Retirees - Type of Plan
The New Hampshire Retirement System (NHRS, “the retirement system”) is a contributory public employee defined benefit pension plan qualified under section 401(a) of the Internal Revenue Code (Code) and funded through a trust which is exempt from tax under Code section 501(a). NHRS provides benefits to its eligible members and their beneficiaries upon retirement, disability, or death. NHRS retired members receive a lifetime pension. NHRS also provides a post-retirement Medical Subsidy to qualifying retired members. Members who are not entitled to retirement, disability or death benefits receive a refund of their accumulated contributions (member contributions plus interest).
Although benefits are funded by member contributions, employer contributions and trust fund assets, NHRS computes benefits on the basis of members’ Average Final Compensation and years of Creditable Service. Unlike a defined contribution plan, NHRS benefits provided to members are not dependent upon the amount of contributions paid into NHRS or the investment return on trust fund assets.