Bill Summary – FastDemocracy

LB24                                                                                    LB24
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                                 LEGISLATURE OF NEBRASKA
                            ONE HUNDRED SEVENTH LEGISLATURE
                                     FIRST SESSION
                         LEGISLATIVE BILL 24
       Introduced by Kolterman, 24; Lathrop, 12.
       Read first time January 07, 2021
       Committee: Nebraska Retirement Systems
   A BILL FOR AN ACT relating to the Nebraska Judges Retirement System; to
       amend sections 24-703, 33-106.02, 33-123, 33-124, 33-125, 33-126.02,
      33-126.03, and 33-126.06, Reissue Revised Statutes of Nebraska, and
       section 25-2804, Revised Statutes Cumulative Supplement, 2020; to
       change the Nebraska Retirement Fund for Judges fee and remittance
       procedures; to change distribution of certain court fees relating to
       the Nebraska Retirement Fund for Judges;   to eliminate obsolete
      provisions;      to harmonize provisions;      to repeal the original
      sections; 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 (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 through June 30, 2021,
  eight dollars beginning July 1, 2021, through June 30, 2022, nine dollars
   beginning July 1, 2022, through June 30, 2023, ten dollars beginning July
  1, 2023, through June 30, 2024, eleven dollars beginning July 1, 2024,
  through June 30, 2025, and twelve dollars beginning July 1, 2025, 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 remitted to the State
   Treasurer within ten days after the close of each calendar month for
   credit to    the Nebraska Retirement Fund for Judges.    In addition,
  information regarding collection of   court 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 State Court Administrator
   clerk within ten days after the close of each calendar month quarter. The
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   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 late fees shall be remitted to the director who shall
   promptly thereafter remit such fees 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 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
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   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
   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
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   contribution rate and the rate of all contributions required pursuant to
   the Judges Retirement Act.
         (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. Section 25-2804, Revised Statutes Cumulative Supplement,
   2020, is amended to read:
        25-2804 (1) Actions in the Small Claims Court shall be commenced by
   the plaintiff by filing a claim personally, by mail, or by another method
   established by Supreme Court rules.
         (2) At the time of the filing of the claim, the plaintiff shall pay
   a fee of six dollars and twenty-five cents to the clerk. One dollar and
   twenty-five cents of such fee shall be remitted to the State Treasurer
   for credit to the Nebraska Retirement Fund for Judges through June 30,
   2021. Beginning July 1, 2021, two dollars of such fee shall be remitted
  to the State Treasurer for credit to the Nebraska Retirement Fund for
  Judges.
        (3) Upon filing of a claim in the Small Claims Court, the court
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  shall set a time for hearing and shall cause notice to be served upon the
  defendant. Notice shall be served not less than five days before the time
  set for hearing. Notice shall consist of a copy of the complaint and a
  summons directing the defendant to appear at the time set for hearing and
  informing the defendant that if he or she fails to appear, judgment will
  be entered against him or her. Notice shall be served in the manner
  provided for service of a summons in a civil action. If the notice is to
  be served by certified mail, the clerk shall provide the plaintiff with
  written instructions,       prepared and provided by     the State Court
   Administrator, regarding the proper procedure for service by certified
   mail. The cost of service shall be paid by the plaintiff, but such cost
   and filing fee shall be added to any judgment given the plaintiff.
        (4) The defendant may file a setoff or counterclaim. Any setoff or
   counterclaim shall be filed and a copy delivered to the plaintiff at
   least two days prior to the time of trial. If the setoff or counterclaim
  exceeds the jurisdictional limits of   the Small Claims Court as
  established pursuant to section 25-2802, the court shall cause the entire
  matter to be transferred to the regular county court docket and set for
  trial.
         (5) N