Bill Summary – FastDemocracy

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                                 LEGISLATURE OF NEBRASKA
                           ONE HUNDRED SEVENTH LEGISLATURE
                                     FIRST SESSION
                       LEGISLATIVE BILL 16
       Introduced by Kolterman, 24.
       Read first time January 07, 2021
       Committee: Nebraska Retirement Systems
   A BILL FOR AN ACT relating to the Judges Retirement Act; to amend section
       24-703, Reissue Revised Statutes of Nebraska; to provide for state
       contributions to     the Nebraska Retirement Fund for Judges as
       prescribed; to harmonize provisions; to repeal the original section;
       and to declare an emergency.
   Be it enacted by the people of the State of Nebraska,
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       Section 1. Section 24-703, Reissue Revised Statutes of Nebraska, is
   amended to read:
       24-703     (1)      Each original member shall contribute monthly four
   percent of his or her monthly compensation to the fund until the maximum
  benefit as limited in subsection (1) of section 24-710 has been earned.
  It shall be the duty of the Director of Administrative Services in
  accordance with subsection (11) (10) of this section to make a deduction
  of four percent on the monthly payroll of each original member who is a
  judge of the Supreme Court, a judge of the Court of Appeals, a judge of
  the district court, a judge of a separate juvenile court, a judge of the
  county court, a clerk magistrate of the county court who was an associate
  county judge and    a member of     the fund at   the time of    his or    her
  appointment as a clerk magistrate, or a judge of the Nebraska Workers'
  Compensation Court showing the amount to be deducted and its credit to
  the fund. The Director of Administrative Services and the State Treasurer
   shall credit the four percent as shown on the payroll and the amounts
   received from the various counties to the fund and remit the same to the
  director in charge of the judges retirement system who shall keep an
  accurate record of the contributions of each judge.
       (2)(a) In addition to the contribution required under subdivision
  (c) of this subsection, beginning on July 1, 2004, each future member who
   became a member prior to July 1, 2015, and who has not elected to make
  contributions and receive benefits as provided in section 24-703.03 shall
  contribute monthly six percent of his or her monthly compensation to the
   fund until the maximum benefit as limited in subsection (2) of section
  24-710   has been earned.        After the maximum benefit as    limited in
  subsection (2) of section 24-710 has been earned, such future member
   shall make no further contributions to the fund, except that (i) any time
   the maximum benefit is changed, a future member who has previously earned
  the maximum benefit as it existed prior to the change shall contribute
  monthly six percent of his or her monthly compensation to the fund until
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   the maximum benefit as changed and as limited in subsection (2) of
   section 24-710 has been earned and (ii) such future member shall continue
   to make the contribution required under subdivision         (c)   of this
   subsection.
        (b) In addition to the contribution required under subdivision (c)
   of this subsection, beginning on July 1, 2004, a judge who became a
   member prior to July 1, 2015, and who first serves as a judge on or after
   July 1, 2004, or a future member who became a member prior to July 1,
   2015,   and who elects to    make contributions and receive benefits as
   provided in section 24-703.03 shall contribute monthly eight percent of
   his or her monthly compensation to the fund until the maximum benefit as
   limited by subsection (2) of section 24-710 has been earned. In addition
   to the contribution required under subdivision (c) of this subsection,
   after the maximum benefit as limited in subsection (2) of section 24-710
   has been earned, such judge or future member shall contribute monthly
   four percent of his or her monthly compensation to the fund for the
   remainder of his or her active service.
        (c)    Beginning on   July   1,    2009,   a member or    judge described in
   subdivisions (a) and (b) of this subsection shall contribute monthly an
   additional one percent of his or her monthly compensation to the fund.
        (d) Beginning on July 1, 2015, a judge who first serves as a judge
   on or after such date shall contribute monthly ten percent of his or her
   monthly compensation to the fund.
        (e) It shall be the duty of the Director of Administrative Services
   to make a deduction on the monthly payroll of each such future member who
   is a judge of the Supreme Court, a judge of the Court of Appeals, a judge
   of the district court, a judge of a separate juvenile court, a judge of
   the county court, a clerk magistrate of the county court who was an
   associate county judge and a member of the fund at the time of his or her
   appointment as a clerk magistrate, or a judge of the Nebraska Workers'
   Compensation Court showing the amount to be deducted and its credit to
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  the fund. This shall be done each month. The Director of Administrative
  Services and the State Treasurer shall credit the amount as shown on the
  payroll and the amounts received from the various counties to the fund
   and remit the same to the director in charge of the judges retirement
   system who shall keep an accurate record of the contributions of each
   judge.
          (3) Except as otherwise provided in this subsection, a Nebraska
   Retirement Fund for Judges fee of six dollars shall be taxed as costs in
  each   (a)   civil cause of    action,     criminal cause of   action,   traffic
  misdemeanor or infraction, and city or village ordinance violation filed
   in the district courts, the county courts, and the separate juvenile
   courts, (b) filing in the district court of an order, award, or judgment
   of the Nebraska Workers' Compensation Court or any judge thereof pursuant
   to section 48-188, (c) appeal or other proceeding filed in the Court of
   Appeals, and (d) original action, appeal, or other proceeding filed in
   the Supreme Court. In county courts a sum shall be charged which is equal
  to ten percent of   each fee provided by   sections   33-125,   33-126.02,
  33-126.03, and 33-126.06, rounded to the nearest even dollar. No judges
  retirement fee shall be charged for filing a report pursuant to sections
  33-126.02 and 33-126.06. When collected by the clerk of the district or
   county court, such fees shall be paid and information submitted to the
  director in charge of the judges retirement system on forms prescribed by
  the board by the clerk within ten days after the close of each calendar
  quarter. The board may charge a late administrative processing fee not to
  exceed twenty-five dollars if the information is not timely received or
  the money is delinquent. In addition, the board may charge a late fee of
   thirty-eight thousandths of one percent of the amount required to be
   submitted pursuant to this section for each day such amount has not been
   received. Such director shall promptly thereafter remit the same to the
   State Treasurer for credit to the fund. No Nebraska Retirement Fund for
   Judges fee which is uncollectible for any reason shall be waived by a
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   county judge as provided in section 29-2709.
