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Sandwich HRAC urges town to boost 457(b) contributions and educate employees on NHRS differences
Summary
The Human Resources Advisory Committee recommended the town increase employer contributions to its 457(b) plan to mirror NHRS participation and provide employee education on differences between NHRS (a defined-benefit plan) and the town’s defined-contribution plan; Selectman Heard requested more municipal comparables and data.
The Sandwich Human Resources Advisory Committee recommended that the town increase its employer contribution to the employee 457(b) plan to mirror participation in the New Hampshire Retirement System (NHRS) and provide education to employees about differences between NHRS and the town’s plan.
The recommendation, presented during the 4:00 PM work session, said the current NHRS employer contribution is 12.75 percent and is scheduled to decrease to 11.5 percent in 2027. Committee members told the board they want employees to understand how a defined-benefit plan such as NHRS differs from the town’s defined-contribution 457(b) option and to consider adjustments to the town’s contribution level.
Selectman Adam Heard questioned the comparison between a defined-benefit system and a defined-contribution plan, noting the difficulty of equating employer and employee impacts across plan types and expressing concern about employee appetite for significantly higher contribution requirements. Ms. Courtney Delaney reported she had collected data and noted 460 participants in NHRS overall; Heard asked that Delaney return with comparisons limited to similarly sized municipal employers rather than totals that include county and school district participation. Chair Joanne Haight asked the HRAC to return with a backup data sheet and additional background information; HRAC will meet in August to address follow-up questions.
No formal motion or vote was recorded on the recommendation at the July 13 meeting. The board discussed potential fiscal impacts to the town and directed staff and the HRAC to provide further municipal comparable data before any policy change is considered.
