SB0268

SENATE BILL 268

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Steven P. Neville

AN ACT

RELATING TO RETIREMENT; AMENDING THE PUBLIC EMPLOYEES RETIREMENT ACT TO CREATE RETIREMENT PLANS AND AMEND COST-OF-LIVING ADJUSTMENTS FOR UNIFORMED AND NONUNIFORMED STATE AND MUNICIPAL EMPLOYEES HIRED ON OR AFTER JULY 1, 2011 AND TO CLOSE ELIGIBILITY FOR EXISTING RETIREMENT PLANS TO EMPLOYEES HIRED ON OR AFTER JULY 1, 2011; ADDING NEW RETIREMENT PLANS TO THE CATEGORIES OF ENHANCED PLANS IN THE RETIREE HEALTH CARE ACT; REPEALING SECTIONS OF LAW IN LAWS 2009; RECONCILING MULTIPLE AMENDMENTS TO THE SAME SECTION OF LAW IN LAWS 2003; RECONCILING MULTIPLE AMENDMENTS TO THE SAME SECTION OF LAW BY REPEALING LAWS 2009, CHAPTER 287, SECTION 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] STATE GENERAL MEMBER COVERAGE PLAN 4--APPLICABILITY.--State general member coverage plan 4 is applicable to state general members who were not members or retired members on June 30, 2011 and who are not specifically covered by another coverage plan."

SECTION 2. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] STATE GENERAL MEMBER COVERAGE PLAN 4--AGE AND SERVICE CREDIT REQUIREMENTS FOR NORMAL RETIREMENT.--Under state general member coverage plan 4, the age and service credit requirements for normal retirement are:

A. age sixty-five years or older and five or more years of service credit;

B. age sixty years and twenty-five or more years of service credit; or

C. age fifty-five years if the sum of the member's age and years of service credit equals at least eighty-five."

SECTION 3. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] STATE GENERAL MEMBER COVERAGE PLAN 4--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under state general member coverage plan 4, the amount of pension under form of payment A is equal to two and one-half percent of final average salary multiplied by service credit. The amount shall not exceed ninety percent of the final average salary."

SECTION 4. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] STATE GENERAL MEMBER COVERAGE PLAN 4--MEMBER CONTRIBUTION RATE.--A member under state general member coverage plan 4 shall contribute seven percent of salary starting with the first full pay period that ends within the calendar month in which state general member coverage plan 4 becomes applicable to the member."

SECTION 5. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] STATE GENERAL MEMBER COVERAGE PLAN 4--STATE CONTRIBUTION RATE.--The state shall contribute fourteen percent of the salary of each member covered by state general member coverage plan 4 starting with the first full pay period that ends within the calendar month in which state general member coverage plan 4 becomes applicable to the member."

SECTION 6. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] STATE POLICE MEMBER AND ADULT CORRECTIONAL OFFICER MEMBER COVERAGE PLAN 2--APPLICABILITY.--State police member and adult correctional officer member coverage plan 2 is applicable to state police members and adult correctional officer members who were not members or retired members on June 30, 2011."

SECTION 7. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] STATE POLICE MEMBER AND ADULT CORRECTIONAL OFFICER MEMBER COVERAGE PLAN 2--AGE AND SERVICE CREDIT REQUIREMENTS FOR NORMAL RETIREMENT.--Under state police member and adult correctional officer member coverage plan 2, the age and service credit requirements for normal retirement are:

A. age sixty-five years or older and five or more years of service credit;

B. age fifty-five years if the sum of the member's age and years of service credit equals at least eighty; or

C. age fifty years and twenty-five or more years of service credit."

SECTION 8. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] STATE POLICE MEMBER AND ADULT CORRECTIONAL OFFICER MEMBER COVERAGE PLAN 2--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under state police member and adult correctional officer member coverage plan 2, the amount of pension under form of payment A is equal to three and one-half percent of final average salary multiplied by service credit. The amount shall not exceed ninety percent of the final average salary."

