RVCC 2019 NECHE Self-Study

The eligibility requirements for receiving OPEB Plan benefits differ for Group I and Group II
members. For CCSNH (Group) I members, substantially all employees who were hired on or
before June 30, 2003 and have 10 years of service may become eligible for these benefits if they
reach normal retirement age while working for the State and receive their pensions on a periodic
basis rather than a lump sum. During fiscal year 2004, legislation was passed that requires State
Group I employees hired on or after July 1, 2003 to have 20 years of State service in order to
qualify for health coverage benefits. These and similar benefits for active employees are
authorized by state law and administered through the Employee and Retiree Benefit Risk
Management Fund (the Fund), which is the State’s self-insurance fund implemented in October
2003 for active State employees and retirees.
Contributions Required and Made
The State Legislature has indicated it plans to only partially fund (on a pay-as-you-go basis) the
annual required contribution (ARC), an actuarially determined rate.
Plan members are not required to contribute to the OPEB Plan. CCSNH makes annual
contributions to the OPEB Plan equal to the amount required by RSA 100-A: 52, which, for all
Group I employees, was 1.64% of covered compensation during the year ended June 30, 2017.
Effective July 1, 2017 the annual contribution rate was decreased to 1.07% and will remain fixed
through June 30, 2019. CCSNH’s contributions to NHRS for the OPEB Plan for the years ended
June 30, 2018 and 2017 were $456,916 and $694,802, respectively, which were equal to its ARC.
OPEB Liabilities, OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to OPEB
At June 30, 2018, CCSNH reported a liability of $5,462,993 for its proportionate share of the net
OPEB liability. The net OPEB liability is based on an actuarial valuation performed as of June 30,
2016 and a measurement date of June 30, 2017. The net OPEB liability was rolled forward from
June 30, 2016 to June 30, 2017. CCSNH’s proportion of the net OPEB liability was based on a
projection of the CCSNH’s long-term share of contributions to NHRS relative to the projected
contributions of all participating employers as actuarially determined. At June 30, 2017 and 2016,
CCSNH’s proportion of the net OPEB liability was 1.19479% and 1.26378%, respectively.
For the year ended June 30, 2018 and 2017, CCSNH recognized OPEB expense of $170,718 and
$694,802, respectively
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