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June 14, 2011
Mr. William SpeadCompliance OfficerNew Hampshire Retirement System54 Regional DriveConcord, New Hampshire 03301
Re: Senate Bill No. 3 as Amended by 2011-2288s
Dear Mr. Spead:
Enclosed are the results of a supplemental actuarial valuation to measure the financial effects ofSenate Bill No. 3 (SB 3) as amended by 2011-2288s, as requested.
GRS valued prior versions of this legislation in our reports dated April 13, 2011 and May 20, 2011.We understand that the principal differences between SB 3 and the prior versions of the legislation
include the following:
Changes to the definition of earnable compensation including changes to which membersare affected
Changes to Average Final Compensation including changes to which members are affected
Changes to retirement eligibility including changes to which members are affected
Changes to the medical subsidy provided under current Statute
A change in the transfer from the Special Account to the main trust
A change to temporary supplemental allowancesChanges to the maximum benefit
No change to future transfers to Special Account from current Statute
Changes to the interest on member contributions
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Changes to the interest on member contributions
NHRSSUPPLEMENTAL ACTUARIAL VALUATION
SENATEBILL3ASAMENDEDBY2288S
REQUESTED BY: New Hampshire Retirement System
DATE: June 14, 2011
SUBMITTED BY: David T. Kausch, F.S.A., E.A., M.A.A.A., F.C.A.Gabriel, Roeder, Smith & Company
Judith A. Kermans, E.A., M.A.A.A., F.C.A.Gabriel, Roeder, Smith & Company
Heidi G. Barry, A.S.A., M.A.A.A.Gabriel, Roeder, Smith & Company
This report contains the results of a supplemental actuarial valuation of proposed system changes as
described in Senate Bill No. 3 as Amended by 2011-2288s.
Supplemental valuations do not predict the results of future actuarial valuations. (Future activitiescan affect future valuation results in an unpredictable manner). Rather, supplemental valuationsgive an indication of the probable effect of the change only on future valuations without commenton the complete end result of the future valuations.
The signing actuaries are independent of the Plan Sponsor, are Members of the American Academy
of Actuaries (M.A.A.A.) and meet the Qualification Standards of the American Academy ofActuaries to render the actuarial opinion contained herein.
The valuation was based upon data furnished by NHRS for the June 30 2010 actuarial valuation as
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NHRSSUPPLEMENTAL ACTUARIAL VALUATION
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As of June 30, 2010
Valuation Active Valuation
Group Members Payroll Age Service Pay
Employees:
Male 10,046 $ 479,437,343 48.4 10.9 $47,724
Female 15,941 613,709,909 48.3 9.8 38,499
Total 25,987 1,093,147,252 48.3 10.2 42,065
Teachers:
Male 4,175 244,695,264 45.5 12.9 58,610
Female 14,428 776,049,516 45.6 12.1 53,788
Total 18,603 1,020,744,780 45.6 12.3 54,870
Police:
Male 3,697 229,932,379 39.1 11.0 62,194
Female 534 28,539,164 39.1 8.9 53,444Total 4,231 258,471,543 39.1 10.7 61,090
Fire:
Male 1,600 106,352,406 40.6 12.7 66,470
Female 46 2,667,639 40.7 9.9 57,992
Total 1,646 109,020,045 40.6 12.6 66,233
Total:
Male 19,518 1,060,417,392 45.4 11.5 54,330Female 30,949 1,420,966,228 46.9 10.8 45,913
Grand Total 50,467 $2,481,383,620 46.3 11.1 $49,168
Average
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Current Provisions Affected:
Earnable Compensation Full base rate of compensation paid plus any overtime pay,holiday and vacation pay, sick pay, longevity or severance pay, cost of living bonus,additional pay for extracurricular and instructional activities, and any military differentialpay, plus the fair market value of non-cash compensation such as meals or living quarters ifsubject to federal income tax, but excluding other compensation except cash incentives paid
by an employer to encourage members to retire, supplemental pay paid by the employerwhile the member is receiving workers compensation and teacher development pay that isnot part of the contracted annual salary. Earnable compensation in the final 12 months priorto termination shall be limited to 1 times the higher of the earnable compensation in the12 month period preceding the final 12 months or the highest compensation year excludingthe final 12 months.
Average Final Compensation (AFC) Average annual earnable compensation during the
highest 3 years of creditable service.
Maximum Retirement BenefitFor members who commenced service prior to July 1, 2009,a members retirement benefit shall not exceed 100% of the members highest year of
earnable compensation. For members who commenced service on or after July 1, 2009, amembers retirement benefit shall not exceed $120,000.
Group I members are eligible to retire at age 60. Prior to age 65, the state annuity, together
with the member annuity, shall be equal to 1/60th of Average Final Compensation (AFC)times creditable service. After age 65, the state annuity, together with the member annuity,shall be equal to 1/66th of AFC times creditable service.
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New Provisions Under Consideration:
Earnable CompensationFor active members who have attained vested status prior to January 1, 2012Full base rateof compensation paid, as determined by the employer, plus any overtime pay, holiday andvacation pay, sick pay, longevity or severance pay, cost of living bonus, additional pay forextracurricular and instructional activities, and any military differential pay, plus the fair
market value of non-cash compensation such as meals or living quarters if subject to federalincome tax, but excluding other compensation except cash incentives paid by an employer toencourage members to retire, supplemental pay paid by the employer while the member isreceiving workers compensation and teacher development pay that is not part of thecontracted annual salary. Compensation for extra and special duty, as determined by theemployer, shall be included but limited during the highest 3 years of creditable service asprovided in paragraph RSA 100-A:1 XVIII as amended. Earnable compensation in the final12 months prior to termination shall be limited to 1 times the higher of the earnable
compensation in the 12 month period preceding the final 12 months or the highestcompensation year excluding the final 12 months.
For active members who begin service on or after July 1, 2011 or who are not in vestedstatus on and after January 1, 2012Full base rate of compensation paid plus any overtimepay, holiday and vacation pay, sick pay, longevity pay, cost of living bonus, additional payfor extracurricular and instructional activities, and any military differential pay, plus the fairmarket value of non-cash compensation such as meals or living quarters if subject to federal
income tax, but excluding other compensation except supplemental pay paid by theemployer while the member is receiving workers compensation and teacher development
pay that is not part of the contracted annual salary. Compensation for extra and special duty,as determined by the employer shall be eliminated for those hired after July 1 2011 and
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New Provisions Under Consideration (Continued):
For active members who commenced service on or after July 1, 2011 or who have non-vested status on or after January 1, 2012the average annual earnable compensation duringthe highest 5 years of creditable service. For purposes of this calculation, the inclusion ofcompensation in each of the highest 5 years which is in excess of the full base rate ofcompensation paid as determined by the employer shall not exceed the average annual
amount of compensation over the base pay paid to the member of all the members years ofservice on or after January 1, 2012, but excluding the highest 5 years.
Maximum Retirement BenefitFor members who hired prior to July 1, 2009, a membersretirement benefit shall not exceed 100% of the members highest year of earnablecompensation. For members who commenced service on or after July 1, 2009 or are non-vested as of January 1, 2012, a members retirement benefit shall not exceed the lesser of85% of the members highest average final compensation or $120,000.
Group I members hired prior to July 1, 2011:
are eligible to retire at age 60. Prior to age 65, the state annuity, together with the memberannuity, shall be equal to 1/60th of Average Final Compensation (AFC) times creditableservice. After age 65, the state annuity, together with the member annuity, shall be equal to1/66th of AFC times creditable service.
are eligiblefor a reduced benefit upon completion of 20 years of creditable service and ageplus service at least 70, or attainment of age 50 but not age 60. Service Retirement Benefitaccrued to date of retirement, reduced for each month prior to the month after the memberattains age 60 by 1/8 of 1% if the member has 35 years or more of creditable service by 1/4
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New Provisions Under Consideration (Continued):
Group II members commencing service on or after July 1, 2011:
are eligible to retire at age 50 with 25 years of creditable service or age 60. The benefit shallbe equal to 2% of AFC times creditable service up to 42.5 years. The 2% multiplier appliesto vested benefits, ordinary disability benefits and split benefits. However, a member who
commenced service on or after July 1, 2011 shall not receive a service retirement allowanceuntil attaining the age of 52.5, but may receive a reduced allowance after age 50 if themember has at least 25 years of creditable service where the allowance shall be reduced, foreach month by which the benefit commencement date precedes the month after which themember attains 52.5 years of age, by of 1%. Commencement of vested benefits andeligibility for retirement under split benefits are changed to be consistent with the age 52.5and 25 years of creditable service requirement.
Group II members hired prior to July 1, 2011 who have non-vested status as of January 1, 2012shall be subject to the following transition provisions for years of service required for regularservice retirement, the minimum age for regular service retirement, and the multiplier used tocalculate the retirement annuity, which shall be applicable on January 1, 2012 according to thefollowing table:
Creditable Service Minimum Years Minimum Age Annuity
on January 1, 2012 of Service Attained Multiplier
(1) Less than 4 years 24 Years Age 49 2.1%
(2) At least 4 years but
less than 6 years 23 Years Age 48 2 2%
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NHRSSUPPLEMENTAL ACTUARIAL VALUATION
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New Provisions Under Consideration (Continued):
Group II members commencing service on or after July 1, 2011 are eligible for an accidentaldisability benefit and shall receive a benefit equal to 2/3 of AFC. If a member has more than33-1/3 years of service, the member will receive a supplemental disability benefit equal to2% of AFC times years of creditable service in excess of 33-1/3 years but not in excess of42.5 years.
Group II members hired prior to July 1, 2011 who have non-vested status as of January 1,2012 are eligible for an accidental disability benefit and shall receive a benefit equal to 2/3of AFC. The calculation of the supplemental allowance shall be as provided in the transitionprovisions with the number of years for the supplement adjusted proportionally.
Members eligible for a vested deferred retirement benefit may receive a service retirementor early reduced service retirement benefit as defined in Section RSA 100-A:5. The benefit
commences at the age the member would have attained service or reduced early serviceretirement eligibility requirements.
Member Contributions
Group I members: 7.0% of earnable compensation.Group II fire members: 11.80% of earnable compensation.Group II police members: 11.55% of earnable compensation.Group II member contributions cease for members who are in vested status before January
1, 2012 with creditable service in excess of 40 years. Member contributions cease for allother Group II members with creditable service in excess of 42.5 years.
