HB 735-FN-A - AS AMENDED BY THE HOUSE
20may99.....1220h
1999 SESSION
HOUSE BILL 735-FN-A
AN ACT establishing a contributory judicial retirement plan.
SPONSORS: Rep. Dyer, Hills 8; Rep. Kurk, Hills 5; Sen. Roberge, Dist 9
COMMITTEE: Executive Departments and Administration
This bill establishes a contributory judicial defined contribution retirement plan administered by the administrative office of the courts which includes a 2 to 3 state match of contributions by member judges.
The bill also provides for a survivorship option for judges in the present non-contributing system.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
20may99.....1220h
99-0767
10/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord One Thousand Nine Hundred and Ninety-Nine
AN ACT establishing a contributory judicial retirement plan.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Purpose. This act establishes a contributory retirement plan for all new judges appointed after the effective date of this act. Judges appointed prior to the effective date will have the option of starting in the new retirement plan within one year of its enactment while retaining the current level of benefits of the present system, or continuing on in the present non-contributory system until retirement. The administrative office of the courts shall be responsible for establishing the defined contribution plan and for contracting with a provider for the administration of the defined contribution plan for eligible judges.
2 Chapter Heading Changed; Judicial Retirement. Amend the chapter heading of RSA 491-A to read as follows:
JUDICIAL SALARIES AND RETIREMENT
3 New Subdivisions; Judicial Defined Contribution Plan. Amend RSA 491-A by inserting after section 4 the following new subdivisions:
Judicial Defined Contribution Plan
491-A:5 Judicial Defined Contribution Plan Established. The director of the administrative office of the courts shall contract with a suitable provider for the establishment, implementation, and administration of a defined contribution plan to provide for retirement benefits for retired judges of this state. The plan shall be tax qualified under applicable provisions of the federal Internal Revenue Code of 1986, as amended. The costs to the judicial branch of administration of the provisions of this subdivision shall be a charge against the biennial appropriation for the judicial branch.
491-A:6 Membership.
I. Any judge of the district, probate, superior, and supreme courts appointed after July 1, 2000 may become a member of the plan. An eligible judge may choose not to participate.
II.(a) Any judge of the district, probate, superior, and supreme courts appointed prior to July 1, 2000 shall be permitted to become a member of the judicial defined contribution plan provided the judge notifies the director of the administrative office of the courts prior to July 1, 2001.
(b) A judge who provides notice pursuant to subparagraph (a) shall be eligible to receive retirement compensation provided from the general funds of the state pursuant to RSA 490:2, RSA 491:2, RSA 502-A:6-a, RSA 547:19-b, or RSA 547:19-d. The retirement benefit to be received, however, shall be the applicable percentage as applied to the judge's salary at the date the judge provided notice under subparagraph (a) and not the salary at the date of retirement of the judge.
491-A:7 Contributions. Contributions by members of the plan established under RSA 491-A:5, shall be matched by contributions from the state at a rate of $2 for every $3 contributed by the member, provided, however, the member may contribute no more than the allowable maximum contribution under United States Internal Revenue Code Section 415, and provided further that the state's matching contribution shall not exceed 4 percent of the member's annual salary, subject to any additional restrictions under applicable federal law. The sums necessary for the state contribution to the judicial defined contribution plan shall be appropriated from the general funds of the state. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.
Survivorship Option
491-A:8 Survivorship Option. Any judge eligible to receive retirement benefits under RSA 490:2, RSA 491:2, RSA 502-A:6-a, RSA 547:19-b, or RSA 547:19-d may, at the time of the judge's retirement and prior to receiving benefits, elect to receive a reduced benefit payable during the member's life of 2/3 of the full retirement benefit amount, and a reduced benefit payable to the member's spouse beginning at the member's death of 1/3 of the member's full retirement benefit amount.
4 New Paragraph; Supreme Court; Retirement Compensation for Judges; Limitation. Amend RSA 490:2 by inserting after paragraph VI the following new paragraph:
VII. The provisions of this section which provide for additional compensation for retired judges or their beneficiaries shall apply only to judges appointed prior to July 1, 2000.
5 New Paragraph; Superior Court; Retirement Compensation for Judges; Limitation. Amend RSA 491:2 by inserting after paragraph VII the following new paragraph:
VIII. The provisions of this section which provide for additional compensation for retired judges or their beneficiaries shall apply only to judges appointed prior to July 1, 2000.
6 New Paragraph; District Court; Retirement Compensation for Judges; Limitation. Amend RSA 502-A:6-a by inserting after paragraph VI the following new paragraph:
VII. The provisions of this section which provide for additional compensation for retired judges or their beneficiaries shall apply only to judges appointed prior to July 1, 2000.
7 Probate Court; Retirement Compensation for Judges; Limitation. Amend RSA 547:19-b to read as follows:
547:19-b Retirement Due to Constitutional Age Limitation. Any judge of probate who is not a full-time judge under the provisions of RSA 547:2-a who retires from active regular service due to the provisions of RSA 493:2, relative to the constitutional age limitation, before January 1, 1981, after having served in such capacity for at least 7 years, or on January 1, 1981 or thereafter, having served in such capacity for at least 20 years; shall receive thereafter and until his death a salary equal to 3/4 of $19,102 plus an adjustment proportional to any general pay increase granted to judicial branch employees payable in the same manner that salaries of judges of probate are paid. Such payments shall be a charge against the biennial appropriations for the probate court or from funds otherwise unappropriated. Retirement payments as provided in this section shall be in lieu of any rights or benefits under the New Hampshire retirement system to which such judge would otherwise be entitled. Any judge of probate who is a member of the state employees' retirement system or the New Hampshire retirement system may terminate his membership therein and upon termination any accumulated contributions shall be paid over to him on written request. No judge of probate whose membership is not so terminated shall be eligible for payments under this section. This section shall apply only to judges appointed prior to July 1, 2000.
8 Probate Court; Retirement Compensation for Judges; Limitation. Amend RSA 547:19-d to read as follows:
547:19-d Retirement at Age 65. Any judge of probate, who is not a full-time judge under the provisions of RSA 547:2-a, who retires upon becoming 65 years old after having served in such capacity for at least 20 years, shall receive thereafter and until his death a salary equal to 3/4 of the sum of $19,102 plus an adjustment proportional to any general pay increase granted to judicial branch employees. Such payments shall be a charge against the biennial appropriations for the probate court, and shall be included by the administrative office of the courts in its request for appropriations. Retirement payments as provided in this section shall be in lieu of any rights or benefits under the New Hampshire retirement system to which such judge would otherwise be entitled. Any judge of probate who is a member of the state employees' retirement system or the New Hampshire retirement system may terminate his membership therein and upon termination any accumulated contributions shall be paid over to him on written request. No judge of probate whose membership is not so terminated shall be eligible for payments under this section. This section shall apply only to judges appointed prior to July 1, 2000.
9 Effective Date. This act shall take effect July 1, 2000.
LBAO
99-0767
Revised 4/26/99
HB 735 FISCAL NOTE
AN ACT establishing a contributory judicial retirement plan.
FISCAL IMPACT:
The Administrative Office of the Courts (AOC) indicates that state general fund expenditures will increase by an indeterminable amount in FY 2000 and each year thereafter. There is no fiscal impact on state, county and local revenue or county and local expenditures.
METHODOLOGY:
The AOC states that as a result of this bill, appointed judges may become a member of the newly established judicial defined contribution plan for retirement purposes. Contributions by these members will be matched by the state general fund. It is unknown to the courts how many judges will participate, the state general fund match, or judicial branch costs for implementation and administration of this bill.