texas judicial retirement system

7/31/2019 Texas Judicial Retirement System

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Retirement Benefits for Judicial Officers

JRS Plan II

as administered by

September 2011


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This booklet provides information regarding Judicial Retirement System Plan II

Retirement Benefitsfor Judicial Officers

in JRS-II

www.ers.state.tx.us


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Retirement benefits for members of JRS-II

If you became a judge, justice,

or commissioner of the Supreme

Court, Court of Criminal Appeals,

District Court or specified

commissions to a court after

August 31, 1985, you are required to

hold membership in JRS-II.

If you became a judge, justice, orcommissioner of the SupremeCourt, Court of Criminal Appeals,

Court of Appeals, District Court or

August 31, 1985, you are required to

be a member of and contribute to the

upon your death, retirement, or with-

drawal of your contributions.

If you have ever been a memberof the Judicial Retirement SystemPlan I (JRS-I), you may not join JRS-II.You must resume membership in thesystem you were in during previousservice.

If for any reason you cease to be a

contributions from JRS-II. This willcancel your service credit in JRS-II.If you have not withdrawn funds, youmay resume contributions when youresume state elected or appointed

judicial service.

Each month, 6% of your gross salarywill be deducted as your contributionto JRS-II and credited to your individu-al retirement account. In addition, theState contributes an amount neces-

A member of JRS-II who accrues20 years of service credit in the retire-ment system may elect to continuecontributions. A member who hasserved at least 12 years on an appel-late court and who meets the Ruleof 70 may also elect to continuecontributions.

Resumption of service

If you retire and then resume stateelected or appointed judicial service,you may not rejoin and again contrib-ute to JRS-II. Your annuity paymentswill be suspended until you leave

resumption. It is your responsibility tonotify ERS of your return to judicialservice. Suspension of the annuitypayment, which begins on the day

reduce the number of months annu-ity payments are scheduled under an

have chosen. The suspension of yourannuity does not apply if you takeassignments as a visiting judge afterretirement.

Retirement eligibility

You become eligible to receive a ser-vice retirement annuity in three ways:

service and currently holding a judi-

service, whether or not you hold a

whether or not you hold a judicial

served at least 12 years on an

appellate court and the sum of your

age and amount of service credit

in the retirement system equals or

exceeds the number 70, whether or

You may choose to receive a perma-

age 60 with 10 years of service,

age 60 with 12 years of service,

whether or not you hold a judicial

There are three types of retirement-

-ber who is impeached or removed


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Example:An active judge with seven yearsand six months credit dies. His ac-count balance was $39,355.

Refund Account Balance =

$39,355.00

($39,355 x 35%) = $13,774.25

Service retirement

Your base Service Retirement Annuity(SRA) will be 50% of the state salarybeing paid for a judge of a court of the

which you were elected or appointed.This is increased by 10% if you have

one year at retirement or if you haveaccepted an assignment as a visiting

judge within a year of your effectivedate of retirement. Monthly retirementannuities are adjusted through legisla-tion. The SRA of a member who electsto make contributions after 20 yearsof service or after reaching the Rule of70 with 12 years on an appellate courtwould be based on 50% of the statesalary plus 2.3% for each subsequentyear not to exceed 90%.

Disability retirement

Regardless of your age, you are

eligible to retire and receive a dis-

ability retirement annuity if you have

seven years of service credit in JRS-II.

mentally or physically incapacitating

by the Chief Justice of the Supreme

Court and the ERS medical board. It

may be denied for a condition caused

by the excessive use of alcohol ornarcotic drugs. When applying for a

disability retirement, you must submit

two opinions by licensed physicians

supporting your claims to ERS and the

Chief Justice of the Supreme Court.

Your application will be referred to

the ERS medical board for its recom-

mendations, and it may require that

you submit additional information.

The Chief Justice may also appoint a

licensed physician or direct the ERS

medical board to ask for more informa-

tion from you in order to make recom-

mendations.

A disability annuity cannot be reduced

because of age, and you will receive

it for the duration of your disability. If

you have chosen one of the optional

the plan chosen should you die while

If you are an active contributing

member to JRS-II with at least 10

years service credit, you may select

one or more persons to receive a

payable beginning on the day afteryour death, in the event you die before

retirement. You have two choices of

reduced annuities:

is paid in the same amount through--sen by you before your retirement(Retirement Option 1), or

-ments will be paid to one or more-tirement Option 4).

