Leaving NHRS work: refund or wait?

A vested deferred pension

With at least 10 years of Creditable Service at termination and contributions left with NHRS: Tiers A and B, an unreduced pension at 60 or a reduced (early) pension at 50-59; Tier C, a pension at 65, or a permanently reduced pension at 60-64 with 30 or more years (1/4% per month before 65). Benefits use AFC and service at termination and don't begin automatically; the member must file. NHRS pages 'Vested Deferred Retirement: Group I Tier A & B' and 'Group I Tier C'; Group I Summaries (Rev. 10/2024), PDF p. 1; RSA 100-A:10, I

Vested on the earlier of 10 years of NHRS Creditable Service, or (Tier A) on or after attainment of age 60. Members working in an NHRS-covered position at or beyond normal Service Retirement age (60 if hired before July 1, 2011, 65 otherwise) have also earned a right to a future benefit. Group I Summary, Tier A (Rev. 10/2024), PDF p. 1, Vesting; NHRS page 'FAQ: Terminating Employment Prior to Retirement'; RSA 100-A:1, XXXVII(a); RSA 100-A:10, I(a)

Our engine on NHRS's rules, not an NHRS example: a Tier B teacher who leaves at 50 with 15 years on a $55,000 AFC.

"Later" is after the 1/66 recalculation at full Social Security age. The pension uses your AFC and service when you left; it doesn't grow while you wait. See early retirement for the reduction table.

A refund

Group I members may apply for a refund (or direct rollover) of accumulated contributions no sooner than 30 days after termination, and only if they don't become contributing members again before it's issued. NHRS must process a complete application within three months. A refund cancels service credit and, for vested members, forfeits all rights to benefits. Employer contributions are not refunded. Taxable refunds have 20% federal withholding; under 59 1/2 a 10% additional tax may apply. Prior service of six months or more can be reinstated after returning by repaying the refund plus interest. NHRS pages 'Refund/Rollover' and 'FAQ: Terminating Employment Prior to Retirement'; RSA 100-A:11, I(a)

Dates by our reading of the rules: leave on June 30, 2027, and the earliest you can apply is July 30, 2027. NHRS then has until about October 30, 2027 to pay a complete application.

If you die before your pension starts

If a member dies when not in service (including a vested deferred member before the pension starts), only a refund of accumulated contributions is payable. NHRS pages 'Pre-retirement Death Benefits' and 'Vested Deferred Retirement: Group I Tier A & B'

Before you decide

• A refund gives up the employer-funded part of your pension for good, and if you're vested, all rights to the pension. Compare the refund with the deferred pension in the calculator first.
• If you might come back to an NHRS job, you can buy back six months or more of refunded service later, with interest: see buying service credit.
• You can take the refund as a direct rollover; a taxable refund paid to you has 20% federal tax withheld. See taxes.

• If you leave with at least 10 years and leave your contributions with NHRS, you get a vested deferred pension later: Tiers A and B at 60 (or reduced at 50-59); Tier C at 65 (or reduced at 60-64 with 30 years). It doesn't start automatically: you must file.NHRS pages 'Vested Deferred Retirement: Group I Tier A & B' and 'Group I Tier C'; RSA 100-A:10, I
• You can ask for a refund (or rollover) of your contributions plus interest no sooner than 30 days after leaving, if you haven't rejoined. NHRS must pay within three months. Employer contributions aren't refunded, and a refund cancels your service and any right to a pension.NHRS page 'Refund/Rollover'; RSA 100-A:11, I(a)
• Taxable refunds have 20% federal tax withheld; before 59 1/2 a 10% additional tax may apply unless you roll the money over.NHRS page 'FAQ: Terminating Employment Prior to Retirement'
• If you return to NHRS work later, you can buy back prior service of six months or more by repaying the refund plus interest.NHRS page 'FAQ: Terminating Employment Prior to Retirement'; NHRS Service Credit brochure (Rev. 7/2022), PDF p. 1

Use the calculator with "I've stopped working under NHRS" ticked to see your deferred pension at each age.

Questions