Senate Bill No. 514–Committee on Judiciary

(On Behalf of Nevada District Judges Association)

March 22, 1999

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Referred to Committee on Judiciary

 

SUMMARY—Makes various changes to judicial retirement pension plan. (BDR 1-1370)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: Yes.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to the judiciary; authorizing justices of the supreme court and district judges to receive reduced retirement payments during their retirement in exchange for providing payments to a designated beneficiary who survives the justice or judge for the lifetime of the designated beneficiary; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. Chapter 2 of NRS is hereby amended by adding thereto the

1-2 provisions set forth as sections 2 and 3 of this act.

1-3 Sec. 2. 1. A person who is named as a beneficiary pursuant to

1-4 subsection 4 of NRS 2.060 is entitled to receive the payments described

1-5 therein until his death. To obtain such payments, a beneficiary must file

1-6 an application with the court administrator and furnish such information

1-7 as may be required pursuant to reasonable regulations adopted to carry

1-8 out the intent of this section.

1-9 2. A beneficiary receiving payments pursuant to the provisions of this

1-10 section is entitled to receive post-retirement increases in an amount equal

1-11 to the amount provided for persons retired under the public employees’

1-12 retirement system.

1-13 3. It is the intent of this section that no special fund be created for

1-14 the purpose of paying benefits to a beneficiary pursuant to the provisions

1-15 of this section and that all such payments must be made out of and

2-1 charged to any fund created for the purpose of paying pension benefits to

2-2 justices of the supreme court.

2-3 Sec. 3. 1. If a justice of the supreme court elects to receive his

2-4 pension pursuant to subsection 4 of NRS 2.060 and his designated

2-5 beneficiary predeceases him, the payments to be made to the justice

2-6 pursuant to subsection 4 of NRS 2.060 must automatically be adjusted to

2-7 equal the amount provided pursuant to subsection 1, 2 or 3 of NRS

2-8 2.060, as appropriate.

2-9 2. A retired justice of the supreme court who elects to receive his

2-10 pension pursuant to subsection 4 of NRS 2.060 may relinquish his right

2-11 and the right of the beneficiary under that pension and apply for a

2-12 refund of his remaining contributions at any time. If the designated

2-13 beneficiary is the spouse of the retired justice, or if the right of the

2-14 beneficiary is the subject of a court order, the retired justice shall provide

2-15 an acknowledged release by the beneficiary of any claim against the

2-16 pension of the justice or the contributions of the justice when applying

2-17 for a refund.

2-18 3. A retired justice of the supreme court may cancel his election to

2-19 receive his pension pursuant to subsection 4 of NRS 2.060 and his

2-20 designation of beneficiary and may elect to receive his pension pursuant

2-21 to subsection 1, 2 or 3 of NRS 2.060, as appropriate. The retired justice

2-22 shall make this election by written designation, acknowledged and filed

2-23 with the court administrator. The written election must be accompanied

2-24 by a written, notarized acknowledgment of the change by the beneficiary

2-25 if the beneficiary is the spouse of the retired justice of the supreme court.

2-26 A retired justice who cancels his election to receive his pension pursuant

2-27 to subsection 4 of NRS 2.060 and to receive his pension pursuant to

2-28 subsection 1, 2 or 3 of NRS 2.060, as appropriate, does not abrogate any

2-29 obligation respecting community property.

2-30 4. The termination or adjustment of a retirement allowance resulting

2-31 from the death of a retired justice or beneficiary must not become

2-32 effective until the first day of the month immediately following the death

2-33 of the retired justice or beneficiary.

2-34 Sec. 4. NRS 2.060 is hereby amended to read as follows:

2-35 2.060 1. [Any] Except as otherwise provided in subsection 4, a

2-36 justice of the supreme court who has served as a justice or judge of a

2-37 district court in any one or more of those courts for a period or periods

2-38 aggregating 22 years and has ended such service is, after reaching the age

2-39 of 60 years, entitled to receive annually from the State of Nevada, as a

2-40 pension during the remainder of his life, a sum of money equal in amount to

2-41 three-fourths the sum received as a salary for his judicial services during

2-42 the last year thereof, payable every 2 weeks from money provided by direct

2-43 legislative appropriation.