-ments are determined by the optionselected, your age, and the age of the

the time of your death.

If you die before making the selection,

your spouse, if surviving, or the

personal representative of your estate

may make the selections with the

same options that were available to

you.

take effect at your death unless you

amend the plan, select a retirement

annuity at your retirement, or become

ineligible to select a plan.

If you are not eligible to select a death

your retirement, all of your accumu-

lated contributions to the retirement

system are payable as a lump sum

-

ciary or to your estate.

Also available for those contributing

members not eligible to select a death

computed by multiplying your full

years of service credit at the time

of your death by 5% of your total

contributions.

If you are retired at the time of your

amount of $5,000 will be paid to your

Retirement eligibility and benefits


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Health and other insurance benefits for employees and retirees are

subject to change based on available State funding. The Texas Legislature

determines the level of funding for such benefits and has no continuing

obligation to provide those benefits beyond each fiscal year.

This payment is in addition to any

under the Proportionate RetirementProgram with less than the total yearsof service credit required for a serviceretirement from JRS-II, the payment isreduced accordingly.

A lump sum payment will be paid to a

situations where the full amount of theretirees contributions have not been

death. This law affects those retireeswho have chosen the standard an-nuity, but does not apply to Options 3

and 4.

Retiree insurance coverage

When you retire, you and your spouse

are eligible to enroll in the Texas

(GBP), including available healthmaintenance organizations (HMOs).You also qualify for dental coveragewith either of the States two dentalplans. Your children under age 26 and/or handicapped children of any agemay be eligible for health insurancecoverage. Unmarried children underage 26 can be enrolled in dental

insurance.

Retired and active judges are coveredby the same health plans and receivethe same state contributions towardpremium costs (100% for retiree andpart of the premium for dependentcoverage). Active judges who godirectly to retirement status may keepa portion of their optional term lifeinsurance and, if they have dependentterm life in force at that time, maykeep a portion of that coverage. Re-tiree health premiums include $2,500

of basic term life for the retiree only.Optional term life and dependent termlife insurance are the only optionallife insurance coverage available toretirees.

When a retiree with 10 or more yearsof service credit dies, the retireesspouse, eligible children under age26, and any currently covered eligiblehandicapped children of any age mayenroll in GBP health coverage anddental coverage (unmarried chil-dren only) as a survivor provided therequired premiums are paid and anydependency requirements continueto be met. Eligible survivors have 30days to enroll, and children may enrollregardless of whether the spousecontinues coverage. The State makesno contribution toward the cost of

surviving dependent coverage. Thispremium is the total responsibility ofthe covered dependent.

Exemption from forced paymentof debts

All retirement annuity payments,

contributions, and money in the vari-ous retirement funds are exempt fromgarnishment, assignment, attachment,or any other legal process except

child support payments as requiredby a court order or, in certain limitedcircumstances, a federal tax levy.

Federal income tax on annuitypayments

When you retire, ERS will provide fulland current information on the taxstatus of your monthly annuity. Federalincome tax laws are subject to change

a summary of current tax provisions

relating to annuity payments:

The retirees nontaxable contribu-

tions to JRS-II are recovered tax

free on a prorated basis and not

in full at the beginning. Therefore,

a portion of your annuity payment

will be taxable immediately and a

portion will be excluded from tax. Ingeneral, the non-taxable part is the

prorated return of your contributions

At the time the tax-free portion of

your annuity payments equals the

total of your contributions, your en-

tire annuity payment will be taxable.

Federal law requires ERS to deduct

federal income tax on the taxable

portion of annuity payments unless

the member elects not to have tax

deducted.

Social Security

receive from Social Security do not

receive from JRS-II. For informationregarding your Social Security ben-


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Earning service credit

You may purchase military,

previously withdrawn

judicial service, calendar

year service, or

Additional Service Credit.

Establishing additional servicecredit

You may receive additional servicecredit by purchasing past activemilitary service, through buyingpreviously withdrawn judicial service(if you retire under JRS-II, you must

purchase JRS-II withdrawn service),or Additional Service Credit.

Additional Service Credit

Members of JRS-II are eligible topurchase Additional Service Credit(ASC) for additional retirement credit.

ASC can only be bought to meetretirement eligibility of 20 years atany age.

