Why paying down New Hampshire pension debt faster would be a win for taxpayers

In Politics by Michael Rae

The state government accounts for nearly $818 million (18%) of the current unfunded pension liabilities held by the New Hampshire Retirement System (NHRS). Pension liabilities are promises made on behalf of the government to public workers and must eventually be fulfilled. Unfunded liabilities operate just like debt. The longer they are held, the more interest they will accrue and the more their costs will be passed on to future generations.Unfunded public pension liabilities accrue interest at the same rates as the NHRS discount rate—currently 6.75% annually—making NHRS unfunded liabilities among the most expensive taxpayer-backed debt held by the state.The state’s

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