New Hampshire Code of Administrative Rules
Ret - Board of Trustees of the N.H. Retirement System
Chapter Ret 300 - PARTICIPATION IN THE RETIREMENT SYSTEM
Part Ret 311 - EMPLOYER WITHDRAWAL
Section Ret 311.04 - Withdrawal Liability Calculation
Universal Citation: NH Admin Rules Ret 311.04
Current through Register No. 40, October 3, 2024
(a) The method for allocating the unfunded accrued liability for a withdrawing employer shall be determined as follows:
(1) The total amount of
the unfunded accrued liability allocable to a withdrawn employer shall be equal
to the sum of:
a.The unfunded present value of
pension benefits that are attributable to retained participants' service with
the employer as of the most recent actuarial valuation accepted by the board of
trustees, projected to the withdrawal date, as determined in Ret. 311.04(a)(2);
and
b.The unfunded present value of
post-retirement medical subsidy, if any, attributable to retained participants'
service with the employer as of the most recent actuarial valuation accepted by
the board of trustees, projected to the withdrawal date, as determined in Ret.
311.04(a)(4);
(2) The
unfunded present value of pension benefits that are attributable to retained
participants' service with the employer shall be equal to the product of:
a. The actuarial present value of accrued
pension benefits that are attributable to retained participants' service with
the employer as of the most recent actuarial valuation accepted by the board of
trustees, projected to the withdrawal date, determined using the assumptions
and methods in (b); and
b. The
unfunded percentage described (3);
(3) The unfunded percentage determined under
this paragraph shall be equal to one minus a fraction that is not greater than
one, determined as follows:
a. The numerator
shall be the fair market value of pension assets for the specific NHRS member
classification fund, in total as of the most recent actuarial valuation
accepted by the board of trustees, projected to the withdrawal date;
and
b. The denominator of which
shall be the present value of pension benefits of all the specific NHRS member
classification fund's participants as of the most recent actuarial valuation
accepted by the board of trustees, determined using the assumptions and methods
in (b) projected to the withdrawal date;
(4) The unfunded present value of
post-retirement medical subsidy, if any, attributable to retained participants'
service with the employer shall be equal to the product of:
a. The actuarial present value of the
post-retirement medical subsidy that is attributable to retained participants'
service with the employer as of the most recent actuarial valuation accepted by
the board of trustees projected to the withdrawal date, determined using the
assumptions and methods in (b); and
b. The unfunded percentage described in (5);
and
(5) The unfunded
percentage under this paragraph shall equal one minus a fraction that is not
greater than one or less than zero, determined as follows:
a. The numerator shall be the fair market
value of medical subsidy assets for the specific NHRS member classification
fund in total as of the most recent valuation date accepted by the board of
trustees projected to the withdrawal date; and
b. The denominator shall be the present value
of post-retirement medical subsidy benefits of all the specific NHRS member
classification fund's participants as of the most recent valuation date
accepted by the board of trustees, determined using the assumptions and methods
in paragraph (b) projected to the withdrawal date.
(b) The benefit liabilities shall be the present value of accrued benefits determined using the actuarial assumptions adopted by the board of trustees for calculating withdrawal liabilities.
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