New Pension Plan Backed by NH House

May 16, 2012

New Hampshire's House has voted to move ahead with a new public pension system for state employees and wants the Senate to reconsider its decision to study the issue instead.

The House voted 222-94 on Wednesday to create a legislative committee to come up with a defined contribution pension plan for new state employees to be implemented Nov. 1, 2013. If the committee doesn't select a plan, a default plan would take effect.

Unlike the current pension system that usually provides a guaranteed amount based on years of service, the proposed plan would operate like a 401(k) by investing employer and employee contributions. The payout would be variable.

Opponents said the plan would cost property taxpayers millions of dollars. Supporters said those problems can be addressed by the committee.