This credit purchase option allows

be purchased by paying to the Systemthe actuarial present value of the

to the

additional service credit. You must be

a member and have at least 15 years

of JRS-II membership service (not

counting military service) to be eligible

for this option. The service must be

purchased in increments of at least

one year, except JRS-II members at

retirement may purchase the neces-

sary months of time to enable them toretire. Additional conditions and

restrictions may be applicable.

You may purchase ASC by lump sum

or by using funds in your Texa$aver

401(k) or 457 Plan. Monthly payroll

deductions are not permitted.

Military service credit

You may buy up to 48 months (fouryears) of prior active military serviceif you have at least eight years ofservice credit in JRS-II and are noteligible to receive federal retirementpayments for 20 or more years of

active military service. You may buyservice credit in JRS-II by contribut-ing 6% of your current monthly statesalary for each month of active militaryservice claimed. If you do not establish-gibility, 10% interest will be applied for

eligibility to the date of deposit.

Calendar year service

A contributing member who has not

retired may establish service credit inthe retirement system for any calendar

year during which the member:

membership of the retirement

was eligible to take the oath for an

the retirement system.

You may establish service credit under

this section by depositing with theretirement system a contribution

computed for each month of credit

claimed at the rate of 6% of your

current monthly salary, plus, if you do

-

ity, interest computed on the basis of

of 10%

to the date of deposit.

You may purchase service credit inthree ways:

1. A one-time lump sum paymentfor the total period purchased.

2. A lump sum payment of the totalamount due for increments (inmonths) of credit available to you.

3. Rollover (transfer) of money fromone retirement account to another,e.g., using money from your 401(k)

to pay for service credit.Purchase through eligiblerollover distribution (ERD)

You may use all or part of an eligiblerollover distribution (ERD) from a qual-

service credit. ERS must pre-approveyour use of an ERD. An ERD is thetaxable portion of a distribution from a

distribution is an ERD. Strict condi-tions apply to your eligibility to roll overa distribution to purchase service. Youshould consult a tax advisor or the IRSabout the tax consequences ofan ERD.

Contact ERS to request servicepurchase cost information. ERS willsend you a cost estimate detailingeach purchase plan available to you.


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Earning service credit

Other retirement systems

Years of service credit in any one ofthe other 10 retirement systems inTexas cannot be transferred into JRS-II. However, the systems administerthe Proportionate Retirement Program

have service credit in more than onesystem. Besides JRS-II, other partici-pating systems are:

Central Texas Community Health

by City of Austin Retirement System

City of Austin Police RetirementSystem

City of Austin Retirement System

El Paso City Employees PensionFund

El Paso Firemen & PolicemensPension Fund

Employees Retirement Systemof Texas

Judicial Retirement Systemof Texas Plan I

Teacher Retirement Systemof Texas

Texas County and DistrictRetirement System

Texas Municipal RetirementSystem

If you have money in an account inmore than one system, you may be eli-gible for a service retirement annuity,if the combined total of all your years

length-of-service requirement for thesystems from which you are retiring.You are not required to retire simulta-neously from all systems for which youare eligible.

Under the Proportionate RetirementProgram, military service credit estab-lished in more than one system for thesame period of active military duty willbe credited in only one system. If youqualify for proportionate retirement,you will receive a monthly annuity fromeach system based on service estab-lished in that system.

To protect your rights under this pro-gram, if you have service credit estab-lished in more than one system, eachone should receive written notice fromyou listing all the systems in which youhave an account.

The Proportionate

Retirement Program is designed

to provide benefits to members

with service credit in

more than one system.


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At retirement, you will select asurvivor options that may provide a

Thedecision you make in choosingan option is an important one andcannot be changed after retirement.Spousal consent will be required if youselect the standard annuity or Option3 or 4.

Other features

A lump sum payment will be paid

certain situations where the fullamount of the retirees contributions

law affects only those retirees who

have chosen the standard annuity.

If you select Option 1, 2, or 5 and your

then your monthly annuity check re-turns to the standard annuity amount.

If you select Option 1, 2, or 5, youcannot

the effective date of retirement. You

under these options, and the reductionfrom the standard annuity amount is

calculated on the basis of the age dif-ference in years of your age at retire-

at that time.

If you select Option 3 or 4, you can-ment. The reduction from your stan-dard annuity amount for these optionsis calculated on actuarial reductionfactors, regardless of your age atretirement.

