The bill amends the Magistrate Retirement Act to enhance the funding and benefits of the Magistrate Retirement Fund. It establishes that the fund will consist of appropriations, income from docket fees, contributions from employers and members, and all income derived from investments. The bill also modifies the service credit requirements for magistrate judges, increasing the multipliers for calculating pensions. Specifically, it adjusts the age and service credit requirements for normal retirement, allowing for more flexibility in retirement eligibility.

Additionally, the bill outlines changes to member and employer contribution rates, specifying that members will contribute 10.5% of their salary until July 1, 2025, after which the rate will increase to 14.74%. Employers will contribute 19.24% of salary starting July 1, 2025. The bill also clarifies the treatment of member contributions for tax purposes and mandates that the state will pick up member contributions for compliance with federal tax regulations. The effective date for these changes is set for July 1, 2025.

Statutes affected:
introduced version: 10-12C-3