For Immediate Release: April 12, 2018
Contact: Marty Karlon, Public Information Officer, (603) 410-3594; [email protected]
CONCORD, NH – The Board of Trustees of the New Hampshire Retirement System (NHRS, the retirement system) voted unanimously on April 10, 2018, to adopt a revised actuarial assumption for payroll growth for Group I teacher members in response to the continued decline in the number of active teachers.
When the Board adopted improved actuarial assumptions in May 2016, the teacher payroll growth assumption was set at 3.0%, lower than the 3.25% assumption for all other member groups (employees, police, and firefighters) to compensate for an anticipated 0.25% annual decrease in the number of active teachers due to the ongoing decline in the state’s school-age population. However, the number of active NHRS teacher members has decreased nearly 5 percent since 2008 and payroll growth has continued to lag expectations. The most recent state population projections from the New Hampshire Office of Strategic Initiatives show a declining school age population through 2025. As a result, the Board voted to reduce the payroll growth assumption for teachers to 2.75%.
The specific impact of this change on employer contribution rates for teachers will not be known until the fiscal year 2017 actuarial valuation is completed later this year, but it is expected to increase rates by less than 1% of covered payroll.
NHRS provides retirement, disability, and death benefits to its eligible members and their beneficiaries. The State of New Hampshire and nearly 470 local government employers participate in NHRS for their employees, teachers, firefighters, and police officers. NHRS has approximately 48,000 active members and 35,000 pension 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.
# # #