Your annuity options

Survivor option reduction fac-

tor tables are used when retiring

employees choose a survivor

option to continue payments to a

of these factors are based on the

employees age at retirement and

-

formation on the reduction factors

that would apply to you and your

Service at (512) 867-7711 in Austin

or (877) 275-4377 toll-free.

You can choose

a standard annuity

or one of five

survivor annuity options.

Monthly Payment Options

Option Retiree Payment Survivor Payment


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Sample annuity calculations

Example I (40%)An individual serves on the districtbench from age 35 through age 47. Atthe end of the third term, the individualdecides to enter private law practice-gible at age 60. The calculation wouldbe as follows:

Service if an individual has beenoff the bench more than one year, aminimum of 12 or more years isnecessary for retirement. (Militarycredit is applicable once a mem-ber has at least eight years on thebench.)

Age a member may retire as early

Sample Calculation Percentage applicable at age 60 =

40%

MonthlySalary

x Percentage = StandardAnnuity

$10,416.67 x 40% = $4,166.67

Example II (50%)An individual serves on the districtbench from age 50 until age 60 andimmediately retires. The calculationwould be as follows:

Service 10 years and currently

credit is applicable once a mem-ber has at least eight years on thebench.)

Age a member may retire as early

Sample Calculation Percentage applicable at age 60 = 40%

plusBonus* for retiring immediately uponleaving the bench + 10% = 50%

MonthlySalary


$10,416.67 x 50% = $5,208.34

Example III (60%)An individual serves on the districtbench from age 55 until age 65. Hethen retires immediately. The calcula-tion would be as follows:


is applicable once a member has atleast eight years on the bench.)

Age a member may retire with full

Sample Calculation Percentage applicable at age 65 = 50%

plusBonus* for retiring immediately uponbecoming eligible + 10% = 60%

MonthlySalary


$10,416.67 x 60% = $6,250.00

Example IV (90%)An individual who elects to make con-tributions after obtaining 20 years ofservice credit would be based on 50%of the state salary plus 2.3% for eachsubsequent year not to exceed 90%.The calculation would be as follows:


is applicable once a member has atleast eight years on the bench.)

Age a member may retire with

Sample Calculation

Percentage applicable at any age = 50%plus

Bonus* for retiring immediately uponbecoming eligible + 10% = 60%

plusAn additional 2.3% for each subsequentyear after obtaining 20 years servicecredit. For the purpose of this calculationlets assume member works an additiona13 years x 2.3% = 30%

MonthlySalary


$10,416.67 x 90% = $9,375.00

Age at Retirement Percentage of

State Salary

At least 60 but less than 61 40.0%





retirement

*The retirement system shall

increase by 10% of the amount of

the applicable state salary under

the annuity of a member who on

the effective day of retirement:

anniversary of the last day of that

service has not occurred.


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How to apply for retirement

You must notify ERS not morethan 90 days before the date youwant to retire. Your request must bereceived before the last day of themonth in which you plan to retire.Retirement may commence on anyday of the month. ERS will need thefollowing from you to complete theretirement process:

your name and Social Security

a telephone number where youmay be contacted between 8 a.m.

and

Option 1, 2 or 5.

Applying for your contributionrefunds

required to withdraw their retirementcontributions. If you have 12 or moreyears of service credit, you are entitledto receive a monthly annuity uponreaching retirement age.

Current law provides you this vested

not withdraw your contributions, eventhough you leave the bench and ceasecontributing. You do not have to be

retirement.

Account withdrawal

If you leave judicial service, you maywithdraw all of the money in your JRS-II account, but by doing this you can-cel your service credit in the system,which, in turn, terminates your rights

from your JRS-II account, contact ERSCustomer Service.

ERS is here for you

ERS will send you a Statement of

following your birthday, around thesame time you receive your summary

Social Security Administration. You

can use the two statements togetherto get a complete picture of your

important retirement planning informa-

vesting information.

For more information

You may write, call, or visit ERS formore detailed information on retire-ment and on the JRS Plan II Program.To assist ERS in responding to yourrequests, please provide your name

as it appears on your court payrollrecords and your Social Security num-ber. If you wish to visit ERS in person,please call in advance to schedule anappointment. Your call will permit the

waiting time during your visit. ERS isopen from 8 a.m. until 5 p.m., Mondaythrough Friday, except on holidays.

Retirement records of members and

not release certain information aboutyour account without your writtenauthorization.


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Requesting more

information

To visit in person:

To call:


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