Vested Deferred Retirement
Tier C: Group I (Employee and Teacher) Members hired on or after July 1, 2011
Eligibility for Vested Deferred Retirement
Even if a member’s active NHRS membership ends prior to eligibility for Service Retirement, the member may be entitled to a Vested Deferred Retirement pension from NHRS in the future under the following conditions:
- The member has a minimum of 10 years of Creditable Service when the member terminates active membership; AND
- The member does not withdraw his/her accumulated contributions from NHRS. (A member’s accumulated contributions are equal to the sum of all mandatory NHRS contributions deducted from a member’s compensation, any additional contributions and any contributions made by a member for purchases of service credit, plus credited interest.)
Pension Eligibility
Vested members who occupied an employee or teacher position and meet the conditions listed above will be eligible to receive a Vested Deferred Retirement pension at 65. Members with least 30 years of Creditable Service may receive a reduced allowance at or after age 60.
Pension Calculation
The benefit will be computed using the appropriate Group I Service Retirement pension formula when a member’s Vested Deferred Retirement pension begins at age 65 or older. The benefit will be computed using the Service Retirement pension formula and appropriate reduction factors when a member who has at least 30 years of service begins collecting a Vested Deferred Retirement pension prior to age 65. The allowance will be reduced by 1/4 of one percent for each month prior to age 65 the member receives an allowance.
Split Benefits – Service in Both Group I and Group II
Different provisions may apply to members with Split Benefits. Contact NHRS to speak with a Benefits Specialist.
Filing for Vested Deferred Retirement
Vested Deferred Retirement pensions do not begin automatically. In order to receive a Vested Deferred Retirement pension, members must file for benefits.
Death of Members Who Are Not in Active Service
If a vested member’s death occurs after active NHRS membership ends and before the member receives a pension, a refund of the member’s accumulated contributions will be payable to the member’s designated beneficiary(ies) or estate.