Labor & Employment (Retirement Benefits)

HB 727 modifies New Hampshire's retirement system for public employees, primarily affecting Group II members who are part of the state retirement system. It changes the vesting date from January 1, 2012 to September 1, 2013, and adjusts retirement benefit calculations. For members vested before September 1, 2013, it allows retirement at age 45 with 20 years of service (instead of age 50) and increases the benefit multiplier from 2.1%-2.4% to 2.5%. The bill also updates maximum retirement benefits: for members hired before July 1, 2011, the maximum is 100% of average final compensation or $125,000, and for those hired on or after July 1, 2011, it's 85% of average final compensation or $125,000.

HB 1471 updates the retirement benefit calculation for New Hampshire police and fire personnel (Group II members) who began service before July 1, 2011, and were not vested by January 1, 2012. It aligns their "average final compensation" formula with the method established in HB 2 (2025), limiting how extra pay (like overtime) is included in retirement calculations. Specifically, it caps the inclusion of special duty pay in the highest 5 years of service to match the average over the member’s last 5 years of service after January 1, 2012. This change has no new fiscal impact, as it implements an existing calculation method already approved in 2025.