New Hampshire Retirement System Revenue and Competitors

The New Hampshire Retirement System (NHRS, the retirement system) was established in 1967 as a contributory, public employee defined benefit pension plan qualified under section 401(a) of the Internal Revenue Code (Code) and funded through a trust which is exempt from tax under Code section 501(a). The plan provides lifetime pension benefits that are determined at retirement under formulas prescribed by law; the pension benefit is not based on investment returns or contributions. The retirement system provides Service, Early Service, Disability, and Vested Deferred Retirement benefits, as well as pre- and post-retirement death benefits. It also provides a post-retirement Medical Subsidy to eligible members and beneficiaries. Benefit formulas and eligibility requirements are set by state law (RSA 100-A). The retirement system is also governed by administrative rules, policies adopted by the NHRS Board of Trustees, and the Internal Revenue Code. NHRS benefits are funded by member contributions, employer contributions, and net investment returns. Investment returns have historically provided the bulk of funding for pension benefits.