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Board of Aldermen 6-23-2020 Page 46

So Madam President, thank you for —| could not say this because — and let me clearly say if | had my
chance to vote | would have voted for that contract. It was duly negotiated and fairly by the City and the
Local. By due to my son, the reason is that my son is on the Fire Department and because of - | challenge
and | will challenge the future of my vote because | got elected to vote. And | feel that Charter needs to be
changed that we all vote.

Some of us have other things that we are close ties. Many members of this Board were on the School
Department, yet they strongly support the School Department, | do as well. But to say that where you were
on the School Board, does that affect you and your way of thinking. | think right now the Charter is a little bit
too tight and too restrictive on that. And | do have the common sense in my 35 years of experience of
firefighting to make an informed decision on what we qualify is adequate fire protection for the City.
Unfortunately, the Charter did not allow me to express my opinion. So Madam President, thank you for this
opportunity to speak, thank you.

President Wilshire
You bet. Alderman Klee.
Alderman Klee

Thank you, Madam President. | wanted to make a comment that actually has little to do with this, our
meeting today and yet in some respects does. Last night the county met and we did our Budget for the
County and | am really happy to say that we passed a budget that is increased but there will be no tax
increase. So nothing will be coming down to the residents here in Nashua or actually anywhere in our
County anyways. We were able to do a zero increase on the tax rate so that’s one tiny little bit of help for
our taxpayers, thank you.

Alderman Lopez

So | guess first | just want to comment that | agree with Alderman O’Brien, | wish | had some of the
information that he has in the conversation. | think | was one who started the parity aspect because |
understood some of the earlier comments to be saying that there were goals that the firefighters were trying
to reach. But | don’t know what those are, | am not aware of a strategic funding plan or anything like that.
So | did not have all of the information that | needed in that particular area, so | think set everybody off on a
wild goose chase. My impression was that there was an understanding that there’s certain levels the
firefighters were trying to reach and that they were potentially able to work somewhere else and | did not
understand exactly what was being referred to. So | apologize, the only information that | really had to work
with was Alderman Jette’s numbers. | appreciate the work that he did in researching it and | had no doubt
when they were brought up that he would have them sitting on the desk.

So there is plenty of good information that was shared, although | don’t think | had a complete picture. So |
have received plenty of letters and e-mails regarding how important it is for the firefighters to be
compensated in Nashua and the importance of their job and even some stories of people that | Know being
pulled out of fires. But | didn’t hear that part; the goals and what they are trying to do and how this might
affect their cost of living and that kind of stuff. So! would appreciate that being sent in my direction so that
whatever negotiation process happens between the Fire Commission and the Union, | am able to approve
it. Because as far as | am concerned, | am not in the negotiation process; | get whatever their agreement is
sent here. | don’t think the Mayor was particularly in favor of it, he made some reasonable points about
funding. | never really disagreed over whether the Fire Department deserved a certain level of pay; my
concern was whether we would literally have it if other issues started to come up over the next couple of
months that we can’t anticipate.

So | don’t know when that’s going to happen, | do know that the negotiation can continue at least in the
appeals format. So | would like to see that come back and figure out what to do with it when that does. |
would like to make some comments to the public.

Board of Aldermen 6-23-2020 Page 47

There were some pretty recent announcements made with regards to COVID-19 and how it behaves in
Public Health fields and in Medical Fields where a number of medical studies that typically take a long
amount of time and don’t happen, you know, happen long before outbreaks of new diseases hit the US,
were still taking place. So we still don’t really know exactly what COVID-19 even does to your system. |
was looking, based on some of these papers, more like it attacks your arteries, your blood system, your
heart and there are neurological impacts too that you can COVID-19, you can be asymptomatic and you
could still have long-term impact.

