Discount Rate
The discount rate used to measure the total pension liability was 6.75%. The projection of
cash flows used to determine the discount rate assumed that the plan member contributions
will be made at the current contribution rate and that employer contributions will be made
at rates equal to the difference between actuarially determined contribution rates and the
member rate. For purposes of the projection, member contributions and employer service
cost contributions are projected based on the expected payroll of current members only.
Employer contributions are determined based on the pension plan’s actuarial funding policy
and as required by RSA 100-A:16. Based on those assumptions, the pension plan’s fiduciary
net position was projected to be available to make all projected future benefit payments to
current plan members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the total
pension liability.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the
Discount Rate
The following presents the City’s proportionate share of the net pension liability calculated
using the discount rate of 6.75%, as well as what the City’s proportionate share of the net
pension liability would be if it were calculated using a discount rate that is one percentage-
point lower or one percentage-point higher than the current rate:
1% Current 1%
Decrease Discount Rate Increase
$414,272,949 $320,002,458 $242,970,985
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the
separately issued NHRS financial report.
Public Works Employees’ Retirement System
The City follows the provisions of GASB Statement No. 67, Financial Reporting for
Pension Plans and GASB Statement No. 68 Accounting and Financial Reporting for
Pension, with respect to the employees’ retirement funds.
The following pension disclosures for the Public Works Employee’s Retirement System
pension plan are based upon an actuarial valuation performed as of July 1, 2020, using a
measurement date of June 30, 2021.
Plan Description
All Public Works employees of the City are members of the Public Works Employees’
Retirement System (the System), a single-employer, defined benefit PERS. Eligible
employees must participate in the System. The pension plan provides pension benefits and
death and disability benefits to employees reaching age 60, provided they have
accumulated 10 years of service. A City ordinance passed in 1947 established the System
which is administered by a five-member Board of Trustees. Amendments to benefit
8]
