Trust Fund Assets

Trust Fund Balances

Special Account

Actuarial Valuations

Trust Fund Assets

Funding for New Hampshire Retirement System (NHRS, “the System”) pension benefits is derived from member contributions, employer contributions and trust fund assets. Funding is impacted by economic and demographic variables.

The System’s consulting actuary performs a biennial actuarial valuation to determine the amount of funds needed to provide future benefits for NHRS members. The actuary considers many variables such as the value of trust fund assets, the number of active members (members contributing to NHRS), the number of members in receipt of benefits, salary amounts and life expectancies. The actuary then makes projections of such variables (what those amounts and numbers are likely to be in the future) to determine how much NHRS will need to fund future benefits, referred to as “benefit obligations” or “pension liabilities”.

Member contribution rates are statutorily defined: Group I members (employees and teachers) contribute 7.0% of earnable compensation; Group II Police members contribute 11.55% of earnable compensation, and Group II Fire members contribute 11.8% of earnable compensation. Pursuant to statute, the employer normal contribution rates change, as necessary, to maintain a ratio of assets to liabilities calculated to be sufficient to provide NHRS future benefits.

The net assets of the System were valued at $5.8 billion as of June 30, 2012.

Net Assets Held in Trust for Benefits, 2007-12