SENATE JUDICIARY COMMITTEE SUBSTITUTE FOR

SENATE BILL 25

51st legislature - STATE OF NEW MEXICO - first session, 2013

 

 

 

 

 

 

 

AN ACT

RELATING TO JUDICIAL RETIREMENT; AMENDING THE JUDICIAL RETIREMENT ACT AND THE MAGISTRATE RETIREMENT ACT PROVISIONS APPLICABLE TO CERTAIN MEMBERS BY CHANGING THE AGE AND SERVICE CREDIT REQUIREMENTS FOR NORMAL RETIREMENT, DECREASING THE PENSION MULTIPLIER FOR SERVICE CREDIT EARNED AFTER JUNE 30, 2013, DECREASING AND DELAYING THE COST-OF-LIVING ADJUSTMENT AND INCREASING THE MAXIMUM PENSION BENEFIT; PROVIDING THAT CERTAIN AMOUNTS OF THE CIVIL DOCKET AND JURY FEES BE DEPOSITED INTO THE GENERAL FUND; PROVIDING THAT CONTRIBUTIONS TO JUDICIAL AND MAGISTRATE RETIREMENT BE PROVIDED FROM THE GENERAL FUND; INCREASING CONTRIBUTIONS TO THE JUDICIAL AND MAGISTRATE RETIREMENT FUNDS; MAKING AN APPROPRIATION.

 

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

     SECTION 1. A new section of the Judicial Retirement Act, Section 10-12B-1.1 NMSA 1978, is enacted to read:

     "10-12B-1.1. [NEW MATERIAL] FINDINGS--PURPOSE.--

          A. The legislature finds that:

                (1) the judicial retirement fund, created pursuant to the Judicial Retirement Act, and the magistrate retirement fund, created pursuant to the Magistrate Retirement Act, are inadequately funded, both with 2012 estimated funded ratios below sixty percent;

                (2) the dangerously low funding levels of the judicial retirement fund and the magistrate retirement fund endanger the state's ability to adequately meet its constitutional duty to preserve the funds for the sole benefit of the members, retirees and other beneficiaries of the retirement systems;

                (3) based on actuarial reports and advice, making changes, specifically, temporarily suspending the cost-of-living adjustments for retirees, will have the single greatest and immediate actuarial impact in improving the funded ratio of the funds; and

                (4) increasing contribution rates along with decreasing benefits combine to increase pension fund solvency.

          B. For the purposes of ensuring the solvency of the judicial retirement fund and the magistrate retirement fund and to preserve those funds for the members, retirees and other beneficiaries, the legislature must act now and amend the Judicial Retirement Act and the Magistrate Retirement Act by:

                (1) increasing employer contribution rates;

                (2) increasing age and service requirements for normal retirement;

                (3) decreasing the pension multiplier for service credit earned after June 30, 2013; and

                (4) providing for a delay in eligibility for, a temporary suspension of and a restriction in increases to the cost-of-living adjustment."

     SECTION 2. Section 10-12B-3 NMSA 1978 (being Laws 1992, Chapter 111, Section 3, as amended) is amended to read:

     "10-12B-3. JUDICIAL RETIREMENT FUND ESTABLISHED--ADMINISTRATION OF FUND--ACCOUNTING FUNDS.--

          A. There is established in the state treasury the "judicial retirement fund". The fund is [comprised] composed of money received from [docket and jury fees of metropolitan courts, district courts, the court of appeals and the supreme court] employer and employee contributions and any investment earnings on [fees and] contributions. The board is the trustee of the fund and shall administer and invest the fund. Investment of the fund shall be conducted pursuant to the provisions of the Public Employees Retirement Act. The provisions of the Judicial Retirement Act shall be administered by the board. The board is authorized to promulgate rules. Expenses related to the investment of the fund and administration of the Judicial Retirement Act shall be paid from the fund.

          B. For purposes of this section, the accounting funds shall be known as the "member contribution fund", "employer's accumulation fund", "retirement reserve fund" and "income fund". The maintenance of separate accounting funds shall not require the actual segregation of the assets of the fund.

          C. The accounting funds provided for in this section are trust funds and shall be used only for the purposes provided for in the Judicial Retirement Act.

          D. The member contribution fund is the accounting fund in which shall be accumulated contributions of members and from which shall be made refunds and transfers of accumulated member contributions as provided in the Judicial Retirement Act. The member's court shall cause member contributions to be deducted from the salary of the member and shall remit the deducted member contributions to the association in accordance with procedures and schedules established by the association. The association may assess an interest charge and a penalty charge on any late remittance. Each member shall be deemed to consent and agree to the deductions made and provided for in this section. Contributions by members shall be credited to the members' individual accounts in the member contribution fund. A member's accumulated member contributions shall be transferred to the retirement reserve fund when a pension becomes payable.

          E. The employer's accumulation fund is the accounting fund in which shall be accumulated the contributions paid by the state through the member's court. The state, through the member's court, shall remit its contributions to the association in accordance with procedures and schedules established by the association. The board may assess an interest charge and a penalty charge on any late remittance.

          F. The retirement reserve fund is the accounting fund from which shall be paid all pensions to retired members and survivor beneficiaries and all residual refunds to refund beneficiaries of retired members and survivor beneficiaries.

          G. Each year, following receipt of the report of the annual actuarial valuation, the excess, if any, of the reported actuarial present value of pensions being paid and likely to be paid to retired members and survivor beneficiaries and residual refunds likely to be paid to refund beneficiaries of retired members and survivor beneficiaries over the balance in the retirement reserve fund shall be transferred to the retirement reserve fund from the employer's accumulation fund.

          H. The income fund is the accounting fund to which shall be credited all interest, dividends, rents and other income from investments of the fund, all gifts and bequests, all unclaimed member contributions and all other money the disposition of which is not specifically provided for in the Judicial Retirement Act. Expenses related to the administration of the Judicial Retirement Act shall be paid for from the income fund.

          I. The association shall at least annually distribute all or a portion of the balance in the income fund to the member contribution fund, the retirement reserve fund and the employer's accumulation fund. Distribution rates shall be determined by the board and may vary for the respective accounting funds."

     SECTION 3. Section 10-12B-8 NMSA 1978 (being Laws 1992, Chapter 111, Section 8, as amended) is amended to read:

     "10-12B-8. AGE AND SERVICE CREDIT REQUIREMENTS FOR NORMAL RETIREMENT.--

          A. For an individual who initially became a member prior to July 1, 2005, the age and service credit requirements for retirement provided for in the Judicial Retirement Act are:

                (1) age [sixty-four] sixty-five years or older and five or more years of service credit; or

                (2) age sixty years or older and fifteen or more years of service credit.

          B. For an individual who initially became a member on or after July 1, 2005, the age and service credit requirements for retirement provided for in the Judicial Retirement Act are:

                (1) age [sixty-four] sixty-five years or older and five or more years of service credit; or

                (2) age [fifty-five] sixty years or older and [sixteen] fifteen or more years of service credit.

          C. If a member leaves office for any reason, other than removal pursuant to Article 6, Section 32 of the constitution of New Mexico, before meeting the age and service credit requirements for retirement pursuant to the provisions of this section and if that member leaves [his] the member contributions on deposit in the fund, that member may apply for retirement when that member meets the age and service credit requirements for retirement pursuant to the provisions of the Judicial Retirement Act or provisions of the Public Employees Retirement Reciprocity Act.

          D. No member shall be eligible to receive a pension pursuant to the provisions of the Judicial Retirement Act while still in office."

     SECTION 4. Section 10-12B-9 NMSA 1978 (being Laws 1992, Chapter 111, Section 9, as amended) is amended to read:

     "10-12B-9. AMOUNT OF PENSION.--The amount of monthly pension is equal to:

          A. in the case of a former or current judge or justice, an amount equal to one-twelfth of:

     seventy-five percent 

     of salary received    X       number of years of

     during last year in             service, not exceeding

     office prior to                 ten years, divided

     retirement                      by ten;                        B. in the case of a new judge or justice who initially became a member prior to July 1, 2005:

