HOUSE BILL 269
50th legislature - STATE OF NEW MEXICO - second session, 2012
INTRODUCED BY
Mimi Stewart
AN ACT
RELATING TO PENSIONS; AMENDING THE EDUCATIONAL RETIREMENT ACT; PROVIDING FOR AN INCREASE IN EMPLOYEE CONTRIBUTIONS; INCREASING AGE AND SERVICE REQUIREMENTS FOR RETIREMENT OF NON-VESTED MEMBERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 22-11-21 NMSA 1978 (being Laws 1967, Chapter 16, Section 144, as amended) is amended to read:
"22-11-21. CONTRIBUTIONS--MEMBERS--LOCAL ADMINISTRATIVE
UNITS.--
A. Except as provided in Subsection C of this section, each member shall make contributions to the fund according to the following schedule:
(1) through June 30, 2005, an amount equal to seven and six-tenths percent of the member's annual salary;
(2) from July 1, 2005 through June 30, 2006, an amount equal to seven and six hundred seventy-five thousandths percent of the member's annual salary;
(3) from July 1, 2006 through June 30, 2007, an amount equal to seven and seventy-five hundredths percent of the member's annual salary;
(4) from July 1, 2007 through June 30, 2008, an amount equal to seven and eight hundred twenty-five thousandths percent of the member's annual salary; [and]
(5) [on and after] from July 1, 2008 through June 30, 2013, an amount equal to seven and nine-tenths percent of the member's annual salary, except that for members whose annual salary is greater than twenty thousand dollars ($20,000):
(a) from July 1, 2009 through June 30, 2011, the member contribution rate shall be nine and four-tenths percent of the member's annual salary;
(b) from July 1, 2011 through June 30, 2012, the member contribution rate shall be eleven and fifteen-hundredths percent of the member's annual salary; and
(c) from July 1, 2012 through June 30, 2013, the member contribution rate shall be nine and four-tenths percent of the member's annual salary; and
(6) on and after July 1, 2013, nine and four-tenths percent of the member's annual salary; provided, however, that if the local administrative unit's annual contribution per member in Paragraph (9) of Subsection B of this section is reduced to a sum less than thirteen and fifteen-hundredths percent of the member's annual salary from July 1, 2013 through June 30, 2014, the member contribution rate from July 1, 2013 through June 30, 2014 shall be seven and nine-tenths percent of the member's annual salary.
B. Except as provided in Subsection C of this section, each local administrative unit shall make an annual contribution to the fund according to the following schedule:
(1) through June 30, 2005, a sum equal to eight and sixty-five hundredths percent of the annual salary of each member employed by the local administrative unit;
(2) from July 1, 2005 through June 30, 2006, a sum equal to nine and forty-hundredths percent of the annual salary of each member employed by the local administrative unit;
(3) from July 1, 2006 through June 30, 2007, a sum equal to ten and fifteen-hundredths percent of the annual salary of each member employed by the local administrative unit;
(4) from July 1, 2007 through June 30, 2008, a sum equal to ten and ninety-hundredths percent of the annual salary of each member employed by the local administrative unit;
(5) from July 1, 2008 through June 30, 2009, a sum equal to eleven and sixty-five hundredths percent of the annual salary of each member employed by the local administrative unit;
(6) from July 1, 2009 through June 30, 2011, a sum equal to ten and nine-tenths percent of the annual salary of each member employed by the local administrative unit, except that for members whose annual salary is twenty thousand dollars ($20,000) or less, the local administrative unit shall contribute twelve and four-tenths percent of the member's annual salary;
(7) from July 1, 2011 through June 30, 2012, a sum equal to nine and fifteen-hundredths percent of the annual salary of each member employed by the local administrative unit, except that for members whose annual salary is twenty thousand dollars ($20,000) or less, the local administrative unit shall contribute twelve and four-tenths percent of the member's annual salary;
(8) from July 1, 2012 through June 30, 2013, a sum equal to ten and nine-tenths percent of the annual salary of each member employed by the local administrative unit, except that for members whose annual salary is twenty thousand dollars ($20,000) or less, the local administrative unit shall contribute twelve and four-tenths percent of the member's annual salary;
(9) from July 1, 2013 through June 30, 2014, a sum equal to thirteen and fifteen-hundredths percent of the annual salary of each member employed by the local administrative unit; and
(10) on and after July 1, 2014, a sum equal to thirteen and nine-tenths percent of the annual salary of each member employed by the local administrative unit.
C. If, in a calendar year, the salary of a member, initially employed by a local administrative unit on or after July 1, 1996, equals the annual compensation limit set pursuant to Section 401(a)(17) of the Internal Revenue Code of 1986, as amended, then:
(1) for the remainder of that calendar year, no additional member contributions or local administrative unit contributions for that member shall be made pursuant to this section; provided that no member shall be denied service credit solely because contributions are not made by the member or on behalf of the member pursuant to the provisions of this subsection; and
(2) the amount of the annual compensation limit shall be divided into four equal portions, and, for purposes of attributing contributory employment and crediting service credit, each portion shall be attributable to one of the four quarters of the calendar year."
