HB 814-FN – AS INTRODUCED
2007 SESSION
10/01
HOUSE BILL 814-FN
AN ACT relative to the judicial retirement plan.
SPONSORS: Rep. Dokmo, Hills 6; Sen. Gatsas, Dist 16
This bill makes changes to the judicial retirement plan board of trustees and the method of financing benefits.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-0710
10/01
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT relative to the judicial retirement plan.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Board of Trustees; Retired Judge. Amend RSA 100-C:11, II to read as follows:
II. The board of trustees of the judicial retirement plan shall consist of 7 members. The governor and council shall appoint 2 trustees, one of whom the governor shall designate to serve as chairman of the board of trustees, and who shall be qualified persons with business experience and not members of the judicial retirement plan, and who shall serve for a term of 3 years and until such trustee's successor is appointed and qualified, except that the original appointment of one of the trustees shall be for a term of one year. The chief justice of the state supreme court, with the advice and consent of the chief justice of the superior court and the administrative justices of the district and probate courts, shall appoint 3 trustees, [who] 2 of whom shall be active members of the judicial retirement plan, and one of whom shall be a retired judge and who shall serve for a term of 3 years and until such trustee's successor is appointed and qualified, except that the original appointment of one of the trustees shall be for a term of one year, and the original appointment of another of the trustees shall be for a term of 2 years. One member of the state senate shall be appointed biennially by the senate president as a trustee of the board, and one member of the house of representatives shall be appointed biennially by the speaker of the house as a trustee of the board. Whenever a vacancy occurs, the appointing authority shall fill the vacancy, in the same manner as the original appointment by appointing a member for the remainder of the unexpired term.
2 Judicial Retirement Plan; Method of Financing; Interest. Amend RSA 100-C:13, III(f) and (g) to read as follows:
(f) All interest and dividends earned on the funds of the judicial retirement plan shall be credited to the state annuity accumulation fund. The board shall allow interest at such rate or rates as it shall determine from time to time on the individual accounts of members in the member annuity savings fund and shall annually transfer such interest amount from the state annuity accumulation fund. Such interest shall be compounded [monthly] annually or more frequently as the board of trustees may determine and shall be allowed to the date of processing upon termination of active service for any reason including withdrawal, retirement, or death.
(g) There shall be a special account for additional benefits held by the board of trustees. Beginning with the first state fiscal year ending after the date of implementation of the judicial retirement plan, all of the earnings of the judicial retirement plan which are in excess of [9.5] 8 percent shall be allocated to the special account. None of the assets held in the special account shall be used in the actuarial determination of the rate percent of normal contribution as set forth in subparagraphs (b) and (c). The actuarial cost of all legislation enacted during each fiscal year and calling for funding from the special account shall be withdrawn from the special account, as of June 30 of each year, after funds are credited to the special account as provided in this subparagraph. The special account shall be used only to fund or partially fund additional benefits as follows: first, to provide supplemental allowances, or COLAs, pursuant to RSA 100-C:17, and, second, to the extent that funds may be available in the special account, to provide additional benefits to retired members and beneficiaries of the judicial retirement plan.
3 Effective Date. This act shall take effect 60 days after its passage.
LBAO
07- 0710
1/11/07
HB 814-FN - FISCAL NOTE
AN ACT relative to the judicial retirement plan.
FISCAL IMPACT:
The Judicial Retirement Plan states this bill will have no fiscal impact on state, county, and local expenditures or revenue.
METHODOLOGY:
The Judicial Retirement Plan states this bill will make changes to the Plan’s board of trustees and affects funds held in the retirement plan member accounts. This bill will allow interest on the individual accounts of members in the member annuity savings fund be compounded annually or more frequently as the board of trustees may determine. The bill will also allow for all earnings of the Judicial Retirement Plan in excess of 8 percent be deposited into the special account used to fund supplemental allowances (COLAs) and other additional benefits to retired members and beneficiaries. This change will have no fiscal impact on state, county, or local expenditures or revenue.