You can get COVID-19 and you are not immune a couple of months later. There are still a lot of really
strange things going on with this disease and as much as we have been working to support businesses and
get people back out into downtown and working, where we go from here is probably going to be a result of
how people treat that situation. | know that it’s very hot in the kitchen and that people working in the
kitchen don’t like to wear masks. | know that other people may take their masks off or lose them or find
them uncomfortable and all | can say is that the two states that had the highest numbers of fatalities and
infection, now have the lowest transmission rate explicitly because they have face mask ordinances. New
York and Massachusetts have basically stopped it in its track and are very effectively managing what was a
catastrophic situation, because they are taking that step. So earlier we were talking about Dancing in the
Streets, | was like, “I’m not going to go”. | have that opinion and | am not going to go into any crowds right
now if | can avoid them. | am going to be very careful with how | wear my mask. | don’t even take it off
when | am walking down Main Street; that is a personal choice, that’s not required by the Ordinance. But |
don’t know who is going to come walk up to me randomly and start talking to me. And more than once it
has been somebody coming up to say, “hey you don’t need to wear your mask on the sidewalk” and I’m
like, “well now | do, like back up a little”.

So we are still learning a lot and | know people are frustrated with this they are really exasperated but you
need to be listening to public health officials. You can’t be debating with them all the time. You need to
listen to restaurant owners who are trying to maintain their business. | don’t want to see restaurants close
again and | don’t want to see another period of lock down. | don’t think we can handle it. So | just ask
everybody to be very careful with you are treating it.

And then also | don’t know if the other Aldermen are experiencing this, but fireworks are booming literally.
With the Fire Department pay being negotiated, | feel like it’s only fair not to put them in a situation of
dealing with more fire danger than necessary. If people could show a little bit more consideration about
how they are celebrating randomly, | think it would be well appreciated by many. | would like to point out
that the 4" of July Fireworks run by the City are cancelled and that means there’s no schedule for veterans
or people with PTSD to be aware that they need to be shielding the ears or doing something or distracting
themselves. So popping off fireworks at 3:00 in the morning or whenever you feel like it, there are people
living all around you and it’s not fair to them.

So | appreciate all the patience everybody has had up to this point with the COVID-19. | think largely our
results here in New Hampshire where we haven’t had any community-based transmission really, we’ve just
had outbreaks in the long term care facilities, that was you. That was because you went home and you
stayed home and you made sacrifices. | don’t want it to be for nothing. | mean | know that everybody has
the instinct that they just want to move on but | don’t think we are ready to do that yet. Thank you.

Alderman Clemons

Thank you, Madam President. So a little bit of a lighter note to go with what Alderman Lopez just said. |
was in a gas station the other day and these two guys, workers whatever, were in there. And they didn’t
have a mask and the attendant said, “Oh can you please put your mask on” and he said, “Oh | thought we
were in New Hampshire” and we didn’t have to do that. And she explained “Oh we have a City Ordinance”
and the guy said, “Oh well | guess that’s better than Mask-achusetts”. And | thought that was kind of funny
because people tend to think that New Hampshire is a little bit more of the Live Free or Die but there is a
reason that they call Nashua, Nashua-chusetts. So | just thought that was amusing.

Board of Aldermen 6-23-2020 Page 48

But | will say that | was disappointed with the vote this evening, | thought we had a fair contract in front of
us. We had folks like Don Davidson a Fiscal Conservative himself supporting the contract. You had lots of
people that from all sides really, saying that it was a fair deal and that it is a shame that it went down.,
particularly because we put money into the Budget to support that. We would have been able to fund it for
this year. We will see what the Mayor does, if he is going to Veto the Budget and have that come back to
us, | guess that remains to be seen.

| was proud of the work that the Budget Committee did, | think that we definitely took a Budget that was
pre-COVID and we really pared it down by almost $2 million dollars out of it. | think that, you know, that’s
not an easy task. | was happy that the Police Department is going to be fully funded and they are going to
have their employees that they need. We didn’t de-fund the Police in Nashua, we funded the Police in
Nashua and | am proud that we did that.

