SB 363: Nonqualified Service Purchase for Certain Group II Members

Legislation takes effect August 6

Jun 16, 2022
  • Legislation
  • Members

For Immediate Release: June 16, 2022
Contact:  public_relations@nhrs.org

CONCORD, NH – Legislation enacted in 2022 will allow active members who commenced Group II (Police and Fire) service between January 1, 2002, and June 30, 2011, to purchase nonqualified service time in order to reduce the minimum age and service requirements for retirement that were enacted in 2011.

The bill was signed by the Governor on June 7, 2022, and takes effect August 6, 2022.

Senate Bill 363 (Chapter 171, Laws of 2022) allows an eligible Group II member to purchase not less than one year nor more than four years of nonqualified service in order to reduce his or her minimum age and/or service to become eligible for service retirement to the previous minimum age of 45 with a minimum of 20 years of creditable service worked.

  • Members with at least 8 years but less than 10 years of service as of January 1, 2012, may purchase 1 year.
  • Members with at least 6 years but less than 8 years of service as of January 1, 2012, may purchase up to 2 years.
  • Members with at least 4 years but less than 6 years of service as of January 1, 2012, may purchase up to 3 years.
  • Members with less than 4 years of service as of January 1, 2012, may purchase up to 4 years.

Implementation of SB 363 requires significant computer programming and NHRS is unable to accept requests for service purchase cost calculations until the law takes effect.

Additional information about SB 363

  • The cost to the member to purchase nonqualified service is “the full actuarial cost of service credit determined by the actuary based on methods and assumptions recommended by the actuary and approved by the NHRS Board of Trustees.” (SB 363, lines 11-13)
  • Years purchased will have an annuity multiplier of 2.5%, regardless of what multiplier applies for the other years worked by the member.
  • Group II members who were vested prior to January 1, 2012, or who commenced Group II service on or after July 1, 2011, are ineligible to purchase nonqualified service. All Group I (employee and teacher) members are ineligible to purchase nonqualified service.

NHRS is developing a frequently asked questions (FAQ) document for SB 363, which will be posted on www.nhrs.org prior to the effective date of the law.

Full text of SB 363: http://www.gencourt.state.nh.us/bill_status/pdf.aspx?id=36960&q=billVersion  

About NHRS

NHRS provides retirement, disability, and death benefits to its eligible members and their beneficiaries.  The State of New Hampshire and more than 460 local government employers participate in NHRS for their employees, teachers, firefighters, and police officers.  NHRS has approximately 48,500 active members and 41,000 benefit 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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