For Immediate Release: September 11, 2018
Contact: Marty Karlon, Public Information Officer, (603) 410-3594; firstname.lastname@example.org
CONCORD, NH – The Board of Trustees of the New Hampshire Retirement System (NHRS, the retirement system) certified employer contribution rates for fiscal years 2020 and 2021 at its meeting on September 11, 2018.
Employer contribution rates for three of the four membership classifications – employee, police and fire – have decreased from the current rates, mainly due to strong investment performance over the five-year period ending June 30, 2017. Despite the positive investment experience, employer contribution rates for teacher members have increased slightly, primarily due to slower than expected teacher payroll growth and the continuing decline in the number of active teachers.
The Board’s certification of the 2020-21 employer contribution rates – mandated under state law (RSA 100-A:16, III) – formalized the draft rates that were developed by GRS, the retirement system’s consulting actuary, in the biennial actuarial valuation for the year ending June 30, 2017. The new rates will take effect on July 1, 2019, which marks the start of the 2020 fiscal year.
The New Hampshire Constitution (Part I, Article 36-a) requires NHRS Trustees to set actuarially sound employer contribution rates and requires employers to annually pay those rates in full. Employer rates are calculated every two years to reflect the cost of benefits as they accrue as well as pay down existing unfunded liabilities.
Employer contribution rates for the State of New Hampshire and for political subdivision employers are available on the NHRS website at: https://www.nhrs.org/employers/employer-contribution-rates
Political subdivision rates (printable copy): https://www.nhrs.org/docs/default-source/other/2020_2021_contribution_rates_municipal.pdf
State of New Hampshire rates (printable copy): https://www.nhrs.org/docs/default-source/other/2020_2021_contribution_rates_state_of_nh.pdf
In addition, NHRS has prepared answers to frequently asked questions on the new employer rates. The FAQ is available on the NHRS website at: https://www.nhrs.org/faqs/faq---employer-contribution-rates
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.
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