We also took care of our School Department and we put some money, lots of money in there, we got
money from the State. They are going to hire 17 new employees. | hope that those employees stay on
next year considering we are going to be facing a 7% tax increase and it seems most of the Board is
worried about next year. | happen to think that they will make it through. But | was very disappointed in the
fact that while we took care of our Police Department and we took care of our School Department, we
neglected the Fire Department. | thought that was a shame. | hope that when they go back to the
negotiating table, as far as the Budget is concerned, we put $1 million dollars, over a million dollars in
contingency there for negotiations so there’s some money to work with and hopefully they can come up
with a deal that uses that money and get some well needed raises to get those folks what they deserve.
Thank you very much.

Alderwoman Kelly

Thank you, Madam President. So | have just a few remarks, | know it’s getting late here. | wanted to first
thank you for taking into consideration changing the format so that we could take public comment virtually.

| think it worked out well and | appreciate you making that adjustment for everybody. Secondly, | wanted to
say thank you to Great American Downtown for an amazing first Farmer's Market. There were a ton of
Nashuans out just enjoying what was put on there and there were plenty of complimentary comments
around the new location by City Hall. So that was a really great event, | am looking forward to — | think it’s
like 17 more weeks. So make sure you come out on Sundays 10 to 2 at the City Hall Plaza. There are
plenty of really great vendors.

Lastly, the Pride Committee is really proud to be able to put on a virtual pride this Saturday from 2 to 4. It
will be available through our Facebook as a livestream. It will be on Nashua Community Television Channel
16, Access Channel 96 and through the City of Nashua Web Site as well. Don’t miss it, there’s an
incredible group of people who have come forward from speakers to talent and it just going to be an
incredible event, so | hope you all can tune in.

Alderwoman Lu

Thank you, Madam President. | just have three comments I'd like to make. First of all, some of the
correspondence we’ve received (audio cuts out) meetings, correspondence has concerned me, particularly
regarding the Assessor's Department. And | wonder if it would be a good time, we haven’t had an update
from the Assessor's Department in awhile and | wonder if we could hear from them possibly at the next
meeting.

| just wanted to comment on the concer, | really wish that Alderman O’Brien had been able to express his
arguments prior to the vote. It would have been (audio cuts out). | also just want to express that
unfortunately, you know, | hate hearing that the Fire Department had to work without proper equipment, the
proper masks. But | think that is an argument, you know, a complaint that’s reasonable, but not really a
basis for a raise. Certainly we should try to make that not happen in the future. Thank you.

Board of Aldermen 6-23-2020 Page 49
Alderman Jette

Yes, thank you, Madam President. | too want to thank you and compliment you for arranging for public
comment. It was kind of disappointing that nobody from the public, | don’t know if they couldn't figure out
how to do it or just weren’t interested, just a couple of employees who took advantage of it. But thank you
for doing that.

Also, | took Alderman O’Brien’s invitation to look more closely at Manchester and | know he’s going to
accuse me of comparing apples and oranges again, maybe this is a grapefruit. When | look at the total
budget for Manchester’s Fire Department, it is $21 million dollars. Nashua’s is $27 million dollars. So we
are spending $6 million more on our Fire Department than Manchester is. | don’t pretend to know what the
significance of that is | just find it interesting. And | am sure that the Firefighters an the Union and the
Commissioners will, in the future, provide us with more data more information about wages and why they
feel that they are being unfairly compensated; and | look forward to hearing that. Thank you.

Alderman Tencza

Madam President, sorry just very quickly and | am disappointed by the comments about not having more
information about the Fire Fighter's Contract because there was a much longer public hearing where a lot
of that information was shared with us, not specifically as it relates to Alderman Jette’s concerns about
comparing the different cities and towns. But! mean I'll just say that | think the point of our meetings are
not to rehash everything that is said in the Committee meetings, but | think it would behoove members of
the Board if there is an important or something that they have questions about and look at the work that the
Committee did especially in this case where there was a negative recommendation by the Committee,
because | think that might have answered a lot of folks questions on this issue, at least. Thank you.