3-1 2. [Any] Except as otherwise provided in subsection 4, a justice of the

3-2 supreme court who has served as a justice or judge of a district court in any

3-3 one or more of those courts for a period or periods aggregating 5 years and

3-4 has ended such service is, after reaching the age of 60 years, entitled to

3-5 receive annually from the State of Nevada, as a pension during the

3-6 remainder of his life, a sum of money equal in amount to 4.1666 percent of

3-7 the sum received as a salary for his judicial services during the last year

3-8 thereof, payable every 2 weeks from money provided by direct legislative

3-9 appropriation.

3-10 3. [Any] Except as otherwise provided in subsection 4, a justice of the

3-11 supreme court who qualifies for a pension under the provisions of

3-12 subsection 2 is entitled to receive, for each year served beyond 5 years up

3-13 to a maximum of 22 years, an additional 4.1666 percent of the sum

3-14 received as a salary for his judicial services during the last year thereof,

3-15 payable as provided in subsection 2.

3-16 4. [Any] In lieu of receiving a pension pursuant to subsection 1, 2 or

3-17 3, a justice of the supreme court may elect to receive as a pension

3-18 reduced payments that:

3-19 (a) Are payable every 2 weeks during the remainder of his life from

3-20 money provided by direct legislative appropriation; and

3-21 (b) Continue after his death for the life of the beneficiary whom he

3-22 nominates by written designation acknowledged and filed at the time of

3-23 retirement with the court administrator if the beneficiary survives him.

3-24 5. A justice of the supreme court who has retired pursuant to

3-25 subsection 3 or 4 and is thereafter recalled to additional active service in

3-26 the court system is entitled to receive :

3-27 (a) If he retired pursuant to subsection 3, credit toward accumulating

3-28 22 years’ service for the maximum pension ; or

3-29 (b) If he retired pursuant to subsection 4, credit toward the amount of

3-30 his pension,

3-31 based upon the time he actually spends in the additional active service.

3-32 [5.] 6. Any justice who has the years of service necessary to retire but

3-33 has not attained the required age may retire at any age with a benefit

3-34 actuarially reduced to the required retirement age. A benefit under this

3-35 subsection must be reduced in the same manner as benefits are reduced for

3-36 persons retired under the public employees’ retirement system.

3-37 [6.] 7. Any person receiving a pension pursuant to the provisions of

3-38 this section is entitled to receive post-retirement increases equal to those

3-39 provided for persons retired under the public employees’ retirement system.

3-40 [7.] 8. Any justice who desires to receive the benefits of this section

3-41 must file with the state controller and the state treasurer an affidavit setting

3-42 forth the fact that he is ending his service, the date and place of his birth,

3-43 and the years he has served in any district court or the supreme court.

4-1 [8.] 9. Upon such notice and filing of the affidavit, the state controller

4-2 shall draw his warrant, payable to the justice who has thus ended his

4-3 service, upon the state treasurer for the sum due to him, and the state

4-4 treasurer shall pay the sum out of money provided by direct legislative

4-5 appropriation.

4-6 [9.] 10. The faith of the State of Nevada is hereby pledged that this

4-7 section shall not be repealed or amended so as to affect any justice who

4-8 may have ended his service pursuant to it.

4-9 Sec. 5. NRS 2.070 is hereby amended to read as follows:

4-10 2.070 1. If a justice of the supreme court at the time of his death had

4-11 retired and was then receiving a pension under the provisions of subsection

4-12 1, 2, or 3 of NRS 2.060, or if at the time of his death the justice had not

4-13 retired but had performed sufficient service for retirement under the

4-14 provisions of NRS 2.060, the surviving spouse, if the spouse has attained

4-15 the age of 60 years, is entitled, until his death or remarriage, to receive

4-16 monthly payments of $2,000 per month.

