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Rising pension costs?

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Increasing pension payments for police, fire and schools are hitting some cities hard in the Granite State.

For example, Laconia is looking at a 15% increase in retirement expenses for police next year. Retirement expenses are increasing 12% for firefighters and 8% for teachers.

In 1977, a single statewide public employee pension system was formed with the state initially picking up 35% of the expense. In 2009, the state's commitment was reduced to 30%. By 2012, the state's contribution was down to zero, where it remains today. Cities and towns now must cover all retirement costs for employees.

Those in favor of NH contributing state funds to the New Hampshire Retirement System argue that the state set up an expectation for funding after contributing to the system for over 30 years. The funding cut in 2012 left many cities and towns with a huge budget hole.

Those against state funding, however, argue that the state funding was only ever intended as a temporary incentive for cities and towns to join the new system. They argue that the state fulfilled its responsibilities, and there are higher funding priorities for the state right now.

Should NH contribute state funds to the New Hampshire Retirement System? Leave a comment below to share your opinion.

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