SECTION 9. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] STATE POLICE MEMBER AND ADULT CORRECTIONAL OFFICER MEMBER COVERAGE PLAN 2--MEMBER CONTRIBUTION RATE.--A member under state police member and adult correctional officer member coverage plan 2 shall contribute twelve percent of salary starting with the first full pay period that ends within the calendar month in which state police member and adult correctional officer member coverage plan 2 becomes applicable to the member."

SECTION 10. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] STATE POLICE MEMBER AND ADULT CORRECTIONAL OFFICER MEMBER COVERAGE PLAN 2--STATE CONTRIBUTION RATE.--The state shall contribute twenty-four percent of the salary of each member covered by state police member and adult correctional officer member coverage plan 2 starting with the first full pay period that ends within the calendar month in which state police member and adult correctional officer member coverage plan 2 becomes applicable to the member."

SECTION 11. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL GENERAL MEMBER COVERAGE PLAN 5--APPLICABILITY.--Municipal general member coverage plan 5 is applicable to municipal general members who were not members or retired members on June 30, 2011 and who are not specifically covered by another coverage plan."

SECTION 12. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL GENERAL MEMBER COVERAGE PLAN 5--AGE AND SERVICE CREDIT REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal general member coverage plan 5, the age and service credit requirements for normal retirement are:

A. age sixty-five years or older and five or more years of service credit;

B. age sixty years and twenty-five or more years of service credit; or

C. age fifty-five years if the sum of the member's age and years of service credit equals at least eighty-five."

SECTION 13. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL GENERAL MEMBER COVERAGE PLAN 5--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal general member coverage plan 5, the amount of pension under form of payment A is equal to two percent of final average salary multiplied by service credit. The amount shall not exceed ninety percent of the final average salary."

SECTION 14. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL GENERAL MEMBER COVERAGE PLAN 5--MEMBER CONTRIBUTION RATE.--A member under municipal general member coverage plan 5 shall contribute five and sixty-seven hundredths percent of salary starting with the first full pay period that ends within the calendar month in which municipal general member coverage plan 5 becomes applicable to the member."

SECTION 15. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL GENERAL MEMBER COVERAGE PLAN 5-- AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--An affiliated public employer shall contribute eleven and thirty-three hundredths percent of the salary of each member covered by municipal general member coverage plan 5 starting with the first full pay period that ends within the calendar month in which municipal general member coverage plan 5 becomes applicable to the member."

SECTION 16. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL GENERAL MEMBER COVERAGE PLAN 6--APPLICABILITY.--Municipal general member coverage plan 6 is applicable to a designated group of municipal general members who were not members or retired members on June 30, 2011 whose affiliated public employer has adopted municipal general member coverage plan 6 for the designated group of municipal general members hired on or after July 1, 2011. The affiliated public employer shall certify this adoption to the retirement board in the form prescribed by the retirement board."

SECTION 17. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL GENERAL MEMBER COVERAGE PLAN 6--AGE AND SERVICE CREDIT REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal general member coverage plan 6, the age and service credit requirements for normal retirement are:

A. age sixty-five years or older and five or more years of service credit;

B. age sixty years and twenty-five or more years of service credit; or

C. age fifty-five years if the sum of the member's age and years of service credit equals at least eighty-five."

SECTION 18. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL GENERAL MEMBER COVERAGE PLAN 6--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal general member coverage plan 6, the amount of pension under form of payment A is equal to two and one-half percent of final average salary multiplied by service credit. The amount shall not exceed ninety percent of the final average salary."

SECTION 19. A new section of the Public Employees Retirement Act enacted to read:

"[NEW MATERIAL] MUNICIPAL GENERAL MEMBER COVERAGE PLAN 6--MEMBER CONTRIBUTION RATE.--A member under municipal general member coverage plan 6 shall contribute seven percent of salary starting with the first full pay period that ends within the calendar month in which municipal general member coverage plan 6 becomes applicable to the member."

SECTION 20. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL GENERAL MEMBER COVERAGE PLAN 6-- AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--An affiliated public employer shall contribute fourteen percent of the salary of each member covered by municipal general member coverage plan 6 starting with the first pay period that ends within the calendar month in which municipal general member coverage plan 6 becomes applicable to the member."

