Retirement Systems

Judges’ retirement rate increase amended, advanced

Lawmakers gave second-round approval April 25 to a bill that would extend an increase in Nebraska judges’ retirement contribution rates.

LB306, introduced by Omaha Sen. Jeremy Nordquist, would remove the pending July 1, 2014, sunset date on a 1 percent employee contribution rate increase that was established in 2009.

As amended on general file, the bill also incorporates provisions of LB229, which would remove a scheduled July 1, 2014 sunset date of an additional $1 fee on various court filings that was added in 2009.

Omaha Sen. Steve Lathrop offered an amendment, adopted 29-4, which would increase the salary of Nebraska Supreme Court judges by adding the provisions of LB232 to the bill.

Lathrop said it was necessary to combine the two bills to protect the provisions of both measures from future court challenges. A past federal court ruling found that any retirement concessions from judges must be accompanied by compensation, he said.

“There needs to be consideration in the form of additional compensation,” Lathrop said, “or the concession on the retirement side is unconstitutional.”

The current judges’ salary is $145,614. Under the amendment, the salary would increase 5 percent annually over the next two fiscal years to $152,895 on July 1, 2013, and to $165,040 on July 1, 2014.

Lathrop said judges join the bench at the height of their earning potential and make far less than they would have by remaining in the private sector.

“The policy question is how do you properly compensate and encourage people to serve in that capacity,” he said.

Omaha Sen. Ernie Chambers supported the amendment. Lawmakers should put aside individual disappointments with the courts, he said, and provide adequate compensation to support the proper functioning of the judiciary.

“I can look beyond those battles to the integrity of a branch of government,” Chambers said.

Hoskins Sen. Dave Bloomfield offered an amendment that would have reduced the increase to 2.5 percent annually over the same time period. Under his amendment, judges’ salaries would have increased to $149,255 on July 1, 2013, and to $152,986 on July 1, 2014.

Bloomfield said the recession is not over in Nebraska and the state cannot afford a 10 percent increase in judges’ salaries.

“I don’t have an axe to grind with the judges,” he said. “I want to save a little money for the taxpayers going forward.”

Chambers opposed the amendment, saying good government comes at a price.

“Nebraska has to get out of the mindset of traveling cheap,” he said.

The amendment failed on a 16-28 vote and the bill advanced to final reading by voice vote.

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