US - Milford's town government is considering pulling out from the New Hampshire Retirement System (NHRS) because of its funding level.
Jim Dannis, who sits on the Board of Selectmen, the executive arm of the town governnment, proposed that the town consider withdrawal from the NHRS because he claimed a well-designed, professionally managed, market-based plan run on a single-town basis could provide better retirement benefits for employees, less costs to taxpayers and a more flexible approach that better aligns employee and taxpayer interests.
The proposal was considered on Monday and the Board of Selectmen decided to investigate what might be required to exit from the NHRS.
Dannis said the NHRS was grossly under funded, and in the worst decile among government plans in the US.
“It uses unrealistic long-term return assumptions, which has the effect of understating the pension plan’s financial hole,” said Dannis.
He claimed the financial weakness of the pension plan was the result of a combination of poor investment returns, legislative raids on the system to fund other employee benefits, non-market pensions to some categories of employees, and lax oversight, which he said resulted in widespread and successful “gaming” of the system by many beneficiaries.
“The bottom line is that this is a mis-designed, mismanaged and mis-overseen plan, with the multi-billion dollar costs of the bailout, which are escalating each year to be paid by state and local taxpayers,” concluded Dannis.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers