Finance Committee - Agenda - 8/17/2022 - P86
used in the calculation will change depending on age and years of creditable service, as
follows:
Years of creditable service as of Minimum Minimum Benefit
January 1, 2012 Age Service Multiplier
At least 3 but less than 10 years 46 21 2.4%
At least 6 but less than 8 years 47 22 2.3%
At least 4 but less than 6 years 48 23 2.2%
Less than 4 years 49 24 2.1%
Contributions
Plan members are required to contribute a percentage of their gross earnings to the pension
plan, for which the contribution rates are 7% for employees and teachers, 11.55% for police,
and 11.80% for fire. The City makes contributions to the pension plan equal to the amount
required by Revised Statutes Annotated 100-A:16, III, which is 11.17% for employees,
17.80% for teachers, 28.43% for police and 30.09% for fire. The City’s contributions to
NHRS for the year ended June 30, 2021 was $23,356,118, which was equal to its annual
required contribution.
Summary of Significant Accounting Policies
For purposes of measuring the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information about
the fiduciary net position of the NHRS and additions to/deductions from NHRS’ fiduciary
net position have been determined on the same basis as they are reported by NHRS. For
this purpose, benefit payments (including refunds of employee contributions) are
recognized when due and payable in accordance with benefit terms. Investments are
reported at fair value.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred
(inflows) of Resources Related to Pensions
At June 30, 2021, the City reported a liability of $320,002,458 for its proportionate share
of the net pension liability. The net pension liability was measured as of June 30, 2020, and
the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of June 30, 2019. The City’s proportion of the net pension liability
was based on a projection of the City’s long-term share of contributions to the pension plan
relative to the projected contributions of all participating employers, actuarially determined.
At June 30, 2020, the City’s proportion was 5.00%.
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