SB 10 JUDICIAL RETIREMENT FUNDING

Sen Elizabeth "Liz" Stefanics

Actions: [1] SCC/SJC/SFC-SCC-germane-SJC

Scheduled: Not Scheduled

 Senate Bill 10 (SB 10) allows for the appropriation of money into the Judicial Retirement Fund, lowers the service credit requirements for normal retirement, increases certain service credit multipliers, increases member and employer contributions to the Judicial Retirement Fund, and appropriates $2,613,157 to the Judicial Retirement Fund. 

 First, Senate Bill 10 (SB 10) allows the Judicial Retirement Fund (Fund) to receive appropriations.  The bill appropriates $2,613,157 from the General Fund to this Fund for use in 2025 and subsequent years to pay increased employer retirement contributions.  Unused funds do not revert to the General Fund.   

Second, the bill lowers the service credit requirement for normal judicial retirement from eight or more years of service credit to five or more years or service credit.  This applies to those who initially become a member after July 1, 2014 and retire at 65 years.  

Third, the bill increases service credit multipliers for judicial retirement. For a judge who became a member after 2005 but before 2014, the service credit earned after 2024 is calculated at 1/60 of the salary of 60 consecutive months, multiplied by 4% for 10 years of the judge’s service credit and 3.5% for years of the judge’s credit exceeding 10 years. 

For judges who became a member after 2014 but before 2024, their pension is equal to the sum of: (1) for service credit earned between 2014 and 2024, 1/60 of the salary of 60 consecutive months; and (2) for service credit earned after 2024, an amount equal to 1/60 of the salary of 60 consecutive months, multiplied by 4% for 10 years of the judge’s service credit and 3.5% for years of the judge’s credit exceeding 10 years. The bill increases the amount of pension under form of payment A for this pension from not exceeding 85% to 100% of 1/60 of the aggregate amount of salary.  

For judges who became a member after July 2014 who have served less than ten years, the service credit earned after July 1, 2022 is 1/60 of the salary of 60 consecutive months, multiplied by 4% times the number of years of service credit.  For judges who have served ten years or more, the service credit earned after July 1, 2022 is 1/60 of the salary of 60 consecutive months, multiplied by 3.5% times the number of years of service credit.  

The bill then increases member and employer contributions.  Starting July 1, 2024, members of the Fund must contribute 12.5% of the salary to the Fund, up from the current 10.5%.  Employer contributions to the Fund are immediately increased from 15% to 21.5%.  

SB 10 is effective July 1, 2024. 
 

 The current service credit for judges who became a member before June 2014 is 1/60 of the salary of 60 consecutive months, multiplied by 3.5% times the number of years of service credit.  The current service credit for judges who became a member after July 2014 is 1/60 of the salary of 60 consecutive months, multiplied by 3.25% times the number of years of service credit.  

Currently, members of the Fund contribute 10.5% of their salary to the fund and employers contribute 15%.