Alderman Cleaver

Yes, | would like to say that year after year Nashua is recognized as one of the safest cities in the country.
There’s two really good reasons for that: one is our excellent Police Department. They do a fantastic job
and everybody recognizes that. And the other reason, of course, is the Fire Department, they do an
equally great job and | am very disappointed in the outcome of the vote. | think they deserve this contract,
they negotiated in good faith with the City and we don’t want to rehash that again. But! just wanted to point
out that parity is a good thing, there’s no reason why the Fire Fighters who face the dangerous job should
not be near parity with the Police Department. | don’t think that should be a negative at all.

The other thing that | wanted to point out having created a lot of road races and events over the years, the
Police get detail money over time money a lot with construction and other things. Firefighters don’t have
that opportunity, even though they might be called out for a broken leg or whatever happens during the
event, they don’t get money for the details. That makes a lot of extra money for the Police Officers, which
they deserve. But when you look at parity, there’s a lot of different angles to look at. So thank you very
much.

President Wilshire

| just want to say that this was a difficult vote for me, I’ve always been a supporter of our Fire Department. It
wasn’t about the Fire Department, my vote — it was about the affordability of a contract, no matter whose it
was. | have the utmost respect for our Fire Department.

Alderman Harriott-Gathright

| too was sort of disappointed with the decision that was made tonight, because | remember when the Chief
talked about, you know, the training and all that our firefighters get that basically it doesn’t mean that those

other fire departments are getting that same type of training and on the job type of training as well as going

away for training.

Board of Aldermen 6-23-2020 Page 50

And | think that the equipment that they are afforded each year, because we do give equipment and
everything, that it also helps with the firefighters and what they have to do. The fact that they are also used
by other cities, they help wherever necessary, | just feel that we sort of let them down. And | do understand
the issue around money, that | do understand very well. But! also heard all the testimony over several
years how we have not given them. And with that said, | think that we all should be ashamed of ourselves
because it is just snowballing over and over again. | can’t say exactly where the money is supposed to
come from or what we need to do, but we have done an injustice to them not just this year but previous
years. Thank you.

Committee announcements:

Alderman O’Brien

Thank you, Madam President. As you know, we have a Special Board of Aldermen Meeting tomorrow
night and immediately following we are going to jump right in to Infrastructure. Many of the things that are
on the Agenda for the Special Aldermen’s Meeting will be discussed immediately afterwards in the
Infrastructure Agenda. So please, stick around. You are more than welcome. Also to the public, what is,
we are expecting a presentation from Director Marchant for renovations to the Transit Center Plaza located
at 30 Elm Street behind City Hall. The renovations will include the updates for the plaza, the transit center
building and bus platform. So any of our citizens that use that facility, please tune in tomorrow night and
catch the presentation. And the meeting is at 7:00 correct? Thank you.

Alderman Dowd

Yes, Thursday night Joint Special School Building Committee Meeting, 7:00 — on-line meeting. | just
wanted to quickly state that we have commenced work at Fairgrounds Middle School. If you by there, you
will see the construction trailer, the area has been marked off for the portables that will be needed and they
are in the back of the school and they will be starting with the new security enhancements in the front of the
school. And very shortly thereafter we will be moving over and starting at Pennichuck as well. So a lot of
work going on and we will be approving some vendors contracts Thursday night.

Alderman Tencza

PEDC will be meeting Monday night, it’s actually a public hearing to discuss the Ordinance relating to
umbrellas on Main Street.

ADJOURNMENT

MOTION BY ALDERMAN O’BRIEN THAT THE JUNE 23, 2020, MEETING OF THE BOARD OF
ALDERMEN BE ADJOURNED BY ROLL CALL

A viva voce roll call was taken to adjourn the Board of Aldermen meeting which resulted as follows:
Yea: Alderman O’Brien, Alderman Klee, Alderwoman Kelly, Alderman Dowd,

Alderman Caron, Alderman Clemons, Alderman Lopez, Alderman Tencza,

Alderwoman Lu, Alderman Jette, Alderman Schmidt, Alderman Cleaver,

Alderman Harriott-Gathright, Alderman Wilshire 14
Nay: 0
MOTION CARRIED

The meeting was declared adjourned at 11:06 p.m.

