SB 257-FN - AS INTRODUCED
2015 SESSION
15-1009
09/10
SENATE BILL 257-FN
AN ACT relative to the amortization of the unfunded accrued liability under the judicial retirement plan and membership in the judicial retirement plan of judges appointed at age 63 or older.
SPONSORS: Sen. Carson, Dist 14; Sen. Lasky, Dist 13; Sen. Cataldo, Dist 6; Rep. Rowe, Hills?22; Rep. Hagan, Rock 4
This bill makes a change in the amortization of the unfunded accrued liability under the judicial retirement plan and establishes criteria for membership and benefits under the plan for judges appointed at age 63 or older.
This bill was requested by the judicial branch.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
15-1009
09/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Fifteen
AN ACT relative to the amortization of the unfunded accrued liability under the judicial retirement plan and membership in the judicial retirement plan of judges appointed at age 63 or older.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Method of Financing. Amend RSA 100-C:13, III(d) to read as follows:
(d) Immediately following the actuarial valuation prepared under paragraph I, the board shall have an actuary determine the amount of the unfunded accrued liability as the amount of the total liabilities of the state annuity accumulation fund which is not dischargeable by the total of the funds in hand to the credit of the state annuity accumulation fund, and the normal contributions to be made on account of the members during the remainder of their active service. The amount so determined shall be known as the “unfunded accrued liability.” On the basis of the unfunded accrued liability, the board shall have an actuary determine the level annual contribution required to discharge such amount over a period of 30 years [from January 1, 2010] or the maximum period allowed by standards adopted by the Government Accounting Standards Board, whichever is less.
2 Member Contributions. Amend RSA 100-C:14 to read as follows:
100-C:14 Member Contributions.
I. All member contributions to the judicial retirement plan shall be payable only with respect to membership service, and picked up by the state by means of payroll deduction and shall be treated as employer contributions for purposes of Section 414(h) of the Internal Revenue Code of 1986, as amended. The member contribution rate shall be fixed biennially by the board of trustees and shall be calculated so that the rate percent of earnable compensation deducted is one-half of the annual contribution requirements of the judicial retirement plan as determined in RSA 100-C:13, I. In no year shall the member contribution rate exceed 10 percent of a member’s earnable compensation. Once a member attains eligibility for a service retirement allowance equal to 75 percent of the member’s final year’s salary pursuant to RSA 100-C:5, said member shall not be required to have deductions made from earnable compensation for purposes of this section provided that the state contributions for such member under RSA 100-C:13, IV shall continue until the member’s retirement.
II. Any judge who is appointed at an age such that he or she will never become entitled to receive a retirement benefit under RSA 100-C:5 may, but shall not be required to, become a member of the judicial retirement plan. Any such judge electing to become a member shall pay employee contributions to the plan, shall be eligible for disability retirement benefits under RSA 100-C:6 and death benefits under RSA 100-C:7, and shall be entitled to the return of his or her contributions to the plan in accordance with RSA 100-C:8. The state shall not pay employer contributions to the plan for any such judge not electing to become a member of the plan.
3 Effective Date. This act shall take effect upon its passage.
LBAO
15-1009
02/05/15
SB 257-FN - FISCAL NOTE
AN ACT relative to the amortization of the unfunded accrued liability under the judicial retirement plan and membership in the judicial retirement plan of judges appointed at age 63 or older.
FISCAL IMPACT:
Due to time constraints, the Office of Legislative Budget Assistant is unable to provide a fiscal note for this bill, as introduced, at this time. When completed, the fiscal note will be forwarded to the Senate Clerk's Office.