Committee backs changes to judges' retirement benefits in engrossed House Bill 3506

The Pensions Committee voted to adopt a committee "strike and insert" amendment to engrossed House Bill 3506 and recommended the bill to the full Senate with a double reference to finance.

Committee counsel explained that House Bill 3506 revises the judges' retirement system by allowing judges who reach age 65 to receive an actuarially reduced annual annuity after 12 years of service (down from 16), increasing the surviving spouse benefit from 40 percent to 50 percent, and collapsing the tier distinction between judges who took office before and after February 2005. "Under current law, judges who are appointed or elected after July 2005, who have reached the age of 65 and have served for at least 16 years can get their full pension benefit. This legislation allows the judge to receive an actuary reduced benefit in the form of the annual annuity payment after just 12 years of service," Committee counsel said. Counsel also said two obsolete code sections are removed and that the changes mirror parts of Senate Bill 5589 without judicial pay raises.

The committee heard support from judiciary representatives. "We are supportive of the strike and insertment amendment, and are very thankful of this committee for taking this issue up," Judge Ransom Stonestreet said on behalf of the Family Court Judicial Association. Judge David Hammer, representing the circuit courts, also attended and was introduced to the committee.

Committee counsel told members there is no fiscal impact to the state budget but that the changes produce a significant actuarial effect. Counsel said the retirement plan is "very overfunded and therefore, it can bear it without affecting the health of the plan." Members discussed the difference between the committee substitute and the House-passed language; one senator noted the House version included a temporary employer contribution holiday tied to a funding threshold that is not included in the committee substitute because there are no pay raises in this bill.

Following debate, the committee adopted the scribe-and-insert amendment, approved a motion recommending that engrossed House Bill 3506, as amended, "do pass" with a double committee reference to finance, and adopted a title amendment. The committee closed the agenda item after the chair said members would be updated if the separate House bill that includes judicial pay raises is referred to this committee or routed directly to finance.

Votes at the meeting were voice votes as recorded in the transcript; specific roll-call tallies were not provided in the record.

The committee then adjourned.