SECTION 21. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL PUBLIC SAFETY MEMBER COVERAGE PLAN 6--APPLICABILITY.--

A. Municipal public safety member coverage plan 6 is applicable to municipal public safety members who were not members or retired members on June 30, 2011 and whose affiliated public employer has adopted municipal public safety member coverage plan 6 for its municipal public safety officers. The affiliated public employer shall certify this adoption to the retirement board in the form prescribed by the retirement board.

B. For the purposes of this section, "municipal public safety officer" includes municipal police members, municipal fire members and municipal detention officer members."

SECTION 22. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL PUBLIC SAFETY MEMBER COVERAGE PLAN 6--AGE AND SERVICE CREDIT REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal public safety member coverage plan 6, the age and service credit requirements for normal retirement are:

A. age sixty years or older and five or more years of service credit;

B. age fifty-five years if the sum of the member's age and years of service credit equals at least eighty; or

C. age fifty years and twenty-five or more years of service credit."

SECTION 23. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL PUBLIC SAFETY MEMBER COVERAGE PLAN 6--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal public safety member coverage plan 6, the amount of pension under form of payment A is equal to two and nine-tenths percent of final average salary multiplied by service credit. The amount shall not exceed ninety percent of the final average salary."

SECTION 24. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL PUBLIC SAFETY MEMBER COVERAGE PLAN 6--MEMBER CONTRIBUTION RATE.--A member under municipal public safety member coverage plan 6 shall contribute ten percent of salary starting with the first full pay period that ends within the calendar month in which municipal public safety member coverage plan 6 becomes applicable to the member."

SECTION 25. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL PUBLIC SAFETY MEMBER COVERAGE PLAN 6--AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--An affiliated public employer shall contribute twenty percent of the salary of each member covered by municipal public safety member coverage plan 6 starting with the first full pay period that ends within the calendar month in which municipal public safety member coverage plan 6 becomes applicable to the member."

SECTION 26. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL PUBLIC SAFETY MEMBER COVERAGE PLAN 7--APPLICABILITY.--

A. Municipal public safety member coverage plan 7 is applicable to municipal public safety members who were not members or retired members on June 30, 2011 and whose affiliated public employer has adopted municipal public safety member coverage plan 7 for its municipal public safety officers. The affiliated public employer shall certify this adoption to the retirement board in the form prescribed by the retirement board.

B. For the purposes of this section, "municipal public safety officer" includes municipal police members, municipal fire members and municipal detention officer members."

SECTION 27. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL PUBLIC SAFETY MEMBER COVERAGE PLAN 7--AGE AND SERVICE CREDIT REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal public safety member coverage plan 7, the age and service credit requirements for normal retirement are:

A. age sixty years or older and five or more years of service credit;

B. age fifty-five years if the sum of the member's age and years of service credit equals at least eighty; or

C. age fifty years and twenty-five or more years of service credit."

SECTION 28. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL PUBLIC SAFETY MEMBER COVERAGE PLAN 7--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal public safety member coverage plan 7, the amount of pension under form of payment A is equal to three and one-half percent of final average salary multiplied by service credit. The amount shall not exceed ninety percent of the final average salary."

SECTION 29. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL PUBLIC SAFETY MEMBER COVERAGE PLAN 7--MEMBER CONTRIBUTION RATE.--A member under municipal public safety member coverage plan 7 shall contribute twelve percent of salary starting with the first full pay period that ends within the calendar month in which municipal public safety member coverage plan 7 becomes applicable to the member."

SECTION 30. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] MUNICIPAL PUBLIC SAFETY MEMBER COVERAGE PLAN 7--AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--An affiliated public employer shall contribute twenty-four percent of the salary of each member covered by municipal public safety member coverage plan 7 starting with the first full pay period that ends within the calendar month in which municipal public safety member coverage plan 7 becomes applicable to the member."