Medical Subsidy After July 1 2007 and including each July 1 thereafter the rate payable
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New Provisions Under Consideration (Concluded):
Any retired member who is receiving a medical subsidy under RSA 100-A:52 or RSA 100-A:52-a shall be entitled to receive an additional supplemental allowance. The amount of theadditional temporary supplemental allowance shall be $500 for retirees taking a one-personmedical benefit and $1,000 for retirees taking a 2-person medical benefit, paid from therespective component of the special account. The supplemental allowance shall apply only
for the fiscal years beginning July 1, 2008 up to and including the fiscal year beginning July1, 2012.
Transfer the balance in each special account component (Employees, Teachers, Police andFire) to the corresponding components of the State annuity accumulation fund except forfunds necessary to comply with RSA 100-A:41-d, III as amended.
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NHRSSUPPLEMENTAL ACTUARIAL VALUATION
SENATEBILL3ASAMENDEDBY2288S
Comment 1: The amended version of Senate Bill No. 3 (SB 3) differs in many aspects from theprior versions as described in our April 13, 2011 and May 20, 2011 fiscal impact supplementalreports. The differences between this and the most recent versions of the bill which had the mostmaterial impact on our estimate of the fiscal impact were changes to the affected Group I members,changes to the maximum length of service for Group II benefit accruals, and reducing the maximumbenefit from 100% of the highest year of earnable compensation to 85% of the highest year of basecompensation. Significant events which occurred between the valuations were the enactment ofHouse Bill No. 464 into law authorizing the transfer of $89.0 million from the Special Account tothe main trust and the adoption of new assumptions by the Board of Trustees at the May 11, 2011board meeting. For purposes of this supplemental valuation, we have split the impact into thosewhich are the result of the proposal and those which are the result of the other significant events ofthe asset transfer and assumption changes. The net effect of the pension changes in this proposalare smaller in magnitude from the prior analysis of SB 3 in our May 20, 2011 report in part becauseof more significant changes to Group I members retirement eligibility and the maximum Group IIservice. The changes to the medical subsidy result in a material decrease in actuarial accrued
liability, but a small decrease in employer contributions due to the pay-as-you-go status of most ofthe divisions.
Comment 2: We assumed that there would be no grandfathering of current benefit provisionsbeyond those described in the proposal. Should any be required by New Hampshire law, the costreductions estimated herein will not be realized.
Comment 3: The increase in member contributions under Section 13 may affect the incidence offorfeitures. We are currently assuming that 25% of members who quit before retirement with 10-15
years of service will elect to refund and forfeit their pension. If member contributions increase inthe future, actual forfeiture rates may increase.
Comment 4: This supplemental valuation indicates that the provisions of Senate Bill 3 are
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NHRSSUPPLEMENTAL ACTUARIAL VALUATION
SENATEBILL3ASAMENDEDBY2288S
Estimated Amount Est. Additional Estimated
Valuation Balance Transferred Temporary Remaining
Group July 1, 2010 under HB 464 Supplemental Balance
Employees:
State 6.89$ -$ -$ 6.89$
Political Subdivisions 7.68 - 0.74 6.94
Subtotal 14.57 - 0.74 13.83
Teachers: 38.81 - 2.47 36.34
Police:State 28.64 12.90 - 15.74
Political Subdivisions 92.21 41.93 0.74 49.54
Subtotal 120.85 54.83 0.74 65.28
Fire:
State 2.17 0.99 - 1.18
Political Subdivisions 71.34 33.18 0.74 37.42
Subtotal 73.51 34.17 0.74 38.60
Total 247.74$ 89.00$ 4.69$ 154.05$
$ Millions
Comment 6: There were several portions of the proposal that did not have a direct impact on thecomputed contribution rates. Those items are:
1. Change the definition of earnable compensation2. State medical and surgical benefits3. Split benefits4. Change the composition of the Board5. Establish a Committee to develop a voluntary DC plan
Item 1(Change the definition of earnable compensation). This valuation reflects changes toearnable compensation which are likely to have an impact on end of career increases. Other
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NHRSSUPPLEMENTAL ACTUARIAL VALUATION
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Item 4 (Board composition). This is not expected to have an impact on benefits and thereforewill not affect the computed required employer contributions.
Item 5 (Committee to study voluntary DC plan). This may or may not have an impact onNHRS, depending on the specifics of the actual implementation.
Comment 7: Section 30 calls for recertification within a reasonable period of time not to exceed 30days from approval of the Board. For purposes of this supplemental analysis, we have assumed therecertified rates will be effective August 1, 2011.
Comment 8: There are additional comments in this report specific to each set of economicassumptions included with Section A and Section B.
Comment 9: This calculation is based upon assumptions regarding future events, which may or maynot materialize. It is also based upon present and proposed plan provisions that are outlined in the report.If you have reason to believe that the assumptions that were used are unreasonable, that the planprovisions are incorrectly described, that important plan provisions relevant to this proposal are notdescribed, or that conditions have changed since the calculations were made, you should contact theauthors of this report prior to relying on information in the report. Also, in the event that more than oneplan change is being considered, it is very important to remember that the results of separate actuarialvaluations cannot generally be added together to produce a correct estimate of the combined effect of all
of the changes. The total can be considerably greater than the sum of the parts due to the interaction ofvarious plan provisions with each other, and with the assumptions that must be used.
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Discussion
The proposed change primarily affects the benefits of current non-vested members and futuremembers. The cost estimates that follow show the estimated change in the FY 2012 and FY 2013employer contributions due to the change in benefits for the current members. The long-term costsof benefits (the normal cost) for members hired after January 1, 2012 will be reduced (in total) byan additional 1.48%, 1.88%, 5.03% and 5.67% of payroll for Employees, Teachers, Police and Fire,respectively if the proposal is implemented. The initial portion of this reduction is shown on thefollowing pages. The remaining portion of the reduction is expected to emerge gradually over a 10-15 year period. Current active members as of June 30, 2010 were used to estimate the effect onfuture active members.
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NHRSSUPPLEMENTAL ACTUARIAL VALUATION
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ACTUARIAL STATEMENT
PENSION RESULTS
Actuarial Statement Regarding
Pension Changes Affecting Employees Teachers Police Fire Total
Current Members
June 30, 2010 Interim Valuation
Covered Payroll ($ Millions) 1,093.1$ 1,020.8$ 258.5$ 109.0$ 2,481.4$
Valuation Assets 1,721.0 2,049.6 997.3 465.9 5,233.8
Unfunded Accrued Liability ($ Millions) 1,260.6 1,503.5 637.9 318.1 3,720.1
Funded Status 57.7% 57.7% 61.0% 59.4% 58.5%
Current FY 2012 Employer Rate** 10.71% 11.51% 22.92% 28.25% 13.11%
Current FY 2013 Employer Rate 10.66% 11.51% 22.92% 28.25% 13.09%
Change Due to Assumptions and Asset Transfer
Covered Payroll ($ Millions) -$ -$ -$ -$ -$Valuation Assets - - 54.8 34.2 89.0
Unfunded Accrued Liability ($ Millions) 254.8 254.4 102.6 30.0 641.8
FY 2012 Employer Rate (first month) 0.00% 0.00% 0.00% 0.00% 0.00%
FY 2012 Employer Rate (last 11 months) 1.35% 2.20% 3.01% 1.28% 1.86%
FY 2013 Employer Rate 1.35% 2.20% 3.01% 1.28% 1.86%
Change Due to Proposal
Covered Payroll ($ Millions) -$ -$ -$ -$ -$
Valuation Assets 13.8 36.3 65.3 38.6 154.0
Unfunded Accrued Liability ($ Millions) (77.6) (85.8) (93.9) (48.6) (305.9)
FY 2012 Employer Rate (first month) 0.00% 0.00% 0.00% 0.00% 0.00%
Summary Results
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ACTUARIAL STATEMENTDETAIL OF TOTAL CHANGE
PENSION RESULTS
Actuarial Statement Regarding
Pension Changes Affecting Employees Teachers Police Fire Total
Current MembersCurrent Statutory Rates
Current FY 2012 Employer Rate
Normal Cost 4.57% 3.51% 9.62% 11.89% 5.00%
UAL Contribution 6.14% 8.00% 13.30% 16.36% 8.11%
Total Employer Rate 10.71% 11.51% 22.92% 28.25% 13.11%
Current FY 2013 Employer Rate
Normal Cost 4.52% 3.51% 9.62% 11.89% 4.98%
UAL Contribution 6.14% 8.00% 13.30% 16.36% 8.11%Total Employer Rate 10.66% 11.51% 22.92% 28.25% 13.09%
Change Due to Assumptions, Asse t Transfer and Proposal
FY 2012 Employer Rate
Normal Cost (2.20%) (1.58%) (3.92%) (4.67%) (2.24%)
UAL Contribution 1.25% 1.26% 0.81% (1.02%) 1.10%
Total Employer Rate (0.95%) (0.32%) (3.11%) (5.69%) (1.14%)
FY 2013 Employer Rate
Normal Cost (2.15%) (1.58%) (3.92%) (4.67%) (2.22%)UAL Contribution 1.25% 1.26% 0.81% (1.02%) 1.10%
Total Employer Rate (0.90%) (0.32%) (3.11%) (5.69%) (1.12%)
Proposed Restated Statutory Rates
Summary Results
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SENATEBILL3ASAMENDEDBY2288S
ACTUARIAL STATEMENT
HEALTH RESULTS
Proposal: Eliminate medical subsidy increases.
