House Bill text for HB0411

HOUSE BILL 411

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Richard D. Vigil

AN ACT

RELATING TO PUBLIC EMPLOYEE RETIREMENT; CREATING A RETIREMENT PLAN FOR LAW ENFORCEMENT ACADEMY INSTRUCTORS.

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

Section 1. Section 10-11-2 NMSA 1978 (being Laws 1987, Chapter 253, Section 2, as amended) is amended to read:

"10-11-2. DEFINITIONS.--As used in the Public Employees Retirement Act:

A. "accumulated member contributions" means the amounts deducted from the salary of a member and credited to the member's individual account, together with interest, if any, credited to that account;

B. "affiliated public employer" means the state and any public employer affiliated with the association as provided in the Public Employees Retirement Act, but does not include an employer pursuant to the Magistrate Retirement Act, the Judicial Retirement Act or the Educational Retirement Act;

C. "association" means the public employees retirement association established under the Public Employees Retirement Act;

D. "disability retired member" means a retired member who is receiving a pension pursuant to the disability retirement provisions of the Public Employees Retirement Act;

E. "disability retirement pension" means the pension paid pursuant to the disability retirement provisions of the Public Employees Retirement Act;

F. "educational retirement system" means that retirement system provided for in the Educational Retirement Act;

G. "employee" means any employee of an affiliated public employer;

H. "federal social security program" means that program or those programs created and administered pursuant to the act of congress approved August 14, 1935, Chapter 531, 49 Stat. 620, as that act may be amended;

I. "final average salary" means the final average salary calculated in accordance with the provisions of the applicable coverage plan;

J. "form of payment" means the applicable form of payment of a pension provided for in Section 10-11-117 NMSA

1978;

K. "former member" means a person who was previously employed by an affiliated public employer, who has terminated that employment and who has received a refund of member contributions;

L. "fund" means the funds included under the Public Employees Retirement Act;

M. "member" means a currently employed, contributing employee of an affiliated public employer, or a person who has been but is not currently employed by an affiliated public employer, who has not retired and who has not received a refund of member contributions; "member" also includes the following:

(1) "adult correctional officer member" means a member who is an adult correctional officer or an adult correctional officer specialist employed by a correctional facility of the corrections department or its successor agency;

(2) "hazardous duty member" means a member who is a juvenile correctional officer employed by the children, youth and families department or its successor agency;

(3) "law enforcement academy instructor member" means a member who is employed full time by an affiliated public employer as a certified instructor at the New Mexico law enforcement academy;

[(3)] (4) "municipal detention officer member" means a member who is employed by an affiliated public employer other than the state and who has inmate custodial responsibilities at a facility used for the confinement of persons charged with or convicted of a violation of a law or ordinance;

[(4)] (5) "municipal fire member" means any member who is employed as a full-time nonvolunteer firefighter by an affiliated public employer and who has taken the oath prescribed for firefighters;

[(5)] (6) "municipal police member" means any member who is employed as a police officer by an affiliated public employer, other than the state, and who has taken the oath prescribed for police officers; and

[(6)] (7) "state police member" means any member who is an officer of the New Mexico state police and who has taken the oath prescribed for such officers;

N. "membership" means membership in the association;

O. "pension" means a series of monthly payments to a retired member or survivor beneficiary as provided in the Public Employees Retirement Act;

P. "public employer" means the state, any municipality, city, county, metropolitan arroyo flood control authority, economic development district, regional housing authority, soil and water conservation district, entity created pursuant to a joint powers agreement, council of government, conservancy district, irrigation district, water and sanitation district, water district and metropolitan water board, including the boards, departments, bureaus and agencies of a public employer, so long as these entities fall within the meaning of governmental plan as that term is used in Section 414(d) of the Internal Revenue Code of 1986, as amended;

Q. "refund beneficiary" means a person designated by the member, in writing, in the form prescribed by the association, as the person who would be refunded the member's accumulated member contributions payable if the member dies and no survivor pension is payable or who would receive the difference between pension paid and accumulated member contributions if the retired member dies before receiving in pension payments the amount of the accumulated member contributions;

R. "retire" means to:

(1) terminate employment with all employers covered by any state system or the educational retirement system; and

(2) receive a pension from a state system or the educational retirement system;

S. "retired member" means a person who has met all requirements for retirement and who is receiving a pension from the fund;

T. "retirement board" means the retirement board provided for in the Public Employees Retirement Act;

U. "salary" means the base salary or wages paid a member, including longevity pay, for personal services rendered an affiliated public employer. "Salary" shall not include overtime pay, allowances for housing, clothing, equipment or travel, payments for unused sick leave, unless the unused sick leave payment is made through continuation of the member on the regular payroll for the period represented by that payment, and any other form of remuneration not specifically designated by law as included in salary for Public Employees Retirement Act purposes. Salary in excess of the limitations set forth in Section 401(a) (17) of the Internal Revenue Code of 1986, as amended, shall be disregarded. The limitation on compensation for eligible employees shall not be less than the amount that was allowed to be taken into account under the state retirement system acts in effect on July 1, 1993. For purposes of this subsection, "eligible employee" means an individual who was a member of a state system before the first plan year beginning after December 31, 1995;

V. "state system" means the retirement programs provided for in the Public Employees Retirement Act, the Magistrate Retirement Act and the Judicial Retirement Act;

W. "state retirement system acts" means collectively the Public Employees Retirement Act, the Magistrate Retirement Act, the Judicial Retirement Act and the Volunteer Firefighters Retirement Act; and

X. "survivor beneficiary" means a person who receives a pension or who has been designated to be paid a pension as a result of the death of a member or retired member."