SECTION 31. Section 10-7C-15 NMSA 1978 (being Laws 1990, Chapter 6, Section 15, as amended by Laws 2009, Chapter 287, Section 2 and by Laws 2009, Chapter 288, Section 3) is amended to read:

"10-7C-15. RETIREE HEALTH CARE FUND CONTRIBUTIONS.--

A. Following completion of the preliminary contribution period, each participating employer shall make contributions to the fund pursuant to the following provisions:

(1) for participating employees who are not members of an enhanced retirement plan, the employer's contribution shall equal:

(a) one and three-tenths percent of each participating employee's salary for the period from July 1, 2002 through June 30, 2010;

(b) one and six hundred sixty-six thousandths percent of each participating employee's salary for the period from July 1, 2010 through June 30, 2011;

(c) one and eight hundred thirty-four thousandths percent of each participating employee's salary for the period from July 1, 2011 through June 30, 2012; and

(d) two percent of each participating employee's salary beginning July 1, 2012;

(2) for participating employees who are members of an enhanced retirement plan, the employer's contribution shall equal:

(a) one and three-tenths percent of each participating employee's salary for the period from July 1, 2002 through June 30, 2010;

(b) two and eighty-four thousandths percent of each participating employee's salary for the period from July 1, 2010 through June 30, 2011;

(c) two and two hundred ninety-two thousandths percent of each participating employee's salary for the period from July 1, 2011 through June 30, 2012; and

(d) two and one-half percent of each participating employee's salary beginning July 1, 2012; and

(3) each employer that chooses to become a participating employer after January 1, 1998 shall make contributions to the fund in the amount determined to be appropriate by the board.

B. Following completion of the preliminary contribution period, each participating employee, as a condition of employment, shall contribute to the fund pursuant to the following provisions:

(1) for a participating employee who is not a member of an enhanced retirement plan, the employee's contribution shall equal:

(a) sixty-five hundredths of one percent of the employee's salary for the period from July 1, 2002 through June 30, 2010;

(b) eight hundred thirty-three thousandths of one percent of the employee's salary for the period from July 1, 2010 through June 30, 2011;

(c) nine hundred seventeen thousandths of one percent of the employee's salary for the period from July 1, 2011 through June 30, 2012; and

(d) one percent of the employee's salary beginning July 1, 2012;

(2) for a participating employee who is a member of an enhanced retirement plan, the employee's contribution shall equal:

(a) sixty-five hundredths of one percent of the employee's salary for the period from July 1, 2002 through June 30, 2010;

(b) one and forty-two thousandths percent of the employee's salary for the period from July 1, 2010 through June 30, 2011;

(c) one and one hundred forty-six thousandths percent of the employee's salary for the period from July 1, 2011 through June 30, 2012; and

(d) one and one-fourth percent of the employee's salary beginning July 1, 2012; and

(3) as a condition of employment, each participating employee of an employer that chooses to become a participating employer after January 1, 1998 shall contribute to the fund an amount that is determined to be appropriate by the board. Each month, participating employers shall deduct the contribution from the participating employee's salary and shall remit it to the board as provided by any procedures that the board may require.

C. On or after July 1, 2009, no person who has obtained service credit pursuant to Subsection B of Section

10-11-6 NMSA 1978, Section 10-11-7 NMSA 1978 or Paragraph (3) or (4) of Subsection A of Section 22-11-34 NMSA 1978 may enroll with the authority unless the person makes a contribution to the fund equal to the full actuarial present value of the amount of the increase in the person's health care benefit, as determined by the authority.

D. Except for contributions made pursuant to Subsection C of this section, a participating employer that fails to remit before the tenth day after the last day of the month all employer and employee deposits required by the Retiree Health Care Act to be remitted by the employer for the month shall pay to the fund, in addition to the deposits, interest on the unpaid amounts at the rate of six percent per year compounded monthly.

E. Except for contributions made pursuant to Subsection C of this section, the employer and employee contributions shall be paid in monthly installments based on the percent of payroll certified by the employer.

F. Except in the case of erroneously made contributions or as may be otherwise provided in Subsection D of Section 10-7C-9 NMSA 1978, contributions from participating employers and participating employees shall become the property of the fund on receipt by the board and shall not be refunded under any circumstances, including termination of employment or termination of the participating employer's operation or participation in the Retiree Health Care Act.

