24-703 Judges; contributions; payment; funding of system; late fees.
24-703. Judges; contributions;payment; funding of system; late fees.(1) Eachoriginal member shall contribute monthly four percent of his or her monthlycompensation to the fund until the maximum benefit as limited in subsection(1) of section 24-710 has been earned. It shall be the duty of the Directorof Administrative Services in accordance with subsection (10) of this sectionto make a deduction of four percent on the monthly payroll of each originalmember who is a judge of the Supreme Court, a judge of the Court of Appeals,a judge of the district court, a judge of a separate juvenile court, a judgeof the county court, a clerk magistrate of the county court who was an associatecounty judge and a member of the fund at the time of his or her appointmentas a clerk magistrate, or a judge of the Nebraska Workers' Compensation Courtshowing the amount to be deducted and its credit to the fund. The Directorof Administrative Services and the State Treasurer shall credit the four percentas shown on the payroll and the amounts received from the various countiesto the fund and remit the same to the director in charge of the judges retirementsystem who shall keep an accurate record of the contributions of each judge.(2)(a) In addition to the contribution requiredunder subdivision (c) of this subsection, beginning on July 1,2004, each future member who has not elected to make contributions and receivebenefits as provided in section 24-703.03 shall contribute monthly six percentof his or her monthly compensation to the fund until the maximum benefit aslimited in subsection (2) of section 24-710 has been earned. After the maximumbenefit as limited in subsection (2) of section 24-710 has been earned, suchfuture member shall make no further contributions to the fund, except that (i) any time the maximum benefitis changed, a future member who has previously earned the maximum benefitas it existed prior to the change shall contribute monthly six percent ofhis or her monthly compensation to the fund until the maximum benefit as changedand as limited in subsection (2) of section 24-710 has been earned and (ii) such future member shall continueto make the contribution required under subdivision (c) of this subsection.(b) In addition to the contribution requiredunder subdivision (c) of this subsection, beginning on July 1,2004, a judge who first serves as a judge on or after such date or a futuremember who elects to make contributions and receive benefits as provided insection 24-703.03 shall contribute monthly eight percent of his or her monthlycompensation to the fund until the maximum benefit as limited by subsection(2) of section 24-710 has been earned. In addition to the contribution requiredunder subdivision (c) of this subsection, after the maximum benefitas limited in subsection (2) of section 24-710 has been earned, such judgeor future member shall contribute monthly four percent of his or her monthlycompensation to the fund for the remainder of his or her active service.(c) Beginningon July 1, 2009, and until July 1, 2014, a member or judge described in subdivisions(a) and (b) of this subsection shall contribute monthly an additional onepercent of his or her monthly compensation to the fund.(d) It shall be the duty ofthe Director of Administrative Services to make a deduction on the monthlypayroll of each such future member who is a judge of the Supreme Court, ajudge of the Court of Appeals, a judge of the district court, a judge of aseparate juvenile court, a judge of the county court, a clerk magistrate ofthe county court who was an associate county judge and a member of the fundat the time of his or her appointment as a clerk magistrate, or a judge ofthe Nebraska Workers' Compensation Court showing the amount to be deductedand its credit to the fund. This shall be done each month. The Director ofAdministrative Services and the State Treasurer shall credit the amount asshown on the payroll and the amounts received from the various counties tothe fund and remit the same to the director in charge of the judges retirementsystem who shall keep an accurate record of the contributions of each judge.(3) Except as otherwise provided in this subsection,a Nebraska Retirement Fund for Judges fee of five dollars shallbe taxed as costs in each (a) civil cause of action, criminal cause of action,traffic misdemeanor or infraction, and city or village ordinance violationfiled in the district courts, the county courts, and the separate juvenilecourts, (b) filing in the district court of an order, award, or judgment ofthe Nebraska Workers' Compensation Court or any judge thereof pursuant tosection 48-188, (c) appeal or other proceeding filed in the Court of Appeals,and (d) original action, appeal, or other proceeding filed in the SupremeCourt. Beginning on July 1,2009, and until July 1, 2014, such fee shall be six dollars. Incounty courts a sum shall be charged which is equal to ten percent of eachfee provided by sections 33-125, 33-126.02, 33-126.03, and 33-126.06, roundedto the nearest even dollar. No judges retirement fee shall be charged forfiling a report pursuant to sections 33-126.02 and 33-126.06. When collectedby the clerk of the district or county court, such fees shall be paid andinformation submitted to the director in charge of the judges retirement systemon forms prescribed by the board by the clerk within ten days after the closeof each calendar quarter. The board may charge a late administrative processingfee not to exceed twenty-five dollars if the information is not timely receivedor the money is delinquent. In addition, the board may charge a late fee ofthirty-eight thousandths of one percent of the amount required to be submittedpursuant to this section for each day such amount has not been received. Suchdirector shall promptly thereafter remit the same to the State Treasurer forcredit to the fund. No Nebraska Retirement Fund for Judges fee which is uncollectiblefor any reason shall be waived by a county judge as provided in section 29-2709.(4) All expenditures from the fund shall be authorized byvoucher in the manner prescribed in section 24-713. The fund shall be usedfor the payment of all annuities and other benefits and for the expenses ofadministration.