Before full Social Security age
AFC ÷ 60 × years
About 1.667% of AFC per year of service.
NHRS pages 'Service Retirement: Group I Tier A & B' and 'Group I Tier C'; Group I Summaries (Rev. 10/2024), PDF p. 1, Service Retirement; RSA 100-A:5, I(b)From the month after
AFC ÷ 66 × years
About 1.515% of AFC per year of service.
NHRS Service Retirement Booklet (Rev 7/2023), PDF p. 3, 'Could the pension amount change?'; NHRS page 'Service Retirement: Group I Tier A & B', Pension Recalculation; NHRS Legislative Changes 2007-25, 2023 session item 1Before the member reaches full Social Security retirement age: AFC divided by 60, multiplied by Creditable Service (annual). After full Social Security retirement age: AFC divided by 66, multiplied by Creditable Service. Same for Tiers A, B and C. The amounts are the Maximum Retirement Allowance (no optional-allowance reduction). NHRS pages 'Service Retirement: Group I Tier A & B' and 'Group I Tier C'; Group I Summaries (Rev. 10/2024), PDF p. 1, Service Retirement; RSA 100-A:5, I(b)
NHRS's example
Load this example into the calculator. The Group I summaries use $30,000 AFC: $15,000 a year, then $13,636.36. Group I Summaries (Rev. 10/2024), PDF p. 1, Service Retirement
The Service Retirement pages print '$60,000 divided by 66 = $909.08' (60,000/66 = 909.0909, so $909.09). Their total, $27,273, matches the exact formula. We follow the formula.
NHRS pages 'Service Retirement: Group I Tier A & B' and 'Tier C'
The Group I summaries print '$30,000 / 66 = $455; $455 x 30 = $13,636'. $455 x 30 is $13,650; the exact formula gives $13,636.36. We follow the formula.
Group I Summaries (Rev. 10/2024), PDF p. 1
When the 1/66 amount starts
Group I members who retire on or after July 1, 2023 see the reduction (1/60 to 1/66) beginning the month following attainment of their full Social Security retirement age. For Group I members who retired before July 1, 2023, the recalculation is effective the month following the member's 65th birthday. NHRS Service Retirement Booklet (Rev 7/2023), PDF p. 3, 'Could the pension amount change?'; NHRS page 'Service Retirement: Group I Tier A & B', Pension Recalculation; NHRS Legislative Changes 2007-25, 2023 session item 1
For example, a member born on June 15, 1966 who retires on July 1, 2026 reaches full Social Security age at 67, so on our reading the lower amount starts in July 2033. The early-retirement reduction, if you have one, applies to both amounts.
NHRS says the 1/66 recalculation begins 'the month following attainment of the member's full Social Security retirement age'. The engine dates it the 1st of the month after the month the member reaches full retirement age.
The 1st of the month after you reach full retirement age.
What would settle it: An NHRS retiree's recalculation notice.
Full Social Security retirement age
Full retirement age ('retirement age') depends on the calendar year the person attains early retirement age (62): before 2000, 65; 2000-2004, 65 plus 2 months for each year after 1999; 2005-2016, 66; 2017-2021, 66 plus 2 months for each year after 2016; 2022 or later, 67. SSA: if you were born on the 1st of the month, your full retirement age is figured as if your birthday was in the previous month; born on January 1st, refer to the previous year. 42 U.S.C. 416(l)(1)-(3); SSA web page 'Retirement Age and Benefit Reduction' (saved Nov. 12, 2026, copied from data/ri/source/ssa/)
| Born in | Full retirement age |
|---|---|
| 1954 or earlier (to 1943) | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 or later | 67 |
Average Final Compensation
Tier A (vested before Jan. 1, 2012): average of the highest three years of Earnable Compensation. Tiers B and C: highest five years. With fewer years, all years (statute). NHRS Average Final Compensation brochure (Sept. 2026), PDF p. 1; Group I Summaries (Rev. 10/2024), PDF p. 1, Average Final Compensation; RSA 100-A:1, XVIII(a)-(b)
A member's final 12 months of Earnable Compensation is limited to 150% of the higher of the Earnable Compensation for the preceding 12 months or the highest year used in calculating AFC, excluding the final 12 months. This limitation affects all members. NHRS Average Final Compensation brochure (Sept. 2026), PDF p. 1, Earnings Limitation; RSA 100-A:1, XVII(a) and XVII(b)(3)
Our engine on NHRS's rules, not an NHRS example: five years of pay of $58,000, $60,000, $62,000, $64,000, $100,000, the last being the final 12 months. The final year counts as at most $96,000 (150% of $64,000). That gives an AFC of $74,000.00 in Tier A (top three years) and $68,000.00 in Tiers B and C (top five).
Tier A: compensation over base pay (COB) counts as base pay. Tiers B and C: the percentage of COB used is the lesser of the COB percentage in the high 5 years or the COB percentage reported since Jan. 1, 2012, excluding the high 5 years. NHRS Average Final Compensation brochure (Sept. 2026), PDF p. 1, Compensation over Base Pay; RSA 100-A:1, XVIII(b)
Compensation paid more than 120 days after termination isn't included in the benefit calculation. NHRS Average Final Compensation brochure (Sept. 2026), PDF p. 1, '120-Day Law'; RSA 100-A:1, XVII
The maximum pension
Members hired on/after July 1, 2009 and not vested before Jan. 1, 2012: the lesser of $120,000 or 85% of AFC. Members hired before July 1, 2009 (or vested before Jan. 1, 2012, statute): no more than 100% of the highest year of Earnable Compensation. NHRS Average Final Compensation brochure (Sept. 2026), PDF p. 1, Maximum Retirement Benefit; RSA 100-A:6-a(a)
| AFC (hired after June 2009, not vested by 2011) | Most a year |
|---|---|
| $60,000 | $51,000 |
| $100,000 | $85,000 |
| $160,000 | $120,000 |
At 1/60 a year, reaching 85% of AFC takes 51 years, so the limit mostly matters for very high pay.
