Funding for New Hampshire Retirement System (NHRS, “the System”) pension benefits is derived from member contributions, employer contributions and trust fund assets. Additional benefits, such as COLAs, are funded through the NHRS Special Account. The status of funding is impacted by many factors including the expected (“targeted”) annual rate of return of NHRS investments versus the actual rate of return, as well as demographic assumptions versus actual demographics.

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 5.0% of compensation and Group II members (firefighters and police officers) contribute 9.3% of 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 $4.7 billion as of June 30, 2005.

  Target Asset Allocation

Employer Contribution Rates

Special Account

Actuarial Valuations

Annual Reports

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