Benefits for Beneficiaries
At retirement members must select one of the following benefit payment choices. For Group II members (firefighters and police officers), there may be other death benefits payable to beneficiaries. Different provisions apply to pre-retirement death benefits (benefits available to eligible beneficiaries of members whose death occurs while the member is in service).

Optional Allowances/Survivorship Options

Maximum Retirement Allowance
The maximum allowance payable to a retiree until his/her death. Upon the retiree’s death, the designated beneficiary(ies) will receive a lump sum payment of the amount, if any, of the retiree’s accumulated contributions at retirement reduced by the total NHRS Service Retirement benefits that the retiree received during his/her lifetime which were provided by his/her accumulated contributions and by the contributions of the employer.

Option 1
A reduced pension payable to a retiree until his/her death. Upon the retiree’s death, the designated beneficiary(ies) will receive a lump sum payment of the amount, if any, of the retiree’s accumulated contributions at retirement reduced by the total NHRS Service Retirement benefits that the retiree received during his/her lifetime which were provided solely by the retiree’s accumulated contributions.

Survivorship Options
At retirement, a member may select a reduced allowance under one of the Survivorship Options to provide a lifetime allowance to a beneficiary(ies). Beneficiaries under a Survivorship Option may include any one person or any number of the member’s children and/or the member’s spouse. Multiple beneficiaries under a Survivorship Option may not include anyone other than the member’s children and spouse. The amount of the reduction in the member’s retirement allowance will depend on which option was selected, the member’s age at the time of retirement, and the age of each primary beneficiary.

Option 2 – 100% Survivorship
A reduced allowance payable until the death of a retiree with up to 100% of the retiree’s reduced pension payable thereafter to the retiree’s primary beneficiary(ies) for life.

Option 3 – 50% Survivorship
A reduced allowance payable until the death of a retiree with 50% of the retiree’s reduced allowance payable thereafter to the retiree’s primary beneficiary(ies).

Option 4(A) –100% Survivorship “pop-up”
Similar to Option 2; however, if the beneficiary predeceases the retiree, the retiree’s allowance will increase (“pop up”) to the Maximum Retirement Allowance that the retiree would have received had he/she not elected a Survivorship Option. If the retiree chooses multiple primary beneficiaries, and one or more of those beneficiaries predecease the retiree, the retiree’s allowance will increase by a proportional share of the cost, based on the number of beneficiaries. If all of the primary beneficiaries predecease the retiree, then the allowance will increase to the Maximum Retirement Allowance.

Option 4(B) – 50% Survivorship “pop-up”
Similar to Option 3; however, if the beneficiary predeceases the retiree, the retiree’s allowance will increase (“pop up”) to the Maximum Retirement Allowance that the retiree would have received had he/she not elected a Survivorship Option. Refer to Option 4(A) for details regarding multiple primary beneficiaries.

Option 4(C)
A reduced allowance payable until the death of a retiree chosen by the retiree with an optional choice of percentage or a flat amount  benefit payable to the retiree’s designated beneficiary(ies), subject to NHRS Board of Trustees approval.

Primary Beneficiary Designations
Members may designate one beneficiary (primary beneficiary) or more than one beneficiary (multiple primary beneficiaries) under the Maximum Retirement Allowance or Option 1.

Under Survivorship Option 2, 3, 4(A), 4(B) or 4(C), members may designate one beneficiary (primary beneficiary), or members may designate any number of their children including their spouse as multiple primary beneficiaries; however, multiple primary beneficiaries under Option 2, 3, 4(A), 4(B) or 4(C) may not include anyone other than the member’s children and spouse. (Children, as multiple beneficiaries, are restricted to a member’s natural children, the member’s stepchildren and the member’s adopted children.)

Changes in Beneficiary Designations
Retirees may change their beneficiary designation under the Maximum Retirement Allowance or Option 1 at any time.

Retirees who elect a Survivorship Option may change their option selection or beneficiary designation in writing within 120 days after their effective date of retirement. Any changes submitted after the 120-day grace period will not be accepted. Also, retirees who designate their spouse as beneficiary under a Survivorship Option and later become divorced may cancel the option if their former spouse remarries.

Distribution Percentages
On the application for retirement, a member must specify a distribution percentage for each of the beneficiaries. A distribution percentage represents the portion of the retiree’s pension which would be payable to each beneficiary. The total combined percentages must equal 100%.

For example, if a retiree’s monthly pension is $2,000 under Option 3 - 50% Survivorship, and the retiree designates his spouse and child as survivorship beneficiaries, then the total benefit payable to that retiree’s beneficiaries would be $1,000 (50% of $2,000). The retiree must specify how that $1,000 is to be divided between his beneficiaries. The retiree could specify, for example, that 75% of the $1,000 be payable to his spouse ($750), and 25% be payable to his child ($250).

Other Death Benefits

Automatic Spousal Allowance
Upon the death of a retired Group II member (firefighter or police officer), the surviving spouse of such retiree will be entitled to a pension until remarriage or death, under the following conditions:

• The Group II member retired under Service Retirement or Disability Retirement.
• The retiree was married to the surviving spouse on the effective date of the retiree’s retirement.

The pension, payable until the qualified surviving spouse’s remarriage or death, will equal 50% of the retiree’s pension and is separate from a Survivorship Option.

This benefit does not apply to Group I members (employees and teachers).

Group II Lump Sum Death Benefit
The following death benefits are payable to the designated beneficiaries of retired Group II members (firefighters and police officers), based on the following eligibility requirements:

• If a member became an active Group II member on or before 6/30/1988, the retired Group II member’s designated beneficiary(ies) will receive $10,000 after the death of such retiree.
• If a member became an active Group II member on or after 7/1/1988 or on or before 7/1/1993, the retired Group II member’s designated beneficiary(ies) will receive $3,600 after the death of such retiree.
• If a member became an active Group II member after 7/1/1993, no lump sum death benefit will be payable upon the death of such retiree.

This benefit does not apply to Group I members (employees and teachers).

Maximum Benefit Limitations
Any allowance payable to a beneficiary, including a Group II Death Benefit, is subject to the limitations set forth in RSA 100-A:13-b and Internal Revenue Code Section 401(a)(9). The total allowance payable to a retiree’s beneficiary(ies) is limited to 100% of the retiree’s allowance.