Special Board of Aldermen 09-21-2021 Page 11
Earlier, you asked what the contributions were that came in during the past year. There was a total of $722 million in
contributions. Yes this is less than the benefits that were paid and as Marty said, we are in a negative cash flow position.
But | would like you to know that this is very typical of what is referred to as a mature pension plan. That's why we have
the assets to pay the benefits.
Mayor Donchess
Just so I'm clear on this, so the 61% is as of June 30, 2020 as opposed to 21?
Jan Goodwin, Executive Director of NH Retirement System
That is correct.
Mayor Donchess
So you don't know yet whoever does this hasn't figured out yet what the percent funded is right now given a very strong
investment return for the last year?
Jan Goodwin, Executive Director of NH Retirement System
That's correct and | will remind you as we said earlier, our actuaries look at the value of the assets over the past five
years to average them rather than just look at the number for one year. As you can see on slide 19, the individual year’s
investment performance do vary a great deal. That's why they smooth them over time so that we can have a funded
ratio that reflects the past as well as the current.
Mayor Donchess
You know the most painful thing that has happened the last few years, this one was, you know, now and then that was
four years ago, | think, is the reduction in the assumed rate of return. Because that drives up the contributions without,
you know, the employer seeing really any benefit from it really.
So now you're at 6.75%. | noticed that Maine is at the same amount. The small pension that the Nashua runs - small
compared to yours for Public Works like, you know, they're 100 some employees now but, you know, they're more
beneficiaries. There’s actually 99%, funded as of June 30, 2021. And | sort of forgot where | was going with that, but we
are, you know, we are 99% funded and so we're happy about what has been achieved by the trustees of the Nashua
pension fund. Anyway, | will try to think of a few more questions, but I'm sure others have them.
President Wilshire
Yes. You stated in your presentation that you're very conservative and, you know, that's amicable. That's good as far as
the pension plan is concerned. But two things bother me. One is does the pension plan ever take into consideration
when they change the rules the impact that's having on the cities and towns of Nashua which may cause people to lose
their jobs that are part of the pension plan? You know, you said in one year, you get 1% on $11 million, right, billion?
Jan Goodwin, Executive Director of NH Retirement System
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Alderman Dowd
I'm retired and | have a retirement investment with a company and I've never get below 7% even in the down year. So |
don't know how we make 1% with that amount of money. | certainly don't have $11 billion in my account. So that's one
thing.
The other thing is that | have a pension from a major company and they are in about any high 80s, mid to high 80s all the
time and the end goal keeps getting moved out. Why are we so locked in on one certain year because that kills us as
well? So there's several points that that impact cities that | feel should be taken into account by the pension plan. It's a
State pension plan and the State doesn't contribute anything anymore. | Know that's a legislative thing but to me that's a
slap on the cities and towns in the State of New Hampshire. They started the plan with a high percentage and went to
zero. And | know you mentioned several times about mismanaging in Concord so | can understand that but a) the
percentage of monies that the State pays for the pension plan should be changed. | guess it just missed this past