(5) The fund shall consist of the total fund as of December25, 1969, the contributions of members as provided in this section, all supplementarycourt fees as provided in subsection (3) of this section, and any requiredcontributions of the state.(6) Not later than January 1 of each year, the State Treasurershall transfer to the fund the amount certified by the board as being necessaryto pay the cost of any benefits accrued during the fiscal year ending theprevious June 30 in excess of member contributions for that fiscal year andcourt fees as provided in subsection (3) of this section and fees pursuantto sections 25-2804, 33-103, 33-103.01, 33-106, 33-106.02, 33-123, 33-125, 33-126.02, 33-126.03, and 33-126.06 and directed to be remitted to the fund,if any, for that fiscal year plus any required contributions of the stateas provided in subsection (9) of this section.(7) Benefits under the retirement system to members or totheir beneficiaries shall be paid from the fund.(8) Any member who is making contributions to the fund onDecember 25, 1969, may, on or before June 30, 1970, elect to become a futuremember by delivering written notice of such election to the board.(9) Not later than January 1 of each year, the State Treasurershall transfer to the fund an amount, determined on the basis of an actuarialvaluation as of the previous June 30 and certified by the board, to fullyfund the unfunded accrued liabilities of the retirement system as of June30, 1988, by level payments up to January 1, 2000. Such valuation shall beon the basis of actuarial assumptions recommended by the actuary, approvedby the board, and kept on file with the board. For the fiscal year beginningJuly 1, 2002, and each fiscal year thereafter, the actuary for the board shallperform an actuarial valuation of the system using the entry age actuarialcost method. Under this method, the actuarially required funding rate is equalto the normal cost rate, plus the contribution rate necessary to amortizethe unfunded actuarial accrued liability on a level payment basis. The normalcost under this method shall be determined for each individual member on alevel percentage of salary basis. The normal cost amount is then summed forall members. The initial unfunded actual accrued liability as of July 1, 2002,if any, shall be amortized over a twenty-five-year period. Prior to July 1,2006, changes in the funded actuarial accrued liability due to changes inbenefits, actuarial assumptions, the asset valuation method, or actuarialgains or losses shall be measured and amortized over a twenty-five-year periodbeginning on the valuation date of such change. Beginning July 1, 2006, anyexisting unfunded liabilities shall be reinitialized and amortized over athirty-year period, and during each subsequent actuarial valuation, changesin the funded actuarial accrued liability due to changes in benefits, actuarialassumptions, the asset valuation method, or actuarial gains or losses shallbe measured and amortized over a thirty-year period beginning on the valuationdate of such change. If the unfunded actuarial accrued liability under theentry age actuarial cost method is zero or less than zero on an actuarialvaluation date, then all prior unfunded actuarial accrued liabilities shallbe considered fully funded and the unfunded actuarial accrued liability shallbe reinitialized and amortized over a thirty-year period as of the actuarialvaluation date. If the actuarially required contribution rate exceeds therate of all contributions required pursuant to the Judges Retirement Act,there shall be a supplemental appropriation sufficient to pay for the differencesbetween the actuarially required contribution rate and the rate of all contributionsrequired pursuant to the Judges Retirement Act.(10) The state or county shall pick up the member contributionsrequired by this section for all compensation paid on or after January 1,1985, and the contributions so picked up shall be treated as employer contributionsin determining federal tax treatment under the Internal Revenue Code as definedin section 49-801.01, except that the state or county shall continue to withholdfederal income taxes based upon these contributions until the Internal RevenueService or the federal courts rule that, pursuant to section 414(h) of thecode, these contributions shall not be included as gross income of the memberuntil such time as they are distributed or made available. The state or countyshall pay these member contributions from the same source of funds which isused in paying earnings to the member. The state or county shall pick up thesecontributions by a compensation deduction through a reduction in the compensationof the member. Member contributions picked up shall be treated for all purposesof the Judges Retirement Act in the same manner and to the extent as membercontributions made prior to the date picked up. SourceLaws 1955, c. 83, § 3, p. 246; Laws 1957, c. 79, § 2, p. 321; Laws 1959, c. 95, § 2, p. 411; Laws 1959, c. 189, § 14, p. 689; Laws 1963, c. 137, § 1, p. 513; Laws 1965, c. 115, § 2, p. 442; Laws 1965, c. 116, § 2, p. 446; Laws 1967, c. 140, § 1, p. 428; Laws 1969, c. 178, § 2, p. 957; Laws 1971, LB 987, § 5; Laws 1972, LB 1032, § 121; Laws 1972, LB 1471, § 1; Laws 1973, LB 226, § 11; Laws 1974, LB 228, § 1; Laws 1977, LB 344, § 2; Laws 1977, LB 467, § 1; Laws 1981, LB 459, § 3; Laws 1984, LB 13, § 33; Laws 1984, LB 218, § 2; Laws 1986, LB 92, § 2; Laws 1986, LB 529, § 18; Laws 1989, LB 233, § 1; Laws 1989, LB 506, § 3; Laws 1991, LB 549, § 16; Laws 1991, LB 732, § 37; Laws 1992, LB 682, § 2; Laws 1992, LB 672, § 31; Laws 1994, LB 833, § 14; Laws 1995, LB 574, § 34; Laws 2001, LB 408, § 9; Laws 2002, LB 407, § 13; Laws 2003, LB 320, § 1; Laws 2003, LB 760, § 4; Laws 2004, LB 1097, § 11; Laws 2005, LB 348, § 2; Laws 2005, LB 364, § 7; Laws 2006, LB 1019, § 5; Laws 2009, LB414, § 2.AnnotationsStatutory provisions requiring counties to pay cost of maintaining a county court, prosecuting criminal law violations, and conducting state and national elections do not contravene the constitutional provision which prohibits property tax by state. State ex rel. Meyer v. County of Banner, 196 Neb. 565, 244 N.W.2d 179 (1976).The independent act considered herein is not unconstitutional for failure to mention in the incidental provision for payment or exemption from payment of costs, nor for failure to refer to and repeal certain other statutes. State ex rel. Douglas v. Gradwohl, 194 Neb. 745, 235 N.W.2d 854 (1975).