For Immediate Release: October 20, 2025
CONCORD, NH – The New Hampshire Retirement System (NHRS) continues its work to program changes to retirement benefits for Group II, Tier B members (Police and Fire) following legislation signed into law in June 2025.
NHRS analyzed the statutory changes created by House Bill 282 as the first step in updating calculations in our pension administration software system. It will be a lengthy process to implement changes to the software system and ensure the changes produce accurate estimates. NHRS will complete the process as soon as possible.
NHRS staff have received member requests for new estimates, and we are asking for continued patience. We are not able to state when the programming changes will be complete but will provide key updates on our website as they become available.
Frequently Asked Questions (FAQs)
What does the new law change for Group II, Tier B members?
Eligibility Dates:
This chart shows when current Tier B members will be eligible for the enhanced benefits provided under HB 282.
Member Vesting Date Tier B Enhanced Benefits Eligibility Dates
January 1, 2013 January 1, 2026
January 1, 2014 July 1, 2026
January 1, 2015 July 1, 2027
January 1, 2016 July 1, 2028
January 1, 2017 July 1, 2029
January 1, 2018 July 1, 2030
January 1, 2019 July 1, 2031
January 1, 2020 July 1, 2032
January 1, 2021 July 1, 2033
January 1, 2022 July 1, 2034
Expanded Definition of Earnable Compensation:
Once the member’s eligibility date for enhanced benefits is reached, Earnable Compensation now includes:
- Holiday Pay
- Vacation Pay
- Pay for Unused Vacation Time
- Severance Pay
- Additional Pay for Instructional Activities
Simplified Retirement Eligibility & Enhanced Multiplier:
- Retirement eligibility is reduced to age 45 with 20 years of creditable service, replacing the previous tiered system of ages 46-49 with 21-24 years of service.
- The benefit multiplier increases to 2.5% for all years of creditable service once the member’s eligibility date for enhanced benefits is reached.
- These changes became effective July 1, 2025, for members vested by January 1, 2013.
Average Final Compensation (AFC):
- AFC will continue to be calculated using the highest five years of Earnable Compensation. However, the types of wages included in the AFC have changed.
- Once the member reaches their eligibility date for enhanced benefits, any Compensation Over Base reported will be calculated as Base Pay.
- As of January 1, 2026, Extra or Special Duty Pay (ESDP) will be reported separately from Compensation Over Base and shall be limited in the calculation. ESDP is now included, but only for the five highest years of creditable service.
Increased Maximum Retirement Benefit:
- The maximum benefit is now the lesser of 100% of AFC or $145,000.
- Applies to all members who began service before July 1, 2011, but were not vested before January 1, 2012.
Reemployment Restriction for Retirees:
- Any member who has already retired prior to July 1, 2025, cannot return to service and re-retire to qualify for enhanced benefits.