Last week the New Hampshire Supreme Court issued a ruling in the case of American Federation of Teachers –New Hampshire et al v State of New Hampshire, which upheld pension reforms made in 2007 and 2008.
This suit, brought in 2009 by most of the state’s public sector unions, was against two particular changes made to the system. The first dealt with changing the definition of ‘earnable compensation’, by removing ‘other compensation’. In effect, it meant that special duty pay, for example, could not be used in calculating the pension payout. The second dealt with the method of funding cost of living adjustments (COLAs), specifically the move of $250 million from the Special Account into the rest of the trust fund and the elimination of annual COLAs. Both were efforts to shore up the financial stability of the New Hampshire Retirement System (NHRS). Click here to keep reading