Attest: Susan K. Lovering, City Clerk

AGENDA MEETING OF THE BOARD OF ALDERMEN JUNE 23, 2020

Meeting is being conducted remotely in accordance with Governor’s Emergency Order #12 pursuant to Executive
Order 2020-04

To join by Zoom meeting: https://usO2web. zoom. us//85494245358 ?pwd=cU42NUJhd2JVZ3EvOEd1Y 3pTV3RjUTO9
Meeting ID: 854 9424 5358

Password: 091623

To join by Zoom telephone: 1-929-205-6099

Meeting ID: 854 9424 5358

Password: 091623

If anybody has a problem accessing the meeting or Channel 16, please call 603-821-2049 and they will help you
connect.

1. PRESIDENT LORI WILSHIRE CALLS ASSEMBLY TO ORDER

2. PRAYER OFFERED BY CITY CLERK SUSAN K. LOVERING

3. PLEDGE TO THE FLAG LED BY ALDERWOMAN ELIZABETH LU
4. ROLL CALL

5. REMARKS BY THE MAYOR

6. RESPONSE TO REMARKS OF THE MAYOR

t. RECOGNITIONS

8. READING OF MINUTES OF PREVIOUS MEETINGS

Board of AIDErMen. ..... 0... cece ne eee nen e eee e eee dene tata tent eee eenae 06/09/2020
Special Board of AIDErMeN.......... 6. occ cece cee cee ee eee eee settee cena eetee cen eneenenens 06/10/2020
Special Board of AIDErMeN.......... 6. occ cece cee cee ee eee eee settee cena eetee cen eneenenens 06/16/2020

9. COMMUNICATIONS REQUIRING ONLY PROCEDURAL ACTIONS AND WRITTEN REPORTS
FROM LIAISONS

From: John L. Griffin, Chief Financial Officer/Comptroller
Re: NHRS Lower Assumed Rate of Return from 7.25 to 6.75 Percent

From: Kim Kleiner, Director of Administrative Services
Re: Health Insurance Fund and FY21 Health Insurance Enrollment by Union

From: Donna Graham, Legislative Affairs Manager
Re: Communications Received from the Public

From: John L. Griffin, Chief Financial Officer/Comptroller
Re: 7.03% Tax Rate Increase Projected for FY2022

From: Jim Donchess, Mayor
Re: Coronavirus Disease COVID-19

9(a). PERIOD FOR PUBLIC COMMENT RELATIVE TO ITEMS EXPECTED TO BE ACTED UPON
THIS EVENING

9(b). COMMUNICATIONS REQUIRING FINAL APPROVAL

From: Tim Cummings, Economic Development Director

Re: Communication — Approval & Place on File A Contract for Great American Downtown to assist

with implementation of the Nashua Downtown Riverfront Project

From: Jim Donchess, Mayor

Re: Temporary Policy on Emergency Leave due to Coronavirus (COVID-19)— July 6, 2020

PETITIONS - None
NOMINATIONS, APPOINTMENTS AND ELECTIONS - None
10. REPORTS OF COMMITTEE
Human Affairs Committee......... 0... ccc ce cee ee eee cen ee teense ee eee eee eneee eas
Budget Review Committee. ..... 0.00. ccc cece cece eee eee een een ene ten ee ene eens
Pennichuck Special Water Committee......... 0.00 cceccece cee cece ene eens
Planning & Economic Development Committee............... 0c cee ee nee ne ees
Finance Committee... 2... ccc cece eee ee eee eee ee eae cea s ceeds bea ta teen ee eaten
11. CONFIRMATION OF MAYOR'S APPOINTMENTS - None
UNFINISHED BUSINESS — RESOLUTIONS

