The New Hampshire Retirement System: A Look Backward and Forward


Since 2007, backloaded amortization schedules and investment returns below the assumed return (mostly during the financial crisis) added to the unfunded liability for NHRS and increased costs.  However, because NHRS is a relatively small retirement system and employers do not contribute much toward the normal cost for ongoing employee benefits earned each year, total employer contributions to the System are relatively modest in comparison to the national average.  Given the relative affordability of current pension costs, the report suggests two changes to NHRS that would likely increase costs today but would reduce the risk that poor investment returns and/or a backloaded funding policy could significantly increase costs or reduce the funded ratio down the road.