Pension Funding Ratio Falls to 56.1%

By Josh Elliott-Traficante on December 12, 2012
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According to the Comprehensive Annual Financial Report (CAFR) of the New Hampshire Retirement System, the funding ratio for the state pension system fell by 1.3 percentage points to 56.1%.

Plan liabilities grew by approximately $363 million while plan assets declined by roughly $116 million, leading to a decrease in the funding ratio. As a result, the unfunded liability grew to $4.5 billion.

Pension payouts to retired employees also rose by $28 million to just shy of $550 million.

On the asset side, total contributions by employees and employers grew by $28 million. Most employee groups saw an increase in total contributions as a result of the pension reforms passed in 2011, with the exception of Employees due to layoffs. State, Local and County Governments contributed roughly $255 million while employees contributed $200 million.

Investments gave the NHRS a 0.9% return, yielding an additional $32 million. Though returns were below the assumed rate of return of 7.75%, the NHRS’s investment experience for FY12 was in the same range as similar public sector pension systems.

Turning to demographics, due to layoffs, active membership in the NHRS fell by roughly 1,100 to 48,625. Conversely, the number of retirees grew by 1324 to 28,454.

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One Comment For This Post So Far

  1. Ray Pinard
    7:11 pm on December 14th, 2012

    Liabilities up, assets down.
    More money paid out than paid in.
    More retires, fewer contributors.
    Lousy returns, unrealistic expectations.
    Typical government data.
    But does anyone have a plan?

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