Actuarial Statement Regarding
Health Subsidy Changes PoliceAffecting Current Members State Political and Grand
Employees Employees Teachers Fire Total
June 30, 2010 Interim Valuation
Covered Payroll ($ Millions) 520.7$ 572.4$ 1,020.8$ $ 367.5 2,481.4$
Valuation Assets -$ 34.0$ 7.3$ $ 16.5 57.8$
Unfunded Accrued Liability ($ Millions) 122.3$ 66.5$ 360.1$ $ 427.1 976.0$
Current Statutory Rate FY2012 1.60% 0.38% 2.44% 2.65% 1.82%
Current Statutory Rate FY2013 1.60% 0.38% 2.44% 2.65% 1.82%
Change Due to Assumptions
Covered Payroll ($ Millions) -$ -$ -$ -$ -$
Valuation Assets -$ -$ -$ -$ -$
Unfunded Accrued Liability ($ Millions) 14.7$ 12.5$ 16.6$ 126.2$ 170.0$
Statutory Rate FY 2012 (first month) 0.00% 0.00% 0.00% 0.00% 0.00%
Statutory Rate FY2012 (last 11 months) 0.10% 0.16% (0.01%) 2.37% 0.40%
Statutory Rate FY2013 0.10% 0.16% (0.01%) 2.37% 0.40%Change Due to Proposal
Covered Payroll ($ Millions) -$ -$ -$ -$ -$
V l ti A t $ $ $ $ $
Summary Results #
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NHRSSUPPLEMENTAL ACTUARIAL VALUATION
SENATEBILL3ASAMENDEDBY2288S(Pension and Health)
FY 2012 Employer Contribution Rates
Current State Pol. Sub Teachers State Pol. Sub State Pol. SubPension 10.71% 10.71% 11.51% 22.92% 22.92% 28.25% 28.25%
Health Subsidy 1.60% 0.38% 2.44% 2.65% 2.65% 2.65% 2.65%
Total 12.31% 11.09% 13.95% 25.57% 25.57% 30.90% 30.90%
Change Due to Assumptions, Asset Transfer and Proposal (for the last 11 months of fiscal year)
Pension (0.95%) (0.95%) (0.32%) (3.11%) (3.11%) (5.69%) (5.69%)
Health Subsidy 0.10% 0.00% (0.05%) 1.35% 1.35% 1.35% 1.35%
Total (0.85%) (0.95%) (0.37%) (1.76%) (1.76%) (4.34%) (4.34%)
After Assumption Changes, Asset Transfer and Proposal (for the last 11 months of fiscal year)
Pension 9.76% 9.76% 11.19% 19.81% 19.81% 22.56% 22.56%
Health Subsidy 1.70% 0.38% 2.39% 4.00% 4.00% 4.00% 4.00%
Total 11.46% 10.14% 13.58% 23.81% 23.81% 26.56% 26.56%
FY 2013 Employer Contribution Rates
Current State Pol. Sub Teachers State Pol. Sub State Pol. Sub
Pension 10.66% 10.66% 11.51% 22.92% 22.92% 28.25% 28.25%
Health Subsidy 1.60% 0.38% 2.44% 2.65% 2.65% 2.65% 2.65%
Total 12.26% 11.04% 13.95% 25.57% 25.57% 30.90% 30.90%
Change Due to Assumptions, Asset Transfer and Proposal
Pension (0.90%) (0.90%) (0.32%) (3.11%) (3.11%) (5.69%) (5.69%)
Health Subsidy 0.10% 0.00% (0.05%) 1.35% 1.35% 1.35% 1.35%
Total (0.80%) (0.90%) (0.37%) (1.76%) (1.76%) (4.34%) (4.34%)
After Assumption Changes, Asset Transfer and Proposal
Pension 9.76% 9.76% 11.19% 19.81% 19.81% 22.56% 22.56%
Health Subsidy 1.70% 0.38% 2.39% 4.00% 4.00% 4.00% 4.00%
Total 11.46% 10.14% 13.58% 23.81% 23.81% 26.56% 26.56%
Employees Police Fire
Employees Police Fire
Contribution rates shown are before any cost-sharing between the State and Political Subdivisions under RSA 100-A:16-II.
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(Pension and Health)
Estimated Change in Dollar Contributions Prior to Changes ($Millions)
Teachers Police Fire
State
Political
Subdivision Total State
Political
Subdivision Total State
Political
Subdivision Total State
Political
Subdivis ion Total
FY2012 Contributions 69.00$ 68.33$ 137.33$ 53.65$ 99.63$ 153.28$ 37.64$ 33.50$ 71.14$ 13.51$ 22.75$ 36.26$
FY2013 Contributions 71.29$ 70.58$ 141.87$ 55.66$ 103.36$ 159.02$ 39.05$ 34.76$ 73.81$ 14.02$ 23.60$ 37.62$
Teachers Police Fire
State
Political
Subdivision Total State
Political
Subdivision Total State
Political
Subdivision Total State
Political
Subdivis ion Total
FY2012 C ontributions* (4.37)$ (5.37)$ (9.74)$ (1.30)$ (2.42)$ (3.72)$ (2.37)$ (2.11)$ (4.48)$ (1.74)$ (2.93)$ (4.67)$
FY2013 Contributions (4.65)$ (5.75)$ (10.40)$ (1.48)$ (2.74)$ (4.22)$ (2.69)$ (2.40)$ (5.09)$ (1.97)$ (3.31)$ (5.28)$
Teachers Police Fire
State
Political
Subdivision Total State
Political
Subdivision Total State
Political
Subdivision Total State
Political
Subdivis ion Total
FY2012 Contributions* 64.63$ 62.96$ 127.59$ 52.35$ 97.21$ 149.56$ 35.27$ 31.39$ 66.66$ 11.77$ 19.82$ 31.59$FY2013 Contributions 66.64$ 64.83$ 131.47$ 54.18$ 100.62$ 154.80$ 36.36$ 32.36$ 68.72$ 12.05$ 20.29$ 32.34$
Employees
Employees
Estimated Change in Dollar Contribution, due to Assumption Changes , Asse t Transfer and Proposed Changes ($Millions)
Employees
Estimated Dollar Contribution, after Ass umption Changes, Asse t Transfer and Proposed Changes ($Millions)
* Dollar amounts reflect 11 months of new contribution rates in FY2012.
Amounts shown are after cost-sharing between the State and Political Subdivisions under RSA 100-A:16-II.
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ACTIVE MEMBERS BY DIVISIONMEMBER FISCAL IMPACT ($ IN MILLIONS)
Valuation Valuation
Group Payroll FY 2012 FY 2013 FY 2012 FY 2013 FY 2012 FY 2013
Employees:
Male 479.44$ 26.47$ 27.74$ 36.13$ 37.48$ 9.66$ 9.74$
Female 613.71 33.89 35.50 46.24 47.98 12.35 12.48
Total 1,093.15 60.36 63.24 82.37 85.46 22.01 22.22Teachers:
Male 244.69 13.17 13.66 18.44 19.13 5.27 5.47
Female 776.05 41.77 43.33 58.47 60.67 16.70 17.34
Total 1,020.74 54.94 56.99 76.91 79.80 21.97 22.81
Police:
Male 229.93 23.02 23.88 28.59 29.66 5.57 5.78
Female 28.54 2.86 2.96 3.55 3.68 0.69 0.72
Total 258.47 25.88 26.84 32.14 33.34 6.26 6.50
Fire: Male 106.35 10.65 11.05 13.51 14.01 2.86 2.96
Female 2.67 0.27 0.28 0.34 0.35 0.07 0.07
Total 109.02 10.92 11.33 13.85 14.36 2.93 3.03
Total:
Male 1,060.41 73.31 76.33 96.67 100.28 23.36 23.95
Female 1,420.97 78.79 82.07 108.60 112.68 29.81 30.61
Grand Total 2,481.38$ 152.10$ 158.40$ 205.27$ 212.96$ 53.17$ 54.56$
Member Contributions Member Contributions Increase
Projected Projected
Current Proposed Projected
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ACTIVE MEMBERS BY DIVISION
MEMBER FISCAL IMPACT ($ IN MILLIONS)
Valuation Active Valuation
Group Members Payroll FY 2012 FY 2013 FY 2012 FY 2013 FY 2012 FY 2013
Employees:
State 10,816 520.71$ 29.55$ 31.28$ 39.24$ 40.71$ 9.69$ 9.43$Political Subdivisions 15,171 572.43 30.81 31.96 43.13 44.75 12.32 12.79
Subtotal 25,987 1,093.15 60.36 63.24 82.37 85.46 22.01 22.22
Teachers: 18,603 1,020.74 54.94 56.99 76.91 79.80 21.97 22.81
Police:
State 1,160 71.22 7.14 7.39 8.86 9.19 1.72 1.80
Political Subdivisions 3,071 187.25 18.74 19.45 23.28 24.15 4.54 4.70
Subtotal 4,231 258.47 25.88 26.84 32.14 33.34 6.26 6.50
Fire:State 64 3.80 0.39 0.40 0.49 0.49 0.10 0.09
Political Subdivisions 1,582 105.22 10.53 10.93 13.36 13.87 2.83 2.94
Subtotal 1,646 109.02 10.92 11.33 13.85 14.36 2.93 3.03
Total 50,467 2,481.38$ 152.10$ 158.40$ 205.27$ 212.96$ 53.17$ 54.56$
Member Contributions Member Contributions Increase
Projected Projected
Current Proposed Projected
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Comment 1: Section 30 calls for recertifying the employer contribution rates for the fiscal years2012 and 2013 effective August 1, 2011. The employer contribution rates as calculated in thereport are intended to meet this requirement. The current statutory rates are assumed to remain ineffect through July 31, 2011. A summary of the potential recertified rates is as follows:
Employees Teachers Police Fire Total
9.76% 11.19% 19.81% 22.56% 11.97%
State
Employees
Pol. Sub.
Employees Teachers
Police
and Fire Total1.70% 0.38% 2.39% 4.00% 2.02%
Employer Pension Rates as a Percentage of Payroll
Effective August 1, 2011 through June 30, 2013
Employer Health Rates as a Percentage of Payroll
Effective August 1, 2011 through June 30, 2013
These rates are based on the assumptions as adopted by the Board on May 10, 2011 and ifimplemented would represent the Annual Required Contribution rates under GASB Statements No.25 and No. 43.
