We focus on the New Hampshire Retirement System and the need to dramatically reform the system, because New Hampshire taxpayers simpy can't afford to pay for the promises that the Legislature and NHRS Board has made to public employees.
The Pension System is Broken and Can't Be Fixed By Tinkering
In the Union Leader, Josiah Bartlett Center President Charlie Arlinghaus calls for dramatic reform of the New Hampshire Retirement System.
"Pension and retirement obligations are the biggest long term problem facing the state. New Hampshire’s four long-term pension and retiree health benefit obligations have current unfunded liabilities of more than $7 billion. Changing the state’s pension and health obligations is no longer optional.
Through the Retirement System, the state administers a pension plan for state and local employees and a retirement health benefit. Those two components have unfunded liabilities of $4.7 billion. In addition, outside of the system there is a much larger health benefit with an unfunded liability of $2.4 billion and a much smaller judicial retirement plan with rapidly eroding funding — $15 million in the hole after just five years.
Reform efforts right now are focused on the largest component, the pension plan of the Retirement System. For state and local employees, employees contribute a percentage of their income and the taxpayers contribute a percentage. Theoretically, the contributions plus the investment income earned on those contributions pay for the cost of an employee’s retirement benefit earned according a formula based on years of service and three highest years of salary."
Read the entire column online at New Hampshire Watchdog.
Introducing the NH Watchdog Podcast- Focus on Retirement
Grant Bosse hosts the first New Hampshire Watchdog Podcast, taking a look at some of the important, and frivilous legislation up for debate at the State House this week, and sitting down with Joshua Elliott-Traficante to examine the New Hampshire Retirement System, and legislative efforts to fix the $4.7 billion unfunded liability it faces. Listen to the NH Watchdog Podcast.
Keep the Focus on the New Hampshire Retirement System
The issue of public pensions is one of the messy and complicated subjects that are a challenge for New Hampshire legacy media. Only the Josiah Bartlett Center can devote the time, energy, and expertise to covering this crucial debate, and we need your help to do so. Please take a moment to support the Josiah Bartlett Center for Public Policy, and follow Josiah's social networking feeds on Facebook and Twitter. Thank you.