G. Notwithstanding any other provision in the Retiree Health Care Act and at the first session of the legislature following July 1, 2013, the legislature shall review and adjust the distributions pursuant to Section 7-1-6.1 NMSA 1978 and the employer and employee contributions to the authority in order to ensure the actuarial soundness of the benefits provided under the Retiree Health Care Act.

H. As used in this section, "member of an enhanced retirement plan" means:

(1) a member of the public employees retirement association who, pursuant to the Public Employees Retirement Act, is included in:

(a) state police member and adult correctional officer member coverage plan 1;

(b) municipal police member coverage plan 3, 4 or 5;

(d) municipal detention officer member coverage plan 1; [or]

(e) municipal public safety member coverage plan 6 or 7; or

(f) state police member and adult correctional officer member coverage plan 2; or

(2) a member pursuant to the provisions of the Judicial Retirement Act."

SECTION 32. Section 10-11-26.1 NMSA 1978 (being Laws 1994, Chapter 128, Section 2) is amended to read:

"10-11-26.1. STATE GENERAL MEMBER COVERAGE PLAN 3--APPLICABILITY.--State general member coverage plan 3 is applicable to state general members who became members on or before June 30, 2011, and who are not specifically covered by another plan, in the first full pay period after July 1, 1995 if the retirement board certifies to the secretary of state that a majority of the members voting of those members to be covered under state general member coverage plan 3 has voted to approve adoption of this plan at an election conducted pursuant to Laws 1994, Chapter 128, Section 17 [of this act]."

SECTION 33. Section 10-11-27 NMSA 1978 (being Laws 1987, Chapter 253, Section 27, as amended by Laws 2003, Chapter 268, Section 9 and by Laws 2003, Chapter 269, Section 1) is amended to read:

"10-11-27. STATE POLICE MEMBER AND ADULT CORRECTIONAL OFFICER MEMBER COVERAGE PLAN 1--APPLICABILITY.--

A. State police member and adult correctional officer member coverage plan 1 is applicable to state police members [who are not specifically covered by another coverage plan] and adult correctional officer members who became members on or before June 30, 2011 and who are not specifically covered by another plan. The credited service of a state police member who has held the permanent rank of patrolman, sergeant, lieutenant or captain and does not hold an exempt rank or who is assigned to the aircraft division as a pilot, or of an adult correctional officer member, shall have actual credited service increased by twenty percent for the purposes of state police member and adult correctional officer member coverage plan 1.

B. State police member and adult correctional officer member coverage plan 1 is applicable to adult correctional officer members who became members on or before June 30, 2011, and who are not specifically covered by another plan, in the first full pay period after July 1, 2004 if the retirement board certifies to the secretary of state that, of those adult correctional officer members to be covered under state police member and adult correctional officer member coverage plan 1, a majority of the members voting have voted to approve adoption of that plan at an election conducted pursuant to [Section 16 of this 2003 act] Laws 2003, Chapter 268, Section 16."

SECTION 34. Section 10-11-33 NMSA 1978 (being Laws 1987, Chapter 253, Section 33) is amended to read:

"10-11-33. STATE HAZARDOUS DUTY MEMBER COVERAGE PLAN 1--APPLICABILITY.--State hazardous duty member coverage plan 1 is applicable to state hazardous duty members who became members on or before June 30, 2011 and who are not specifically covered by another coverage plan."

SECTION 35. Section 10-11-38.1 NMSA 1978 (being Laws 1994, Chapter 128, Section 9) is amended to read:

"10-11-38.1. STATE HAZARDOUS DUTY MEMBER COVERAGE PLAN 2--APPLICABILITY.--State hazardous duty member coverage plan 2 is applicable to state hazardous duty members, who became members on or before June 30, 2011 in the first full pay period after July 1, 1995 if the retirement board certifies to the secretary of state that a majority of the members voting of those members to be covered under state hazardous duty member coverage plan 2 has voted to approve adoption of this plan at an election conducted pursuant to Laws 1994, Chapter 128, Section 17 [of this act]."