R-20-023, Amended
Endorsers: Mayor Jim Donchess

06/08/2020
06/10/2020
06/15/2020
06/16/2020
06/17/2020

RELATIVE TO THE ADOPTION OF THE FISCAL YEAR 2021 PROPOSED BUDGET FOR
THE CITY OF NASHUA GENERAL, ENTERPRISE, AND SPECIAL REVENUE FUNDS

e Budget ReviewCommittee Recommends: Final Passage as amended

R-20-026, Amended
Endorsers: Mayor Jim Donchess

Alderman-at-Large Michael B. O’Brien, Sr.
Alderwoman Linda Harriott-Gathright
Alderman Patricia Klee
Alderwoman-at-Large Shoshanna Kelly
Alderman Jan Schmidt
Alderman Richard A. Dowd
Alderman-at-Large Lori Wilshire

ADOPTING THE 2020 CONSOLIDATED PLAN AND AUTHORIZING THE MAYOR TO APPLY FOR

AND EXPEND THE COMMUNITY DEVELOPMENT BLOCK GRANT (“CDBG”) AND HOME

INVESTMENT PARTNERSHIP PROGRAM FUNDS FOR FISCAL YEAR 2021
e Human Affairs Committee Recommends: Final Passage as amended

R-20-039
Endorser: Alderman-at-Large Lon Wilshire
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman-at-Large David C. Tencza
Alderman Richard A. Dowd

AUTHORIZING PENNICHUCK CORPORATION AND PENNICHUCK WATER WORKS, INC. TO ISSUE

TAXABLE BONDS OF UP TO $75,000,000
e Pennichuck Special Water Committee Recommends: Final Passage

R-20-040
Endorsers: Mayor Jim Donchess
Alderman Linda Harriott-Gathright
Alderman-at-Large David C. Tencza
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Richard A. Dowd
Alderman Jan Schmidt
AUTHORIZING THE MAYOR AND CITY TREASURER TO BORROW FROM THE NEW HAMPSHIRE
DEPARTMENT OF ENVIRONMENTAL SERVICES STATE REVOLVING LOAN FUND AN ADDITIONAL
AMOUNT NOT TO EXCEED TWO MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000) FOR
PUMP STATION UPGRADES
e Budget Review Committee Recommends: Final Passage

R-20-041
Endorsers: Alderman-at-Large David C. Tencza
Alderman-at-Large Ben Clemons
Alderman Skip Cleaver
Alderman Linda Harriott-Gathright
APPROVING THE COST ITEMS OF ACOLLECTIVE BARGAINING AGREEMENT BETWEEN THE
MAYOR AND THE BOARD OF FIRE COMMISSIONERS OF THE CITY OF NASHUA, NEW HAMPSHIRE
AND LOCAL #789, INTERNATIONAL ASSOCATION OF FIRE FIGHTERS FROM JULY 1, 2019 THROUGH
JUNE 30, 2023 AND AUTHORIZING A RELATED TRANSFER AND SUPPLEMENTAL APPROPRIATION
e Budget ReviewCommittee Recommends: Negative Recommendation

R-20-043
Endorsers: Alderman-at-Large Lori Wilshire
Alderman-at-Large Michael B. O’Brien, Sr.
Alderman Richard A. Dowd
Alderman Patricia Klee
Alderman-at-Large David C. Tencza
Alderman Linda Harriott-Gathright
Alderman Thomas Lopez
Alderman Brandon Michael Laws
AUTHORIZING PENNICHUCK CORPORATION AND PENNICHUCK EAST UTILITY, INC. TO ENTER
INTO A TERM LOAN AND RENEW A FIXED ASSET LINE OF CREDIT WITH COBANK, ACB
e Pennichuck Special Water Committee Recommends: Final Passage

UNFINISHED BUSINESS — ORDINANCES
OQ-20-017

Endorsers: Alderwoman-at-Large Shoshanna Kelly
AUTHORIZING FREE PARKING AT METERS AND PAY STATION SPACES THROUGH NOVEMBER 15,
‘abled at BOA May 21, 2020 mtg)

NEW BUSINESS — RESOLUTIONS

NEW BUSINESS — ORDINANCES

PERIOD FOR GENERAL PUBLIC COMMENT

REMARKS BY THE MEMBERS OF THE BOARD OF ALDERMEN

Committee announcements:

