Members with creditable service in both Group I (employee and teacher members) and Group II (firefighter and police officer members) may be eligible for a Split Benefit Retirement pension.

Eligibility

• Members who get a new job which results in a change in group classification (Group I versus Group II) will become contributing members of their new group classification. Upon eligibility, they will be entitled to a Split Benefit Retirement pension (Service, Disability or Vested Deferred), based on their service in each group classification.
• If the position that a member occupies is reclassified from one group to another by a governing authority, then the member will become a contributing member of the new group classification, and upon eligibility the member will be entitled to Split Benefits.
• If a member occupies a Group II position which is reclassified to Group I, and the member had held the Group II position for at least five years, then the member will continue Group II membership as long as the member holds that same position or a related position reached through normal career-path promotion.

Creditable Service
Members’ creditable service is based on their service in each group. For example, if a member worked as a teacher (Group I) for 10 years and as a police officer (Group II) for 11 years, that member will have 10 years of creditable service in Group I and 11 years in Group II. The member’s combined creditable service will be 21 years.

Average Final Compensation (AFC)
Members’ average final compensation is based on their entire period of NHRS service.

Split Benefit Service Retirement Pension
Minimum Age for Unreduced Pension
The Minimum Age as of which a member is eligible to receive an unreduced Split Benefit Service Retirement pension is as follows:

• For a member who has completed less than 20 years combined Group I and Group II creditable service, age 60.
• For a member who has completed at least 20 years combined Group I and Group II creditable service, age 60 minus one year for each year of the member’s Group II creditable service, but not less than age 45.

One may also refer to the  Split Benefits Minimum Age chart to determine eligibility for an unreduced Service Retirement pension.

Early Reduced Pension
With at least 10 years of combined creditable service, members may receive an early reduced Split Benefit Retirement pension commencing at age 45 or within 10 years prior to attaining their Minimum Age, whichever is later. The permanent reduction in the entire pension is based on how many years of combined creditable service members have, and how many years before their minimum age that the members retire.

The permanent reduction applied to a member’s entire Split Benefit Retirement pension is determined using percentages based on the member’s combined years of creditable service. The applicable percentage is applied for each year, or fraction of a year, that the member’s benefit commencement date precedes the first day of the month following the member’s minimum age.

For example, assume that a member’s Minimum Age occurs on November 15 of Year #2 and that the member elects to have his Split Benefits commence on April 1 of Year #1. The period for which the applicable reduction percentage would be applied is 20 months: April 1 of Year #1 to December 1 of Year #2.

Pension Calculation
Because Split Benefit Retirement pensions are based on members’ creditable service in each group classification, NHRS will determine members’ unreduced annual benefits in two “parts”. The Group I part will be based on the Group I formula for Service Retirement the Group II part will be based on the Group II formula for Service Retirement. The parts will be added together to give members their total annual pension amount.

Termination of Employment
Members with at least 10 years of creditable service who terminate their NHRS-covered employment before they are eligible to receive their Split Benefit retirement pension and do not withdraw their accumulated contributions will be eligible for a Vested Deferred Retirement pension at their  Minimum Age, or earlier as an early reduced Split Benefit. (A member’s accumulated contributions refer to the sum of all mandatory NHRS contributions deducted from a member’s compensation, any additional contributions Benefits, Additional Contributions and any contributions made by a member for purchases of service credit, plus credited interest.)

Members with less than 10 years of combined creditable service should contact NHRS.

Members who terminate their employment may not choose to take a refund of their accumulated contributions from one group classification and receive the pension that applies to the other group classification. Their contributions to the two groups may not be separated for benefit purposes.

 Split Benefit Estimate Worksheet
Members who meet the  Minimum Age for Service Retirement and who have 20 or more years of combined creditable service may calculate a basic estimate of their unreduced Split Benefit Retirement pension.

Relative Information:

Benefits for Beneficiaries after a Retiree’s Death
Benefit Payments
COLAs
Electronic Direct Deposit
Filing for Retirement
Health Insurance after Retirement
On-line Benefit Calculator
Pension Checks
Tax Implications
Working after Retirement

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