New Hampshire Supreme Court Upholds Benefit Changes

gavel

The New Hampshire Supreme Court has upheld several changes key to the state’s pension reforms passed since 2011.

At issue were the definitions of a cost-of-living adjustment and “earned compensation”.

State lawmakers altered the definitions of those terms as part of pension reforms, and the court has now upheld the new definitions.

The court ruling, coupled with a related ruling by the court last month, has big implications for New Hampshire pensions.

The biggest is that public worker pensions aren’t contractually protected from being altered – regardless of whether that alteration comes from raising employee contributions or outright benefit changes.

More from the Associated Press:

The New Hampshire Supreme Court has upheld some legislative reforms to the state retirement system, a month after upholding key provisions.

The court on Friday upheld changes to the definitions of “earned compensation” and Cost of Living Adjustments. It ruled the changes didn’t retroactively reduce pension benefits earned before a law was passed, and that employees don’t have a contractual guarantee that the terms of the plans will never change.

The ruling addressed a lawsuit by the American Federation of Teachers.

State Sen. Jeb Bradley of Wolfeboro said the decision clarifies the Legislature may adjust future pension benefits to safeguard the system.

The New Hampshire Retirement Security Coalition made up of teachers, police and firefighters, said it “unfortunately allows public employers to renege on their promise of security in retirement.”

The state Supreme Court ruled last month that employee contributions to the pension system can legally be increased, even for vested workers.

 

Photo by Joe Gratz via Flickr CC License

Appointments Made to New Hampshire Pension Reform Panel

board room chair

On Wednesday, New Hampshire House Speaker Shawn Jasper announced the formation of a 14-person panel to study the state’s retirement system and potential reforms.

Rep. Jasper has now also revealed who will populate the panel, called the Special Committee on Public Employee Pension Plans.

From Patch:

Veteran lawmaker state Rep. David Hess, R-Hooksett, will lead the Special Committee on Public Employee Pension Plans.

State Rep. John Sytek, R-Salem, will assist Hess as the vice chairman.

Also named to the new pension committee were state Rep. Neal Kurk, R-Weare; state Rep. William Infantine, R-Manchester; state Rep. Gary Azarian, R-Salem; state Rep. William Ohm, R-Nashua; Rep. Frank Byron, R-Litchfield; state Rep. Mark Proulx, R-Manchester; state Rep. Jeffrey Goley, D-Manchester; state Rep. Daniel Sullivan, D-Manchester; state Rep. Patricia Lovejoy, D-Stratham; state Rep. Dianne Schuett, D-Pembroke; state Rep. Len DiSesa, D-Dover; and state Rep. Frank Edelblut, R-Wilton.

[…]

The committee will also look at the funding of public employee pension plans and programs; eligibility for participation in and benefits under public employee pension plans and programs; and alternative public employee pension plans and programs.

The New Hampshire Retirement System was 66 percent funded at the end of fiscal year 2013-14. The system manages $7.41 billion in assets.

Top New Hampshire Lawmaker Forms Pension Reform Study Committee

New Hampshire

New Hampshire House Speaker Shawn Jasper is forming a 14-person panel to study the state’s retirement system and potential reforms.

The committee was announced Wednesday. More from the Associated Press:

House Speaker Shawn Jasper is making pension reform a priority of the new legislative session by creating a 14-member committee to study the system that provides retirement benefits for public employees.

New Hampshire’s public pension system faces a $4.5 billion unfunded liability and Republicans want to reform the system. Jasper announced the committee Wednesday and appointed Rep. David Hess, a Hooksett Republican, as chairman.

The committee is made up of nine Republicans and five Democrats. The committee is tasked with studying how the program is funded, eligibility and ways to modify the system.

The state Supreme Court recently upheld changes made several years ago that increase the contribution rates for state employees.

The public pension system covers about 50,000 active and 30,000 retired workers.

The New Hampshire Retirement System was 66 percent funded at the end of fiscal year 2013-14. The system manages $7.41 billion in assets.

 

Photo credit: “Flag map of New Hampshire” by LGBT_flag_map_of_New_Hampshire.svg. This file was derived from:LGBT_flag_map_of_New_Hampshire.svgFlag_of_New_Hampshire.svg. Licensed under CC BY-SA 3.0 via Wikimedia Commons