4-17 2. [If] Unless a surviving spouse of a justice is receiving benefits as a

4-18 beneficiary pursuant to section 1 of this act, if the surviving spouse is not

4-19 eligible to receive benefits pursuant to subsection 1, he is entitled, until his

4-20 death or remarriage or until he becomes eligible to receive those benefits,

4-21 to receive payments equal in amount to the payment provided in subsection

4-22 1 of NRS 286.674 for the spouse of a deceased member of the public

4-23 employees’ retirement system.

4-24 3. To obtain these benefits, the surviving spouse must make application

4-25 to the [board, commission or authority entrusted with the administration of

4-26 the judges’ pensions] court administrator and furnish such information as

4-27 may be required pursuant to reasonable regulations adopted [for the

4-28 purpose of carrying] to carry out the intent of this section.

4-29 4. Any person receiving a benefit pursuant to the provisions of this

4-30 section is entitled to receive post-retirement increases equal to those

4-31 provided for persons retired under the public employees’ retirement system.

4-32 5. It is the intent of this section that no special fund be created for the

4-33 purpose of paying these benefits, and all payments made under the

4-34 provisions of this section are to be made out of and charged to any fund

4-35 created for the purpose of paying pension benefits to justices of the

4-36 supreme court.

4-37 Sec. 6. NRS 2.075 is hereby amended to read as follows:

4-38 2.075 1. [Each] Unless a child of a deceased justice of the supreme

4-39 court is receiving benefits as a beneficiary pursuant to section 1 of this

4-40 act, the child is entitled to receive payments equal in amount to the

4-41 payments provided in NRS 286.673 for the child of a deceased member of

4-42 the public employees’ retirement system.

5-1 2. In determining whether a child is a full-time student or financially

5-2 dependent and physically or mentally incompetent, as provided in NRS

5-3 286.673, the court administrator shall use any applicable standards and

5-4 procedures established by the public employees’ retirement board.

5-5 3. It is the intent of this section that no special fund be created for the

5-6 payment of benefits, and all payments made under the provisions of this

5-7 section are to be made out of and charged to any fund created for the

5-8 purpose of paying pension benefits to justices of the supreme court.

5-9 Sec. 7. Chapter 3 of NRS is hereby amended by adding thereto the

5-10 provisions set forth as sections 8 and 9 of this act.

5-11 Sec. 8. 1. A person who is named as a beneficiary pursuant to

5-12 subsection 4 of NRS 3.090 is entitled to receive the payments described

5-13 therein until his death. To obtain such payments, a beneficiary must file

5-14 an application with the court administrator and furnish such information

5-15 as may be required pursuant to reasonable regulations adopted to carry

5-16 out the intent of this section.

5-17 2. A beneficiary receiving payments pursuant to the provisions of this

5-18 section is entitled to receive post-retirement increases in an amount equal

5-19 to the amount provided for persons retired under the public employees’

5-20 retirement system.

5-21 3. It is the intent of this section that no special fund be created for

5-22 the purpose of paying benefits to a beneficiary pursuant to the provisions

5-23 of this section and that all such payments must be made out of and

5-24 charged to any fund created for the purpose of paying pension benefits to

5-25 district judges.

5-26 Sec. 9. 1. If a district judge elects to receive his pension pursuant

5-27 to subsection 4 of NRS 3.090 and his designated beneficiary predeceases

5-28 him, the payments to be made to the judge pursuant to subsection 4 of

5-29 NRS 3.090 must automatically be adjusted to equal the amount provided

5-30 pursuant to subsection 1, 2 or 3 of NRS 3.090, as appropriate.

5-31 2. A retired district judge who elects to receive his pension pursuant

5-32 to subsection 4 of NRS 3.090 may relinquish his right and the right of the

5-33 beneficiary under that pension and apply for a refund of his remaining

5-34 contributions at any time. If the designated beneficiary is the spouse of

5-35 the retired judge, or if the right of the beneficiary is the subject of a court

5-36 order, the retired judge shall provide an acknowledged release by the

5-37 beneficiary of any claim against the pension of the judge or the

5-38 contributions of the judge when applying for a refund.

