The Seven Terms Workers Should Know Before Applying for NHRS Disability Retirement
Part 3: The Seven Terms Workers Should Know Before Applying for NHRS Disability Retirement
In case you missed Part 1, follow this link to read Part 1: Important Retirement and Disability Benefits for Injured and Ill Workers
In case you missed Part 2, follow this link to read Part 2: New Hampshire Disability and Retirement Benefits You May Have Overlooked
The following is a list of retirement terms. If you are an employee covered under the New Hampshire Retirement System (NHRS) and you have become disabled due to a serious illness or injury, whether it is work related or not, here are seven important terms you will want to know before you begin to consider or calculate your available retirement and disability benefits.
Vesting
Members become vested for retirement benefits upon the earlier of: (1) completion of 10 years of NHRS credible service; or (2) On or after attainment of the NHRS normal retirement age while in service, regardless of years of credit of all service.
Retirement
This is not the same as “termination” or the last day of employment. In order to begin collecting a lifetime pension, members must file a retirement application with NHRS and meet certain deadlines.
Accumulated Contributions
The total amount a member has paid into the retirement system plus credited interest. Employer contributions are not included in this definition.
In-service
Members will be considered in-service if both the member and employer are actively contributing to NHRS and the member is earning creditable service. Members may also be considered in service for certain benefits if employment is suspended as a result of the family medical leave act, Worker’s Compensation, or active military duty.
Creditable Service
The number of months and years of service credit and Avenue MNHRS member. Creditable service is one of the factors used to calculate the pension benefit.
Service Credit
Members may be eligible to increase their amount of creditable service through purchasing one or more types of service credit.
Average Final Compensation (AFC)
The average of the members five highest years of earnable compensation in NHRS-covered employment. AFC may be subject to learn about compensation limit and other Statutory provision. AFC is one of the factors used to calculate the pension benefit.
