New Hampshire House Passes Pension Reform

CONCORD – The House today passed SB 3, which would make a number of reforms to the current state retirement system.  It passed in a Roll Call vote of         250-112..


  • Limit the impact on retired members and those already vested in the system.
  • Ensure cities and towns can continue to hire necessary personnel on a part-time basis.
  • Put an end to spiking by curtailing the use of extra and special duty pay and eliminating the inclusion of end of career buyouts for non-vested and new hires.
  • Cap the annual pensions benefit at $120,000 or 85% of average final compensation. 
  • Immediately begin to improve the actuarial health of the system by slightly increasing rates for all Group I and II employees.

House leaders offered the following statements:

House Speaker William O’Brien:

“Reform to the retirement system was needed and a long time coming. For years it has been apparent that New Hampshire should address the major problems within our current retirement system including the large and growing unfunded liability of over $3.5 billion. This legislation significantly reforms the state employee retirement system to strengthen it financially for the future. I commend my colleagues in the House and Senate for their hard work on getting this common sense solution passed.”

House Majority Leader D.J. Bettencourt:

“The reforms that we passed today are reasonable and will dramatically improve on th e billions of dollars in unfunded liability within the retirement system.   While it may not be perfect,  I believe that we are headed in the right direction with the passage of this legislation.  We will continue to support any future reform of our retirement system that will help to ensure  financial solvency without passing on higher costs to the taxpayers.  It was important to me that we were fair to workers while making difficult but necessary reforms and I know the committee did the best they could. The passage of SB 3 ensures that the retirement system will continue to work for our retirees, employees, future employees, and the taxpayers of New Hampshire."