NHRS Working to Program Group II, Tier B Retirement Benefit Changes

The New Hampshire Retirement System (NHRS, the retirement system) is working to program changes to retirement benefits for Group II, Tier B members following legislation signed into law by Gov. Kelly Ayotte on June 27, 2025.

NHRS received the chaptered law on July 1 and met July 2 to analyze the statutory changes as the first step in the process of updating calculations in our pension administration software system. NHRS staff have received requests for new estimates of member pensions. At this time, we are asking members for their continued patience.

It will be a lengthy process to implement changes to the software system and to test the changes to ensure they produce accurate estimates. NHRS will implement and test the changes as quickly as possible so we can begin to provide estimates. We are not able to state when the programming changes will be complete, but NHRS will provide key updates on our website as they become available. Please know NHRS remains committed to providing secure retirement benefits and superior service.

Thank you for your patience and understanding.

Frequently Asked Questions (FAQs)

What does the new law change for Group II, Tier B members?

• 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 and increases the multiplier to 2.5% for all years of service once the member’s vested by date becomes effective. These changes were effective July 1, 2025, for members who were vested by January 1, 2013, and will be incrementally extended each July 1 over the next eight years beginning with those who were vested by January 1, 2014, effective July 1, 2026.
• Increases the maximum retirement benefit to the lesser of 100% of average final compensation or $145,000 for members who commenced service prior to July 1, 2011, and were not vested prior to January 1, 2012. This provision took effect July 1, 2025, for all Group II members.
• Amends the definition of Earnable Compensation to include payouts of accrued holiday and vacation pay as well as severance pay once the member’s vested by date becomes effective. These changes are effective January 1, 2026, for members who were vested by January 1, 2013, and will be incrementally extended each July 1 over next eight years beginning with members who were vested by January 1, 2014, on July 1, 2026.
• The benefit changes are not effective for members retiring prior to their applicable vested by date becoming effective if they return to service and re-retire at a later date. This is to prevent current retirees from obtaining the enhanced benefits by returning to service and re-retiring.

HB 282 – Group II (Police and Fire) Tier B+ Eligibility Dates

The following is a breakdown of when current Tier B Members will be eligible for the enhanced benefits provided under HB 282 and move to “Tier B+” status.

Does the law affect non-qualified service purchases for Group II, Tier B members?

We are reviewing our interpretation and implementation for HB 282 and how those changes coordinate with existing law, such as the Group II non-qualified service purchases under RSA 100-A:4, IX. We hope to have more definitive guidance in the near future.

Why are pension estimates not available now?

It will take considerable time and resources to reprogram the pension administration software system to incorporate these changes, conduct tests, and coordinate with employers to ensure accurate estimates.

When will pension estimates be available?

Given the extensive work to implement and test the updated system it is difficult to predict when the reprogramming will be complete.

How will members be alerted that NHRS is able to provide estimates for Tier B members?

NHRS will communicate the completion of our software reprogramming and availability of Tier B estimates on our website.