New Hampshire House of Representatives approved a bill that would close the $5.4 billion New Hampshire Retirement System, Concord, to new employees and establish a new defined contribution plan, effective Nov. 1.
“This is some thinking about pensions that has been going on for at least six to seven years because pension expenses are very high; that is to say, the public employers' costs for employee pensions have gotten very expensive recently,” said state Rep. Neal Kurk, sponsor of the bill.
The March 29 passage came a day after the state Senate voted to form a commission to study the possibility of a new defined contribution plan.
The House bill will now go to the state Senate.
“This bill is really a holding action” to keep working on the issue, Mr. Kurk said. “There is zero likelihood that this bill as it passed the House will go into effect. There are many questions, including transition costs.”