Senate Bill No. 181–Committee on Judiciary

 

(On Behalf of Administrative Office of the Courts)

 

February 15, 2001

____________

 

Referred to Committee on Judiciary

 

SUMMARY—Makes various changes to retirement benefits of justices of supreme court and judges of district court. (BDR 1‑518)

 

FISCAL NOTE:            Effect on Local Government: No.

                                    Effect on the State: Yes.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to the judiciary; authorizing justices of the supreme court and judges of the district court 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; revising the formula for the calculation of retirement benefits of justices and judges; allowing a justice or judge who retired under the public employees’ retirement system and who is recalled to active service to earn credit toward a supplemental pension; 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. NRS 1.365 is hereby amended to read as follows:

1-2    1.365  All of the following claims must be submitted to the court

1-3  administrator, who shall act as administrative officer in processing the

1-4  claims:

1-5    1.  Claims of justices of the supreme court [under] pursuant to NRS

1-6  2.050 and 2.060.

1-7    2.  Claims of surviving spouses of justices of the supreme court [under]

1-8  pursuant to NRS 2.070.

1-9    3.  Claims of beneficiaries of justices of the supreme court pursuant

1-10  to section 3 of this act.

1-11    4.  Claims of judges of the district courts [under] pursuant to NRS

1-12  3.030 and 3.090.

1-13    [4.] 5.  Claims of surviving spouses of judges of the district courts

1-14  [under] pursuant to NRS 3.095.

1-15    6.  Claims of beneficiaries of judges of the district court pursuant to

1-16  section 9 of this act.

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

2-2  provisions set forth as sections 3 and 4 of this act.

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

2-4  subsection 4 of NRS 2.060 is entitled to receive the payments described

2-5  therein until his death. To obtain such payments, a beneficiary must file

2-6  an application with the court administrator and furnish such information

2-7  as may be required pursuant to reasonable regulations adopted to carry

2-8  out the intent of this section.

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

2-10  this section is entitled to receive post-retirement increases in an amount

2-11  equal to the amount provided for persons retired under the public

2-12  employees’ retirement system.

2-13    3.  It is the intent of this section that no special fund be created for

2-14  the purpose of paying benefits to a beneficiary pursuant to the provisions

2-15  of this section and that all such payments must be made out of and

2-16  charged to any fund created for the purpose of paying pension benefits to

2-17  justices of the supreme court.

2-18    Sec. 4. 1.  If a justice of the supreme court elects to receive his

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

2-20  beneficiary predeceases him, the payments to be made to the justice

2-21  pursuant to subsection 4 of NRS 2.060 must automatically be adjusted to

2-22  equal the amount provided pursuant to subsection 1, 2 or 3 of NRS

2-23  2.060, as appropriate.

2-24    2.  A retired justice of the supreme court may cancel his election to

2-25  receive his pension pursuant to subsection 4 of NRS 2.060 and his

2-26  designation of beneficiary and may elect to receive his pension pursuant

2-27  to subsection 1, 2 or 3 of NRS 2.060, as appropriate. The retired justice

2-28  shall make this election by written designation, acknowledged and filed

2-29  with the court administrator. The written election must be accompanied

2-30  by a written, notarized acknowledgment of the change by the beneficiary

2-31  if the beneficiary is the spouse of the retired justice of the supreme court.

2-32  A retired justice who cancels his election to receive his pension pursuant

2-33  to subsection 4 of NRS 2.060 and to receive his pension pursuant to

2-34  subsection 1, 2 or 3 of NRS 2.060, as appropriate, does not abrogate any

2-35  obligation respecting community property.

2-36    3.  The termination or adjustment of a retirement allowance resulting

2-37  from the death of a retired justice of the supreme court or beneficiary

2-38  must not become effective until the first day of the month immediately

2-39  following the death of the retired justice or beneficiary.

