For Immediate Release: July 16, 2025
Contact: Rick Fabrizio, Director of Communications & Legislative Affairs, (603) 410-3594; public_relations@nhrs.org
CONCORD, N.H. — Two bills related to the statute governing the New Hampshire Retirement System (NHRS) were passed by the state Legislature during the 2025 session and signed into law by Governor Ayotte.
NHRS issues a notice to participating employers at the beginning of the legislative session about legislation that may have a cost impact on political subdivision employers. In addition, NHRS notifies employers if legislation with a cost impact is ultimately adopted.
One of the NHRS-related bills that was passed has a potential cost impact on future employer contribution rates:
1. HB 282, among other things not relevant to NHRS, amends RSA 100-A (NHRS’ governing statute) to restore some of the benefits for Group II, Tier B (Police and Fire) members that were reduced by changes enacted in 2011. Group II, Tier B includes members who were hired by July 1, 2011, but not vested by January 1, 2012. Key elements of the amendment are:
- Changes the age and service requirements and amends the definition of earnable compensation for members who were vested by January 1, 2013, and incrementally extends those changes to the remaining Group II, Tier B members over the next eight years.
- Reduces requirements for service retirement to age 45 with 20 years of creditable service from the current tiered system of ages 46 to 49 with 21 to 24 years of service.
- Earnable Compensation will include payouts of accrued holiday and vacation pay as well as severance pay.
- The maximum retirement benefit is increased to the lesser of 100% of average final compensation or $145,000.
- Extends the 2.5% annuity multiplier to all years of creditable service once the member’s vested by date becomes effective under the staggered eligibility schedule. The current multiplier is 2.1% to 2.4% for the first 15 years of service and 2.5% for creditable service beyond 15 years.
- Members retiring prior to their respective applicable vested by date will not be eligible for the enhanced benefits established by HB 282.
- Prevents current retirees from obtaining the enhanced benefits by returning to service and re-retiring.
The state appropriated $14.5 million for the fiscal year ending June 30, 2026, and will then appropriate $27.5 million each state fiscal year through 2034 to NHRS to fund the cost of benefits under this act. The bill also provides that the state will reimburse political subdivisions for employer contributions that are attributable to any increase in the “normal cost” associated with the benefit enhancements.
NHRS is analyzing the statutory changes created by HB 282 as part of the process of updating calculations in our pension administration software system and employer reporting requirements. It will be a lengthy process to implement the changes and ensure accurate calculations are generated. NHRS is not able to state when the programming changes and reporting requirements will be complete but will provide key updates on our website as they become available. NHRS staff are asking members and employers for their patience.
NHRS has prepared a list of frequently asked questions (FAQ) concerning HB 282: https://www.nhrs.org/about-nhrs/news/article/2025/07/07/nhrs-working-to-program-group-ii--tier-b-retirement-benefit-changes
The full text of HB 282 is available at: https://gc.nh.gov//bill_Status/pdf.aspx?id=16609&q=billVersion
2. HB 2, the budget trailer bill, contains two provisions relative to NHRS:
- Amends the Violent Accidental Disability Retirement benefit (VADR), by limiting benefits to members who were physically incapacitated in a way likely to be permanent and excluding mental injuries from the eligibility definition.
- Clarifies Group II membership in the retirement system for certain positions with the Department of Safety.
The full text of HB 2 as approved by the Senate and House is available at: https://gc.nh.gov//bill_Status/pdf.aspx?id=16613&q=billVersion
In the 2025 session, 17 bills related to NHRS were introduced. To view the NHRS Legislative Tracker for the session, see: https://www.nhrs.org/docs/default-source/legislation/legislative-tracker-2025.pdf
About NHRS
NHRS provides retirement, disability, and death benefits to its eligible members and their beneficiaries. The State of New Hampshire and more than 470 local government employers participate in NHRS for their employees, teachers, firefighters, and police officers. NHRS has approximately 48,900 active members and 45,500 benefit recipients. NHRS administers a defined benefit plan qualified as a tax-exempt entity under sections 401(a) and 501(a) of the Internal Revenue Code.
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