Judicial Retirement Plans/Pensions: Southern States

Georgia HB 202 Authorizes the boards of all public retirement systems operating under Title 47 of O.C.G.A to adopt any rules which are required to meet the necessary federal compliance standards. It requires all systems to comply with mandatory distribution requirements that are included in the Internal Revenue Code. Clarifies provisions relating to rollovers from public retirement systems to other qualified plans, and revises language relating to maximum benefits payable to ensure the language is consistent with the Internal Revenue Code.

Georgia HB 210 Amends provisions relating to membership in the Georgia Judicial Retirement System. Clarifies that certain attorney‘s employed by the office of Legislative Counsel or the Department of Law on June 30, 2005, shall retain all rights and obligations as exist on that day. Those in this group shall be subject to all provisions of this chapter applicable to solicitors-general of the state courts, and Employer contributions shall be paid by respective employers under such Code sections.

Georgia HB 452 Provides that members of the Georgia Judicial Retirement System who become members on or after July 1, 2009, not be entitled to receive any postretirement benefit adjustments.

Georgia SB 109 Provides for each of the following Councils to pay their respective employer contributions for retirement: Superior Court Judges, State Court Judges, Juvenile Court Judges and the Prosecuting Attorneys. Requires  that each of these Councils be authorized, and directed to pay from funds appropriated or otherwise available in additional amount equal to the 5% contribution of the member plus an additional 20% so that the state contribution is in accordance with the Employees’ Retirement System of Georgia

Georgia SB 177 Provides that appellate court judges who become members of the Employees’ Retirement System of Georgia, and persons who become members of the Georgia Judicial Retirement System on or after July 1, 2009, not be entitled to Survivors benefits.

Kentucky HB 182 Permits the Judicial Form Retirement System board of trustees to promulgate administrative regulations to conform with federal statutes and regulations and to meet the qualification requirements under 26 U.S.C. Section 401(a).

Kentucky HB 289 Judicial Retirement Plan to honor qualified domestic relations orders if the orders meet the requirements established by the retirement systems or plan and by these sections

North Carolina HB 1507 & SB 703 Permits assets of Consolidated Judicial Retirement System and systems to may be invested in securities traded on a public securities exchange or market organized and regulated pursuant to the laws of the jurisdiction of such exchange or market (previously limited to “preferred or common stock”) . Signed into law by governor 6/11/09.

North Carolina HB 649 & SB 691 Specifies Treasurer’s responsibilities and duties regarding Consolidated Judicial Retirement System and other retirement systems. Signed into law by Governor 7/10/09.

Oklahoma HB 1110 (2009) Requires Oklahoma Public Employees Retirement System deliver two reports of the fiscal activities of  the State Judicial Retirement Fund for the fiscal year to the Legislative Service Bureau. House and Senate conference committee unable to come to agreement 5/27/09.

Oklahoma HB 2357 (2010) Requires Oklahoma Public Employees Retirement System deliver two reports of the fiscal activities of  the State Judicial Retirement Fund for the fiscal year to the Legislative Service Bureau. Approved by full House 2/10/10. Approved with Senate amendment by full Senate 3/29/10. To House to concur with amendment.

Oklahoma SB 1059 Makes various modifications to employer contribution rates for Uniform Retirement System for Justices and Judges. Requires certain funds be transferred to the Judicial Retirement Fund.  Approved by full Senate 3/9/09. Died in House.

Oklahoma SB 212 Specifies that the funded ratio for the State Judicial Retirement Fund should be at or near 90%  (previously 100%) or be receiving sufficient contributions to amortize any unfunded liability of the fund according to the adopted amortization schedule.  Modifies the Board of Trustees ability to raise employer contribution rates. Signed into law by Governor 5/26/09.

Virginia HB 1189 & SB 232 Changes member contributions for those under the Judicial Retirement System or other specified plans. Institutes a new service weight schedule based on the judge’s age at the time he or she is appointed or elected to an original term commencing July 1, 2010 Changes the requirements for unreduced early retirement benefits from 50 years of age and 30 years of creditable service, to the “Rule of 90” (combination of age and service equals 90). Approved by House and Senate 3/11/10. To Governor for approval.

Judicial Retirement Plans/Pensions: Midwestern States

Indiana HB 1205 AMENDMENT TO BILL: Establishes the Indiana public retirement system to administer and manage the Judges’ Retirement Fund and nine other retirement funds. Creates an 11-member board of trustees for the system. Provides that each retirement fund continues as a separate fund managed by the board. Amendment approved by Senate 2/23/10. House rejected amendment.

Indiana SB 298 Establishes the Indiana public retirement system to administer and manage the Judges’ Retirement Fund and nine other retirement funds. Creates an 11-member board of trustees for the system. Provides that each retirement fund continues as a separate fund managed by the board. Approved by full Senate 2/2/10.

Indiana SB 397 Establishes the Indiana public retirement system to administer and manage the Judges’ Retirement Fund and nine other retirement funds. Creates an 11-member board of trustees for the system. Provides that each retirement fund continues as a separate fund managed by the board. Approved by Senate Committee on Pensions and Labor 1/28/10.

