04/12/07 1238s

06Jun2007… 1905h

2007 SESSION

07-0760

10/09

SENATE BILL 178-FN

COMMITTEE: Executive Departments and Administration

AMENDED ANALYSIS

This bill:

I. Allows for a retired member to be appointed to the judicial retirement system board of trustees.

II. Changes the method of determining and funding supplemental allowances or COLAs.

III. Permits a quorum of only 4 trustees at a meeting of the board, with unanimous votes.

IV. Requires certain reports to be made to legislative committees.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

04/12/07 1238s

06Jun2007… 1905h

07-0760

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Seven

Be it Enacted by the Senate and House of Representatives in General Court convened:

313:1 Board of Trustees; Retired Members. Amend RSA 100-C:11, II to read as follows:

II. The board of trustees of the judicial retirement plan shall consist of 7 members. The governor and council shall appoint 2 trustees, one of whom the governor shall designate to serve as chairman of the board of trustees, and who shall be qualified persons with business experience and not members of the judicial retirement plan, and who shall serve for a term of 3 years and until such trustee’s successor is appointed and qualified, except that the original appointment of one of the trustees shall be for a term of one year. The chief justice of the state supreme court, with the advice and consent of the chief justice of the superior court and the administrative justices of the district and probate courts, shall appoint 3 trustees, [who] at least 2 of whom shall be active members of the judicial retirement plan and one of whom may be a retired member, and who shall serve for a term of 3 years and until such trustee’s successor is appointed and qualified, except that the original appointment of one of the trustees shall be for a term of one year, and the original appointment of another of the trustees shall be for a term of 2 years. One member of the state senate shall be appointed biennially by the senate president as a trustee of the board, and one member of the house of representatives shall be appointed biennially by the speaker of the house as a trustee of the board.

313:2 Judicial Retirement Plan; Method of Financing; Interest. Amend RSA 100-C:13, III(f) to read as follows:

(f) All interest and dividends earned on the funds of the judicial retirement plan shall be credited to the state annuity accumulation fund. The board shall allow interest at such rate or rates as it shall determine from time to time on the individual accounts of members in the member annuity savings fund and shall annually transfer such interest amount from the state annuity accumulation fund. Such interest shall be compounded [monthly] annually or more frequently as the board of trustees may determine and shall be allowed to the date of processing upon termination of active service for any reason including withdrawal, retirement, or death.

313:3 Funding of Supplemental Allowances. RSA 100-C:13, III(g) is repealed and reenacted to read as follows:

(g) The board of trustees shall be permitted to pay out to, or for the benefit of, retired members retired after January 1, 2005 or their beneficiaries, supplemental benefits as provided in RSA 100-C:17, not to exceed $50,000 in the aggregate per calendar year. Said benefits shall be on a nonrecurring basis. Supplemental benefits greater than $50,000 per calendar year in the aggregate shall only be paid if the judicial retirement annuity accumulation fund earns at a level greater than the actuarial assumed rate of return approved by the board and the trust is at least 90 percent funded for that calendar year.

313:4 Supplemental Benefits. RSA 100-C:17, is repealed and reenacted to read as follows:

100-C:17 Supplemental Allowances. Each calendar year, the fiscal committee of the general court may approve supplemental benefits in an amount exceeding $50,000 in the aggregate upon recommendation of the board. The board shall have the authority to provide supplemental benefits annually in such percentages or amounts as the board deems advisable, including the ability to segment or tier amounts based upon years without such a benefit. Supplemental benefits shall not be permanent. The board shall provide information required by the fiscal committee, including, but not limited to, any change in the Consumer Price Index-Urban for the year prior to the year in which the nonrecurring benefit is to be granted. Supplemental benefits greater than $50,000 per year in the aggregate shall only be paid if the judicial retirement annuity accumulation fund earns at a level greater than the actuarial assumed rate of return approved by the board and the trust is at least 90 percent funded for that calendar year.

313:5 Quorum. Amend RSA 100-C:11, V to read as follows:

V. Each trustee shall be entitled to one vote in the board of trustees. [Five] Four trustees shall constitute a quorum for the transaction of any business. In the event of only four trustees voting at any meeting, a unanimous vote shall be necessary for any resolution or action by the board at [any] such meeting.

313:6 New Paragraph; Reports. Amend RSA 100-C:11 by inserting after paragraph X the following new paragraph:

XI. Following each calendar year, the board shall report to the fiscal committee of the general court and the executive departments and administration committees of the senate and house of representatives on the supplemental allowances paid pursuant to RSA 100-C:17. The board shall also annually provide copies of its annual report to the executive departments and administration committees of the senate and house of representatives.

313:7 Repeal. RSA 100-C:1, XX, relative to the definition of terminal funding, is repealed.

313:8 Effective Date. This act shall take effect upon its passage.

Approved: July 13, 2007

Effective: July 13, 2007