FINAL BILL REPORT

HB 1885

                                  C 139 L 89

BYRepresentatives Hine, Silver, H. Sommers and Sayan

Making adjustments to the judicial retirement system.

House Committe on Appropriations

Senate Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

Prior to July 1, 1988 the Judicial Retirement System provided that:  1) the surviving spouse of a retired judge would lose his or her survivor benefits if he or she remarried, and 2) the benefits paid to retired judges and surviving spouses could, under some circumstances, be reduced by the amount of the earnings from private employment.  These provisions were repealed in 1988.

The Department of Retirement Systems, based on a series of previous court cases, has removed the restrictions only for judges (and their surviving spouses) who retire after the effective date of the 1988 legislation.  The general rule is that a retiree's rights and benefits are determined as of the day of retirement and are not affected by any subsequent statutory changes unless the Legislature expresses a clear intent to make a retroactive change.  Based on this rule, judges who retired before July 1, 1988, are not affected by the 1988 legislation.

In 1988, the Legislature also created the Judicial Retirement Account plan, under which members contribute 2.5 percent of salary with an equal state match.  The State Investment Board is authorized to invest monies in the account.

SUMMARY:

Two provisions in the Judicial Retirement System that were repealed in 1988 are repealed on a retroactive basis.  These include:  1) the provision specifying that the surviving spouse of a retired judge would lose his or her survivor benefits if he or she remarries, and 2) the provision that benefits paid to retired judges and surviving spouses could be reduced by the amount of the earnings from private practice.

The Committee for Deferred Compensation is authorized to invest monies in the Judicial Retirement Accounts.

VOTES ON FINAL PASSAGE:

      House 98   0

      Senate    43     0

EFFECTIVE:July 23, 1989