2-40    Sec. 5.  NRS 2.060 is hereby amended to read as follows:

2-41    2.060  1.  [Any] Except as otherwise provided in subsection 4, a

2-42  justice of the supreme court who has served as a justice or judge of a

2-43  district court in any one or more of those courts for a period or periods

2-44  aggregating 22 years and has ended such service is, after reaching the age

2-45  of 60 years, entitled to receive annually from the State of Nevada, as a

2-46  pension during the remainder of his life, a sum of money equal in amount

2-47  to three-fourths the sum received as a salary for his judicial services during

2-48  the last year thereof, payable every 2 weeks from money provided by direct

2-49  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] 3.4091

3-7  percent of the sum received as a salary for his judicial services during the

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

3-9  legislative 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] 3.4091 percent of the

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

3-15  thereof, payable as provided in subsection 2.

3-16    4.  [Any justice] In lieu of receiving a pension pursuant to subsection

3-17  1, 2 or 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 with the court

3-23  administrator at the time of retirement 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 retired pursuant to chapter 286 of NRS

3-33  and is thereafter recalled to additional active service in the court system

3-34  is entitled to receive annually from the State of Nevada, as a

3-35  supplemental pension during the remainder of his life, a sum of money

3-36  equal in amount to 3.4091 percent of the sum received as a salary for his

3-37  judicial services during the last year thereof, for each year of additional

3-38  active service up to a maximum of 22 years, payable every 2 weeks from

3-39  money provided by direct legislative appropriation. Each year of

3-40  additional active service must be calculated based upon the time the

3-41  justice actually spends in the additional active service.

3-42    7.  Any justice of the supreme court who has the years of service

3-43  necessary to retire but has not attained the required age may retire at any

3-44  age with a benefit actuarially reduced to the required retirement age. A

3-45  benefit under this subsection must be reduced in the same manner as

3-46  benefits are reduced for persons retired under the public employees’

3-47  retirement system.

3-48    [6.] 8.  Any person receiving a pension pursuant to the provisions of

3-49  this section is entitled to receive post-retirement increases equal to those

4-1  provided for persons retired under the public employees’ retirement

4-2  system.

4-3    [7.] 9.  Any justice of the supreme court who desires to receive the

4-4  benefits of this section must file with the state controller and the state

4-5  treasurer an affidavit setting forth the fact that he is ending his service, the

4-6  date and place of his birth, and the years he has served in any district court

4-7  or the supreme court.

4-8    [8.] 10.  Upon such notice and filing of the affidavit, the state

4-9  controller shall draw his warrant, payable to the justice of the supreme

4-10  court who has thus ended his service, upon the state treasurer for the sum

4-11  due to him, and the state treasurer shall pay the sum out of money provided

4-12  by direct legislative appropriation.

4-13    [9.] 11.  The faith of the State of Nevada is hereby pledged that this

4-14  section shall not be repealed or amended so as to affect any justice of the

4-15  supreme court who may have ended his service pursuant to it.

4-16    Sec. 6.  NRS 2.070 is hereby amended to read as follows:

4-17    2.070  1.  If a justice of the supreme court at the time of his death had

4-18  retired and was then receiving a pension under the provisions ofsubsection

4-19  1, 2 or 3 of NRS 2.060, or if at the time of his death the justice had not

4-20  retired but had performed sufficient service for retirement under the

4-21  provisions of NRS 2.060, the surviving spouse, if the spouse has attained

4-22  the age of 60 years, is entitled, until his death or remarriage, to receive

4-23  monthly payments of $2,500 per month.

4-24    2.  [If] Unless a surviving spouse of a justice of the supreme court is

4-25  receiving benefits as a beneficiary pursuant to section 3 of this act, if the

4-26  surviving spouse is not eligible to receive benefits pursuant to subsection

4-27  1, he is entitled, until his death or remarriage or until he becomes eligible

4-28  to receive those benefits, to receive payments equal in amount to the

4-29  payment provided in subsection 1 of NRS 286.674 for the spouse of a

4-30  deceased member of the public employees’ retirement system.

4-31    3.  To obtain these benefits, the surviving spouse must [make

4-32  application] apply to the [board, commission or authority entrusted with

4-33  the administration of the judges’ pensions] court administrator and furnish

4-34  such information as may be required pursuant to reasonable regulations

4-35  adopted [for the purpose of carrying] to carry out the intent of this section.

4-36    4.  Any person receiving a benefit pursuant to the provisions of this

4-37  section is entitled to receive post-retirement increases equal to those

4-38  provided for persons retired under the public employees’ retirement

4-39  system.

