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AN ACT

RELATING TO PUBLIC EMPLOYEES RETIREMENT; EXPANDING THE TYPES

OF COOPERATIVE WORK STUDY TRAINING PROGRAMS FOR WHICH SERVICE

CREDIT MAY BE PURCHASED.

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

Section 1. Section 10-11-7 NMSA 1978 (being Laws 1987,

Chapter 253, Section 7, as amended) is amended to read:

"10-11-7. CREDITED SERVICE--PURCHASE OF SERVICE.--

A. A member who entered a uniformed service of the

United States may purchase service credit for periods of

active duty in the uniformed services subject to the following

conditions:

(1) the member pays the association the

purchase cost determined according to Subsection E of this

section;

(2) the member has five or more years of

service credit acquired as a result of personal service

rendered in the employ of an affiliated public employer;

(3) the aggregate amount of service credit

purchased pursuant to this subsection does not exceed five

years reduced by any period of service credit acquired for

military service pursuant to any other provision of the Public

Employees Retirement Act;

(4) service credit may not be purchased for

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periods of service in the uniformed services that are used to

obtain or increase a benefit from another retirement program;

and

(5) the member must not have received a

discharge or separation from uniformed service under other

than honorable conditions.

B. A member who was a civilian prisoner of war

captured while in service to the United States as an employee

of the federal government or as an employee of a contractor

with the federal government may purchase service credit for

the period of internment as a civilian prisoner of war,

provided that:

(1) the member provides proof of employment

with the federal government or as a contractor to the federal

government in a form acceptable to the association;

(2) the member provides proof of the period

of internment in a form acceptable to the association;

(3) the member has at least five years of

service credit acquired as a result of personal service

rendered in the employ of an affiliated public employer;

(4) the aggregate amount of service credit

purchased pursuant to this subsection does not exceed five

years reduced by any period of service credit acquired for

military service pursuant to any other provision of the Public

Employees Retirement Act;

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(5) service credit may not be purchased for

periods of service in internment as a civilian prisoner of war

if such periods are used to obtain or increase a benefit from

another retirement program; and

(6) the member pays the association the

purchase cost determined according to Subsection E of this

section.

C. A member who was employed by a utility company,

library, museum, transit company or nonprofit organization

administering federally funded public service programs, which

utility company, library, museum, transit company or nonprofit

organization administering federally funded public service

programs or federally funded public service programs

administered by a nonprofit organization are subsequently

taken over by an affiliated public employer, or a member who

was employed by an entity created pursuant to a joint powers

agreement between two or more affiliated public employers for

the purpose of administering or providing drug or alcohol

addiction treatment services irrespective of whether the

entity is subsequently taken over by an affiliated public

employer, may purchase credited service for the period of

employment subject to the following conditions:

(1) the member pays the association the

purchase cost determined according to Subsection E of this

section;

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(2) the member has five or more years of

credited service acquired as a result of personal service

rendered in the employ of an affiliated public employer; and

(3) the aggregate amount of credited service

purchased pursuant to this subsection does not exceed five

years.

D. A member who was appointed to participate in a

cooperative work study training program established jointly by

a state agency and a state post-secondary educational

institution may purchase credited service for the period of

participation subject to the following conditions:

(1) the member pays the association the full

actuarial present value of the amount of the increase in the

employee's pension as a consequence of the purchase as

determined by the association;

(2) the member pays the full cost of the

purchase within sixty days of the date the member is informed

of the amount of the payment;

(3) the member has five or more years of

credited service acquired as a result of personal service

rendered in the employ of an affiliated public employer; and

(4) the aggregate amount of credited service

purchased pursuant to this subsection does not exceed five

years.

E. Except for service to be used under a state

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legislator coverage plan, the purchase cost for each month of

credited service purchased pursuant to the provisions of this

section is equal to the member's final average salary

multiplied by the sum of the member contribution rate and

employer contribution rate, determined in accordance with the

coverage plan applicable to the member at the time of the

written election to purchase. The purchase cost for each year

of credited service to be used under a state legislator

coverage plan is equal to three times the normal member

contribution per year of credited service under the state

legislator coverage plan applicable to the member. Full

payment shall be made in a single lump sum within sixty days

of the date the member is informed of the amount of the

payment. The portion of the purchase cost derived from the

employer contribution rate shall be credited to the employer's

accumulation fund and shall not be paid out of the association

in the event of cessation of membership. In no case shall a

member be credited with a month of service for less than the

purchase cost as defined in this section.

F. A member shall be refunded, upon written

request filed with the association, the portion of the

purchase cost of credited service purchased pursuant to this

section that the association determines to have been

unnecessary to provide the member with the maximum pension

applicable to the member. The association shall not pay

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interest on the portion of the purchase cost refunded to the

member.

G. A member of the magistrate retirement system

who during the member's service as a magistrate was eligible

to become a member of the public employees retirement system

and elected not to become a member of that system may purchase

service credit pursuant to the public employees retirement

system for the period for which the magistrate elected not to

become a public employees retirement system member, by paying

the amount of the increase in the actuarial present value of

the magistrate pension as a consequence of the purchase as

determined by the association. Full payment shall be made in

a single lump-sum amount in accordance with procedures

established by the retirement board. Except as provided in

Subsection F of this section, seventy-five percent of the

purchase cost shall be considered to be employer contributions

and shall not be refunded to the member in the event of

cessation of membership.

H. At any time prior to retirement, any member may

purchase service credit in monthly increments, subject to the

following conditions:

(1) the member has at least five years of

service credit acquired as a result of personal service

rendered in the employ of an affiliated public employer;

(2) the aggregate amount of service credit

purchased pursuant to this subsection does not exceed one

year;

(3) the member pays full actuarial present

value of the amount of the increase in the employee's pension

as a consequence of the purchase as determined by the

association;

(4) the member pays the full cost of the

purchase within sixty days of the date the member is informed

of the amount of the payment; and

(5) the purchase of service under this

subsection cannot be used to determine the final average

salary or the pension factor or be used to exceed the pension

maximum."

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