ADJOURNMENT

) THE CITY OF NASHUA "7

Ae Financial Services Division
Office of the Chief Financial Officer

TO: President Lori Wilshire
Members of the Board of Aldermen

Ce: Mayor Jim Donchess
Jobn L. Griffin, Chief Financial Officer/Comptroller

June 10, 2020

NHRS Lower Assumed Rate of Returm from 7.25 to 6.75 Percent

The purpose of this communication is to advise the Board of Aldermen that the amounts paid to
the New Hampshire Retirement System (NHRS) could increase by at least $3.0 million in
FY2022. This mcrease could be more as there are many variables associated in the calculation
of the NHRS municipal employer rates. From an historical perspective, when NHRS reduced the
assumed rate of return from 7.75 to 7.25 percent (a 6.5% reduction) in May 2016, the City’s
FY2018 general fund pension budget increased by $2.3 million.

Yesterday, June 9, 2020, the Board of Trustees of the New Hampshire Retirement System voted
to reduce the retirement system’s investment assumption, lowering the assumed rate of return
from 7.25 to 6.75 percent (a 6.9% reduction). In the attached communication, the NHRS noted:

“Overall, the changes to actuarial assumptions approved this year are expected to increase the
2022-23 employer contribution rates.”

229 Main Street * Nashua, New Hampshire 03060 * Phone (603) 589-3173 » Fax (603)
589-3168

For Immediate Release: June 9, 2020
Contact: Marty Karlon, Public Information Officer, (603) 410-3594; public_relationsidinhrs.org

NHRS Trustees Reduce Assumed Rate of Return

Rate change is part of several adjustments to actuarial assumptions

CONCORD, NH — The Board of Trustees of the New Hampshire Retirement System (NHRS&, the retirement system}
voted June 9, 2020, to adopt revised actuarial assumptions based on the results of a four-year experience study
conducted by its consulting actuary. In an accompanying vote, the Board voted to reduce the retirement system's

investment assumption, lowering the assumed rate of return from 7.25 percent to 6.75 percent,

The new assumptions, which better reflect the retirement system's actual and anticipated experience, will be used in
the actuarial valuation for the fiscal year ending June 30, 2019. By statute, this valuation will be used by the Board in
September to determine employer contribution rates for fiscal years 2022 and 2023, Overall, the changes to actuarial

assumptions approved this year are expected to Increase in 2022-23 employer contribution rates.

“The trustees have a legal obligation as fiduciaries to adopt actuarially reasonable assumptions, including the
assumed rate of return. The decision to adopt these assumptions is consistent with the Board's duty fo act in the best
interests of the retirement system's members and beneficiaries," said NHRS Executive Director George P. Lagos. “In
taking this action, the Board is responding responsibly to capital market projections, anticipated continued low, long-

term interest rates, and other economic and demographic data points that are key to projecting the pension system's
liabilities.”

The Board's decision to conduct an experiance study, which was recommended by GRS Consulting (GRS}, the
Tetirement system’s independent actuary, was made in December 2019. Lagos noted that “This study is based upon
actuarial experience for the period July 1, 2015, fo June 30, 2019, and does not take info consideration any market

volatility or potential economic impact related to the coronavirus (COVID-19) pandemic.”

Aciuaries conduct experience studies an a regular basis to assess the extent fo which their assumptions refiect plan
experience. New Hampshire iaw requires the retirement system's actuary to conduct an experience study at least
once every five years.

GRS calculates NHRS’ funded ratio, unfunded actuarial accrued liability (UAAL), and employer contribution rates
based on assumptions aboui many future events, such as the age when members will retire, their rate of salary
growth, how long they will live etter retirement, and how much the plan’s investments will earn, These assumptions
are based on detailed statistical models in accordance with national Actuarial Standards of Practice. However, they
are not facts; no one can predict future events. When the assumptions don't match the actual experience, there can
be an actuarial gain or loss. Put simply, gains reduce employer contribution rates, losses increase employer

contribution rates.

The New Hampshire Constitution (Part |, Article 36-a) requires NHRS Trustees to set actuarially sound empioyer