                (1) for service credit earned on or before June 30, 2013, an amount equal to one-twelfth of:

     seventy-five                    (number of years of

     percent of salary               service, not

     received during    X .05 X   exceeding fifteen         last year in office             years, plus five          prior to retirement             years); [or] and

                (2) for service credit earned on and after July 1, 2013, an amount equal to one-twelfth of the salary received during the last year in office prior to retirement multiplied by the product of three and one-half percent times the sum of the number of years of service; provided that a pension calculated pursuant to this subsection shall not exceed eighty-five percent of one-twelfth of the salary received during the last year in office; or

          C. in the case of a new judge or justice who initially became a member on or after July 1, 2005:

                (1) for service credit earned on or before June 30, 2013, an amount equal to one-twelfth of the salary received during the last year in office prior to retirement multiplied by the product of three and seventy-five hundredths percent times the sum of the number of years of service; provided that a pension calculated pursuant to this subsection shall not exceed seventy-five percent of one-twelfth of the salary received during the last year in office; and

                (2) for service credit earned on and after July 1, 2013, an amount equal to one-twelfth of the salary received during the last year in office prior to retirement multiplied by the product of three and one-half percent times the sum of the number of years of service; provided that a pension calculated pursuant to this subsection shall not exceed eighty-five percent of one-twelfth of the salary received during the last year in office."

     SECTION 5. Section 10-12B-10 NMSA 1978 (being Laws 1992, Chapter 111, Section 10, as amended) is amended to read:

     "10-12B-10. MEMBER CONTRIBUTIONS--TAX TREATMENT.--

          A. On and after July 1, 2013, members, while in office, shall contribute nine percent of salary to the member contribution fund [pursuant to the following schedule:

                (1) prior to July 1, 2005, five and one-half percent of salary;

                (2) from July 1, 2005 through June 30, 2006, six and one-half percent of salary; and

                (3) on and after July 1, 2006, seven and one-half percent of 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 percent of salary;

                     (b) from July 1, 2011 through June 30, 2012, the member contribution rate shall be ten and three-fourths percent of salary; and

                     (c) from July 1, 2012 through June 30, 2013, the member contribution rate shall be nine percent of salary].

          B. Upon implementation, the state, acting as employer of members covered pursuant to the provisions of the Judicial Retirement Act, shall, solely for the purpose of compliance with Section 414(h) of the Internal Revenue Code of 1986, pick up for the purposes specified in that section member contributions required by this section for all annual salary earned by the member. Member contributions picked up pursuant to the provisions of this section shall be treated as employer contributions for purposes of determining income tax obligations under the Internal Revenue Code of 1986; however, such picked-up member contributions shall be included in the determination of the member's gross annual salary for all other purposes under federal and state laws. Member contributions picked up pursuant to the provisions of this section shall continue to be designated member contributions for all purposes of the Judicial Retirement Act and shall be considered as part of the member's annual salary for purposes of determining the amount of the member's contribution. The provisions of this section are mandatory, and the member shall have no option concerning the pickup or concerning the receipt of the contributed amounts directly instead of having the amounts paid by the employer to the retirement system. Implementation occurs upon authorization by the board. In no event may implementation occur other than at the beginning of a pay period applicable to the member."

     SECTION 6. Section 10-12B-11 NMSA 1978 (being Laws 1992, Chapter 111, Section 11, as amended) is amended to read:

     "10-12B-11. EMPLOYER CONTRIBUTIONS.--[A.] The member's court shall contribute the following amounts to the fund:

          [(1)] A. prior to July 1, 2005, nine percent of salary for each member in office;

          [(2)] B. from July 1, 2005 through June 30, 2006, ten and one-half percent of salary for each member in office; [and

          (3) on and after] C. from July 1, 2006 through June 30, 2013, twelve percent of salary for each member in office, except that for members whose annual salary is greater than twenty thousand dollars ($20,000):

                [(a)] (1) from July 1, 2009 through June 30, 2011, the member's court contribution rate shall be ten and one-half percent of salary for each member in office;

                [(b)] (2) from July 1, 2011 through June 30, 2012, the member's court contribution rate shall be eight and three-fourths percent of salary for each member in office; and

                [(c)] (3) from July 1, 2012 through June 30, 2013, the member's court contribution rate shall be ten and one-half percent of salary for each member in office; and

          [B. Thirty-eight dollars ($38.00) from each civil case docket fee paid in the district court, twenty-five dollars ($25.00) from each civil docket fee paid in metropolitan court and ten dollars ($10.00) from each jury fee paid in metropolitan court shall be paid by the court clerk to the employer's accumulation fund.]

