New Hampshire Defined-Benefit Pension Plan and Trust Agreement

• Category: Trusts - Business
• State: Multi-State
• Control #: US-1073BG
• Format: Word; Rich Text

Description

A defined benefit pension plan is a type of pension plan in which an employer or sponsor promises a specified pension payment, lump-sum (or combination thereof) on retirement that is predetermined by a formula based on the employee's earnings history, tenure of service and age, rather than depending directly on individual investment returns. Traditionally, many governmental and public entities, as well as a large number of corporations, provided defined benefit plans, sometimes as a means of compensating workers in lieu of increased pay. A defined benefit plan is "defined" in the sense that the benefit formula is defined and known in advance. Conversely, for a "defined contribution retirement saving plan", the formula for computing the employer's and employee's contributions is defined and known in advance, but the benefit to be paid out is not known in advance. The New Hampshire Defined-Benefit Pension Plan and Trust Agreement is a comprehensive retirement benefit program established by the state of New Hampshire for its public employees. This plan provides guaranteed retirement income determined by a specified formula, ensuring a secure financial future for participants. The New Hampshire Defined-Benefit Pension Plan operates under a trust agreement that safeguards the pension assets and ensures their proper management and distribution. The trust agreement is a legally binding document that outlines the rules and regulations governing the operation of the plan. It covers various aspects, such as eligibility criteria, benefit calculations, contribution requirements, investment guidelines, and administration procedures. Within the New Hampshire Defined-Benefit Pension Plan, there are different types of agreements tailored to specific groups of public employees, ensuring fairness and equity across various professions. Some of these specialized plans include: 1. New Hampshire Teacher’s Defined-Benefit Pension Plan: This plan specifically caters to educators in the state, including teachers, principals, and school administrators. It offers retirement benefits based on the individual's years of service, final average salary, and a predetermined multiplier. 2. New Hampshire Police and Firefighter Defined-Benefit Pension Plan: Designed exclusively for law enforcement officers and firefighters, this plan ensures financial security for those who serve and protect the community. It grants retirement benefits based on years of service, final average salary, and certain specific provisions for these high-risk professions. 3. New Hampshire State Employees’ Retirement SystemSEESRThesiRSSRS encompasses a broader spectrum of state employees, excluding specialized groups like teachers, police, and firefighters. It guarantees retirement benefits based on years of service, age at retirement, and highest average salary. The New Hampshire Defined-Benefit Pension Plan and Trust Agreement is overseen by the New Hampshire Retirement System (NHS), a dedicated agency responsible for the proper administration and management of the pension funds. The NHS ensures that the plan remains financially sustainable, taking into account a variety of factors such as investment earnings, actuarial assumptions, and demographic trends. By offering a defined-benefit retirement plan, New Hampshire aims to attract and retain qualified public employees by providing a secure and reliable pension system. The various specialized agreements within the plan cater to the unique needs of different professions, ensuring that every participant receives a fair and adequate retirement benefit.

The New Hampshire Defined-Benefit Pension Plan and Trust Agreement is a comprehensive retirement benefit program established by the state of New Hampshire for its public employees. This plan provides guaranteed retirement income determined by a specified formula, ensuring a secure financial future for participants. The New Hampshire Defined-Benefit Pension Plan operates under a trust agreement that safeguards the pension assets and ensures their proper management and distribution. The trust agreement is a legally binding document that outlines the rules and regulations governing the operation of the plan. It covers various aspects, such as eligibility criteria, benefit calculations, contribution requirements, investment guidelines, and administration procedures. Within the New Hampshire Defined-Benefit Pension Plan, there are different types of agreements tailored to specific groups of public employees, ensuring fairness and equity across various professions. Some of these specialized plans include: 1. New Hampshire Teacher’s Defined-Benefit Pension Plan: This plan specifically caters to educators in the state, including teachers, principals, and school administrators. It offers retirement benefits based on the individual's years of service, final average salary, and a predetermined multiplier. 2. New Hampshire Police and Firefighter Defined-Benefit Pension Plan: Designed exclusively for law enforcement officers and firefighters, this plan ensures financial security for those who serve and protect the community. It grants retirement benefits based on years of service, final average salary, and certain specific provisions for these high-risk professions. 3. New Hampshire State Employees’ Retirement SystemSEESRThesiRSSRS encompasses a broader spectrum of state employees, excluding specialized groups like teachers, police, and firefighters. It guarantees retirement benefits based on years of service, age at retirement, and highest average salary. The New Hampshire Defined-Benefit Pension Plan and Trust Agreement is overseen by the New Hampshire Retirement System (NHS), a dedicated agency responsible for the proper administration and management of the pension funds. The NHS ensures that the plan remains financially sustainable, taking into account a variety of factors such as investment earnings, actuarial assumptions, and demographic trends. By offering a defined-benefit retirement plan, New Hampshire aims to attract and retain qualified public employees by providing a secure and reliable pension system. The various specialized agreements within the plan cater to the unique needs of different professions, ensuring that every participant receives a fair and adequate retirement benefit.