SECTION 2. Section 22-11-23 NMSA 1978 (being Laws 1981, Chapter 293, Section 2, as amended by Laws 2009, Chapter 286, Section 1 and by Laws 2009, Chapter 288, Section 14) is amended to read:
"22-11-23. RETIREMENT ELIGIBILITY [INITIAL MEMBERSHIP PRIOR TO JULY 1, 2010].--
A. The retirement eligibility for a member who has five or more years of service credit on or before June 30, 2012 and who [either was a member on June 30, 2010, or was a member at any time prior to] on or before that date [and] had [not, on that date] been refunded all member contributions pursuant to Subsection A of Section 22-11-15 NMSA 1978 and had restored all of the refunded contributions, is as follows:
(1) a member shall be eligible for retirement benefits pursuant to the Educational Retirement Act when either of the following conditions occurs:
(a) the sum of the member's age and years of earned service credit equals seventy-five; or
(b) upon completion of five years of earned service credit and upon becoming sixty-five years of age;
(2) a member under sixty years of age eligible to retire under Paragraph (1) of this subsection may retire and receive retirement benefits pursuant to the Educational Retirement Act that the member would be eligible to receive if the member were to retire at the age of sixty years reduced by six-tenths of one percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member's sixtieth birthday but after the fifty-fifth birthday, and one and eight-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to age fifty-five; or
(3) a member under sixty years of age acquiring twenty-five or more years of earned and allowed service credit may retire and receive retirement benefits pursuant to the Educational Retirement Act computed on the same basis as if the member were sixty years of age.
B. A member shall be subject to the provisions of Paragraphs (2) and (3) of Subsection A of this section as they existed at the beginning of the member's last cumulated four quarters of earned service credit, regardless of later amendment."
SECTION 3. Section 22-11-23.1 NMSA 1978 (being Laws 2009, Chapter 286, Section 2 and Laws 2009, Chapter 288, Section 15) is amended to read:
"22-11-23.1. RETIREMENT ELIGIBILITY [INITIAL MEMBERSHIP ON OR AFTER JULY 1, 2010].--
A. A member who [initially became a member on or after July 1, 2010] does not have five or more years of service credit on or before June 30, 2012 or a member who was a member at any time prior to that date and had, before that date, been refunded all member contributions pursuant to Subsection A of Section 22-11-15 NMSA 1978 and had not restored all of the refunded contributions, shall be eligible for retirement benefits pursuant to the Educational Retirement Act when one of the following conditions occurs:
(1) the member is [any] age fifty-five or older and has thirty or more years of earned service credit;
(2) the member is at least [sixty-seven] sixty-five years of age and has five or more years of earned service credit; or
(3) the member is at least fifty-five years of age and the sum of the member's age and years of earned service credit equals at least eighty; provided that a member who retires pursuant to this paragraph shall be subject to the benefit reductions provided in Paragraphs (1) and (2) of Subsection H of Section 22-11-30 NMSA 1978.
B. A member shall be subject to the provisions of this section as they existed at the beginning of the member's last cumulated four quarters of earned service credit, regardless of later amendment."
SECTION 4. Section 22-11-27 NMSA 1978 (being Laws 1967, Chapter 16, Section 150, as amended) is amended to read:
"22-11-27. DEFERRED RETIREMENT--RESTRICTION.--
A. A member eligible for retirement may continue in employment and shall continue to pay contributions as provided by the Educational Retirement Act.
[B. A member may terminate his employment and retire at any time after his age and his earned service credit equal the sum of seventy-five if the contributions he member has made are left in the fund.
C. A member having five years or more of earned service credit may terminate his employment and retire at any time after reaching the age of sixty-five years if the contributions he has made are left in the fund.]
B. Provided that the contributions the member has made are left in the fund, a member who is eligible to retire pursuant to Subsection A of Section 22-11-23 NMSA 1978 may terminate employment and retire at any time:
(1) if the sum of the member's age and years of earned service credit equals at least seventy-five; or
(2) after the member has at least five years of earned service credit and is at least sixty-five years of age.
C. Provided that the contributions the member has made are left in the fund, a member who is eligible to retire pursuant to Subsection A of Section 22-11-23.1 NMSA 1978 may terminate employment and retire at any time:
(1) if the member is age fifty-five years of age or older and has thirty or more years of earned service credit;
(2) after the member has at least five years of earned service credit and is at least sixty-five years of age; or
(3) if the member is age fifty-five years of age or older and the sum of the member's age and years of earned service credit equals at least eighty.
D. No member shall be on a retirement status while engaged in employment unless the employment falls within exceptions established by statute or rule of the board."
SECTION 5. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2012.
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