NH Retirement System asks House Finance for IT upgrades, new positions and funding tied to Group 2 benefit changes

The New Hampshire Retirement System (NHRS) presented its proposed two‑year budget to the House Finance Committee, citing operational needs after a major pension administration software upgrade and seeking staff and technology investments to support members and employers.

Jan Goodwin, NHRS executive director, told the committee the statutory administrative operating budget (which does not include investment-related costs) was $1.3136 million for FY25 in the materials she handed out; the system proposed budgets of $19.3 million for FY26 and $19.5 million for FY27 based on full staffing of board‑authorized positions. Goodwin said the increases are primarily driven by IT upgrades, modernization projects and salaries and benefits to support new positions aligned with a three‑year strategic plan.

Marie Mullen, NHRS director of finance, said NHRS completed a long‑running “pension gold” software upgrade and must complete overdue projects that were delayed during the multi‑year upgrade. She told lawmakers the board certified employer contribution rates for a two‑year cycle and reported an 8.8% return on investments in the last year.

Group 2 benefit funding: Committee members pressed NHRS on the group 2 retirement “enhancements” that appear in HB2 and the governor’s proposed budget. NHRS staff said the governor’s recommendation included $5.0 million in FY26 and $27.9 million in FY27 in general funds tied to proposed benefit changes for Group 2 (police and fire). Agency staff also noted that Senate and House budget columns reflect adjusted authorized levels and carry forwards and that staffing and raises account for much of the difference between 2024 actual spending and the FY25 adjusted authorized amounts.

Staffing and IT: NHRS said it currently has 78 positions and proposed adding nine positions in FY26 and three more in FY27, primarily in IT (security, cloud migration, project management and business analysis). The agency said some hires are temporary or consultant support for implementation phases but that several permanent positions are needed to maintain the modernized systems.

Funding sources and questions: NHRS staff told lawmakers the retirement trust reimburses administrative costs (the system is statutorily separate from the executive branch) and said most of the NHRS operating budget is paid from contributions and investment returns. Committee members asked for clarification about the source and mechanics of the governor’s proposed general fund additions and the relationship to a pending bill (Senate Bill 83) tying video lottery terminal revenue to retirement funding; NHRS said HB2 language would direct $27.5 million per year for 10 years to general funds for retirement, and staff assumed the $27.9 million figure in the governor’s books relates to that bill’s numbers.

Next steps: Committee members asked for further detail on staffing, which positions are permanent versus temporary, and clarification about the source of the governor’s numeric assumptions for group 2 funding. NHRS said it would provide follow‑up material and explained that pension-related general funds included in the governor’s budget are limited to Group 2 benefit changes described in HB2.