Comment 2: The proposed definition of earnable compensation for those non-vested on and afterJanuary 1, 2012 excludes unused sick and vacation pay. For purposes of this supplementalvaluation, we have removed the liability adjustment factors used in the valuation for affectedmembers. The current adjustments are 9.0%, 7.0%, 12.0%, and 12.0% on the normal cost and
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Employees($Millions)
FY State Pol. Sub. State Pol. Sub. Total (1) (2) (3) State Pol. Sub. Total State Pol. Sub. State Pol. Sub. Total
2012 * 12.31% 11.09% $69.00 $68.33 $137.33 (0.85%) (0.95%) 0.00% ($4.37) ($5.37) ($9.74) 11.53% 10.22% $64.63 $62.96 $127.59
2013 12.26% 11.04% 71.29 70.58 141.87 (0.80%) (0.90%) 0.00% (4.65) (5.75) (10.40) 11.46% 10.14% 66.64 64.83 131.47
2014 13.73% 12.67% 82.84 84.03 166.87 (2.51%) (2.34%) (1.48%) (16.95) (17.65) (34.60) 10.92% 10.01% 65.89 66.38 132.27
2015 13.68% 12.62% 85.63 86.84 172.47 (2.59%) (2.29%) (1.48%) (18.57) (18.51) (37.08) 10.71% 9.93% 67.06 68.33 135.39
2016 13.31% 12.45% 86.44 88.88 175.32 (2.33%) (2.12%) (1.48%) (18.12) (18.53) (36.65) 10.52% 9.85% 68.32 70.35 138.67
2017 13.19% 12.41% 88.87 91.92 180.79 (2.32%) (2.08%) (1.48%) (19.23) (19.47) (38.70) 10.34% 9.78% 69.64 72.45 142.09
2018 13.07% 12.36% 91.36 94.98 186.34 (2.30%) (2.03%) (1.48%) (20.34) (20.36) (40.70) 10.16% 9.71% 71.02 74.62 145.642019 12.96% 12.32% 93.99 98.23 192.22 (2.28%) (1.99%) (1.48%) (21.50) (21.36) (42.86) 10.00% 9.64% 72.49 76.87 149.36
2020 12.85% 12.28% 96.69 101.58 198.27 (2.26%) (1.95%) (1.48%) (22.64) (22.37) (45.01) 9.84% 9.58% 74.05 79.21 153.26
2021 12.74% 12.24% 99.46 105.05 204.51 (2.23%) (1.91%) (1.48%) (23.76) (23.39) (47.15) 9.70% 9.52% 75.70 81.66 157.36
2022 12.63% 12.20% 102.30 108.63 210.93 (2.19%) (1.87%) (1.48%) (24.86) (24.44) (49.30) 9.56% 9.46% 77.44 84.19 161.63
2023 12.53% 12.17% 105.29 112.42 217.71 (2.16%) (1.84%) (1.48%) (26.02) (25.60) (51.62) 9.43% 9.40% 79.27 86.82 166.09
2024 12.44% 12.14% 108.46 116.35 224.81 (2.14%) (1.81%) (1.48%) (27.25) (26.79) (54.04) 9.31% 9.34% 81.21 89.56 170.77
2025 12.34% 12.11% 111.62 120.42 232.04 (2.10%) (1.78%) (1.48%) (28.36) (27.99) (56.35) 9.20% 9.30% 83.26 92.43 175.69
2026 12.25% 12.08% 114.96 124.62 239.58 (2.07%) (1.75%) (1.48%) (29.55) (29.21) (58.76) 9.10% 9.25% 85.41 95.41 180.82
2027 12.15% 12.05% 118.30 128.98 247.28 (2.02%) (1.72%) (1.48%) (30.60) (30.45) (61.05) 9.01% 9.21% 87.70 98.53 186.23
2028 12.07% 11.99% 121.92 133.15 255.07 (1.98%) (1.70%) (1.48%) (31.82) (31.82) (63.64) 8.92% 9.12% 90.10 101.33 191.432029 11.99% 11.93% 125.66 137.45 263.11 (1.95%) (1.68%) (1.48%) (33.00) (33.21) (66.21) 8.84% 9.05% 92.66 104.24 196.90
2030 11.92% 11.87% 129.61 141.89 271.50 (1.91%) (1.66%) (1.48%) (34.24) (34.62) (68.86) 8.77% 8.97% 95.37 107.27 202.64
2031 11.85% 11.81% 133.68 146.46 280.14 (1.88%) (1.64%) (1.48%) (35.46) (36.03) (71.49) 8.71% 8.90% 98.22 110.43 208.65
Projected Employer Contributions
Before Proposal
% $ %
Due to Proposal
Change Estimated
%
Projected Employer Contributions
After Proposal
$$
(1) Initial reduction recognized due to the effect of proposal on current State members.(2) Initial reduction recognized due to the effect of proposal on current Political Subdivision members.(3) Additional long term reduction due to the effect of proposal on future members.* Current rates in effect through July 31, 2011, therefore, reduction in dollars represents an 11 month period. FY2012 projected employer contribution rates are a weighted
average of the current rate and the proposed rate.
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Teachers($Millions)
% %
FY
State/
Pol. Sub. State Pol. Sub. Total (1) (2) State Pol. Sub. Total
State/
Pol. Sub. State Pol. Sub. Total
2012 * 13.95% $53.65 $99.63 $153.28 (0.37%) 0.00% ($1.30) ($2.42) ($3.72) 13.61% $52.35 $97.21 $149.56
2013 13.95% 55.66 103.36 159.02 (0.37%) 0.00% (1.48) (2.74) (4.22) 13.58% 54.18 100.62 154.80
2014 15.84% 65.57 121.77 187.34 (2.84%) (1.88%) (13.22) (24.55) (37.77) 12.65% 52.35 97.22 149.57
2015 15.84% 68.03 126.34 194.37 (3.00%) (1.88%) (14.84) (27.56) (42.40) 12.39% 53.19 98.78 151.97
2016 15.56% 69.33 128.76 198.09 (2.85%) (1.88%) (15.17) (28.18) (43.35) 12.16% 54.16 100.58 154.74
2017 15.48% 71.56 132.90 204.46 (2.89%) (1.88%) (16.35) (30.37) (46.72) 11.94% 55.21 102.53 157.74
2018 15.42% 73.96 137.35 211.31 (2.94%) (1.88%) (17.63) (32.73) (50.36) 11.75% 56.33 104.62 160.95
2019 15.36% 76.43 141.94 218.37 (2.97%) (1.88%) (18.89) (35.08) (53.97) 11.56% 57.54 106.86 164.40
2020 15.30% 78.99 146.69 225.68 (3.00%) (1.88%) (20.16) (37.43) (57.59) 11.40% 58.83 109.26 168.09
2021 15.24% 81.63 151.59 233.22 (3.02%) (1.88%) (21.43) (39.81) (61.24) 11.24% 60.20 111.78 171.98
2022 15.19% 84.41 156.76 241.17 (3.05%) (1.88%) (22.79) (42.32) (65.11) 11.09% 61.62 114.44 176.06
2023 15.13% 87.23 162.00 249.23 (3.07%) (1.88%) (24.12) (44.79) (68.91) 10.95% 63.11 117.21 180.32
2024 15.06% 90.08 167.30 257.38 (3.07%) (1.88%) (25.41) (47.18) (72.59) 10.81% 64.67 120.12 184.79
2025 15.00% 93.09 172.88 265.97 (3.08%) (1.88%) (26.77) (49.72) (76.49) 10.69% 66.32 123.16 189.48
2026 14.93% 96.13 178.53 274.66 (3.07%) (1.88%) (28.10) (52.18) (80.28) 10.57% 68.03 126.35 194.38
2027 14.87% 99.33 184.48 283.81 (3.08%) (1.88%) (29.51) (54.80) (84.31) 10.45% 69.82 129.68 199.50
2028 14.80% 102.57 190.49 293.06 (3.07%) (1.88%) (30.87) (57.32) (88.19) 10.35% 71.70 133.17 204.872029 14.73% 105.92 196.70 302.62 (3.05%) (1.88%) (32.24) (59.88) (92.12) 10.25% 73.68 136.82 210.50
2030 14.66% 109.37 203.11 312.48 (3.04%) (1.88%) (33.63) (62.46) (96.09) 10.15% 75.74 140.65 216.39
2031 14.59% 112.93 209.72 322.65 (3.02%) (1.88%) (35.04) (65.08) (100.12) 10.06% 77.89 144.64 222.53
% $$ $
Projected Employer Contributions Projected Employer Contributions
Before Proposal After Proposal
Change Estimated
Due to Proposal
Contribution estimates included accounting of the States share under RSA 100-A:16II.(1) Initial reduction recognized due to the effect of proposal on current members.(2) Additional long term reduction due to the effect of proposal on future members.* Current rates in effect through July 31, 2011, therefore, reduction in dollars represents an 11 month period. FY2012 projected employer contribution rates are a weighted
average of the current rate and the proposed rate.
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Police($Millions)
% % % %
FY
State/
Pol. Sub. State Pol. Sub. Total (1) (2) State Pol. Sub. Total
State/
Pol. Sub. State Pol. Sub. Total
2012 * 25.57% $37.64 $33.50 $71.14 (1.76%) 0.00% ($2.37) ($2.11) ($4.48) 23.96% $35.27 $31.39 $66.66
2013 25.57% 39.05 34.76 73.81 (1.76%) 0.00% (2.69) (2.40) (5.09) 23.81% 36.36 32.36 68.72
2014 31.85% 50.47 44.91 95.38 (8.04%) (5.03%) (14.51) (12.82) (27.33) 22.72% 35.96 32.09 68.05
2015 31.85% 52.36 46.60 98.96 (8.04%) (5.03%) (15.58) (13.74) (29.32) 22.41% 36.78 32.86 69.64
2016 31.64% 53.97 48.03 102.00 (7.83%) (5.03%) (16.33) (14.36) (30.69) 22.12% 37.64 33.67 71.31
2017 31.64% 55.99 49.83 105.82 (7.83%) (5.03%) (17.46) (15.34) (32.80) 21.83% 38.53 34.49 73.022018 31.64% 58.09 51.70 109.79 (7.83%) (5.03%) (18.61) (16.33) (34.94) 21.57% 39.48 35.37 74.85
2019 31.40% 59.81 53.23 113.04 (7.59%) (5.03%) (19.33) (16.95) (36.28) 21.32% 40.48 36.28 76.76
2020 31.40% 62.05 55.23 117.28 (7.59%) (5.03%) (20.54) (18.01) (38.55) 21.08% 41.51 37.22 78.73
2021 31.40% 64.38 57.30 121.68 (7.64%) (5.03%) (21.90) (19.18) (41.08) 20.80% 42.48 38.12 80.60
2022 31.40% 66.80 59.44 126.24 (7.75%) (5.03%) (23.44) (20.51) (43.95) 20.47% 43.36 38.93 82.29
2023 31.40% 69.30 61.67 130.97 (7.88%) (5.03%) (25.07) (21.92) (46.99) 20.13% 44.23 39.75 83.98
2024 31.40% 71.90 63.99 135.89 (8.03%) (5.03%) (26.81) (23.45) (50.26) 19.79% 45.09 40.54 85.63
2025 31.40% 74.60 66.39 140.99 (8.20%) (5.03%) (28.64) (25.06) (53.70) 19.44% 45.96 41.33 87.29
2026 31.40% 77.39 68.88 146.27 (8.38%) (5.03%) (30.57) (26.77) (57.34) 19.09% 46.82 42.11 88.93
2027 31.40% 80.30 71.46 151.76 (8.56%) (5.03%) (32.57) (28.56) (61.13) 18.75% 47.73 42.90 90.632028 31.31% 83.07 73.93 157.00 (8.65%) (5.03%) (34.42) (30.23) (64.65) 18.42% 48.65 43.70 92.35
2029 31.16% 85.77 76.33 162.10 (8.69%) (5.03%) (36.16) (31.82) (67.98) 18.09% 49.61 44.51 94.12
2030 31.00% 88.53 78.79 167.32 (8.71%) (5.03%) (37.92) (33.42) (71.34) 17.78% 50.61 45.37 95.98
2031 30.83% 91.35 81.29 172.64 (8.71%) (5.03%) (39.67) (35.03) (74.70) 17.49% 51.68 46.26 97.94
Projected Employer Contributions Projected Employer Contributions
Before Proposal After Proposal
$
Change Estimated
Due to Proposal
$ $
Contribution estimates included accounting of the States share under RSA 100-A:16II.(1) Initial reduction recognized due to the effect of proposal on current members.(2) Additional long term reduction due to the effect of proposal on future members.* Current rates in effect through July 31, 2011, therefore, reduction in dollars represents an 11 month period. FY2012 projected employer contribution rates are a weighted
average of the current rate and the proposed rate.