SECTION 36. Section 10-11-44 NMSA 1978 (being Laws 1987, Chapter 253, Section 44) is amended to read:

"10-11-44. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 1--APPLICABILITY.--Municipal general member coverage plan 1 is applicable to municipal general members who became members on or before June 30, 2011 and who are not specifically covered by another coverage plan."

SECTION 37. Section 10-11-50 NMSA 1978 (being Laws 1987, Chapter 253, Section 50, as amended) is amended to read:

"10-11-50. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 2--APPLICABILITY.--

A. Municipal general member coverage plan 2 is applicable to a designated group of municipal general members the first day of the calendar month following an affirmative vote by the majority of the municipal general members in a designated group. A designated group may be all members who became members on or before June 30, 2011 and who are:

(1) employed by [the] an affiliated public employer;

(2) an organizational group whose compensation is established by negotiated contract; or

(3) all members employed by [the] an affiliated public employer whose compensation is not established by negotiated contract.

B. The election shall be conducted by the retirement board in accordance with procedures adopted by the retirement board. The procedures shall afford all municipal general members who are part of the designated group an opportunity to vote.

C. A new election for coverage by municipal general member coverage plan 2 shall not be held prior to the expiration of six months following the date of an election [which] that failed to adopt municipal general member coverage plan 2.

D. An election adopting municipal general member coverage plan 2 is irrevocable for the purpose of subsequently adopting a coverage plan [which] that would decrease employer or employee contributions with respect to all current and future municipal general employees of [the] an affiliated public employer who are part of the designated group."

SECTION 38. Section 10-11-56 NMSA 1978 (being Laws 1987, Chapter 253, Section 56) is amended to read:

"10-11-56. MUNICIPAL POLICE MEMBER COVERAGE PLAN 1--APPLICABILITY.--Municipal police member coverage plan 1 is applicable to municipal police members who became members on or before June 30, 2011 and whose affiliated public employer has adopted municipal police member coverage plan 1 for its municipal police officers. The affiliated public employer shall certify this adoption to the retirement board in the form prescribed by the retirement board."

SECTION 39. Section 10-11-62 NMSA 1978 (being Laws 1987, Chapter 253, Section 62) is amended to read:

"10-11-62. MUNICIPAL POLICE MEMBER COVERAGE PLAN 2--APPLICABILITY.--Municipal police member coverage plan 2 is applicable to municipal police members who became members on or before June 30, 2011 and whose affiliated public employer has adopted municipal police member coverage plan 2 for its municipal police officers. The affiliated public employer shall certify this adoption to the retirement board in the form prescribed by the retirement board."

SECTION 40. Section 10-11-68 NMSA 1978 (being Laws 1987, Chapter 253, Section 68) is amended to read:

"10-11-68. MUNICIPAL POLICE MEMBER COVERAGE PLAN 3--APPLICABILITY.--Municipal police member coverage plan 3 is applicable to municipal police members who became members on or before June 30, 2011 and whose affiliated public employer has adopted municipal police member coverage plan 3 for its municipal police officers. The affiliated public employer shall certify this adoption to the retirement board in the form prescribed by the retirement board."

SECTION 41. Section 10-11-74 NMSA 1978 (being Laws 1987, Chapter 253, Section 74, as amended) is amended to read:

"10-11-74. MUNICIPAL POLICE MEMBER COVERAGE PLAN 4--APPLICABILITY.--Municipal police member coverage plan 4 is applicable to municipal police members who became members on or before June 30, 2011 of an affiliated public employer on the first day of the calendar month following certification of the election adopting municipal police member coverage plan 4 by an affirmative vote of the majority of the affiliated public employer's municipal police members. The election shall be conducted by the affiliated public employer. The certification shall be in the form prescribed by the retirement board. The election procedures shall afford all municipal police members of the affiliated public employer an opportunity to vote. An election adopting municipal police member coverage plan 4 for a given affiliated public employer is irrevocable for the purpose of subsequently adopting a coverage plan [which] that would decrease employer or employee contributions with respect to all current and future municipal police members of that affiliated public employer."

