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Februrary 27, 2013 - Double Dipping
Mar 04, 2013

Local Presidents -

 

Please see below a press release from the NH Retirement Security Coalition highlighting a recent letter from Tom Loman, an Actuary from Bolton Partners discussing the negative effects and impact of double dipping on the retirement system and employer rates. Also, see two articles that picked up the story, one in the Nashua Telegraph and one from Seacoastonline. Lowman's letter is attached.

 

Please let me know if you have any questions.

 

Best,

Casey 

ARTICLES: 

Analyst: Double dipping unfair; PR disaster

http://www.nashuatelegraph.com/news/995044-469/analyst-double-dipping-unfair-pr-disaster.html

 

Public employee 'double dipping' blasted

http://www.seacoastonline.com/articles/20130227-NEWS-302270361

 

 

For Immediate Release:

February 26, 2013

Contact: Jennifer Keefe

603-953-5583

 

“Double-dipping” a common and costly practice

Actuary cautions about fiscal dangers of this “intentional policy”

 

Concord, NH – On Monday, February 25, Thomas Lowman of actuarial firm Bolton Partners provided to the New Hampshire Retirement Security Coalition his actuarial opinion that the practice of “double-dipping” is setting the state up for greater costs down the road. He included numerous reasons why employers who either hire more part-time positions than full time, or encourage full-time employees to retire and then hire them back part-time, are negatively impacting the overall state retirement system and the Unfunded Actuarial Accrued Liability.

“Encouraging employees to ‘retire’ sooner will cost employers more as the unfunded liability would be spread over a smaller number of people,” said Diana Lacey, President of the State Employees Association. “If employees are retiring earlier than the actuarially-projected age, those projections become skewed, increasing the total cost of the plan.”

Employers are required to pay pension costs for each full-time employee beneficiary of the retirement system, which per RSA 100-A:1 consists of employees, teachers, police officers, and firefighters.

“This simple provision in the statute is allowing an opportunity for employers to avoid paying pension costs,” said Scott McGilvray, President of the New Hampshire National Education Association. “This practice creates a disparity among employers and downshifts costs to those communities that play fair.”

Lowman suggests solutions such as lowering the number of hours allowed for part-time work – currently 32 hours; having the NHRS track all employees and payroll, and identify those positions that have traditionally been full-time covered positions that are being reduced to part time; and legal ramifications for employers who engage in this practice.

“Tom Lowman’s letter calls attention to this serious and growing problem of double-dipping and supports our desire to see this practice tracked,” said Trooper First Class Marc Beaudoin, Representative of the New Hampshire Troopers and Sergeants. “Legislation calling for such tracking has failed to gain ground, but we need a solution before these costs are passed on to even more future generations.”

 

Members of the NH Retirement Security Coalition:

New Hampshire Retired Educators Association

NE Police Benevolent Association

Teamsters Union Local 633

New Hampshire Troopers Association

American Federation of Teachers – New Hampshire

NH School Administrators Association

State Employees Association of New Hampshire – SEIU Local 1984

Professional Fire Fighters of New Hampshire

New Hampshire AFL-CIO

American Federation of State County and Municipal Employees Council 93

New Hampshire Police Association

NEA - New Hampshire

 


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IAFF Local 789
19 Elm St
Nashua, New Hampshire 03060
  603-888-4200

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