4-40    5.  It is the intent of this section that no special fund be created for the

4-41  purpose of paying these benefits, and all payments made under the

4-42  provisions of this section are to be made out of and charged to any fund

4-43  created for the purpose of paying pension benefits to justices of the

4-44  supreme court.

4-45    Sec. 7.  NRS 2.075 is hereby amended to read as follows:

4-46    2.075  1.  [Each] Unless a child of a deceased justice of the supreme

4-47  court is receiving benefits as a beneficiary pursuant to section 3 of this

4-48  act, the child is entitled to receive payments equal in amount to the

5-1  payments provided in NRS 286.673 for the child of a deceased member of

5-2  the public employees’ retirement system.

5-3    2.  In determining whether a child is a full-time student or financially

5-4  dependent and physically or mentally incompetent, as provided in NRS

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

5-6  procedures established by the public employees’ retirement board.

5-7    3.  It is the intent of this section that no special fund be created for the

5-8  payment of benefits, and all payments made under the provisions of this

5-9  section are to be made out of and charged to any fund created for the

5-10  purpose of paying pension benefits to justices of the supreme court.

5-11    Sec. 8.  Chapter 3 of NRS is hereby amended by adding thereto the

5-12  provisions set forth as sections 9 and 10 of this act.

5-13    Sec. 9. 1.  A person who is named as a beneficiary pursuant to

5-14  subsection 4 of NRS 3.090 is entitled to receive the payments described

5-15  therein until his death. To obtain such payments, a beneficiary must file

5-16  an application with the court administrator and furnish such information

5-17  as may be required pursuant to reasonable regulations adopted to carry

5-18  out the intent of this section.

5-19    2.  A beneficiary receiving payments pursuant to the provisions of

5-20  this section is entitled to receive post-retirement increases in an amount

5-21  equal to the amount provided for persons retired under the public

5-22  employees’ retirement system.

5-23    3.  It is the intent of this section that no special fund be created for

5-24  the purpose of paying benefits to a beneficiary pursuant to the provisions

5-25  of this section and that all such payments must be made out of and

5-26  charged to any fund created for the purpose of paying pension benefits to

5-27  judges of the district court.

5-28    Sec. 10. 1.  If a judge of the district court elects to receive his

5-29  pension pursuant to subsection 4 of NRS 3.090 and his designated

5-30  beneficiary predeceases him, the payments to be made to the judge

5-31  pursuant to subsection 4 of NRS 3.090 must automatically be adjusted to

5-32  equal the amount provided pursuant to subsection 1, 2 or 3 of NRS

5-33  3.090, as appropriate.

5-34    2.  A retired judge of the district court who elects to receive his

5-35  pension pursuant to subsection 4 of NRS 3.090 may relinquish his right

5-36  and the right of the beneficiary under that pension and apply for a

5-37  refund of his remaining contributions at any time. If the designated

5-38  beneficiary is the spouse of the retired judge of the district court, or if the

5-39  right of the beneficiary is the subject of a court order, the retired judge of

5-40  the district court shall provide an acknowledged release by the

5-41  beneficiary of any claim against the pension of the judge of the district

5-42  court or the contributions of the judge of the district court when applying

5-43  for a refund.

5-44    3.  A retired judge of the district court may cancel his election to

5-45  receive his pension pursuant to subsection 4 of NRS 3.090 and his

5-46  designation of beneficiary and may elect to receive his pension pursuant

5-47  to subsection 1, 2 or 3 of NRS 3.090, as appropriate. The retired judge of

5-48  the district court shall make this election by written designation,

5-49  acknowledged and filed with the court administrator. The written

6-1  election must be accompanied by a written, notarized acknowledgment of

6-2  the change by the beneficiary if the beneficiary is the spouse of the

6-3  retired judge of the district court. A retired judge of the district court 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 of the district court or beneficiary must

6-10  not become effective until the first day of the month immediately

6-11  following the death of the retired judge of the district court or

6-12  beneficiary.

