Finance Committee Page 4
March 2, 2016
Alderman Siegel
The unfunded liabilities for pension, that number is large and | assume that is not only the unfunded liability to
make up the gap that we have had at the state level but also the general funding that we have to do to pay for
the pension liabilities that the city has incurred, is that correct?
Mr. McIntire
I’m not sure | understand what you mean by the general fund liability.
Alderman Siegel
No, I’m sorry; | am trying to find the exact page that that’s on. That line was a large number.
Mr. Mcintire
On page 33, it was $190 million.
Alderman Siegel
Right, it was the $184,879,000. It says net pension liability. That’s not just the overhang related to the shortfall
of the pension is it?
Mr. McIntire
Let me try to describe it in a little bit more detail. The disclosure there is the net pension liability. As a
contributing employer you are contributing to a cost sharing plan which means your contributions don’t
necessarily only...the liability is spread amongst the employers based on your level of contributions. After
what you have contributed to the system each year since its inception essentially, the state system has a
shortfall and as a 5% contributor it’s a little bit more complicated than this but essentially 5% of that shortfall is
attributable to the City of Nashua and that’s what is presented here on your financial statements.
Alderman Siegel
Okay, | am familiar with the shortfall but | didn’t realize that this is what we are paying off or is it another 18
years or so?
Mr. McIntire
| think maybe now | understand your question and | am sorry about that, sir. Some of the comments that |
made on the net pension liability earlier, because it’s large | just think part of what | wanted to accomplish
tonight and maybe missed a point or two was to put it in perspective and that is that the plan and as a result
the underlying employers; you are following a funding schedule and | believe the date is 2039 that under the
current funding schedule, if actual results of operations hold true to actual projections, the system and as a
result the underlying employer's will be fully funded by 2039.
Alderman Siegel
So it’s 23 years and not 18. It wasn’t a 25-year payout; it was a 30-year payout.
