NASHUA AIRPORT AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
For the Year Ended June 30, 2021
Benefits Provided
Benefit formulas and eligibility requirements for the pension plan are set by State law (RSA 100-A).
Group | benefits are provided based on creditable service and average final salary for the highest of either
three or five years, depending on when service commenced.
Group II benefits are provided based on age, years of creditable service and a benefit multiplier depending
on vesting status as of January 1, 2012. The maximum retirement allowance for Group II] members vested
by January 1, 2012 (45 years of age with 20 years of service or age 60 regardless of years of creditable
service) is the average final compensation multiplied by 2.5% multiplied by creditable service. For Group
I] members not vested by January 1, 2012 the benefit is calculated the same way but the multiplier used in
the calculation will change depending on age and years of creditable service as follows:
Years of Creditable Service as of Minimum Benefit
January 1, 2012 Minimum Age Service Muttiplier
At least 8 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%
Changes in Benefits
Ch 340 laws of 2019 (HB 616) grants a one-time, 1.5% COLA on the first $50,000 of an annual pension
benefit to members who retired on or before July 1, 2014, or any beneficiaries of such member who is
receiving a survivorship pension benefit. The COLA will take effect on the retired member's first
anniversary date of retirement occurring after July 1, 2020. The adjustment shall become a permanent
addition to the member's base retirement allowance.
Funding Policy
Plan members are required to contribute 7.0% of their covered salary and the Authority is required to
contribute at an actuarially determined rate. The Authority's contribution rate for the covered payroll of
general employees was 10.88% for the year ended June 30, 2621. The Authority contributes 100% of the
employer cost.
Per RSA-100-A:16, plan member contribution rates are established and may be amended by the New
Hampshire State legislature and employer contribution rates are determined by the NHRS Board of Trustees
based on an actuarial valuation. Contributions to the pension plan for the Authority were $30,550 for the
year ended June 30, 2021,
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At June 30, 2021, the Authority reported a liability of $413,263 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 a roll forward of the actuarial valuation from
June 30, 2019. The Authority’s proportion of the net pension liability was based on actual contributions by
the Authority during the relevant fiscal year relative to the actual] contributions of all participating plan
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