Senate alters retirement system

"The New Hampshire Senate yesterday passed a comprehensive reform of the state retirement system, which would fundamentally change the benefits paid to public employees.

The 19-5 vote was along party lines. Republicans supported the bill; Democrats opposed it.

'This bill begins to make sure the retirement system is stable and viable for the people who depend on it,' said Senate Majority Leader Jeb Bradley, a Wolfeboro Republican and the bill's prime sponsor.

While city and town officials support the bill, labor unions have threatened to take the state to court, should it become law. Democrats and unions say the state can change the laws for new hires, but not current employees. They say the system's liability should be paid for by employers, since much of the unfunded liability comes from a previous formula that allowed employers to pay less then their share.

'What you're seeing is the equivalent of people capitalizing on the economic crisis . . . to abandon their share of responsibilities for the retirement system,' said Diana Lacey, president of the State Employees' Association."

Read more at the Union Leader.