          D. on and after July 1, 2013, thirty-one and seventy-two hundredths percent of salary for each member in office."

     SECTION 7. Section 10-12B-15 NMSA 1978 (being Laws 1992, Chapter 111, Section 15) is amended to read:

     "10-12B-15. COST-OF-LIVING ADJUSTMENT.--[A yearly cost-of-living adjustment shall be made to each pension]

          A. A qualified pension recipient is eligible for a cost-of-living adjustment payable pursuant to the provisions of the Judicial Retirement Act as [provided in the Public Employees Retirement Act] follows:

                (1) beginning July 1, 2013 and continuing through June 30, 2015, there shall not be a cost-of-living adjustment applied to a pension payable pursuant to the Judicial Retirement Act; and

                (2) beginning on May 1, 2015 and no later than each May 1 thereafter, the board shall certify to the association the actuarial funded ratio of the fund as of June 30 of the preceding calendar year. On each July 1 following the board's certification of the funded ratio, the cost-of-living adjustment, if any, applied to a pension payable pursuant to the Judicial Retirement Act shall be determined as follows:

                     (a) if the funded ratio of the fund, as certified by the board pursuant to this subsection, is greater than or equal to seventy percent, the amount of pension payable shall be increased two percent. The amount of the increase applied pursuant to this subparagraph shall be determined by multiplying the amount of the pension inclusive of all prior adjustments by two percent; and

                     (b) if the funded ratio of the fund, as certified by the board pursuant to this subsection, is less than seventy percent, the amount of pension payable shall not include a cost-of-living increase.

          B. Pursuant to the Judicial Retirement Act, a qualified pension recipient is:

                (1) a normal retired member who:

                     (a) retires before June 30, 2014 and 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;

                     (b) retires between July 1, 2014 and June 30, 2015 and has been retired for at least three 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;

                     (c) retires between July 1, 2015 and June 30, 2016 and has been retired for at least four 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; or

                     (d) retires after July 1, 2016 and has been retired for at least seven 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 is at least sixty-five years of age and 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;

                (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.

          C. 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 8. A new section of the Magistrate Retirement Act, Section 10-12C-1.1 NMSA 1978, is enacted to read:

     "10-12C-1.1. [NEW MATERIAL] FINDINGS--PURPOSE.--

          A. The legislature finds that:

                (1) the magistrate retirement fund, created pursuant to the Magistrate Retirement Act, and the judicial retirement fund, created pursuant to the Judicial Retirement Act, are inadequately funded, both with 2012 estimated funded ratios below sixty percent;

                (2) the dangerously low funding levels of the magistrate retirement fund and the judicial retirement fund endanger the state's ability to adequately meet its constitutional duty to preserve the funds for the sole benefit of the members, retirees and other beneficiaries of the retirement systems;

                (3) based on actuarial reports and advice, making changes, specifically, temporarily suspending the cost-of-living adjustments for retirees, will have the single greatest and immediate actuarial impact in improving the funded ratio of the funds; and

                (4) increasing contribution rates along with decreasing benefits combine to increase pension fund solvency.

          B. For the purposes of ensuring the solvency of the magistrate retirement fund the judicial retirement fund and to preserve those funds for the members, retirees and other beneficiaries, the legislature must act now and amend the Magistrate Retirement Act and the Judicial Retirement Act by:

                (1) increasing employer contribution rates;

                (2) increasing age and service requirements for normal retirement;

                (3) decreasing the pension multiplier for service credit earned after June 30, 2013; and

                (4) providing for a delay in eligibility for, a temporary suspension of and a restriction in increases to the cost-of-living adjustment."