SECTION 42. Section 10-11-80 NMSA 1978 (being Laws 1987, Chapter 253, Section 80, as amended) is amended to read:

"10-11-80. MUNICIPAL POLICE MEMBER COVERAGE PLAN 5--APPLICABILITY.--Municipal police member coverage plan 5 is applicable to municipal police members who became members on or before June 30, 2011 of an affiliated public employer on the first day of the calendar month following certification of the election adopting municipal police member coverage plan 5 by an affirmative vote of the majority of the affiliated public employer's municipal police members. The election shall be conducted by the affiliated public employer. The certification shall be in the form prescribed by the retirement board. The election procedures shall afford all municipal police members of the affiliated public employer an opportunity to vote. An election adopting municipal police member coverage plan 5 for a given affiliated public employer is irrevocable for the purpose of subsequently adopting a coverage plan [which] that would decrease employer or employee contributions with respect to all current and future municipal police members of that affiliated public employer."

SECTION 43. Section 10-11-86 NMSA 1978 (being Laws 1987, Chapter 253, Section 86) is amended to read:

"10-11-86. MUNICIPAL FIRE MEMBER COVERAGE PLAN 1--APPLICABILITY.--Municipal fire member coverage plan 1 is applicable to municipal fire members who became members on or before June 30, 2011 and whose affiliated public employer has adopted municipal fire member coverage plan 1 for its municipal firefighters. The affiliated public employer shall certify this adoption to the retirement board in the form prescribed by the retirement board."

SECTION 44. Section 10-11-92 NMSA 1978 (being Laws 1987, Chapter 253, Section 92) is amended to read:

"10-11-92. MUNICIPAL FIRE MEMBER COVERAGE PLAN 2--APPLICABILITY.--Municipal fire member coverage plan 2 is applicable to municipal fire members who became members on or before June 30, 2011 and whose affiliated public employer has adopted municipal fire member coverage plan 2 for its municipal fire members. The affiliated public employer shall certify this adoption to the retirement board in the form prescribed by the retirement board."

SECTION 45. Section 10-11-98 NMSA 1978 (being Laws 1987, Chapter 253, Section 98) is amended to read:

"10-11-98. MUNICIPAL FIRE MEMBER COVERAGE PLAN 3--APPLICABILITY.--Municipal fire member coverage plan 3 is applicable to municipal fire members who became members on or before June 30, 2011 and whose affiliated public employer has adopted municipal fire member coverage plan 3 for its municipal firefighters. The affiliated public employer shall certify this adoption to the retirement board in the form prescribed by the retirement board."

SECTION 46. Section 10-11-104 NMSA 1978 (being Laws 1987, Chapter 253, Section 104, as amended) is amended to read:

"10-11-104. MUNICIPAL FIRE MEMBER COVERAGE PLAN 4--APPLICABILITY.--Municipal fire member coverage plan 4 is applicable to municipal fire members who became members on or before June 30, 2011 of an affiliated public employer on the first day of the calendar month following certification of the election adopting municipal fire member coverage plan 4 by an affirmative vote of the majority of the affiliated public employer's municipal fire members. The election shall be conducted by the affiliated public employer. The certification shall be in the form prescribed by the retirement board. The election procedures shall afford all municipal fire members of the affiliated public employer an opportunity to vote. An election adopting municipal fire member coverage plan 4 for a given affiliated public employer is irrevocable for the purpose of subsequently adopting a coverage plan [which] that would decrease employer or employee contributions with respect to all current and future municipal fire members of that affiliated public employer."

SECTION 47. Section 10-11-110 NMSA 1978 (being Laws 1987, Chapter 253, Section 110, as amended) is amended to read:

"10-11-110. MUNICIPAL FIRE MEMBER COVERAGE PLAN 5--APPLICABILITY.--Municipal fire member coverage plan 5 is applicable to municipal fire members who became members on or before June 30, 2011 of an affiliated public employer on the first day of the calendar month following certification of the election adopting municipal fire member coverage plan 5 by an affirmative vote of the majority of the affiliated public employer's municipal fire members. The election shall be conducted by the affiliated public employer. The certification shall be in the form prescribed by the retirement board. The election procedures shall afford all municipal fire members of the affiliated public employer an opportunity to vote. An election adopting municipal fire member coverage plan 5 for a given affiliated public employer is irrevocable for the purpose of subsequently adopting a coverage plan [which] that would decrease employer or employee contributions with respect to all current and future municipal fire members of that affiliated public employer."