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Section B
Results Based on
June 30, 2010 Valuation Assumptions
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Discussion
The proposed change primarily affects the benefits of current non-vested members and futuremembers. The cost estimates that follow show the estimated change in the FY 2012 and FY 2013employer contributions due to the change in benefits for the current members. The long-term costsof benefits (the normal cost) for members hired after January 1, 2012 will be reduced (in total) byan additional 1.54%, 1.85%, 5.28% and 5.98% of payroll for Employees, Teachers, Police and Fire,respectively if the proposal is implemented. The initial portion of this reduction is shown on thefollowing pages. The remaining portion of the reduction is expected to emerge gradually over a 10-15 year period. Current active members as of June 30, 2010 were used to estimate the effect onfuture active members.
It is important to note that the contribution rates in years beginning FY 2014 and FY 2105 areexpected to increase as a result of the changes in assumptions adopted by the Board on May 10,2011.
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ACTUARIAL STATEMENTPENSION RESULTS
Actuarial Statement Regarding
Pension Changes Affecting Employees Teachers Police Fire Total
Current Members
June 30, 2010 Interim Valuation
Covered Payroll ($ Millions) 1,093.1$ 1,020.8$ 258.5$ 109.0$ 2,481.4$
Valuation Assets 1,721.0 2,049.6 997.3 465.9 5,233.8
Unfunded Accrued Liability ($ Millions) 1,260.6 1,503.5 637.9 318.1 3,720.1
Funded Status 57.7% 57.7% 61.0% 59.4% 58.5%
Current FY 2012 Employer Rate** 10.71% 11.51% 22.92% 28.25% 13.11%
Current FY 2013 Employer Rate 10.66% 11.51% 22.92% 28.25% 13.09%
Change Due to Asset Transfer
Covered Payroll ($ Millions) -$ -$ -$ -$ -$
Valuation Assets - - 54.8 34.2 89.0
Unfunded Accrued Liability ($ Millions) - - (54.8) (34.2) (89.0)
FY 2012 Employer Rate (first month) 0.00% 0.00% 0.00% 0.00% 0.00%
FY 2012 Employer Rate (last 11 months) 0.00% 0.00% (1.25%) (1.85%) (0.22%)
FY 2013 Employer Rate 0.00% 0.00% (1.25%) (1.85%) (0.22%)
Change Due to Proposal
Covered Payroll ($ Millions) -$ -$ -$ -$ -$Valuation Assets 13.8 36.3 65.3 38.6 154.0
Unfunded Accrued Liability ($ Millions) (64.5) (73.0) (91.6) (50.0) (279.1)
Summary Results
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ACTUARIAL STATEMENTDETAIL OF TOTAL CHANGE
PENSION RESULTS
Actuarial Statement Regarding
Pension Changes Affecting Employees Teachers Police Fire Total
Current MembersCurrent Statutory Rates
Current FY 2012 Employer Rate
Normal Cost 4.57% 3.51% 9.62% 11.89% 5.00%
UAL Contribution 6.14% 8.00% 13.30% 16.36% 8.11%
Total Employer Rate 10.71% 11.51% 22.92% 28.25% 13.11%
Current FY 2013 Employer Rate
Normal Cost 4.52% 3.51% 9.62% 11.89% 4.98%
UAL Contribution 6.14% 8.00% 13.30% 16.36% 8.11%Total Employer Rate 10.66% 11.51% 22.92% 28.25% 13.09%
Change Due to Asset Transfer and Proposal
FY 2012 Employer Rate
Normal Cost (2.13%) (2.29%) (4.10%) (4.65%) (2.49%)
UAL Contribution (0.11%) (0.25%) (2.85%) (4.68%) (0.66%)
Total Employer Rate (2.24%) (2.54%) (6.95%) (9.33%) (3.15%)
FY 2013 Employer Rate
Normal Cost (2.08%) (2.29%) (4.10%) (4.65%) (2.47%)UAL Contribution (0.11%) (0.25%) (2.85%) (4.68%) (0.66%)
Total Employer Rate (2.19%) (2.54%) (6.95%) (9.33%) (3.13%)
Summary Results
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ACTUARIAL STATEMENT
HEALTH RESULTS
Proposal: Eliminate medical subsidy increases.
Actuarial Statement Regarding
Health Subsidy Changes PoliceAffecting Current Members State Political and Grand
Employees Employees Teachers Fire Total
June 30, 2010 Interim Valuation
Covered Payroll ($ Millions) 520.7$ 572.4$ 1,020.8$ $ 367.5 2,481.4$
Valuation Assets -$ 34.0$ 7.3$ $ 16.5 57.8$
Unfunded Accrued Liability ($ Millions) 122.3$ 66.5$ 360.1$ $ 427.1 976.0$
Current Statutory Rate FY2012 1.60% 0.38% 2.44% 2.65% 1.82%Current Statutory Rate FY2013 1.60% 0.38% 2.44% 2.65% 1.82%
Change Due to Proposal
Covered Payroll ($ Millions) -$ -$ -$ -$ -$
Valuation Assets -$ -$ -$ -$ -$
Unfunded Accrued Liability ($ Millions) (29.8)$ (27.0)$ (105.3)$ (140.7)$ (302.8)$
Statutory Rate FY 2012 (first month) 0.00% 0.00% 0.00% 0.00% 0.00%
Statutory Rate FY2012 (last 11 months) 0.00% (0.06%) (0.13%) 1.32% 0.13%Statutory Rate FY2013 0.00% (0.06%) (0.13%) 1.32% 0.13%
June 30 2010 Interim Valuation Including Proposal
Summary Results #
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FY 2012 Employer Contribution Rates
Current State Pol. Sub Teachers State Pol. Sub State Pol. SubPension 10.71% 10.71% 11.51% 22.92% 22.92% 28.25% 28.25%
Health Subsidy 1.60% 0.38% 2.44% 2.65% 2.65% 2.65% 2.65%
Total 12.31% 11.09% 13.95% 25.57% 25.57% 30.90% 30.90%
Change Due to Asset Transfer and Proposal (for the last 11 months of fiscal year)
Pension (2.24%) (2.24%) (2.54%) (6.95%) (6.95%) (9.33%) (9.33%)
Health Subsidy 0.00% (0.06%) (0.13%) 1.32% 1.32% 1.32% 1.32%
Total (2.24%) (2.30%) (2.67%) (5.63%) (5.63%) (8.01%) (8.01%)
After Asset Transfer and Proposal (for the last 11 months of fiscal year)
Pension 8.47% 8.47% 8.97% 15.97% 15.97% 18.92% 18.92%Health Subsidy 1.60% 0.32% 2.31% 3.97% 3.97% 3.97% 3.97%
Total 10.07% 8.79% 11.28% 19.94% 19.94% 22.89% 22.89%
FY 2013 Employer Contribution Rates
Current State Pol. Sub Teachers State Pol. Sub State Pol. Sub
Pension 10.66% 10.66% 11.51% 22.92% 22.92% 28.25% 28.25%
Health Subsidy 1.60% 0.38% 2.44% 2.65% 2.65% 2.65% 2.65%
Total 12.26% 11.04% 13.95% 25.57% 25.57% 30.90% 30.90%
Change Due to Asset Transfer and ProposalPension (2.19%) (2.19%) (2.54%) (6.95%) (6.95%) (9.33%) (9.33%)
Health Subsidy 0.00% (0.06%) (0.13%) 1.32% 1.32% 1.32% 1.32%
Total (2.19%) (2.25%) (2.67%) (5.63%) (5.63%) (8.01%) (8.01%)
After Asset Transfer and Proposal
Pension 8.47% 8.47% 8.97% 15.97% 15.97% 18.92% 18.92%
Health Subsidy 1.60% 0.32% 2.31% 3.97% 3.97% 3.97% 3.97%
Total 10.07% 8.79% 11.28% 19.94% 19.94% 22.89% 22.89%
Employees Police Fire
Employees Police Fire
Contribution rates shown are before any cost-sharing between the State and Political Subdivisions under RSA 100-A:16-II.
