New Hampshire Retirement System achieves $1B in benefits and transitions to updated administration system

New Hampshire's pension system is set for significant improvements following a recent Senate Finance meeting, where officials reported a milestone of $1 billion in pension benefits paid to retirees and beneficiaries over the past fiscal year. This substantial financial support is expected to bolster local economies, as most recipients reside within the state.

The meeting highlighted the successful transition to a new pension administration system, which replaces a 20-year-old framework. This six-year project has been a priority, leading to the deferral of other important initiatives that the state plans to address in the upcoming budget for the next biennium.

Officials confirmed that the state continues to receive clean audit opinions for its financial statements, reflecting sound fiscal management. The ongoing efforts to amortize the unfunded liability, initiated in 2010, are showing positive results, with a steady decrease in the unfunded liability since 2020 and an increase in the funded ratio.

However, officials cautioned that any new legislative mandates for benefit increases could adversely affect the unfunded liability and lead to higher employer contribution rates. The meeting also provided insights into historical employer contributions across various groups, including firefighters, police, teachers, and state employees, noting a peak in contributions during the 2022-2023 biennium due to previously assumed lower rates of return.

Looking ahead, the board has certified decreased employer contribution rates for the fiscal years 2026 and 2027, indicating a positive trend in managing the pension fund. The state’s net assets have grown significantly, reaching $12.3 billion, even amidst recent market fluctuations.

In addition to financial updates, the meeting outlined ongoing initiatives aimed at enhancing operational efficiency within the New Hampshire Retirement System (NHRS). A new three-year strategic plan focuses on improving the pension administration system, increasing investment office capabilities, and enhancing cybersecurity measures to protect member information.

As New Hampshire moves forward, these developments signal a commitment to maintaining a robust pension system that supports retirees while ensuring fiscal responsibility and community economic health.