Types of Benefits
Members must file for retirement benefits in order to receive benefit payments. Benefit payments do not commence automatically.
Retirees receive a benefit payment based on the type of retirement pension for which they applied: Service Retirement, Early Service Retirement, Disability Retirement, or Vested Deferred Retirement. Members with service in both Group I (employee and teacher members) and Group II (firefighter and police officer members) receive Split Benefits.
Retirees who participated in the additional contributions program as active members may also receive an additional benefit funded through those contributions. Eligibility ended December 31, 2004.
Method of Payment
Benefit payments are received on a monthly basis either as an Electronic Direct Deposit or a check.
Changes in Benefit Amount
Retirees may experience an increase in the pension amount when cost-of-living adjustments (COLAs) are granted by the legislature.
Health Insurance Premiums
Retirees may experience a change in the pension amount when there is a change in the health insurance premium amount, if the retirees have all or part of the cost of health insurance premiums deducted from the pension payment.
Medical Subsidy Payments
Qualified retirees who are eligible for the Medical Subsidy benefit may experience a change in the pension amount when subsidy benefit amounts change commencing July 1, 2012 and each July 1 thereafter.
Income Tax Withholding
Changes in retirees’ Federal income tax withholding may occur whenever benefit amounts change.
Group I Reduction at Age 65
Group I retired members (employees and teachers) will experience a reduction in their pension amount at age 65, based on the formula used to calculate Group I Service Retirement, Early Service Retirement, and Vested Deferred Retirement. Members who retire with Split Benefits will also experience a reduction on only the Group I portion of their pension amount at age 65.
Note: In all cases, pension benefits for members who commenced NHRS-covered employment on or after July 1, 2011, will be calculated using the age 65 reduction formula.