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NHRSSUPPLEMENTAL ACTUARIAL VALUATION
SENATEBILL3ASAMENDEDBY2288S
(Pension and Health)
Teachers Police Fire
State
Political
Subdivision Total State
Political
Subdivision Total State
Political
Subdivision Total State
Political
Subdivis ion Total
FY2012 Contributions 70.00$ 69.33$ 139.33$ 54.42$ 101.07$ 155.49$ 38.19$ 33.99$ 72.18$ 13.71$ 23.08$ 36.79$
FY2013 Contributions 72.85$ 72.12$ 144.97$ 56.87$ 105.62$ 162.49$ 39.91$ 35.51$ 75.42$ 14.33$ 24.12$ 38.45$
Teachers Police Fire
State
Political
Subdivision Total State
Political
Subdivision Total State
Political
Subdivision Total State
Political
Subdivis ion Total
FY2012 Contributions* (11.68)$ (13.18)$ (24.86)$ (9.55)$ (17.73)$ (27.28)$ (7.71)$ (6.86)$ (14.57)$ (3.25)$ (5.48)$ (8.73)$
FY2013 Contributions (13.01)$ (14.70)$ (27.71)$ (10.89)$ (20.21)$ (31.10)$ (8.79)$ (7.82)$ (16.61)$ (3.71)$ (6.25)$ (9.96)$
Teachers Police Fire
State
Political
Subdivision Total State
Political
Subdivision Total State
Political
Subdivision Total State
Political
Subdivis ion Total
FY2012 Contributions* 58.32$ 56.15$ 114.47$ 44.87$ 83.34$ 128.21$ 30.48$ 27.13$ 57.61$ 10.46$ 17.60$ 28.06$
FY2013 Contributions 59.84$ 57.42$ 117.26$ 45.98$ 85.41$ 131.39$ 31.12$ 27.69$ 58.81$ 10.62$ 17.87$ 28.49$
Employees
Employees
Estimated Change in Dollar Contribution, due to Assumption Changes , Asset Transfer and Proposed Changes ($Millions)
Employees
Estimated Dollar Contribution, after Assumption Changes, Asse t Transfer and Proposed Changes ($Millions)
* Dollar amounts reflect 11 months of new contribution rates in FY2012.
Amounts shown are after cost-sharing between the State and Political Subdivisions under RSA 100-A:16-II.
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NHRSSUPPLEMENTAL ACTUARIAL VALUATION
SENATEBILL3ASAMENDEDBY2288S
ACTIVE MEMBERS BY DIVISIONMEMBER FISCAL IMPACT ($ IN MILLIONS)
Valuation Valuation
Group Payroll FY 2012 FY 2013 FY 2012 FY 2013 FY 2012 FY 2013
Employees:
Male 479.44$ 26.86$ 28.34$ 36.65$ 38.30$ 9.79$ 9.96$
Female 613.71 34.38 36.28 46.91 49.02 12.53 12.74
Total 1,093.15 61.24 64.62 83.56 87.32 22.32 22.70Teachers:
Male 244.69 13.36 13.96 18.70 19.55 5.34 5.59
Female 776.05 42.37 44.28 59.32 61.99 16.95 17.71
Total 1,020.74 55.73 58.24 78.02 81.54 22.29 23.30
Police:
Male 229.93 23.35 24.40 29.00 30.31 5.65 5.91
Female 28.54 2.90 3.03 3.60 3.76 0.70 0.73
Total 258.47 26.25 27.43 32.60 34.07 6.35 6.64
Fire:
Male 106.35 10.80 11.29 13.70 14.32 2.90 3.03
Female 2.67 0.27 0.28 0.34 0.36 0.07 0.08
Total 109.02 11.07 11.57 14.04 14.68 2.97 3.11
Total:
Male 1,060.41 74.37 77.99 98.05 102.48 23.68 24.49
Female 1,420.97 79.92 83.87 110.17 115.13 30.25 31.26
Grand Total 2,481.38$ 154.29$ 161.86$ 208.22$ 217.61$ 53.93$ 55.75$
Member Contributions Member Contributions Increase
Projected Projected
Current Proposed Projected
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NHRSSUPPLEMENTAL ACTUARIAL VALUATION
SENATEBILL3ASAMENDEDBY2288S
ACTIVE MEMBERS BY DIVISION
MEMBER FISCAL IMPACT ($ IN MILLIONS)
Valuation Active Valuation
Group Members Payroll FY 2012 FY 2013 FY 2012 FY 2013 FY 2012 FY 2013
Employees:
State 10,816 520.71$ 29.98$ 31.96$ 39.80$ 41.59$ 9.82$ 9.63$
Political Subdivisions 15,171 572.43 31.26 32.66 43.76 45.73 12.50 13.07
Subtotal 25,987 1,093.15 61.24 64.62 83.56 87.32 22.32 22.70
Teachers: 18,603 1,020.74 55.73 58.24 78.02 81.54 22.29 23.30
Police:
State 1,160 71.22 7.23 7.56 8.98 9.39 1.75 1.83
Political Subdivisions 3,071 187.25 19.02 19.87 23.62 24.68 4.60 4.81
Subtotal 4,231 258.47 26.25 27.43 32.60 34.07 6.35 6.64
Fire:State 64 3.80 0.38 0.40 0.48 0.51 0.10 0.11
Political Subdivisions 1,582 105.22 10.69 11.17 13.56 14.17 2.87 3.00
Subtotal 1,646 109.02 11.07 11.57 14.04 14.68 2.97 3.11
Total 50,467 2,481.38$ 154.29$ 161.86$ 208.22$ 217.61$ 53.93$ 55.75$
Member Contributions Member Contributions Increase
Projected Projected
Current Proposed Projected
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NHRSSUPPLEMENTAL ACTUARIAL VALUATION
SENATEBILL3ASAMENDEDBY2288S
Comment 1: Section 30 calls for recertifying the employer contribution rates for the fiscal years2012 and 2013 effective August 1, 2011. The employer contribution rates as calculated in thereport are intended to meet this requirement. The current statutory rates are assumed to remain ineffect through July 31, 2011. A summary of the potential recertified rates is as follows:
Employees Teachers Police Fire Total
8.47% 8.97% 15.97% 18.92% 9.96%
State
Employees
Pol. Sub.
Employees Teachers
Police
and Fire Total1.60% 0.32% 2.31% 3.97% 1.95%
Employer Pension Rates as a Percentage of Payroll
Effective December 1, 2011 through June 30, 2013
Employer Health Rates as a Percentage of Payroll
Effective December 1, 2011 through June 30, 2013
Note that these rates are less than the Annual Required Contribution rates which were determined inSection A.
Comment 2: The proposed definition of earnable compensation for those non-vested on and afterJanuary 1, 2012 excludes unused sick and vacation pay. For purposes of this supplemental
valuation, we have removed the liability adjustment factors used in the valuation to account for endof career payments. The adjustments are 7.5%, 8.5%, 10.6%, and 11.2% on the normal cost andactuarial accrued liability for active Employees, Teachers, Police, and Fire members, respectively.
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NHRSSUPPLEMENTAL ACTUARIAL VALUATION
SENATEBILL3ASAMENDEDBY2288S
Note: This projection reflects the new assumptions as adopted by the Board.
Employees
($Millions)
FY State Pol. Sub. State Pol. Sub. Total (1) (2) (3) State Pol. Sub. Total State Pol. Sub. State Pol. Sub. Total
2012 * 12.31% 11.09% $69.00 $68.33 $137.33 (2.24%) (2.30%) 0.00% ($11.51) ($12.99) ($24.50) 10.26% 8.98% $57.49 $55.34 $112.83
2013 12.26% 11.04% 71.29 70.58 141.87 (2.19%) (2.25%) 0.00% (12.74) (14.38) (27.12) 10.07% 8.79% 58.55 56.20 114.75
2014 13.73% 12.67% 82.84 84.03 166.87 (2.35%) (2.18%) (1.48%) (15.98) (16.59) (32.57) 11.08% 10.17% 66.86 67.44 134.30
2015 13.68% 12.62% 85.63 86.84 172.47 (2.43%) (2.13%) (1.48%) (17.57) (17.41) (34.98) 10.87% 10.09% 68.06 69.43 137.49
2016 13.31% 12.45% 86.44 88.88 175.32 (2.17%) (1.96%) (1.48%) (17.08) (17.39) (34.47) 10.68% 10.01% 69.36 71.49 140.85
2017 13.19% 12.41% 88.87 91.92 180.79 (2.16%) (1.92%) (1.48%) (18.15) (18.28) (36.43) 10.50% 9.94% 70.72 73.64 144.362018 13.07% 12.36% 91.36 94.98 186.34 (2.14%) (1.87%) (1.48%) (19.22) (19.13) (38.35) 10.32% 9.87% 72.14 75.85 147.99
2019 12.96% 12.32% 93.99 98.23 192.22 (2.12%) (1.83%) (1.48%) (20.34) (20.08) (40.42) 10.16% 9.80% 73.65 78.15 151.80
2020 12.85% 12.28% 96.69 101.58 198.27 (2.10%) (1.79%) (1.48%) (21.44) (21.04) (42.48) 10.00% 9.74% 75.25 80.54 155.79
2021 12.74% 12.24% 99.46 105.05 204.51 (2.07%) (1.75%) (1.48%) (22.51) (22.02) (44.53) 9.86% 9.67% 76.95 83.03 159.98
2022 12.63% 12.20% 102.30 108.63 210.93 (2.03%) (1.71%) (1.48%) (23.56) (23.01) (46.57) 9.72% 9.62% 78.74 85.62 164.36
2023 12.53% 12.17% 105.29 112.42 217.71 (2.00%) (1.68%) (1.48%) (24.68) (24.12) (48.80) 9.59% 9.56% 80.61 88.30 168.91
2024 12.44% 12.14% 108.46 116.35 224.81 (1.98%) (1.65%) (1.48%) (25.85) (25.25) (51.10) 9.48% 9.51% 82.61 91.10 173.71
2025 12.34% 12.11% 111.62 120.42 232.04 (1.94%) (1.62%) (1.48%) (26.92) (26.40) (53.32) 9.36% 9.46% 84.70 94.02 178.72
2026 12.25% 12.08% 114.96 124.62 239.58 (1.91%) (1.59%) (1.48%) (28.05) (27.56) (55.61) 9.26% 9.41% 86.91 97.06 183.97
2027 12.15% 12.05% 118.30 128.98 247.28 (1.86%) (1.56%) (1.48%) (29.05) (28.74) (57.79) 9.17% 9.37% 89.25 100.24 189.49
2028 12.07% 11.99% 121.92 133.15 255.07 (1.82%) (1.54%) (1.48%) (30.20) (30.04) (60.24) 9.08% 9.29% 91.72 103.11 194.83
2029 11.99% 11.93% 125.66 137.45 263.11 (1.79%) (1.52%) (1.48%) (31.32) (31.36) (62.68) 9.00% 9.21% 94.34 106.09 200.43
2030 11.92% 11.87% 129.61 141.89 271.50 (1.75%) (1.50%) (1.48%) (32.50) (32.70) (65.20) 8.93% 9.13% 97.11 109.19 206.30
2031 11.85% 11.81% 133.68 146.46 280.14 (1.72%) (1.48%) (1.48%) (33.66) (34.05) (67.71) 8.87% 9.06% 100.02 112.41 212.43
%
Projected Employer Contributions
After Proposal
$$
Projected Employer Contributions
Before Proposal
% $ %
Due to Proposal
Change Estimated
(1)Initial reduction recognized due to the effect of proposal on current State members.(2)Initial reduction recognized due to the effect of proposal on current Political Subdivision members.(3)Additional long term reduction due to the effect of proposal on future members.* Current rates in effect through July 31, 2011, therefore, reduction in dollars represents an 11 month period. FY2012 projected employer contribution rates are a weighted
average of the current rate and the proposed rate.
