NH Responders Suing State over Pension Benefits

Nov. 3—First responders are suing the state's retirement system, claiming they've been denied benefits owed to them.

The lawsuit, filed by the New Hampshire Group II Retirement Coalition, represents about 1,600 first responders, the court filing says.

The lawsuit aims to reverse legislative changes made in 2011 which retroactively impacted first responders," the coalition said in a message on its website.

"Our main goal is to restore the retirement benefits that have been unjustly stripped away, causing distrust between first responders and lawmakers, recruitment and retention challenges, as well as unwarranted and undue hardship for those who have dedicated their lives to protecting and serving New Hampshire's residents," the message says.

Lawmakers approved changes to the state retirement system in 2011 following the recession as part of an effort to chip away at a $4.3 billion unfunded liability in the benefit payout obligations to state employees.

The changes impacted about 1,800 individuals — employed for 10 years or less — who found themselves paying more in contributions and receiving fewer benefits, the coalition claims.

The Professional Fire Fighters of New Hampshire union attempted to block the changes, but in 2014 the state Supreme Court unanimously ruled the state can authorize increases in employee contribution rates for all employees, no matter how long they've been employed.

Coalition leadership says in recent years members — which include police officers, probation/parole officers, corrections officers, firefighters, and nurses — have faced "significant cuts" to their pension benefits despite fulfilling their obligations and paying into the retirement system "with the expectation of financial security in their later years."

"This lawsuit represents the culmination of years of effort to correct the wrongs inflicted upon New Hampshire's first responders — the guardians and caretakers of our communities," Seifu Ragassa, president of the NH Group II Retirement Coalition, said in a statement. "We have exhausted legislative channels and have attempted negotiations, but the state continues to turn a blind eye to the plight of its most dedicated public servants. Now, we are taking legal action to ensure fairness and justice."

Gov. Chris Sununu expressed disappointment that a lawsuit was filed.

"Lawsuits rarely result in a net benefit for everyone," Sununu said. "At the end of the day, it burns more bridges than anything."

In July, Sununu signed a bill adjusting the percentage used to determine state retiree benefits. In early October, $26 million was transferred to the New Hampshire Retirement System for the Group II Retirement Plan — heralded by Sununu as a "big investment" to help recruit and retain first responders, but retirement coalition leaders claim the money represents about 1% of what members are owed under state law.

Attorneys for the plaintiffs, William D. Woodbury, James F. Lafrance and Benjamin T. King, issued a joint statement on the lawsuit saying changes made to the retirement system violated "the federal and state constitutional rights of the aggrieved employees."

"We look forward to vindicating the constitutional rights of these public employees and restoring the retirement benefits wrongfully taken from them," the statement said.

The state's retirement system currently has around 50,000 active members and 43,500 pensioners. The system's unaudited trust fund assets came in at $12.2 billion at the end of fiscal year 2024, an increase of approximately $700 million from the prior fiscal year — a nearly 9% return on its investment, officials noted in a recent report.

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