For Immediate Release: December 9, 2015
Contact: NHRS Member Accounting, 603-410-3683; firstname.lastname@example.org
CONCORD – The New Hampshire Retirement System (NHRS, the retirement system) member interest rate for calendar year 2016 will be 1.5 percent.
This interest rate is applied to a member’s accumulated contributions on an annual basis. Member accumulated contributions represent the total amount a member has paid into the retirement system throughout his or her career, plus credited interest; employer contributions are not included.
Pursuant to RSA 100-A:16 II (g), the annual interest rate on member accumulated contributions is set at 2 percentage points less than either the most recent Board of Trustees’ approved assumed rate of investment return – currently 7.75 percent – or the actual rate of return for the preceding fiscal year, whichever is lower; the law also states that the rate shall not be less than zero.
Because the NHRS actual rate of return for the Fiscal Year ended June 30, 2015, was 3.5 percent, the member interest rate for calendar year 2016 is 1.5 percent.
The change in the member interest rate does not affect the accrual of pension benefits for active members, which is based on service time and salary. It also does not affect benefits paid to current retirees and beneficiaries.
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 48,300 active members and 31,000 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.
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