6-13    Sec. 11.  NRS 3.090 is hereby amended to read as follows:

6-14    3.090  1.  [Any] Except as otherwise provided in subsection 4, a

6-15  judge of the district court who has served as a justice of the supreme court

6-16  or judge of a district court in any one or more of those courts for a period

6-17  or periods aggregating 22 years and has ended such service is, after

6-18  reaching the age of 60 years, entitled to receive annually from the State of

6-19  Nevada, as a pension during the remainder of his life, a sum of money

6-20  equal in amount to three-fourths the sum received as a salary for his

6-21  judicial services during the last year thereof, payable every 2 weeks from

6-22  money provided by direct legislative appropriation.

6-23    2.  [Any] Except as otherwise provided in subsection 4, a judge of the

6-24  district court who has served as a justice of the supreme court or judge of a

6-25  district court in any one or more of those courts for a period or periods

6-26  aggregating 5 years and has ended such service is, after reaching the age of

6-27  60 years, entitled to receive annually from the State of Nevada, as a

6-28  pension during the remainder of his life, a sum of money equal in amount

6-29  to [4.1666] 3.4091 percent of the sum received as a salary for his judicial

6-30  services during the last year thereof, payable every 2 weeks from money

6-31  provided by direct legislative appropriation.

6-32    3.  [Any] Except as otherwise provided in subsection 4, a judge of the

6-33  district court who qualifies for a pension under the provisions of subsection

6-34  2 is entitled to receive, for each year served [beyond 5 years] up to a

6-35  maximum of 22 years, an additional [4.1666] 3.4091 percent of the sum

6-36  received as a salary for his judicial services during the last year thereof,

6-37  payable as provided in subsection 2.

6-38    4.  [Any judge] In lieu of receiving a pension pursuant to subsection

6-39  1, 2 or 3, a judge of the district court may elect to receive as a pension

6-40  reduced payments that:

6-41    (a) Are payable every 2 weeks during the remainder of his life from

6-42  money provided by direct legislative appropriation; and

6-43    (b) Continue after his death for the life of the beneficiary whom he

6-44  nominates by written designation acknowledged and filed with the court

6-45  administrator at the time of retirement if the beneficiary survives him.

6-46    5.  A judge of the district court who has retired pursuant to subsection

6-47  3 or 4 and is thereafter recalled to additional active service in the court

6-48  system is entitled to receive :

7-1    (a) If he retired pursuant to subsection 3, credit toward accumulating

7-2  22 years’ service for the maximum pension ; or

7-3    (b) If he retired pursuant to subsection 4, credit toward the amount of

7-4  his pension,

7-5  based upon the time he actually spends in the additional active service.

7-6    [5.  Any district judge]

7-7    6.  Any judge of the district court who has retired pursuant to chapter

7-8  286 of NRS and is thereafter recalled to additional active service in the

7-9  court system is entitled to receive annually from the State of Nevada, as a

7-10  supplemental pension during the remainder of his life, a sum of money

7-11  equal in amount to 3.4091 percent of the sum received as a salary for his

7-12  judicial services during the last year thereof, for each year of additional

7-13  active service up to a maximum of 22 years, payable every 2 weeks from

7-14  money provided by direct legislative appropriation. Each year of

7-15  additional active service must be calculated based upon the time the

7-16  judge actually spends in the additional active service.

7-17    7.  Any judge of the district court who has the years of service

7-18  necessary to retire but has not attained the required age may retire at any

7-19  age with a benefit actuarially reduced to the required retirement age. A

7-20  retirement benefit under this subsection must be reduced in the same

7-21  manner as benefits are reduced for persons retired under the public

7-22  employees’ retirement system.

7-23    [6.] 8.  Any person receiving a pension pursuant to the provisions of

7-24  this section is entitled to receive post-retirement increases equal to those

7-25  provided for persons retired in the public employees’ retirement system.

7-26    [7.] 9.  Any judge of the district court who desires to receive the

7-27  benefits of this section must file with the state controller and the state

7-28  treasurer an affidavit setting forth the fact that he is ending his service, the

7-29  date and place of his birth, and the years he has served in any district court

7-30  or the supreme court.

7-31    [8.] 10.  Upon such notice and filing of the affidavit, the state

7-32  controller shall draw his warrant, payable to the judge of the district court

7-33  who has thus ended his service, upon the state treasurer for the sum due to

7-34  him, and the state treasurer shall pay the sum out of money provided by

7-35  direct legislative appropriation.