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NHRSSUPPLEMENTAL ACTUARIAL VALUATION
SENATEBILL3ASAMENDEDBY2288S
Note: This projection reflects the new assumptions as adopted by the Board.
Teachers
($Millions)
% %
FY
State/
Pol. Sub. State Pol. Sub. Total (1) (2) State Pol. Sub. Total
State/
Pol. Sub. State Pol. Sub. Total
2012 * 13.95% $53.65 $99.63 $153.28 (2.67%) 0.00% ($9.41) ($17.48) ($26.89) 11.50% $44.24 $82.15 $126.39
2013 13.95% 55.66 103.36 159.02 (2.67%) 0.00% (10.65) (19.78) (30.43) 11.28% 45.01 83.58 128.59
2014 15.84% 65.57 121.77 187.34 (2.56%) (1.88%) (12.06) (22.39) (34.45) 12.93% 53.51 99.38 152.89
2015 15.84% 68.03 126.34 194.37 (2.72%) (1.88%) (13.64) (25.33) (38.97) 12.66% 54.39 101.01 155.40
2016 15.56% 69.33 128.76 198.09 (2.57%) (1.88%) (13.93) (25.86) (39.79) 12.43% 55.40 102.90 158.30
2017 15.48% 71.56 132.90 204.46 (2.61%) (1.88%) (15.06) (27.97) (43.03) 12.22% 56.50 104.93 161.43
2018 15.42% 73.96 137.35 211.31 (2.66%) (1.88%) (16.28) (30.24) (46.52) 12.03% 57.68 107.11 164.79
2019 15.36% 76.43 141.94 218.37 (2.69%) (1.88%) (17.49) (32.49) (49.98) 11.84% 58.94 109.45 168.39
2020 15.30% 78.99 146.69 225.68 (2.72%) (1.88%) (18.71) (34.75) (53.46) 11.68% 60.28 111.94 172.22
2021 15.24% 81.63 151.59 233.22 (2.74%) (1.88%) (19.93) (37.02) (56.95) 11.52% 61.70 114.57 176.27
2022 15.19% 84.41 156.76 241.17 (2.77%) (1.88%) (21.23) (39.43) (60.66) 11.37% 63.18 117.33 180.51
2023 15.13% 87.23 162.00 249.23 (2.79%) (1.88%) (22.50) (41.79) (64.29) 11.23% 64.73 120.21 184.94
2024 15.06% 90.08 167.30 257.38 (2.79%) (1.88%) (23.73) (44.07) (67.80) 11.09% 66.35 123.23 189.58
2025 15.00% 93.09 172.88 265.97 (2.80%) (1.88%) (25.04) (46.50) (71.54) 10.97% 68.05 126.38 194.43
2026 14.93% 96.13 178.53 274.66 (2.79%) (1.88%) (26.30) (48.83) (75.13) 10.85% 69.83 129.70 199.53
2027 14.87% 99.33 184.48 283.81 (2.80%) (1.88%) (27.64) (51.32) (78.96) 10.73% 71.69 133.16 204.85
2028 14.80% 102.57 190.49 293.06 (2.79%) (1.88%) (28.92) (53.72) (82.64) 10.63% 73.65 136.77 210.42
2029 14.73% 105.92 196.70 302.62 (2.77%) (1.88%) (30.23) (56.14) (86.37) 10.53% 75.69 140.56 216.25
2030 14.66% 109.37 203.11 312.48 (2.76%) (1.88%) (31.55) (58.59) (90.14) 10.43% 77.82 144.52 222.34
2031 14.59% 112.93 209.72 322.65 (2.74%) (1.88%) (32.88) (61.05) (93.93) 10.34% 80.05 148.67 228.72
% $$ $
Projected Employer Contributions Projected Employer Contributions
Before Proposal After Proposal
Change Estimated
Due to Proposal
Contribution estimates included accounting of the States share under RSA 100-A:16II.(1)Initial reduction recognized due to the effect of proposal on current members.(2)Additional long term reduction due to the effect of proposal on future members.* Current rates in effect through July 31, 2011, therefore, reduction in dollars represents an 11 month period. FY2012 projected employer contribution rates are a weighted
average of the current rate and the proposed rate.
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NHRSSUPPLEMENTAL ACTUARIAL VALUATION
SENATEBILL3ASAMENDEDBY2288S
Note: This projection reflects the new assumptions as adopted by the Board.
Police
($Millions)
% % % %
FY
State/
Pol. Sub. State Pol. Sub. Total (1) (2) State Pol. Sub. Total
State/
Pol. Sub. State Pol. Sub. Total
2012 * 25.57% $37.64 $33.50 $71.14 (5.63%) 0.00% ($7.60) ($6.76) ($14.36) 20.41% $30.04 $26.74 $56.78
2013 25.57% 39.05 34.76 73.81 (5.63%) 0.00% (8.60) (7.66) (16.26) 19.94% 30.45 27.10 57.55
2014 31.85% 50.47 44.91 95.38 (7.57%) (5.03%) (13.76) (12.15) (25.91) 23.20% 36.71 32.76 69.47
2015 31.85% 52.36 46.60 98.96 (7.57%) (5.03%) (14.81) (13.05) (27.86) 22.88% 37.55 33.55 71.10
2016 31.64% 53.97 48.03 102.00 (7.36%) (5.03%) (15.53) (13.65) (29.18) 22.59% 38.44 34.38 72.82
2017 31.64% 55.99 49.83 105.82 (7.36%) (5.03%) (16.62) (14.60) (31.22) 22.31% 39.37 35.23 74.60
2018 31.64% 58.09 51.70 109.79 (7.36%) (5.03%) (17.74) (15.56) (33.30) 22.04% 40.35 36.14 76.49
2019 31.40% 59.81 53.23 113.04 (7.12%) (5.03%) (18.43) (16.16) (34.59) 21.79% 41.38 37.07 78.45
2020 31.40% 62.05 55.23 117.28 (7.12%) (5.03%) (19.61) (17.18) (36.79) 21.55% 42.44 38.05 80.49
2021 31.40% 64.38 57.30 121.68 (7.17%) (5.03%) (20.94) (18.33) (39.27) 21.27% 43.44 38.97 82.41
2022 31.40% 66.80 59.44 126.24 (7.28%) (5.03%) (22.44) (19.62) (42.06) 20.94% 44.36 39.82 84.18
2023 31.40% 69.30 61.67 130.97 (7.41%) (5.03%) (24.03) (21.00) (45.03) 20.60% 45.27 40.67 85.94
2024 31.40% 71.90 63.99 135.89 (7.56%) (5.03%) (25.74) (22.49) (48.23) 20.26% 46.16 41.50 87.66
2025 31.40% 74.60 66.39 140.99 (7.73%) (5.03%) (27.53) (24.07) (51.60) 19.91% 47.07 42.32 89.39
2026 31.40% 77.39 68.88 146.27 (7.91%) (5.03%) (29.41) (25.74) (55.15) 19.56% 47.98 43.14 91.12
2027 31.40% 80.30 71.46 151.76 (8.09%) (5.03%) (31.37) (27.49) (58.86) 19.22% 48.93 43.97 92.90
2028 31.31% 83.07 73.93 157.00 (8.18%) (5.03%) (33.17) (29.12) (62.29) 18.89% 49.90 44.81 94.71
2029 31.16% 85.77 76.33 162.10 (8.22%) (5.03%) (34.87) (30.67) (65.54) 18.56% 50.90 45.66 96.56
2030 31.00% 88.53 78.79 167.32 (8.24%) (5.03%) (36.58) (32.23) (68.81) 18.25% 51.95 46.56 98.51
2031 30.83% 91.35 81.29 172.64 (8.24%) (5.03%) (38.28) (33.79) (72.07) 17.96% 53.07 47.50 100.57
$
Change Estimated
Due to Proposal
$ $
Projected Employer Contributions Projected Employer Contributions
Before Proposal After Proposal
Contribution estimates included accounting of the States share under RSA 100-A:16II.(1)Initial reduction recognized due to the effect of proposal on current members.(2)Additional long term reduction due to the effect of proposal on future members.* Current rates in effect through July 31, 2011, therefore, reduction in dollars represents an 11 month period. FY2012 projected employer contribution rates are a weighted
average of the current rate and the proposed rate.
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NHRSSUPPLEMENTAL ACTUARIAL VALUATION
SENATEBILL3ASAMENDEDBY2288S
Note: This projection reflects the new assumptions as adopted by the Board.
