RVCC 2019 NECHE Self-Study

Discount Rate
The discount rate used to measure the total pension liability as of June 30, 2017 and 2016 was
7.25%. The projection of cash flows used to determine the discount rate assumed that plan
member contributions will be made at the current contribution rate and that employer contributions
will be made at rates equal to the difference between actuarially determined contribution rates and
the member rate. For purposes of the projection, member contributions and employer service cost
contributions are projected based on the expected payroll of current members only. Employer
contributions are determined based on the pension plan’s actuarial funding policy and as required
by RSA 100-A: 16. Based on those assumptions, the pension plan’s fiduciary net position was
projected to be available to make all projected future benefit payments to current plan members.
Therefore, the long-term expected rate of return on pension plan investments was applied to all
periods of projected benefit payments to determine the total pension liability.
Sensitivity Analysis
The following presents CCSNH’s proportionate share of the net pension liability calculated using
the discount rate of 7.25%, as well as what CCSNH’s proportionate share of the pension liability
would be if it were calculated using a discount rate that is 1 percentage-point lower or 1 percentage
point higher than the current rate:
1% Decrease
(6.25%)
Current
Discount Rate
(7.25%)
1% Increase
(8.25%)
CCSNH's proportionate share of the net
pension liability $ 82,936,650 $ 62,952,418 $ 46,576,130
8. Other Post-Employment Benefits
Plan Description - NHRS
In addition to providing pension benefits, NHRS administers a cost-sharing multiple-employer
defined benefit postemployment medical subsidy healthcare plan designated in statute (RSA 100-
A: 52, RSA 100-A: 52a and RSA 100-A: 52-b) by membership type. The membership types are
Group I Teachers, Group I Political Subdivision Employees, Group I State Employees, and Group II
Police Officer and Firefighters. All CCSNH employees are Group I participants. The NHRS OPEB
Plan provides a medical insurance subsidy to qualified retired members. The medical subsidy is a
payment made by NHRS to the former employer or their insurance administrator toward the cost of
health insurance for a qualified retiree, his/her qualified spouse, and his/her certifiably dependent
children with a disability who are living in the household and being cared for by the retiree. Under
specific conditions, the qualified beneficiaries of members who die while in service may also be
eligible for the medical subsidy. For qualified retirees not eligible for Medicare the subsidy amounts
were $375.56 for a single-person plan and $751.12 for a two-person plan. For those qualified
retirees eligible for Medicare, the amounts were $236.84 for a single-person plan and $473.68 for a
two-person plan. There have been no increases in the monthly maximum subsidy amounts since
July 1, 2007. The plan is closed to new entrants.
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