, 2018
  • Employer Notices

For Immediate Release: November 27, 2018 
Contact: [email protected]

CONCORD, NH – Legislation passed in 2018 will change the laws governing New Hampshire Retirement System (NHRS, the retirement system) retirees working in a part-time position for retirement system participating employers. This will impact how employers report retiree data to NHRS beginning in 2019. 

There is a “grandfathering” provision contained in the law that allows retirees who are working part-time for NHRS-participating employers on the effective date of the law – January 1, 2019 – to work a maximum of 1,664 hours per calendar year for as long as they remain with the employer in the position they held on the effective date of the bill. To meet the definition of employed on the effective date, a retiree would have had to work at least one day for the employer in calendar year 2018 and remain employed on the effective date of the law.

In order for NHRS to effectively administer this provision, employers are required by law to provide the names and position titles of retirees in their employment to NHRS no later than February 15, 2019. The names and positions provided in 2019 will be used annually to verify that these retirees remain in the same position as of January 1 each calendar year, beginning in 2020.

NHRS is in the process of creating an online format to document grandfathered retirees. The grandfathering portal will not be available until after January 1, 2019. Once the programming is finalized in December, the retirement system will provide instructions with screen shots. In the interim, here is a general outline of how the process will work:

  •  Log into the Data Reporting System (DRS) and select the Retiree Reporting module, as you normally would to submit the current retiree reporting.
  • From the menu on the left side of the module, select “Set 2018 Grandfathered Flag.” You will see a table with the names of retirees on your payroll who were reported to NHRS between January and November 2018.
  • If the retiree is still working for you as of January 1, 2019, enter the position title and click the “grandfathered” box. Once all retirees have been entered, click Save. (Note: The retirement system will provide a copy of a formatted Excel spreadsheet to report additional grandfathered retirees not listed in the table.) 

For more information about this new law, click here.  

Employers with questions regarding eligibility or other administrative issues regarding the law can email [email protected] or call (603) 410-3592.

Note: The new law will eliminate the current monthly retiree reporting requirement. The final monthly reporting – for retiree hours worked and compensation paid in November 2018 – is due no later than December 31, 2018.
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