5-39 3. A retired district judge may cancel his election to receive his

5-40 pension pursuant to subsection 4 of NRS 3.090 and his designation of

5-41 beneficiary and may elect to receive his pension pursuant to subsection 1,

5-42 2 or 3 of NRS 3.090, as appropriate. The retired judge shall make this

5-43 election by written designation, acknowledged and filed with the court

6-1 administrator. The written election must be accompanied by a written,

6-2 notarized acknowledgment of the change by the beneficiary if the

6-3 beneficiary is the spouse of the retired district judge. A retired judge who

6-4 cancels his election to receive his pension pursuant to subsection 4 of

6-5 NRS 3.090 and to receive his pension pursuant to subsection 1, 2 or 3 of

6-6 NRS 3.090, as appropriate, does not abrogate any obligation respecting

6-7 community property.

6-8 4. The termination or adjustment of a retirement allowance resulting

6-9 from the death of a retired judge or beneficiary must not become

6-10 effective until the first day of the month immediately following the death

6-11 of the retired judge or beneficiary.

6-12 Sec. 10. NRS 3.090 is hereby amended to read as follows:

6-13 3.090 1. [Any] Except as otherwise provided in subsection 4, a

6-14 judge of the district court who has served as a justice of the supreme court

6-15 or judge of a district court in any one or more of those courts for a period

6-16 or periods aggregating 22 years and has ended such service is, after

6-17 reaching the age of 60 years, entitled to receive annually from the State of

6-18 Nevada, as a pension during the remainder of his life, a sum of money

6-19 equal in amount to three-fourths the sum received as a salary for his judicial

6-20 services during the last year thereof, payable every 2 weeks from money

6-21 provided by direct legislative appropriation.

6-22 2. [Any] Except as otherwise provided in subsection 4, a judge of the

6-23 district court who has served as a justice of the supreme court or judge of a

6-24 district court in any one or more of those courts for a period or periods

6-25 aggregating 5 years and has ended such service is, after reaching the age of

6-26 60 years, entitled to receive annually from the State of Nevada, as a

6-27 pension during the remainder of his life, a sum of money equal in amount to

6-28 4.1666 percent of the sum received as a salary for his judicial services

6-29 during the last year thereof, payable every 2 weeks from money provided

6-30 by direct legislative appropriation.

6-31 3. [Any] Except as otherwise provided in subsection 4, a judge of the

6-32 district court who qualifies for a pension under the provisions of subsection

6-33 2 is entitled to receive, for each year served beyond 5 years up to a

6-34 maximum of 22 years, an additional 4.1666 percent of the sum received as

6-35 a salary for his judicial services during the last year thereof, payable as

6-36 provided in subsection 2.

6-37 4. [Any] In lieu of receiving a pension pursuant to subsection 1, 2 or

6-38 3, a district judge may elect to receive as a pension reduced payments

6-39 that:

6-40 (a) Are payable every 2 weeks during the remainder of his life from

6-41 money provided by direct legislative appropriation; and

7-1 (b) Continue after his death for the life of the beneficiary whom he

7-2 nominates by written designation acknowledged and filed at the time of

7-3 retirement with the court administrator if the beneficiary survives him.

7-4 5. A judge who has retired pursuant to subsection 3 or 4 and is

7-5 thereafter recalled to additional active service in the court system is entitled

7-6 to receive :

7-7 (a) If he retired pursuant to subsection 3, credit toward accumulating

7-8 22 years’ service for the maximum pension ; or

7-9 (b) If he retired pursuant to subsection 4, credit toward the amount of

7-10 his pension,

7-11 based upon the time he actually spends in the additional active service.

7-12 [5.] 6. Any district judge who has the years of service necessary to

7-13 retire but has not attained the required age may retire at any age with a

7-14 benefit actuarially reduced to the required retirement age. A retirement

7-15 benefit under this subsection must be reduced in the same manner as

7-16 benefits are reduced for persons retired under the public employees’

7-17 retirement system.

