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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