      (4) All expenditures from the fund shall be authorized by voucher in
   the manner prescribed in section 24-713. The fund shall be used for the
   payment of all annuities and other benefits and for the expenses of
   administration.
       (5) The fund shall consist of the total fund as of December 25,
   1969, the contributions of members as provided in this section, all
  supplementary court fees as provided in subsection (3) of this section,
  and any required contributions of the state.
       (6) Not later than January 1 of each year, the State Treasurer shall
   transfer to the fund the amount certified by the board as being necessary
   to pay the cost of any benefits accrued during the fiscal year ending the
   previous June 30 in excess of member contributions for that fiscal year
   and court fees as provided in subsection (3) of this section and fees
   pursuant to   sections   25-2804,   33-103,   33-103.01,   33-106,   33-106.02,
   33-123, 33-125, 33-126.02, 33-126.03, and 33-126.06 and directed to be
   remitted to the fund, if any, for that fiscal year plus any required
   contributions of the state as provided in subsection (9) of this section.
       (7) Benefits under the retirement system to members or to their
   beneficiaries shall be paid from the fund.
       (8) Any member who is making contributions to the fund on December
   25, 1969, may, on or before June 30, 1970, elect to become a future
   member by delivering written notice of such election to the board.
       (9) Not later than January 1 of each year, the State Treasurer shall
   transfer to the fund an amount, determined on the basis of an actuarial
   valuation as of the previous June 30 and certified by the board, to fully
   fund the unfunded accrued liabilities of the retirement system as of June
   30, 1988, by level payments up to January 1, 2000. Such valuation shall
   be on the basis of actuarial assumptions recommended by the actuary,
   approved by the board, and kept on file with the board. For the fiscal
   year beginning July 1, 2013, and each fiscal year thereafter, the actuary
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   for the board shall perform an actuarial valuation of the system using
   the entry age actuarial cost method. Under this method, the actuarially
   required funding rate is    equal to   the normal cost rate,   plus the
   contribution rate necessary to amortize the unfunded actuarial accrued
   liability on a level percentage of salary basis. The normal cost under
   this method shall be determined for each individual member on a level
   percentage of salary basis. The normal cost amount is then summed for all
   members. Beginning July 1, 2006, any existing unfunded liabilities shall
   be reinitialized and amortized over a thirty-year period, and during each
   subsequent actuarial valuation, changes in the funded actuarial accrued
   liability due to changes in benefits, actuarial assumptions, the asset
   valuation method, or actuarial gains or losses shall be measured and
   amortized over a thirty-year period beginning on the valuation date of
   such change. If the unfunded actuarial accrued liability under the entry
   age actuarial cost method is zero or less than zero on an actuarial
   valuation date, then all prior unfunded actuarial accrued liabilities
   shall be   considered fully funded and the unfunded actuarial accrued
   liability shall be reinitialized and amortized over a thirty-year period
   as of    the actuarial valuation date.      If the actuarially required
   contribution rate exceeds the rate of all contributions required pursuant
   to the Judges Retirement Act, there shall be a supplemental appropriation
   sufficient to pay for the differences between the actuarially required
   contribution rate and the rate of all contributions required pursuant to
   the Judges Retirement Act.
        (10) In addition to the contributions otherwise required by this
   section, the state shall deposit in the Nebraska Retirement Fund for
   Judges:
        (a) An amount equal to four percent of the compensation of all
   members of the retirement system for each fiscal year beginning July 1,
   2021, through June 30, 2023; and
        (b)       An amount equal to   six percent of    the compensation of   all
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   members of the retirement system for each fiscal year beginning July 1,
   2023, and each fiscal year thereafter.
         (11) (10) The state or county shall pick up the member contributions
   required by this section for all compensation paid on or after January 1,
   1985, and the contributions so picked up shall be treated as employer
   contributions pursuant to section 414(h)(2) of the Internal Revenue Code
   in determining federal tax treatment under the code and shall not be
   included as gross income of the member until such time as they are
   distributed or made available. The contributions, although designated as
  member contributions, shall be paid by the state or county in lieu of
   member contributions.      The state or    county shall pay these member
   contributions from the same source of funds which is used in paying
   earnings to   the member.     The state or   county shall pick up   these
   contributions by a compensation deduction through a reduction in the
   compensation of    the member.      Member contributions picked up   shall be
   treated for all purposes of the Judges Retirement Act in the same manner
  and to the extent as member contributions made prior to the date picked
  up.
        Sec.   2.        Original section      24-703,       Reissue Revised Statutes of
  Nebraska, is repealed.
        Sec. 3.      Since an emergency exists, this act takes effect when
  passed and approved according to law.
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Statutes affected: 
Introduced: 24-703