7-18 [6.] 7. Any person receiving a pension pursuant to the provisions of

7-19 this section is entitled to receive post-retirement increases equal to those

7-20 provided for persons retired in the public employees’ retirement system.

7-21 [7.] 8. Any judge of the district court who desires to receive the

7-22 benefits of this section must file with the state controller and the state

7-23 treasurer an affidavit setting forth the fact that he is ending his service, the

7-24 date and place of his birth, and the years he has served in any district court

7-25 or the supreme court.

7-26 [8.] 9. Upon such notice and filing of the affidavit, the state controller

7-27 shall draw his warrant, payable to the judge who has thus ended his service,

7-28 upon the state treasurer for the sum due to him, and the state treasurer shall

7-29 pay the sum out of money provided by direct legislative appropriation.

7-30 [9.] 10. The faith of the State of Nevada is hereby pledged that this

7-31 section shall not be repealed or amended so as to affect any judge of the

7-32 district court who may have ended his service pursuant to it.

7-33 Sec. 11. NRS 3.095 is hereby amended to read as follows:

7-34 3.095 1. If a district judge at the time of his death had retired and was

7-35 then receiving a pension under the provisions of subsection 1, 2 or 3 of

7-36 NRS 3.090, or if at the time of his death the judge had not retired but had

7-37 performed sufficient service for retirement under the provisions of NRS

7-38 3.090, the surviving spouse, if the spouse has attained the age of 60 years,

7-39 is entitled, until his death or remarriage, to receive monthly payments of

7-40 $2,000 per month.

7-41 2. [If] Unless a surviving spouse of a judge is receiving benefits as a

7-42 beneficiary pursuant to section 8 of this act, if the surviving spouse is not

7-43 eligible to receive benefits pursuant to subsection 1, he is entitled, until his

8-1 death or remarriage or until he becomes eligible to receive those benefits,

8-2 to receive payments equal in amount to the payment provided in subsection

8-3 1 of NRS 286.674 for the spouse of a deceased member of the public

8-4 employees’ retirement system.

8-5 3. To obtain these benefits, the surviving spouse must make application

8-6 to the [board, commission or authority entrusted with the administration of

8-7 the judges’ pensions] court administrator and furnish such information as

8-8 may be required pursuant to reasonable regulations adopted [for the

8-9 purpose of carrying] to carry out the intent of this section.

8-10 4. Any person receiving a benefit pursuant to the provisions of this

8-11 section is entitled to receive post-retirement increases equal to those

8-12 provided for persons retired under the public employees’ retirement system.

8-13 5. It is the intent of this section that no special fund be created for the

8-14 purpose of paying these benefits, and all payments made under the

8-15 provisions of this section are to be made out of and charged to any fund

8-16 created for the purpose of paying pension benefits to district judges.

8-17 Sec. 12. NRS 3.097 is hereby amended to read as follows:

8-18 3.097 1. [Each] Unless a child of a deceased district judge is

8-19 receiving benefits as a beneficiary pursuant to section 8 of this act, the

8-20 child is entitled to receive payments equal in amount to the payments

8-21 provided in NRS 286.673 for the child of a deceased member of the public

8-22 employees’ retirement system.

8-23 2. In determining whether a child is a full-time student or financially

8-24 dependent and physically or mentally incompetent, as provided in NRS

8-25 286.673, the court administrator shall use any applicable standards and

8-26 procedures established by the public employees’ retirement board.

8-27 3. It is the intent of this section that no special fund be created for the

8-28 payment of benefits, and all payments made under the provisions of this

8-29 section are to be made out of and charged to any fund created for the

8-30 purpose of paying pension benefits to district judges.

8-31 Sec. 13. The amendatory provisions of this act, which provide for

8-32 certain increases in the benefits of surviving spouses, children and other

8-33 beneficiaries of justices of the supreme court and district judges, apply only

8-34 to payments of benefits made on or after July 1, 1999.

8-35 Sec. 14. This act becomes effective on July 1, 1999.

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