For Immediate Release: December 1, 2023
Contact: Marty Karlon, Director of Communications & Legislative Affairs, (603) 410-3594; public_relations@nhrs.org
CONCORD, NH – A statutory commission created by 2023 legislation to study the impact New Hampshire Retirement System (NHRS, the retirement system) benefits have on the retention and recruitment of public employees has issued its final report.
The Retirement Benefits Commission, which was created in House Bill 2 (Chapter 79, Laws of 2023), made five recommendations.
Immediate recommendations:
- Increase the annual benefit multiplier for Group II (Police and Fire) members not vested prior to January 1, 2012, and future hires, to 2.5% for all years worked in excess of 10 years. Currently these members have benefit multipliers between 2.4% and 2.0%.
- Reduce the service requirement to be considered vested in the retirement system from 10 years to five years for Group I (Employee and Teacher) and Group II members.
- Amend the current Group II calculation of base compensation to include a member’s mandatory overtime.
Long-term recommendations:
- Continue to evaluate allowing part-time employees to contribute to the retirement system.
- Continue to evaluate establishing a regular cost-of-living-adjustment (COLA) for all members.
The recommendations are non-binding and will not result in immediate changes to RSA 100-A, the law governing NHRS. Legislation addressing the immediate recommendations will be introduced in the 2024 legislative session.
The commission report is available at: https://www.gencourt.state.nh.us/statstudcomm/committees/1642/reports/Retirement%20Benefits%20Commission%20Report%202023.pdf
A minority report was also issued and is available at: https://www.gencourt.state.nh.us/statstudcomm/committees/1642/reports/Retirement%20Benefits%20Commission%20Minority%20Report.pdf
The commission consisted of 15 members, including legislators, active members, and representatives of participating employers. The commission was chaired by Rep. Carol McGuire, chair of the House Executive Departments and Administration Committee. It was charged with reporting its findings and any recommendations for proposed legislation to the president of the Senate, the speaker of the House of Representatives, the Senate clerk, the House clerk, the Governor, and the state library on or before December 1, 2023.
A listing of commission members, meeting minutes, and other documents is available on the New Hampshire General Court website at: https://www.gencourt.state.nh.us/statstudcomm/details.aspx?id=1642%20&rbl=1&txtyear=2023
About NHRS
NHRS provides retirement, disability, and death benefits to its eligible members and their beneficiaries. The State of New Hampshire and more than local government employers participate in NHRS for their employees, teachers, firefighters, and police officers. NHRS has approximately 48,500 active members and 42,500 benefit recipients. NHRS administers a defined benefit plan qualified as a tax-exempt entity under sections 401(a) and 501(a) of the Internal Revenue Code.