CONCORD – THURSDAY, on a party-line vote, the Republican-controlled Senate killed SB 364, a bill sponsored by Sen. Sylvia Larsen, (D-Concord), to create real pension reform for employees hired on or after July 1, 2011. Hard-working new public employees harmed by the disastrous retirement changes in 2011’s HB2 told their personal stories during the bill’s committee hearing. Today they came back to Concord in hopes to convince their Senators to vote for their families, for the economy, and against resource-shifting to the social services net.
“It’s a sad day in New Hampshire when our legislators refuse to listen to their constituents, kicking the can of real pension reform down the road again to burden a future generation. Our public employees deserve better than partisan politics being placed ahead of common sense and dignity.” said Laura Hainey, President of AFT-NH.
Chris Cummings, representing NH Troopers’ Association, noted the impacts this low new member benefit program is having on recruiting and retaining high-quality employees in the Granite State. “This bill would have given us an opportunity to compete for the best and brightest recruits to address today’s law enforcement challenges. With this vote, Senate Republicans have turned their backs on the public safety of New Hampshire.”
For more information on the New Hampshire Retirement Security Coalition, please visit nhretirementfacts.com and follow us @NH_RSC
Senator Larsen Comments on Senate Bill 364
CONCORD – Senator Sylvia Larsen released the following comments after the defeat of Senate Bill 364 which would create real pension reform for newly hired public employees.
“I am disappointed we could not get a Senate majority to help pass SB 364. This bill would not change the fact that new hires are now required to work longer, retire at an older age, and pay more for their retirement benefit. It does however, include a compromise in the form of a defined contribution plan for Group I, which until recently has long been opposed by workers. I believe this bill represents real pension reform.”
“I believe there were unintended consequences during the 2011 legislative changes to the New Hampshire Retirement System, that’s why I introduced Senate Bill 364. After reviewing data last year from the New Hampshire Retirement System, I came to the conclusion that the Legislature must act now or else there will be a substantial social cost down the road.”
The current retirement plan creates a future generation of impoverished public employee retirees. It will provide only 45-49% salary replacement in retirement. Experts say that all retiring workers whether in the private or public sector need to receive between 80-85% of your last working year’s salary. Current law leaves the average firefighter retiring in 25 years with only $34,000 and teachers averaging $24,000 in retirement pay. That’s hardly a liveable wage now, let alone 25 years from now”
“Under the changes made in 2011, retired police, firefighters, and teachers thirty years from now could qualify for social services. It’s unacceptable to think that firefighters – who don’t receive social security and who spent decades running into burning buildings – would now be forced to survive on food stamps. We know we have problem now and have the advantage of years to offset the shortfall,” said Senator Larsen. “If we don’t act now, the Legislature will be kicking the can down the road and hoping a future Legislature will find a way to foot the bill and avoid thousands of police officers, firefighters, and teachers living on social services.”
“By failing to address the problem now and pass real pension reform, we are pushing costs for the state and taxpayers further into the future.”