The AFC brochure states the 100%-of-highest-year cap for 'members hired prior to July 1, 2009'. RSA 100-A:6-a(a) applies it to members who commenced before July 1, 2009 or were vested before Jan. 1, 2012. The two only differ for a member hired on/after July 1, 2009 and vested (by age 60) before 2012. The engine follows the statute.
NHRS Average Final Compensation brochure (Sept. 2026), PDF p. 1; RSA 100-A:6-a(a)
The 100%-of-highest-year cap needs the member's highest year of Earnable Compensation, which the calculator doesn't usually ask for. Without it the engine skips this cap (it rarely binds: it would take about 60 years of service).
Applied only if you enter your highest year's pay.
What would settle it: Not needed for typical service.
NHRS's Legislative Changes page (2011 session item 4) says Tier C's pension before 65 is '1/66th of AFC'. The statute, member pages and summaries all use 1/60 before full Social Security retirement age and 1/66 after. We follow the statute and member pages.
NHRS Legislative Changes 2007-25 (2011 session item 4); RSA 100-A:5, I(b)
What the sources say
- Your yearly pension is your Average Final Compensation (AFC) divided by 60, times your years of Creditable Service: 1/60, about 1.667% of AFC per year. Example: $60,000 / 60 = $1,000 x 30 years = $30,000 a year.NHRS page 'Service Retirement: Group I Tier A & B'; RSA 100-A:5, I(b)
- Once you reach your full Social Security retirement age, NHRS recalculates the pension with 1/66 instead of 1/60 (about 1.515% per year). In NHRS's example, $60,000 AFC and 30 years drops from $30,000 to $27,273 a year. This applies to every tier.NHRS page 'Service Retirement: Group I Tier A & B', Pension Recalculation; RSA 100-A:5, I(b)
- If you retire on or after July 1, 2023, the lower amount starts the month after you reach full Social Security retirement age. If you retired before July 1, 2023, it started the month after your 65th birthday.NHRS Service Retirement Booklet (Rev 7/2023), PDF p. 3; NHRS Legislative Changes 2007-25, 2023 session item 1
- Full Social Security retirement age is 67 for anyone who turns 62 in 2022 or later (born 1960 or later), 66 for those turning 62 in 2005-2016, and 66 plus 2 months per year in between.42 U.S.C. 416(l)(1)-(3) (U.S. Code 2023 ed.)
- There's a maximum. If you were hired on or after July 1, 2009 and weren't vested before Jan. 1, 2012, your pension can't exceed the lesser of 85% of AFC or $120,000 a year. If you were hired before July 1, 2009, it can't exceed 100% of your highest year of Earnable Compensation.NHRS Average Final Compensation brochure (Sept. 2026), PDF p. 1, Maximum Retirement Benefit; RSA 100-A:6-a(a)
- AFC is the average of your three highest years of Earnable Compensation if you're Tier A, or your five highest years if you're Tier B or C.NHRS Average Final Compensation brochure (Sept. 2026), PDF p. 1; RSA 100-A:1, XVIII
- Your final 12 months of pay is capped for the calculation at 150% of the higher of the previous 12 months or your highest year used in the AFC (not counting the final 12 months). This applies to all members.NHRS Average Final Compensation brochure (Sept. 2026), PDF p. 1, Earnings Limitation; RSA 100-A:1, XVII
- Pay you receive more than 120 days after leaving your job isn't counted.NHRS Average Final Compensation brochure (Sept. 2026), PDF p. 1, '120-Day Law'
- For Tiers B and C, extra pay over base (such as stipends and longevity) counts only up to the share of such pay you earned since Jan. 1, 2012, outside your high five years. For Tier A it counts as base pay.NHRS Average Final Compensation brochure (Sept. 2026), PDF p. 1, Compensation over Base Pay; RSA 100-A:1, XVIII(b)
Tier rules: which tier am I? Retiring before 60 (or 65 in Tier C): early retirement. What another year adds: one more year? Members hired before July 1, 2011 are in Tier A or B.
Questions
What is the NHRS pension formula?
Average Final Compensation (AFC) ÷ 60 × years of Creditable Service, a year, until you reach full Social Security retirement age. From the month after that: AFC ÷ 66 × service. It's the same in Tiers A, B and C.
How much does the 1/66 recalculation cut?
About 9.1%. On NHRS's example of $60,000 AFC and 30 years: $30,000 a year before, $27,272.73 after.
What's the most NHRS can pay?
Hired on or after July 1, 2009 and not vested before January 1, 2012: the lesser of 85% of AFC or $120,000 a year. Hired earlier: 100% of your highest year of pay.
Source: NHRS Group I (Employee and Teacher) Member Benefits summaries, Tiers A, B and C, Rev. 10/2024, PDF p. 1. Also: NHRS member web pages (saved Nov. 12, 2026); NHRS Service Retirement Booklet (Rev 7/2023); NHRS Legislative Changes 2007-25; NHRS AFC brochure (Sept. 2026); 42 U.S.C. 416(l); RSA 100-A:1, 100-A:5, 100-A:6-a. Last reviewed .