     SECTION 9. Section 10-12C-3 NMSA 1978 (being Laws 1992, Chapter 118, Section 3, as amended) is amended to read:

     "10-12C-3. MAGISTRATE RETIREMENT FUND ESTABLISHED--

ADMINISTRATION OF FUND--ACCOUNTING FUNDS.--

          A. There is established in the state treasury the "magistrate retirement fund". The fund is [comprised] composed of money received from [docket fees of magistrate courts] employer and member contributions and any investment earnings on fees and contributions. The board is the trustee of the fund and shall administer and invest the fund. Investment of the fund shall be conducted pursuant to the provisions of the Public Employees Retirement Act. The provisions of the Magistrate Retirement Act shall be administered by the board. The board is authorized to promulgate rules. Expenses related to the investment of the fund and administration of the Magistrate Retirement Act shall be paid from the fund.

          B. For purposes of this section, the accounting funds shall be known as the "member contribution fund", "employer's accumulation fund", "retirement reserve fund" and "income fund". The maintenance of separate accounting funds shall not require the actual segregation of the assets of the fund.

          C. The accounting funds provided for in this section are trust funds and shall be used only for the purposes provided for in the Magistrate Retirement Act.

          D. The member contribution fund is the accounting fund in which shall be accumulated contributions of members and from which shall be made refunds and transfers of accumulated member contributions as provided in the Magistrate Retirement Act. The member's court shall cause member contributions to be deducted from the salary of the member and shall remit the deducted member contributions to the association in accordance with procedures and schedules established by the association. The association may assess an interest charge and a penalty charge on any late remittance. Each member shall be deemed to consent and agree to the deductions made and provided for in this section. Contributions by members shall be credited to the members' individual accounts in the member contribution fund. A member's accumulated member contributions shall be transferred to the retirement reserve fund when a pension becomes payable.

          E. The employer's accumulation fund is the accounting fund in which shall be accumulated the contributions paid by the state through the administrative office of the courts. The state, through the administrative office of the courts, shall remit its contributions to the association in accordance with procedures and schedules established by the association. The board may assess an interest charge and a penalty charge on any late remittance.

          F. The retirement reserve fund is the accounting fund from which shall be paid all pensions to retired members and survivor beneficiaries and all residual refunds to refund beneficiaries of retired members and survivor beneficiaries.

          G. Each year, following receipt of the report of the annual actuarial valuation, the excess, if any, of the reported actuarial present value of pensions being paid and likely to be paid to retired members and survivor beneficiaries and residual refunds likely to be paid to refund beneficiaries of retired members and survivor beneficiaries over the balance in the retirement reserve fund shall be transferred to the retirement reserve fund from the employer's accumulation fund.

          H. The income fund is the accounting fund to which shall be credited all interest, dividends, rents and other income from investments of the fund, all gifts and bequests, all unclaimed member contributions and all other money the disposition of which is not specifically provided for in the Magistrate Retirement Act. Expenses related to the administration of the Magistrate Retirement Act shall be paid for from the income fund.

          I. The association shall at least annually distribute all or a portion of the balance in the income fund to the member contribution fund, the retirement reserve fund and the employer's accumulation fund. Distribution rates shall be determined by the board and may vary for the respective accounting funds."

     SECTION 10. Section 10-12C-8 NMSA 1978 (being Laws 1992, Chapter 118, Section 8) is amended to read:

     "10-12C-8. AGE AND SERVICE CREDIT REQUIREMENTS FOR NORMAL RETIREMENT.--

          A. On and after July 1, 2013, the age and service credit requirements for retirement provided for in the Magistrate Retirement Act are:

                (1) age [sixty-four] sixty-five years or older and five or more years of service credit;

                (2) age sixty years or older and fifteen or more years of service credit; or

                (3) any age and twenty-four or more years of service credit.

          B. If a member leaves office for any reason, other than removal pursuant to Article 6, Section 32 of the constitution of New Mexico before meeting the age and service credit requirements for retirement pursuant to the provisions of this section and if that member leaves [his] the member contributions on deposit in the fund, that member may apply for retirement when that member meets the age and service credit requirements for retirement pursuant to the provisions of the Magistrate Retirement Act or provisions of the Public Employees Retirement Reciprocity Act [if enacted by the second session of the fortieth legislature of the state of New Mexico].

