- NHRS provides a modest pension benefit. The average annual New Hampshire Retirement System pension benefit is just over $19,000 and 69 percent of our 30,000 pension recipients receive less than $25,000 per year. NHRS benefits are funded by member contributions, employer contributions, and investment returns. Investment income has historically provided about 60 percent of the funding. Over the past 20 years, NHRS investments have achieved an average annual return of 7.9 percent.
- 2. There is a plan in place to pay down the NHRS unfunded liability. NHRS has an Unfunded Actuarial Accrued Liability (“UAAL”) of approximately $4.6 billion. While some of the unfunded liability is related to investment performance in the past decade, a significant portion of the funding gap is the result of what proved to be poor public policy decisions made more than 20 years ago that have since been addressed. Despite the unfunded liability, NHRS retirement benefits are secure and there is an actuarially sound plan in place to address this liability and return the retirement system to full funding over the next 25 years.
- NHRS benefits support the New Hampshire economy. In the last fiscal year, NHRS paid out more than $570 million in pension benefits. More than 80 percent of retirees live in N.H. – and spend their money here. A 2012 study by the National Institute on Retirement Security determined that every dollar paid in pension benefits generates an economic output of $1.59 for the State of New Hampshire.
- [Source]; 2014
Report to the General Court, April 2014