7-36    [9.] 11.  The faith of the State of Nevada is hereby pledged that this

7-37  section shall not be repealed or amended so as to affect any judge of the

7-38  district court who may have ended his service pursuant to it.

7-39    Sec. 12.  NRS 3.095 is hereby amended to read as follows:

7-40    3.095  1.  If a [district] judge of the district court at the time of his

7-41  death had retired and was then receiving a pension under the provisions of

7-42  subsection 1, 2 or 3 of NRS 3.090, or if at the time of his death the judge

7-43  had not retired but had performed sufficient service for retirement under

7-44  the provisions of NRS 3.090, the surviving spouse, if the spouse has

7-45  attained the age of 60 years, is entitled, until his death or remarriage, to

7-46  receive monthly payments of $2,500 per month.

7-47    2.  [If] Unless a surviving spouse of a judge of the district court is

7-48  receiving benefits as a beneficiary pursuant to section 9 of this act, if the

7-49  surviving spouse is not eligible to receive benefits pursuant to subsection

8-1  1, he is entitled, until his death or remarriage or until he becomes eligible

8-2  to receive those benefits, to receive payments equal in amount to the

8-3  payment provided in subsection 1 of NRS 286.674 for the spouse of a

8-4  deceased member of the public employees’ retirement system.

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

8-6  application] apply to the [board, commission or authority entrusted with

8-7  the administration of the judges’ pensions] court administrator and furnish

8-8  such information as may be required pursuant to reasonable regulations

8-9  adopted [for the 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

8-13  system.

8-14    5.  It is the intent of this section that no special fund be created for the

8-15  purpose of paying these benefits, and all payments made under the

8-16  provisions of this section are to be made out of and charged to any fund

8-17  created for the purpose of paying pension benefits to [district judges.]

8-18  judges of the district court.

8-19    Sec. 13.  NRS 3.097 is hereby amended to read as follows:

8-20    3.097  1.  [Each] Unless a child of a deceased [district] judge of the

8-21  district court is receiving benefits as a beneficiary pursuant to section 9

8-22  of this act, the child is entitled to receive payments equal in amount to the

8-23  payments provided in NRS 286.673 for the child of a deceased member of

8-24  the public employees’ retirement system.

8-25    2.  In determining whether a child is a full-time student or financially

8-26  dependent and physically or mentally incompetent, as provided in NRS

8-27  286.673, the court administrator shall use any applicable standards and

8-28  procedures established by the public employees’ retirement board.

8-29    3.  It is the intent of this section that no special fund be created for the

8-30  payment of benefits, and all payments made under the provisions of this

8-31  section are to be made out of and charged to any fund created for the

8-32  purpose of paying pension benefits to [district judges.] judges of the

8-33  district court.

8-34    Sec. 14.  NRS 286.305 is hereby amended to read as follows:

8-35    286.305  1.  Any justice of the supreme court and any [district] judge

8-36  of the district court who became a member before July 1, 1977, may

8-37  remain a member of the system. Those justices [or district judges] of the

8-38  supreme court or judges of the district court may choose to gain service

8-39  credit for previous service as provided in NRS 286.300.

8-40    2.  The State of Nevada shall be deemed, for the purpose of this

8-41  chapter, to be the public employer of such justice or judge, and shall

8-42  contribute to the public employees’ retirement fund and the public

8-43  employees’ retirement administrative fund, in the manner provided in this

8-44  chapter for public employers.

8-45    3.  Any justice of the supreme court and any [district] judge of the

8-46  district court who is a member of the system and who qualifies for a

8-47  pension under the provisions of NRS 2.060 or 3.090 may withdraw from

8-48  the public employees’ retirement fund the amount credited to him in the

8-49  account. [No] Except as otherwise provided in subsection 6 of NRS 2.060

9-1  and subsection 6 of NRS 3.090, no justice or judge may receive benefits

9-2  under both this chapter and under NRS 2.060 or 3.090.

9-3    Sec. 15.  The amendatory provisions of this act, which provide for

9-4  certain increases in the benefits of surviving spouses, children and other

9-5  beneficiaries of justices of the supreme court and judges of the district

9-6  court, apply only to payments of benefits made on or after July 1, 2001.

9-7    Sec. 16.  This act becomes effective on July 1, 2001.

 

9-8  H