SENATE, No. 2019
STATE OF NEW JERSEY
INTRODUCED APRIL 21, 1997
By Senator CODEY
An Act concerning the Judicial Retirement System of New Jersey and supplementing P.L.1973, c.140 (C.43:6A-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Any member who, having served at least five but less than 10 years as a judge of the several courts, is retired in accordance with the provisions of section 7 of P.L.1973, c.140 (C.43:6A-7) upon reaching the age of 70 years shall receive a retirement allowance consisting of an annuity which shall be the actuarial equivalent of the member's accumulated deductions together with regular interest, and a pension which, when added to the member's annuity, will provide a retirement allowance during the remainder of the member's life in an amount equal to 37½% of the member's final salary plus 7½% of the member's final salary multiplied by the number of years of creditable service as a judge over five years but not over 10 years, including service for which credit under the retirement system shall have been purchased under section 2 of P.L. , c. (C. ) (now pending before the Legislature as this bill).
2. a. Any member of the retirement system to whom the provisions of section 1 of P.L. , c. (C. ) (now pending before the Legislature as this bill) apply shall, for the purposes of determining the amount of any retirement allowance under that section 1, be credited under the retirement system with service as a judge for all or a portion of the service that the member shall have rendered prior to becoming a judge in any other office, position, or employment of this State or of a county, municipality, board of education or public agency of this State, if the member agrees with the retirement system to purchase such judicial service credit for the service in such other office, position, or employment by paying into the annuity savings fund the amount required by applying the factor, supplied by the actuary as being applicable to the member's age at the time of the purchase, to the member's salary at that time. The purchase may be made in regular installments over a maximum period to be determined by the State House Commission. A member electing to purchase the service who retires prior to completing payments as agreed with the retirement system will receive pro rata credit for service purchased prior to the date of retirement, but if the member so elects at the time of retirement, the member may make the additional lump sum payment required at that time to provide full credit. The State shall not be liable for any payment to the retirement system on behalf of the member for the purchase hereunder of such credit.
b. (1) If the member shall previously have established credit in the retirement system for service other than service as a judge of the several courts pursuant to the transfer of credit for such service under the provisions of subsection d. of section 14 of P.L.1973, c.140 (C.43:6A-14), the amounts remitted under subsection e. of that section 14 in connection with that transfer, with regular interest, shall be credited against the member's liability for the cost of purchasing service under the provisions of subsection a. of this section.
(2) If the member shall previously have established credit in the retirement system for service other than service as a judge of the several courts pursuant to the purchase thereof under the provisions of section 25 of P.L.1981, c.470 (C.43:6A-14.2), the amount of any payment that the member shall have made for the purchase of that credit under subsection a. of that section 25 and the amount of any payment of the employer's accrued liability obligation in connection with that purchase that the State shall have made under subsection b. of that section 25, with regular interest, shall be credited against the member's liability for the cost of purchasing service under the provisions of subsection a. of this section.
3. This act shall take effect immediately.
This bill concerns the amount of the pension payable to a member of the Judicial Retirement System (JRS) who, having served at least five years as a judge, is required to retire upon attaining age 70 (the mandatory retirement age for judges).
Under present law, a JRS member who has served 10 years as a judge and attained age 70, or 15 years as a judge and attained age 65, or 20 years as a judge and attained age 60, qualifies for a pension equal to 75% of the member's final salary. A member who has attained age 65 and has at least five years of service as a judge and 15 years in the aggregate of public service, or has attained age 60 and has at least five years of service as a judge and 20 years in the aggregate of public service, qualifies for a pension equal to 50% of the member's final salary.
Under the bill, a JRS member who has at least five years as a judge and has attained age 70 shall be entitled to a pension in an amount equal to 37½% of the member's final salary plus 7½% of the member's final salary for each year of creditable service as a judge over five years but not over 10 years. In addition, the bill provides that if such a member rendered other public service prior to becoming a judge, that member shall be allowed, for purposes of establishing the amount of the pension, to purchase judicial service credit in JRS for that other public service. The member would be liable for the entire cost of the purchase, subject to the allowance of a setoff against that liability for the value of moneys paid to JRS in connection with either the transfer from another public retirement system of non-judicial credit for the service at the time of the person's enrollment in JRS or the purchase of such credit for the service after such enrollment.
Increases pension payable to JRS member with more than five but less than 10 years' service mandatorily retired for age; allows such member to purchase certain JRS credit.