Please find below information specific to the COLAs, which may affect a retired member’s retirement benefit. 

Eligibility

Effective July 1, 2008 an eligible retiree who has been receiving a pension from NHRS for at least 12 months as of July 1, 2008 is entitled to receive a 1.5% increase up to the first $30,000 of the pension amount on the retired member’s latest anniversary date.  This increase will become a permanent addition to the retirement allowance and is retroactive to retiree’s most recent retirement anniversary date.
 

Any qualified beneficiary who receives a pension as the result of a retiree’s death would be eligible for the COLA. Any qualified beneficiary who receives a pension as the result of an active member’s death would also be eligible for the COLA.  COLA on survivorship benefits paid to more than one beneficiary will be paid on a pro-rata basis.

Examples
A member who retired on July 1, 2007 whose pension is less than $30,000, is eligible for the 1.5% COLA  granted on July 1, 2008. That retiree does not receive a retroactive adjustment, because July 1st is that retiree’s most recent retirement anniversary date.

A member who retired on March 1, 2007 whose pension is less than $30,000, was retired for 16 months as of July 1, 2008. Effective July 1, 2008, that retiree is eligible for the 1.5% COLA and a one-time retroactive adjustment of that COLA to March 1, 2008 (a one-time retroactive adjustment for March 1, 2008 through June 30, 2008), since March 1st is that retiree’s most recent retirement anniversary date.

A member who retired on March 1, 2008 is not eligible for the 1.5% COLA which became effective July 1, 2008 because that retiree had been retired for only four months.

COLA /Pension Payment
Retirees who are eligible for a one-time retroactive COLA adjustment will notice that the amount of their July pension payment is greater than the amount of subsequent pension payments. Further, any changes in the amount of a pension payment due to COLA increases and retroactive adjustments may affect the amount of any applicable Federal income tax withholding.

Additional Supplemental Allowance Payments

House Bill 1645 provides for the following three additional supplemental allowance payments:

1. Retirees with at least fifteen (15) years of creditable service at retirement and pensions of $20,000 or less on the retired member’s latest anniversary data will receive a one-time payment of $1,000.  To be eligible for the increase retirees must be retired at least twelve (12) months.
2. Retirees whose effective date of retirement was before January 1, 1993 are eligible to receive a one-time payment of $500.
3. Retirees who are in receipt of the NHRS medical subsidy are eligible to receive an additional supplemental allowance each year from 2008 through 2011 as follows:

• Medical subsidy recipients who are not Medicare eligible will receive

• $500 for a one person medical subsidy benefit
• $1,000 for a two person medical subsidy benefit

• Medical subsidy recipients who are Medicare eligible will receive
• $300 for a one person medical subsidy benefit
• $600 for a two person medical subsidy benefit

Two person subsidy benefit recipients may not receive more than $1,000 per year.

Members retired from State service and their beneficiaries are not affected by the changes in the Additional Supplemental Allowance section 3 above since the health coverage premium cost is borne by the State of New Hampshire.