HB 492-FN – AS INTRODUCED
2011 SESSION
10/09
HOUSE BILL 492-FN
AN ACT establishing a deferred retirement option in the judicial retirement plan, and relative to benefits related to service of certain judges of probate retiring because of permanent disability.
SPONSORS: Rep. Wall, Straf 7; Rep. Hawkins, Hills 18
COMMITTEE: Special Committee on Public Employee Pensions Reform
This bill allows judges who resign from office to elect to receive a deferred retirement benefit under the judicial retirement plan. The bill also adds a retirement benefit to the surviving spouse of certain judges of probate retired due to disability.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
11-0700
10/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT establishing a deferred retirement option in the judicial retirement plan, and relative to benefits related to service of certain judges of probate retiring because of permanent disability.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; Judicial Retirement Plan; Deferred Retirement Benefit. Amend RSA 100-C:5 by inserting after paragraph VII the following new paragraph:
VIII. Any member who resigns from office on or after January 1, 2010, and who has at least 7 years of creditable service, may collect a vested deferred retirement allowance beginning at an age and years of service at which the member would otherwise have been eligible to retire pursuant to paragraphs I through IV. The member shall submit a written application to the board setting forth on what date, not less than 30 days nor more than 90 days subsequent to the filing of the application, the member desires to begin deferred retirement. Upon deferred retirement, the member’s deferred retirement allowance shall equal that percentage of the member’s final year’s salary before resigning that the member would have received pursuant to paragraphs I through IV if the member had served until retirement at the age at which the member’s deferred retirement begins with the number of years of creditable service earned by the member before resigning. In lieu of receiving a vested deferred retirement allowance, the resigning member may at any time exercise the member’s rights under RSA 100-C:8 for a return of the member’s accumulated contributions.
2 Judges of Probate; Retirement Due to Disability; Surviving Spouse. Amend RSA 547:19-a to read as follows:
547:19-a Retirement Due to Disability; Surviving Spouse. Notwithstanding any other provisions of law, any judge of probate who is not a full-time judge covered by RSA 100-C and who shall become unable to perform his or her duties because of permanent disability shall be retired from regular active service on the bench for the remainder of his or her term to age 70. Any such judge who desires to retire because of inability to perform his or her duties shall certify to the governor and council his or her disability to perform [his] those duties. If they find him or her unable to perform [his] those duties because of permanent disability, the governor and council shall order [his] the judge’s retirement from regular active service. If a judge of probate who is not a full-time judge covered by RSA 100-C and who is permanently disabled to perform his or her duties shall be unable or unwilling to certify his or her disability, any 3 justices of the probate court shall certify in writing [his] such judge’s disability to the governor and council, who shall, if they find [him] the judge after due notice and hearing, unable to perform his or her duties because of permanent disability, order his or her retirement from regular active service. The governor and council upon retirement of any such judge of probate as provided herein shall appoint a successor [to serve out the remainder of the term]. Any judge of probate who is not a full-time judge covered by RSA 100-C and who has served in such capacity for a period of at least 10 years in said office, and retired from regular active service because of permanent disability, shall receive during the remainder of his or her term a salary equal to one-half the salary being paid to [him] the judge at the time of [his] retirement, except in case of [his] such judge’s election to take other retirement benefits as hereinafter provided. If a judge of probate who is not a full-time judge covered by RSA 100-C dies while serving in such capacity or while on disability retirement from such capacity as provided in this section, his or her surviving spouse shall receive during the remainder of said probate judge’s term a payment equal to one-half the salary of said probate judge at the time of death or such disability retirement, except in case of the probate judge electing to take other retirement benefits as hereinafter provided. Any judge retired from active regular service under the provisions hereof who is also a member of the state employees’ retirement system or the New Hampshire retirement system shall be entitled to retire with disability benefits under either of said systems, upon notification to the retirement board. If, however, said judge elects to take payments under the provisions of this section he or she shall thereby forfeit all rights to any benefits provided under said employees’ or New Hampshire retirement system.
3 Effective Date. This act shall take effect upon its passage.
LBAO
11-0700
Revised 03/08/11
HB 492 FISCAL NOTE
AN ACT establishing a deferred retirement option in the judicial retirement plan, and relative to benefits related to service of certain judges of probate retiring because of permanent disability.
FISCAL IMPACT:
The New Hampshire Judicial Retirement Plan, Judicial Branch, and New Hampshire Retirement System state this bill may increase state general fund and restricted expenditures, and reduce state restricted revenues by an indeterminable amount in FY 2012 and each year thereafter. This bill will have no impact on state general fund revenues, or county and local revenues or expenditures.
METHODOLOGY:
The Judicial Branch states this bill will allow a surviving spouse of a part-time probate court judge who has retired with a disability or who died in office to receive a pension equal to one-half of the salary the judge was receiving when the judge became disabled or died for the remainder of their term. The Branch states this bill may increase state general fund expenditures by an indeterminable amount in FY 2012 and each year thereafter. The Branch states three part-time probate court judges whose spouses could be covered by this amendment, currently receive salaries based on caseload of $56,225, $47,957, and $20,558. Thus, the potential spousal benefits are $28,113, $23,979, and $10,279 annually, which would be paid from the Judicial Branch’s appropriation. However, the Branch states it cannot determine the number of part-time probate court judges who may retire due to disability in a single fiscal year, therefore the exact fiscal impact cannot be determined at this time.
The New Hampshire Judicial Retirement Plan (JRP) states this bill also allows judges who resign from office to elect to receive a deferred retirement benefit under the judicial retirement plan. The JRP states judges currently retiring prior to the age of eligibility may be returned the member’s accumulated contributions, but do not receive any retirement benefits. Under this bill, judges with at least seven years of creditable service may retire prior to the age of eligibility and would, upon reaching the age of eligibility, receive payments based on salary at retirement. Because these members will not be contributing to the system from the time of retirement to the age at which that member becomes eligible, this bill will reduce state restricted revenues by an indeterminable amount in FY 2012 and each year thereafter. Additionally, this bill will have an indeterminable impact on state restricted expenditures in FY 2012. Because the distribution of benefits will be determined based on the member’s salary at retirement, age at retirement, and years of creditable service, the exact fiscal impact cannot be determined at this time.
The New Hampshire Retirement System (NHRS) states there will be no fiscal impact on the NHRS in FY 2012 and each year thereafter. However, the addition of a vested deferred retirement benefit to the Judicial Retirement Plan (JRP) will require modifications to the NHRS software program which is used to administer the JRP. The NHRS estimates the cost of these modifications to be less than $10,000, which will be passed on to the JRP.