NHRS Employer Notification: HB 561 Implementation

Sep 19, 2018
  • Employers

For Immediate Release: September 19, 2018
Contact:  Marty Karlon, Public Information Officer, (603) 410-3594; [email protected]

CONCORD, NH – Legislation taking effect next year will change the laws governing New Hampshire Retirement System (NHRS, the retirement system) retirees who work part-time for retirement system participating employers. These changes also will impact how employers report retiree data to NHRS.

Under House Bill 561 (Chapter 293, Laws of 2018), NHRS retirees who take a part-time position with one or more retirement system participating employers on or after the effective date of the law (January 1, 2019) are allowed to work a maximum of 1,352 hours per calendar year.

The bill also contains a “grandfathering” provision that allows retirees who are already working part-time for NHRS participating employers prior to January 1, 2019, to work a maximum of 1,664 hours per calendar year for as long as they remain in the position(s) they held on the effective date of the bill. Employers, no later than February 15, 2019, are required to provide the names and position titles of any retired members employed on the effective date of the law.

Following the initial reporting of grandfathered retirees in 2019, employers will then be annually required to verify that these retirees remain in the same position as of January 1 of each calendar year, beginning in 2020.

The retirement system is developing new retiree reporting formats for employers related to these changes in two phases. The first phase, related to the initial documentation of “grandfathered” retirees, will be released in late fall. NHRS will schedule employer training sessions and provide written instructions on this process. The second phase, related to the annual reporting of retiree hours and the annual review of grandfathered retirees, will be released in the summer of 2019. NHRS will again schedule employer training sessions and provide written instructions on this phase of the process.

Additional information

The retirement system has developed a list of frequently asked questions (FAQ) concerning the changes to working after retirement, which is available at: https://www.nhrs.org/faqs/faq-part-time-employment-of-nhrs-retirees-(effective-1-1-19)

Here is an excerpt from the FAQ featuring answers to some common employer questions:

What is the new reporting requirement and when does it take effect? Annual reporting of retiree hours worked and compensation paid in the prior calendar year is due to NHRS no later than February 15 of the following calendar year. The first annual report will be due in 2020.

Is there any monthly employer reporting required with regard to NHRS retirees after January 1, 2019? No. The final monthly reporting requirement – for retiree hours worked and compensation paid in November 2018 – is due no later than December 31, 2018. No reporting for retiree hours worked and compensation paid in December 2018 is required.

In terms of eligibility for grandfathering, what constitutes being “employed on the effective date” of the law? To meet the definition of “employed on the effective date,” a retiree will 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.

If a retiree is working in a part-time position on the effective date of the law and later terminates employment, is the position grandfathered if another retiree is hired to fill it? No. The grandfathering applies to the specific retiree in the specific position.

Is an employer responsible for tracking all hours a retiree is working if the retiree works for more than one participating employer? No.

Should employers continue to track hours worked for retirees working part-time in positions that are not paid an hourly rate, such as substitute teachers, coaches or advisors paid a stipend, and for retirees in salaried positions? Yes. While weekly hours will no longer be reported, an accurate accounting of total hours worked in the calendar year is still required. In the absence of employer records, NHRS will consider that a retiree worked the same amount of hours as a full-time employee of the employer for every day worked.

About NHRS

NHRS provides retirement, disability, and death benefits to its eligible members and their beneficiaries.  The State of New Hampshire and nearly 470 local government employers participate in NHRS for their employees, teachers, firefighters, and police officers.  NHRS has approximately 48,000 active members and 35,000 pension recipients. NHRS administers a defined benefit plan qualified as a tax-exempt entity under sections 401(a) and 501(a) of the Internal Revenue Code.

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