Indiana SB 98 Eliminates references to the Treasurer of State’s duties concerning the Judges’ Retirement System and other named retirement funds. Approved by full Senate 1/19/10.

Michigan HB 4073 Creates an irrevocable trust for each of the State’s five retirement systems, including the judges retirement act of 1992,  pursuant to Section 115 of the Internal Revenue Code, 26 USC 115. Approved by full House 3/4/09. Approved by Senate Appropriations Committee 12/19/09.

Michigan HB 4078 Amends the Judges Retirement Act to specify that, as of July 1, 2009, the Department of Management and Budget would be responsible for authorizing and administering the group retiree health insurance plan (hospitalization and medical coverage) and dental and vision plan.  (Currently this is a function of the Civil Service Commission, which has recently become an autonomous entity within DMB since the abolition of the Department of Civil Service in 2007.)  Approved by full House 3/4/090. In Senate Appropriations Committee.

Michigan SB 132 Amends law related to the health insurance premium payments under the Judges Retirement Act:  For participants with four years of service, the State is required to pay 50% of the cost of health insurance coverage by eliminating health care coverage for retired judges and elected officials specified in the bill who are elected after November 1, 2010. Specifies this elimination would not have an impact on currently elected or appointed officials, but would be prospective by affecting those elected or appointed after November 1, 2010. Approved by full Senate 2/24/10.

Nebraska LB 403 Prohibits participation in the Judges Retirement System unless the employees is a U.S. citizen of qualified alien lawfully present in the U.S. Signed into law by Governor 4/8/09.

Nebraska LB 414 Provides that from  July 1, 2009, until July 1, 2014, a judge shall contribute an additional one percent of his or her monthly compensation to the judges retirement fund. Increases fund fee from $5 to $6 during same period. Signed into law by Governor 5/19/09.

Judicial Retirement Plans/Pensions: Northeastern States

Maine HB 650 & SB 184 Implements the recommendation of the Judicial Compensation Commission that members of Maine’s judiciary with retirement contributions earned in the Legislative Retirement Program be allowed to fully transfer these contributions to the Judicial Retirement Program. Requires any member who transfers retirement contributions from the State Employee and Teacher Retirement Program or the Legislative Retirement Program to pay the costs to have the contributions transferred to the Judicial Retirement Program. Signed into law by Governor 6/4/09.

Maine HB 1120 Brings various public employees retirement systems, including the Judicial Retirement Program, into IRS compliance. Specifies Judicial Retirement Program as a governmental qualified defined benefit plan pursuant to Sections 401(a) and 414(d) of the Internal Revenue Code and such other provisions of the Internal Revenue Code and United States Treasury regulations and other guidance as are applicable. Details vesting, use of forfeitures, benefits, etc. in a manner to comply with the Internal Revenue Code. Signed into law by Governor 2/23/10.

New Hampshire SB 1512 Allows judges who resign from office to elect to receive a deferred retirement benefit under the judicial retirement plan. Approved by full House 3/3/10.

New Hampshire SB 357 Authorizes the judicial retirement plan to deduct a health insurance premium contribution from allowances. Approved by full Senate 2/17/10.

New Jersey SB 2 Provides that  new members of the Judicial Retirement System (JRS) will not have a non-forfeitable right to receive benefits upon the attainment of five years of service credit. Signed into law by Governor 3/22/10.

Judicial Retirement Plans/Pensions Week

Most states have retirement systems or accounts within existing systems specifically for judges. All states and localities (for some limited jurisdiction judges) have been forced to reexamine their retirement and pensions systems for public employees in general, and those for judges in particular, in order to address the recent economic collapse. This week, we will be looking at state-level legislation acted upon (i.e. more than simply introduced) in 2009/2010 that addresses these issues, starting with the Northeastern states.

States continue to press for federal legislation to intercept income tax refunds to pay for court fees and fines

Readers of Gavel to Gavel the e-publication (and if you aren’t, why not subscribe now?) may recall several weeks ago I discussed resolutions in 3 states that asked Congress to intercept tax refunds and similar items in order to collect court fees and fines. Two other states have now introduced similar legislation in last week.

Mississippi’s SCR 671 “urge[s] the United States Congress to support legislation to add conforming language to federal statutes that will enable the states to intercept federal tax refunds for payment of obligations under legally enforceable court orders.”

Delaware’s HJR 9 notes “Delaware has an intercept system for state tax refunds and state lottery recipients that has collected more than one million dollars ($1,000,000) in outstanding court-ordered restitution, fines, fees and costs, over the past ten years” and encourages Congress pass the federal intercept legislation currently pending.

Updates: Nebraska and Kentucky

Nebraska’s LB 727 permits a retired judge who agrees to serve a minimum number of temporary duty days per year as set by the Supreme Court to receive a stipend to be set by the Court. The bill was denoted a “Speaker priority bill” on February 22.

Meanwhile, Kentucky’s HB 411, which would have required that construction management fees for courthouse construction be determined by competitive bidding, has been withdrawn.