Many public employees across the state who are nearing retirement age are thinking about retiring early.
They’re worried about the future of the state’s pension system.
New Hampshire Public Radio’s David Darman has more.
Dennis Kinnan is a parole officer in Manchester who has worked for the state for more than 30 years.
Kinnan says he plans to retire in June.
He says he’s concerned about a proposal that would take away overtime from the calculation of retiree benefits.
That would cost me a lot of money, and frankly I’ve been paying into the system since ’74… and I paid my fair share and I played by the rules. And now at the time I can retire, we’re going to change the rules, nah, I’m going to protect myself.
The measure to exclude overtime was one of many proposals brought up in past months to buttress the retirement system’s assets.
The system’s balance is currently 5 billion dollars, but that’s just two-thirds of what would be needed to pay out all potential claims.
Lawmakers say they want to bring the system up to the 85 percent level, since that would put it on firmer ground.
They also want to change the actuarial method that determines what the state, cities and towns contribute to the system.
Senator Peter Burling chairs the Executive Departments and Administration committee.
He says making the change will cost about 18 million dollars.
I think its clear that employers are going to be looking at a period of time in which their contribution rates go up. The employee contribution rates, the rates of the retirement system beneficiaries, that’s going to stay set in statute, I mean, that’s the way we do that.
The cost to change the actuarial method would be split between the state and local governments.
But employees wouldn’t see their rates change because of it.
State employees, teachers and town workers pay 5 percent of their pay into the system.
Police officers and firefighters pay slightly more than 9 percent.
The public safety employees pay more because they aren’t eligible to collect social security when they retire.
Retirees have been getting cost of living raises and health benefits from the so called “Special Account†in the retirement system.
The account was filled during years of good returns.
But poor returns during the tech stock bust several years ago have kept the account from getting replenished.
That runs the risk that money for the raises and health benefits would run out in a few years.
Stephen Arnold, past president of the New Hampshire police association says he doesn’t want to see the special account wither away.
You know, so we need to find ways that we’re going to continue to fund it. I mean, I’m going to be a retired guy one day. You know, I want to make sure my benefits are there. So, I’m not only protecting the guys that are active right now. I’m trying to protect the people who are retired and deserve a reasonable cost of living increase.
The state senate panel reviewing the retirement system is looking to recommend the legislature appoint a commission to look at solutions.
The New Hampshire Municipal Association has already participated in an earlier panel, which presented its findings in March to the New Hampshire House.
Maura Carroll of the Municipal Association says her panel didn’t get to consider every issue connected with the retirement system.
She says she hopes a new panel can look where her panel didn’t.
We didn’t have time to get to health issues, you know, the health and medical subsidy issue and there are a whole variety of things in the system that may need review.
The commission would have just six months to review the special account and the rest of the retirement system.
Lawmakers are asking it to report its findings on December 1st.
State employees should not make decisions based on rumors. Please get the facts. If you want to retire, by all means, do so. But, if you don't want to retire now, there's no reason to do so prematurely.