) 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