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

"[NEW MATERIAL] LAW ENFORCEMENT ACADEMY INSTRUCTOR MEMBER COVERAGE PLAN 1--APPLICABILITY.--Law enforcement academy instructor member coverage plan 1 is applicable to law enforcement academy instructor members of an affiliated public employer on the first day of the calendar month following certification of the election adopting law enforcement academy instructor member coverage plan 1 by an affirmative vote of the majority of the affiliated public employer's law enforcement academy instructor members. The election shall be conducted by the affiliated public employer, provided that the election shall not be held until the retirement board has performed an actuarial study and provided notice to the law enforcement academy instructor members what the member and employer contribution rates will be under the plan. The certification shall be in the form prescribed by the retirement board. The election procedures shall afford all law enforcement academy instructor members of the affiliated public employer an opportunity to vote. An election adopting law enforcement academy instructor 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 law enforcement academy instructor members of that affiliated public employer."

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

"[NEW MATERIAL] LAW ENFORCEMENT ACADEMY INSTRUCTOR MEMBER COVERAGE PLAN 1--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under law enforcement academy instructor member coverage plan 1, the age and service requirements for normal retirement are:

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

B. age sixty-four years and eight or more years of credited service;

C. age sixty-three years and eleven or more years of credited service;

D. age sixty-two years and fourteen or more years of credited service;

E. age sixty-one years and seventeen or more years of credited service; or

F. any age and twenty or more years of credited service."

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

"[NEW MATERIAL] LAW ENFORCEMENT ACADEMY INSTRUCTOR MEMBER COVERAGE PLAN 1--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under law enforcement academy instructor member coverage plan 1, the amount of pension under form of payment A is equal to three and one-half percent of the final average salary multiplied by credited service; provided that the amount shall not exceed eighty percent of the final average salary."

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

"[NEW MATERIAL] LAW ENFORCEMENT ACADEMY INSTRUCTOR MEMBER COVERAGE PLAN 1--FINAL AVERAGE SALARY.--Under law enforcement academy instructor member coverage plan 1, the final average salary is one thirty-sixth of the greatest aggregate amount of salary paid a law enforcement academy instructor member for thirty-six consecutive months of credited service. Under law enforcement academy instructor member coverage plan 1, if a member has less than thirty-six months of credited service, the final average salary is the aggregate amount of salary paid a member for the member's period of credited service divided by the member's credited service."

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

"[NEW MATERIAL] LAW ENFORCEMENT ACADEMY INSTRUCTOR MEMBER COVERAGE PLAN 1--MEMBER CONTRIBUTION RATE.--A member under law enforcement academy instructor member coverage plan 1 shall make a contribution starting with the first full pay period in the calendar month in which the law enforcement academy instructor member coverage plan 1 becomes applicable to the member. The amount of the contribution shall equal thirty and nine-tenths percent multiplied by the total contribution rate established by the retirement board as actuarially necessary and further multiplied by the member's salary."

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

"[NEW MATERIAL] LAW ENFORCEMENT ACADEMY INSTRUCTOR MEMBER COVERAGE PLAN 1--AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--The affiliated public employer shall make a contribution for each member who it employs and who is covered under law enforcement academy instructor member coverage plan 1. The amount of the contribution shall equal sixty-nine and one-tenth percent multiplied by the total contribution rate established by the retirement board as actuarially necessary and further multiplied by the member's salary."

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

"[NEW MATERIAL] LAW ENFORCEMENT ACADEMY INSTRUCTOR MEMBER COVERAGE PLAN 1--SERVICE CREDIT REQUIRED FOR LAW ENFORCEMENT ACADEMY INSTRUCTOR MEMBERS.--Notwithstanding other provisions of the Public Employees Retirement Act, to qualify for retirement pursuant to law enforcement academy instructor member coverage plan 1, a law enforcement academy instructor member shall have eighteen months of service credit earned under that coverage plan."

Section 9. TEMPORARY PROVISION--ACTUARIAL STUDY TO DETERMINE RATES.--No later than December 31, 2007, the public employees retirement board shall conduct a study to determine the total percent of law enforcement academy instructor member salaries that is actuarially necessary to fund law enforcement academy instructor member coverage plan 1. If the plan is adopted by the members in an election held pursuant to Section 2 of this act, each member's contribution rate shall equal thirty and nine-tenths percent of the total percent necessary and the employer's contribution rate shall equal sixty-nine and one-tenth percent of the total percent. Prior to the election, the board shall notify the members of the member's contribution rate and the employer's contribution rate.

Section 10. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.

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