Fire
($Millions)
% % % %
FY
State/
Pol. Sub. State Pol. Sub. Total (1) (2) State Pol. Sub. Total
State/
Pol. Sub. State Pol. Sub. Total
2012 * 30.90% $13.51 $22.75 $36.26 (8.01%) 0.00% ($3.21) ($5.41) ($8.62) 23.55% $10.30 $17.34 $27.64
2013 30.90% 14.02 23.60 37.62 (8.01%) 0.00% (3.63) (6.12) (9.75) 22.89% 10.39 17.48 27.87
2014 35.23% 16.58 27.92 44.50 (8.24%) (5.67%) (4.27) (7.16) (11.43) 26.18% 12.31 20.76 33.07
2015 35.23% 17.21 28.96 46.17 (8.24%) (5.67%) (4.56) (7.64) (12.20) 25.92% 12.65 21.32 33.97
2016 35.23% 17.85 30.05 47.90 (8.24%) (5.67%) (4.86) (8.14) (13.00) 25.67% 12.99 21.91 34.90
2017 35.23% 18.52 31.18 49.70 (8.24%) (5.67%) (5.18) (8.67) (13.85) 25.41% 13.34 22.51 35.85
2018 35.23% 19.21 32.35 51.56 (8.24%) (5.67%) (5.51) (9.22) (14.73) 25.16% 13.70 23.13 36.83
2019 34.99% 19.80 33.33 53.13 (8.00%) (5.67%) (5.71) (9.57) (15.28) 24.93% 14.09 23.76 37.85
2020 34.99% 20.54 34.58 55.12 (8.00%) (5.67%) (6.06) (10.16) (16.22) 24.69% 14.48 24.42 38.90
2021 34.99% 21.31 35.88 57.19 (8.05%) (5.67%) (6.47) (10.85) (17.32) 24.39% 14.84 25.03 39.87
2022 34.99% 22.11 37.22 59.33 (8.16%) (5.67%) (6.94) (11.64) (18.58) 24.03% 15.17 25.58 40.75
2023 34.99% 22.94 38.62 61.56 (8.29%) (5.67%) (7.45) (12.51) (19.96) 23.65% 15.49 26.11 41.60
2024 34.99% 23.80 40.07 63.87 (8.44%) (5.67%) (8.01) (13.44) (21.45) 23.24% 15.79 26.63 42.42
2025 34.99% 24.69 41.57 66.26 (8.61%) (5.67%) (8.60) (14.45) (23.05) 22.82% 16.09 27.12 43.21
2026 34.99% 25.62 43.13 68.75 (8.79%) (5.67%) (9.23) (15.50) (24.73) 22.40% 16.39 27.63 44.02
2027 34.99% 26.58 44.75 71.33 (8.97%) (5.67%) (9.88) (16.60) (26.48) 22.00% 16.70 28.15 44.85
2028 34.90% 27.51 46.30 73.81 (9.06%) (5.67%) (10.50) (17.64) (28.14) 21.59% 17.01 28.66 45.67
2029 34.75% 28.41 47.83 76.24 (9.10%) (5.67%) (11.08) (18.63) (29.71) 21.21% 17.33 29.20 46.53
2030 34.59% 29.34 49.40 78.74 (9.12%) (5.67%) (11.67) (19.62) (31.29) 20.84% 17.67 29.78 47.45
2031 34.42% 30.30 51.00 81.30 (9.12%) (5.67%) (12.26) (20.61) (32.87) 20.50% 18.04 30.39 48.43
$ $ $
Projected Employer Contributions Projected Employer Contributions
Before Proposal After Proposal
Change Estimated
Due to Proposal
Contribution estimates included accounting of the States share under RSA 100-A:16II.(1)Initial reduction recognized due to the effect of proposal on current members.(2)Additional long term reduction due to the effect of proposal on future members.
* Current rates in effect through July 31, 2011, therefore, reduction in dollars represents an 11 month period. FY2012 projected employer contribution rates are a weighted
average of the current rate and the proposed rate.
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Appendix
NHRS
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NHRSSUPPLEMENTAL ACTUARIAL VALUATION
SENATEBILL3ASAMENDEDBY2288S
Proposed Rates of Retirement Based on Proposed Eligibility
6/14/2011 Appendix - 1
Retirement Retirement
Ages Police Fire Ages Police Fire Police Fire Police Fire Police Fire Police Fire
45 27.0% 15.0% 45
46 27.6% 15.0% 46 34% 16%
47 28.2% 15.0% 47 34% 16% 39% 18%
48 28.8% 15.0% 48 33% 16% 38% 18% 43% 20%
49 29.4% 15.0% 49 33% 16% 37% 18% 41% 20% 47% 23%
50 30.0% 15.0% 50 32% 16% 36% 18% 40% 20% 45% 23% 49% 27%
51 30.6% 15.0% 51 32% 16% 35% 18% 39% 20% 43% 22% 47% 25%52 31.2% 15.0% 52 31% 16% 34% 18% 37% 20% 41% 22% 46% 24%
53 31.8% 15.0% 53 31% 16% 33% 18% 36% 20% 40% 21% 45% 23%
54 32.4% 15.0% 54 30% 16% 32% 18% 35% 20% 38% 21% 44% 22%
55 33.0% 25.0% 55 30% 26% 32% 27% 34% 28% 36% 29% 42% 31%
56 30.0% 26.0% 56 29% 26% 31% 27% 32% 28% 34% 29% 37% 31%
57 28.7% 27.0% 57 29% 27% 30% 27% 31% 28% 32% 29% 34% 30%
58 28.0% 28.0% 58 28% 28% 29% 28% 30% 28% 31% 29% 32% 30%
59 27.5% 29.0% 59 28% 29% 28% 29% 28% 29% 29% 29% 29% 30%
60 27.0% 30.0% 60 27% 30% 27% 30% 27% 30% 27% 30% 27% 30%
61 26.7% 29.0% 61 27% 29% 27% 29% 27% 29% 27% 29% 27% 29%62 27.1% 28.0% 62 27% 28% 27% 28% 27% 28% 27% 28% 27% 28%
63 27.5% 27.0% 63 28% 27% 28% 27% 28% 27% 28% 27% 28% 27%
64 27.9% 26.0% 64 28% 26% 28% 26% 28% 26% 28% 26% 28% 26%
65 28.3% 25.0% 65 28% 25% 28% 25% 28% 25% 28% 25% 28% 25%
66 28.7% 25.0% 66 29% 25% 29% 25% 29% 25% 29% 25% 29% 25%
67 29.2% 25.0% 67 29% 25% 29% 25% 29% 25% 29% 25% 29% 25%
68 29.6% 25.0% 68 30% 25% 30% 25% 30% 25% 30% 25% 30% 25%
69 30.0% 25.0% 69 30% 25% 30% 25% 30% 25% 30% 25% 30% 25%
70 100.0% 100.0% 70 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
(Applying to Eligible M embers)
Prior Valuation Assumptions Adjusted AssumptionAge 46 Age 47 Age 48 Age 49 Age 50
with 24 years with 25 yearswith 21 years with 22 years with 23 years
NHRS
8/6/2019 GRS Fiscal Analysis SB3 2288
44/45
NHRSSUPPLEMENTAL ACTUARIAL VALUATION
SENATEBILL3ASAMENDEDBY2288S
Proposed Rates of Retirement Based on Proposed Eligibility
6/14/2011 Appendix - 2
Retirement Retirement
Ages Police Fire Ages Police Fire Police Fire Police Fire Police Fire Police Fire
45 25% 15% 45
46 25% 12% 46 28% 15%
47 25% 12% 47 28% 15% 35% 17%
48 25% 12% 48 28% 15% 35% 17% 35% 21%
49 25% 12% 49 28% 15% 30% 17% 35% 21% 40% 25%50 25% 15% 50 28% 15% 30% 18% 35% 21% 40% 25% 50% 32%
51 25% 15% 51 28% 15% 30% 18% 35% 21% 40% 25% 50% 32%
52 25% 15% 52 28% 15% 30% 18% 35% 21% 40% 25% 50% 32%
53 30% 25% 53 30% 25% 30% 25% 35% 25% 35% 25% 35% 25%
54 30% 20% 54 30% 20% 30% 20% 35% 20% 35% 20% 35% 20%
55 30% 30% 55 30% 30% 30% 30% 30% 30% 35% 30% 35% 30%
56 25% 30% 56 25% 30% 25% 30% 25% 30% 25% 30% 25% 30%
57 25% 25% 57 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%
58 30% 25% 58 30% 25% 30% 25% 30% 25% 30% 25% 30% 25%
59 25% 25% 59 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%
60 25% 25% 60 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%
61 20% 40% 61 20% 40% 20% 40% 20% 40% 20% 40% 20% 40%
62 20% 30% 62 20% 30% 20% 30% 20% 30% 20% 30% 20% 30%
63 25% 30% 63 25% 30% 25% 30% 25% 30% 25% 30% 25% 30%
64 25% 30% 64 25% 30% 25% 30% 25% 30% 25% 30% 25% 30%
65 25% 100% 65 25% 100% 25% 100% 25% 100% 25% 100% 25% 100%
66 100% 100% 66 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Age 47 Age 48
with 21 years with 22 years with 23 years
Age 46
with 24 years with 25 years
Age 49 Age 50
(Applying to Eligible Members)
New Assumptions Adjusted Assumption
NHRS
8/6/2019 GRS Fiscal Analysis SB3 2288
45/45
NHRSSUPPLEMENTAL ACTUARIAL VALUATION
SENATEBILL3ASAMENDEDBY2288S
Proposed Rates of Retirement Based on Proposed Eligibility
6/14/2011 di 3
Retirement Retirement
Ages Male Female Male Female Ages Male Female Male Female
60 27.00% 27.00% 60 12.0% 12.0%
61 26.67% 26.67% 61 12.0% 12.0%
62 27.08% 27.08% 62 17.0% 15.0%
63 27.50% 27.50% 63 16.0% 15.0%
64 27.92% 27.92% 64 15.0% 15.0%
65 60.0% 60.0% 65 46.0% 45.0%
66 50.0% 50.0% 66 46.0% 45.0%
67 50.0% 50.0% 67 20.0% 20.0%68 50.0% 50.0% 68 20.0% 16.0%
69 50.0% 50.0% 69 20.0% 17.0%
70 100.0% 100.0% 70 100.0% 100.0%
Retirement Retirement
Ages Male Female Male Female Ages Male Female Male Female
60 27.00% 27.00% 60 20.5% 17.0%
61 26.67% 26.67% 61 22.0% 18.0%
62 27.08% 27.08% 62 23.0% 22.0%
63 27.50% 27.50% 63 24.0% 23.0%
64 27.92% 27.92% 64 25.0% 24.0%
65 60.0% 60.0% 65 60.0% 60.0%
66 50.0% 50.0% 66 50.0% 60.0%
67 50.0% 50.0% 67 40.0% 24.0%
68 50.0% 50.0% 68 30.0% 28.0%
69 50.0% 50.0% 69 30.0% 29.0%
70 100.0% 100.0% 70 100.0% 100.0%
with 30 years Age 65
Age 60
Teachers
Age 65with 30 years
Age 60
with 30 years Age 65
Prior Valuation Assumptions New Assumptions
Age 60
with 30 years Age 65
EmployeesPrior Valuation Assumptions
Age 60
New Assumptions