SENATE BILL REPORT

SB 5753

BYSenators Bluechel and Talmadge

Providing for refund of contributions made to judicial retirement systems upon ceasing to be a judge under a state retirement system.

Senate Committee on Ways & Means

Senate Hearing Date(s):

Senate Staff:Charles Langen (786-7715)

AS OF FEBRUARY 9, 1989

BACKGROUND:

The Judges' Retirement System and its successor system, the Judicial Retirement System, were established for judges of the Supreme Court, Court of Appeals and Superior Court.  Both of these are pay-as-you-go systems wherein the state general fund is responsible for any benefit payments in excess of the assets (i.e., member and employer contributions and any earnings from the investment of these contributions). A basic assumption in the creation of these systems was the completion of a minimum period of service before any payout was to be made, including return of contributions.

SUMMARY:

A member of the Judges' Retirement System or the Judicial Retirement System who ceased to be a judge prior to the effective date shall, upon request of the Director of Department of Retirement Systems (DRS), receive a refund of all or part of he member's contributions with such interest as determined by the director.  Withdrawal shall constitute a waiver of any service or disability retirement allowance.  If such a member becomes employed as a judge before the expiration of 30 days or before the payment is made, the member shall not be eligible for a refund.

A member who has left service and received a refund of contributions may reestablish service credit.  Restoration must be complete within five years of resumption of service or prior to retirement, whichever occurs first, and the withdrawn contributions must be repaid with interest from the date of withdrawal until the date of restoration.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 7, 1989