SECTION 48. Section 10-11-115.1 NMSA 1978 (being Laws 2003, Chapter 268, Section 2) is amended to read:

"10-11-115.1. MUNICIPAL DETENTION OFFICER MEMBER COVERAGE PLAN 1--APPLICABILITY.--Municipal detention officer member coverage plan 1 is applicable to municipal detention officer members, who became members on or before June 30, 2011, on the later of July 1, 2004 or the first day of the calendar month following certification of the election adopting municipal detention officer member coverage plan 1 by an affirmative vote of the majority of [the] an affiliated public employer's municipal detention officer members. The election shall be conducted by the affiliated public employer. The certification shall be in the form prescribed by the retirement board. The election procedures shall afford all municipal detention officer members of the affiliated public employer an opportunity to vote. An election adopting municipal detention officer member coverage plan 1 for a given affiliated public employer is irrevocable for the purpose of subsequently adopting a coverage plan that would decrease employer or employee contributions with respect to all current and future municipal detention officer members of that affiliated public employer."

SECTION 49. Section 10-11-118 NMSA 1978 (being Laws 1987, Chapter 253, Section 118, as amended) is amended to read:

"10-11-118. COST-OF-LIVING ADJUSTMENTS.--

A. For the purposes of this section:

(1) "adjustment factor" means a multiplicative factor computed to provide an annuity adjustment pursuant to the provisions of Subsection C of this section;

(2) "consumer price index" means the average of the monthly consumer price indexes for a calendar year for the entire United States for all items as published by the United States;

(3) "next preceding calendar year" means the full calendar year immediately prior to the preceding calendar year; and

[(1)] (4) "preceding calendar year" means the twelve-month period ending on the December 31 preceding the July 1 in which pensions are being adjusted [and

(2) "second preceding calendar year" means the full calendar year prior to the preceding calendar year].

B. Except as provided in Subsection C of this section, the amount of pension payable to a qualified pension recipient shall be increased three percent each July 1. The amount of the increase shall be determined by multiplying the amount of pension inclusive of all prior adjustments by three percent.

C. The amount of pension payable to a qualified pension recipient in state general member coverage plan 4, state police member and adult correctional officer member coverage plan 2, municipal general member coverage plan 5, municipal general member coverage plan 6, municipal public safety member coverage plan 6 and municipal public safety member coverage plan 7 shall be increased by applying an adjustment factor that results in an adjustment equal to three-fourths of the percentage increase of the consumer price index between the next preceding calendar year and the preceding calendar year, except that the adjustment shall not exceed three percent in absolute value nor shall it be less than zero percent in absolute value. The amount of pension payable shall not be decreased in the event that there is a decrease in the consumer price index between the next preceding calendar year and the preceding calendar year.

[C.] D. A qualified pension recipient is:

(1) a normal retired member who has been retired for at least two full calendar years from the effective date of the latest retirement prior to July 1 of the year in which the pension is being adjusted;

(2) a normal retired member who has attained age sixty-five years and been retired for at least one full calendar year from the effective date of the latest retirement prior to July 1 of the year in which the pension is being adjusted;

(3) a disability retired member who has been retired for at least one full calendar year from the effective date of the latest retirement prior to July 1 of the year in which the pension is being adjusted;

(4) a survivor beneficiary who has received a survivor pension for at least two full calendar years; or

(5) a survivor beneficiary of a deceased retired member who otherwise would have been retired at least two full calendar years from the effective date of the latest retirement prior to July 1 of the year in which the pension is being adjusted.

[D.] E. A qualified pension recipient may decline an increase in a pension by giving the association written notice of the decision to decline the increase at least thirty days prior to the date the increase would take effect."

SECTION 50. REPEAL.--Laws 2009, Chapter 287, Section 2 and Laws 2009, Chapter 288, Sections 6 through 10 are repealed.

SECTION 51. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.

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