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Member Service Retirement
NHRS is a defined benefit plan, which offers its eligible members a lifetime pension. Retirement benefits are determined by a formula which considers two variables: a member’s salary credit (“average final compensation”) and a member’s service credit (“creditable service”). Although members and their employers make regular contributions to NHRS, those contributions are not variables in determining the actual defined benefit.
Group I Members (Employees and Teachers)
Group II Members (Firefighters and Police Officers)
Group I – Employee and Teacher Members
Group I members are eligible to retire at age 60 or older under Service Retirement. Different provisions apply to members with Split Benefits.
Eligibility – Service Retirement
- Group I member age 60 or older
- No minimum service required
Pension Calculation for Ages 60 – 64:
The following calculation is based on the maximum retirement allowance payable and does not include any applicable reduction under an Optional Allowance.
Pension Calculation for Ages 65 and older:*
The following calculation is based on the maximum retirement allowance payable and does not include any applicable reduction under an Optional Allowance.
*All Group I members will experience a reduction in their Group I pension amount beginning at age 65, based on the statutory formula used to calculate Group I pensions at age 65 and older. Historically the reduction was directly linked to a Social Security offset; however, the Social Security offset was eliminated, but a reduction at age 65 and older remains intact due to the current NHRS benefit provisions, pursuant to law.
Pension Calculation Example:
A Group I member retires with 30 years of creditable service at age 60 with an average final compensation of $30,000:
Pension calculation ages 60 – 64:
$30,000 divided by 60 = $500 multiplied by 30 years = $15,000 |
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Pension calculation ages 65 and older:
$30,000 divided by 66 = $454.54 multiplied by 30 years = $13,636.20 |
 Pension Chart – A chart that lists various Service Retirement pension amounts based on average final compensation and creditable service
On-line Benefit Calculator – An on-line calculator to generate a basic estimate of pension amounts
Filing for Retirement - Filing deadlines and requirements
Group II – Firefighter and Police Officer Members
Group II members may be eligible to retire under Service Retirement. Different provisions apply to members with Split Benefits.
Eligibility – Service Retirement
- Active Group II member age 60 or older
- No minimum service required
OR
- Active Group II member age 45 or older
- Minimum of 20 years of Group II creditable service
Pension Calculation
The following calculation is based on the maximum retirement allowance payable and does not include any applicable reduction under an Optional Allowance.
Pension Calculation Example:
A Group II member retires with 20 years of creditable service at age 45 with an average final compensation of $40,000
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2½% multiplied by $40,000 = $1,000 multiplied by 20 years = $20,000
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Relative Information:
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