Annual report of the Town of Hampton, New Hampshire

TOWN OF HAMPTON, NEW HAMPSHIRE
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
The Trust Agreement permits the Trust to make additional assessments to members should there be
a deficiency in Trust assets to meet its liabilities. At this time, the Trust foresees no likelihood of
any additional assessments for any of the past years.
The Town continues to carry commercial insurance for all other risks of loss, including employee
and public official fidelity bonds, health and accident insurance.
B. Defined Benefit Pension Plan
Plan Description and Provisions
The Town of Hampton participates in the New Hampshire Retirement System (System) which is the
administrator of a cost-sharing multiple-employer contributory pension plan and trust established
in 1967 by RSA 100-A:2 and is qualified as a tax-exempt organization under Sections 401 (a) and
501 (a) of the Internal Revenue Code. The plan is a contributory, defined benefit plan providing
service, disability, death and vested retirement benefits to members and their beneficiaries.
Provisions for benefits and contributions are established and can be amended by the New Hampshire
State Legislature. The System issues a publicly available financial report that may be obtained by
writing the New Hampshire Retirement System, 4 Chenell Drive, Concord, NH 03301.
Description of Funding Policy
The System is financed by contributions from both the employees and the Town. Member
contribution rates are established and may be amended by the State legislature while employer
contribution rates are set by the System trustees based on an actuarial valuation. All employees
except police officers and firefighters are required to contribute 5 % of earnable compensation.
Police officers and firefighters are required to contribute 9.3% of gross earnings. For the period
January 1 through June 30, 1998, the Town contributed 3.812% for police officers, 5.822% for
firefighters and 4.282% for other employees. From July 1 through December 31, 1998, the rates
were 3.69% for police officers, 5.70% for firefighters and 4.16% for other employees. The
contribution requirements for the Town of Hampton for the years 1996, 1997, and 1998 were
$237,871, $259,605 and $302,695, respectively, which were paid in full in each year.
The State of New Hampshire funds 35 % of employer costs for firefighters
employed by the Town.
and police officers
The State does not participate in funding the employer cost of other Town
employees. GASB Statement 24, "Accounting and Financial Reporting for Certain Grants and
Other Financial Assistance" requires this amount to be reported as a revenue and expenditure in the
Town's financial statements. This amount $ 95,085 has been included on Exhibit B - Combined
Statement of Revenues, Expenditures and Changes in Fund Balances for All Governmental and
Expendable Trust Funds and is reconciled to the budgetary expenditures in Note ID.
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