NH Town Considers Bailing From State Plan

December 11, 2007 (PLANSPONSOR.com) -Milford, New Hampshire, is pondering whether it should run its retirement plan on its own rather than be a part of the New Hampshire Retirement System (NHRS) because of NHRS' current $2.5 billion funding shortfall.

The town’s Board of Selectmen decided at a recent meeting to investigate exactly how  Milford would go about withdrawing from the NHRS, according to a news report in Global Pensions, UK. The suggestion for  Milford to go at it on its own is being driven by Selectman Jim Dennis who proposed the withdrawal.

According to the news report, Dennis declared: “[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 board could expect more than a doubling of the town’s expenses before there were any reforms, the news report said.