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HB197 • 2026

relative to payment by the state of a portion of retirement system contributions of political subdivision employers.

relative to payment by the state of a portion of retirement system contributions of political subdivision employers.

Education Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Michael Edgar (D), Rosemarie Rung (D), Nancy Murphy (D), John Cloutier (D), Matthew Wilhelm (D), Debra Altschiller (D), Allison Knab (D), Dennis Malloy (D), Rebecca Perkins Kwoka (D), Chris Muns (D), Peggy Balboni (D), Cindy Rosenwald (D)
Last action
2026-01-07
Official status
HOUSE
Effective date
Not listed

Plain English Breakdown

The bill was marked as 'Inexpedient to Legislate' and did not pass into law.

State Helps Pay for Teachers' and Workers' Pensions

This bill requires the state to pay a portion of retirement system contributions for teachers, firefighters, and local police employed by political subdivisions starting in fiscal year 2026.

What This Bill Does

  • The state will pay 7.5% of the total pension contributions for group I (teachers) and group II members (firefighters and police) who work for political subdivisions starting in fiscal year 2026.

Who It Names or Affects

  • Teachers and workers in public safety roles employed by political subdivisions like cities or towns.
  • Political subdivision employers who will pay less towards pension contributions for their employees.

Terms To Know

political subdivision
A local government entity such as a city or town that operates under the authority granted by a higher level of government, like the state.
retirement system contributions
Money paid into a retirement fund to support benefits for employees when they retire.

Limits and Unknowns

  • The bill does not provide funding and relies on existing budget allocations.
  • It is unclear how the state will cover these costs in future fiscal years beyond 2028 without additional appropriations.

Bill History

  1. 2026-01-07 H

    Inexpedient to Legislate: MA RC 172-159 01/07/2026 HJ 1 P. 178

  2. 2025-11-17 H

    Majority Committee Report: Inexpedient to Legislate 10/30/2025 (Vote 14-11; RC) HC 51 P. 34

  3. 2025-11-17 H

    Minority Committee Report: Ought to Pass with Amendment #2025-2976h

  4. 2025-10-14 H

    Executive Session: 10/30/2025 10:00 am GP 230

  5. 2025-09-18 H

    Division I Work Session: 10/02/2025 01:00 pm GP 230

  6. 2025-03-04 H

    Retained in Committee

  7. 2025-02-12 H

    Executive Session: 02/18/2025 10:00 am LOB 210-211

  8. 2025-01-24 H

    Division I Work Session: 02/05/2025 10:15 am LOB 212

  9. 2025-01-15 H

    Public Hearing: 01/23/2025 10:00 am LOB 210-211

  10. 2025-01-08 H

    Vacated and Referred to Finance (Rep. C. McGuire): MA VV 01/08/2025 HJ 2

  11. 2025-01-07 H

    Introduced 01/08/2025 and referred to Executive Departments and Administration HJ 2 P. 10

Official Summary Text

relative to payment by the state of a portion of retirement system contributions of political subdivision employers.

Current Bill Text

Read the full stored bill text 
HB 197-FN - AS INTRODUCED

2025 SESSION
25-0019
06/05

HOUSE BILL
197-FN

AN ACT
relative to payment by the state of a portion of retirement system contributions of political subdivision employers.

SPONSORS: Rep. Edgar, Rock. 29; Rep. Cloutier, Sull. 6; Rep. Knab, Rock. 12; Rep. Muns, Rock. 29; Rep. Rung, Hills. 12; Rep. Wilhelm, Hills. 21; Rep. Malloy, Rock. 24; Rep. Balboni, Rock. 38; Rep. N. Murphy, Hills. 12; Sen. Altschiller, Dist 24; Sen. Perkins Kwoka, Dist 21; Sen. Rosenwald, Dist 13

COMMITTEE: Executive Departments and Administration

-----------------------------------------------------------------

ANALYSIS

This bill provides that the state shall pay 7.5 percent of contributions of retirement system employers other than the state for group I teachers and group II members.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Explanation: Matter added to current law appears in
bold italics.
Matter removed from current law appears [
in brackets and struckthrough.
]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
25-0019
06/05

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty Five

AN ACT
relative to payment by the state of a portion of retirement system contributions of political subdivision employers.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Short Title; Purpose.
I. This act may be known as the "Property Tax Relief Act of 2025."
II. This act renews a promise made by state to municipalities and restores the state’s contribution of a portion of the retirement costs of teachers, firefighters, and local police. Its purpose is to help ease the local property tax burden, provide property tax relief to the cities and towns, and enhance public education and public safety.

2 Retirement System; Employer Contributions; State Share of Contributions. Amend RSA 100-A:16, II(b) and (c) to read as follows:
(b) The contributions of each employer for benefits under the retirement system on account of group II members shall consist of a percentage of the earnable compensation of its members to be known as the "normal contribution," and an additional amount to be known as the "accrued liability contribution;" provided that beginning with state fiscal year [
2013
]
2026
and for each state fiscal year thereafter, any employer [
shall pay the full amount of such total contributions
]
other than the state, shall pay 92.5 percent of such total contributions, and 7.5 percent thereof shall be paid by the state; and provided further that, in case of group II members employed by the state, the state shall pay both normal and accrued liability contributions
. The rate percent of such normal contribution, including contributions on behalf of group II members whose group II creditable service is in excess of 40 years, in each instance shall be fixed on the basis of the liabilities of the system with respect to the particular members of the various member classifications as shown by actuarial valuations, except as provided in subparagraph (i).
(c) The contributions of each employer for benefits under the retirement system on account of group I members shall consist of a percentage of the earnable compensation of its members to be known as the "normal contribution," and an additional amount to be known as the "accrued liability contribution;" provided that beginning with state fiscal year [
2013
]
2026
and for each state fiscal year thereafter,
in the case of teachers,
any employer
other than the state, shall pay 92.5 percent of such total contributions, and 7.5 percent thereof shall be paid by the state; and provided further that, in case of teacher members employed by the state, the state
shall pay both normal and accrued liability contributions. The rate percent of such normal contribution in each instance shall be fixed on the basis of the liabilities of the system with respect to the particular members of the various member classifications as shown by actuarial valuation, except as provided in subparagraph (i).

3 Effective Date. This act shall take effect July 1, 2025.

LBA
25-0019
10/28/24

HB 197-FN- FISCAL NOTE
AS INTRODUCED

AN ACT
relative to payment by the state of a portion of retirement system contributions of political subdivision employers.

FISCAL IMPACT:

This bill does not provide funding.

Estimated State Impact

FY 2025
FY 2026
FY 2027
FY 2028

Revenue
$0
$0
$0
$0

Revenue Fund(s)
None

Expenditures*
$0
$28.00 million
$28.74 million
$29.51 million

Funding Source(s)
General Fund

Appropriations*
$0
$0
$0
$0

Funding Source(s)
None

*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill

Estimated Political Subdivision Impact

FY 2025
FY 2026
FY 2027
FY 2028

Revenue
$0
$0
$0
$0

Expenditures
$0
($28.00 million)
($28.74 million)
($29.51 million)

*The New Hampshire Retirement System states it is not able to separate the fiscal impact of this legislation between county and local government, therefore the fiscal impact is shown together as political subdivisions.

METHODOLOGY:
The bill requires the State to pay 7.5 percent of contributions of retirement system employers other than the State for group I teachers and group II members beginning in FY 2026. The New Hampshire Retirement System (NHRS) states the proposed change affects the pension contribution rate, but not the medical subsidy contribution rate. The NHRS indicates this bill does not impact the NHRS unfunded actuarial accrued liability (UAAL) or funded ratio because it does not change the total amount of employer contributions due to the retirement system, only the funding source. Because this bill shifts the impact from political subdivisions to the state the fiscal impact of this bill is an increase in general fund expenditures and decrease in political subdivision expenditures by $28.0 million in FY 2026 and $28.74 million in FY 2027, and $29.51 million in FY 2028. See tables below for more detail of fiscal impact.

Net Impact on State Employer Contributions

Expected Employer Dollar Increase (Decrease) Due to Proposal ($ in Millions)

FY 2025
FY 2026
FY 2027
FY 2028

Employees
-
-
-
-

Teachers
-
$18.61
$19.07
$19.55

Police
-
$6.00
$6.18
$6.37

Fire
-
$3.39
$3.49
$3.59

TOTAL
$0
$28.00
$28.74
$29.51

Net Impact on Political Subdivisions Employer Contributions

Expected Employer Dollar Increase (Decrease) Due to Proposal ($ in Millions)

FY 2025
FY 2026
FY 2027
FY 2028

Employees
-
-
-
-

Teachers
-
($18.61)
($19.07)
($19.55)

Police
-
($6.00)
($6.18)
($6.37)

Fire
-
($3.39)
($3.49)
($3.59)

TOTAL
$0.00
($28.00)
($28.74)
($29.51)

This bill does not appropriate funds to cover the expenditures in FY 2026 or FY 2027. Additionally, the costs for FY 2028 and forward would need to be included in the NHRS's operating budget.

AGENCIES CONTACTED:
New Hampshire Retirement System