          C. No member shall be eligible to receive a pension pursuant to the provisions of the Magistrate Retirement Act while still in office."

     SECTION 11. Section 10-12C-9 NMSA 1978 (being Laws 1992, Chapter 118, Section 9) is amended to read:

     "10-12C-9. AMOUNT OF PENSION.--

          A. For service credit earned on or before June 30, 2013, the amount of pension is equal to one-twelfth of:

     seventy-five percent 

     of salary received              (number of years of       during last year in   X .05 X  service, not exceeding     office prior to                 fifteen years, [+]

     retirement                      plus five years).

          B. For service credit earned on and after July 1, 2013, the amount of pension is equal to one-twelfth of the salary received during the last year in office prior to retirement multiplied by the product of three and one-half percent times the sum of the number of years of service; provided that a pension calculated pursuant to this subsection shall not exceed eighty-five percent of one-twelfth of the salary received during the last year in office."

     SECTION 12. Section 10-12C-10 NMSA 1978 (being Laws 1992, Chapter 118, Section 10, as amended) is amended to read:

     "10-12C-10. MEMBER CONTRIBUTIONS--TAX TREATMENT.--

          A. Members, while in office, shall contribute [the following amounts] nine percent of salary to the member contribution fund

                [(1) through June 30, 2006, six and one-half percent of salary; and

                (2) on and after July 1, 2006, seven and one-half percent of 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 percent of salary;

                     (b) from July 1, 2011 through June 30, 2012, the member contribution rate shall be ten and three-fourths percent of salary; and

                     (c) from July 1, 2012 through June 30, 2013, the member contribution rate shall be nine percent of salary].

          B. Upon implementation, the state, acting as employer of members covered pursuant to the provisions of the Magistrate Retirement Act, shall, solely for the purpose of compliance with Section 414(h) of the Internal Revenue Code of 1986, pick up for the purposes specified in that section member contributions required by this section for all annual salary earned by the member. Member contributions picked up pursuant to the provisions of this section shall be treated as employer contributions for purposes of determining income tax obligations under the Internal Revenue Code of 1986; however, such picked-up member contributions shall be included in the determination of the member's gross annual salary for all other purposes under federal and state laws. Member contributions picked up pursuant to the provisions of this section shall continue to be designated member contributions for all purposes of the Magistrate Retirement Act and shall be considered as part of the member's annual salary for purposes of determining the amount of the member's contribution. The provisions of this section are mandatory, and the member shall have no option concerning the pick up or concerning the receipt of the contributed amounts directly instead of having the amounts paid by the employer to the retirement system. Implementation occurs upon authorization by the board. In no event may implementation occur other than at the beginning of a pay period applicable to the member."

     SECTION 13. Section 10-12C-11 NMSA 1978 (being Laws 1992, Chapter 118, Section 11, as amended) is amended to read:

     "10-12C-11. EMPLOYER CONTRIBUTIONS.--[A.] The state, through the administrative office of the courts, shall contribute the following amounts to the fund:

          [(1)] A. through June 30, 2006, ten percent of salary for each member in office; [and

          (2) on and after] B. from July 1, 2006 through June 30, 2013, eleven percent of salary for each member in office, except that for members whose annual salary is greater than twenty thousand dollars ($20,000):

                [(a)] (1) from July 1, 2009 through June 30, 2011, the state contribution rate shall be nine and one-half percent of salary for each member in office;

                [(b)] (2) from July 1, 2011 through June 30, 2012, the state contribution rate shall be seven and three-fourths percent of salary for each member in office; and

                [(c)] (3) from July 1, 2012 through June 30, 2013, the state contribution rate shall be nine and one-half percent of salary for each member in office; and

          [B. Twenty-five dollars ($25.00) from each civil case docket fee paid in magistrate court and ten dollars ($10.00) from each civil jury fee paid in magistrate court shall be paid by the court clerk to the employer's accumulation fund.]

          C. on and after July 1, 2013, twenty-eight and seventy-seven hundredths percent of salary for each member in office."

     SECTION 14. Section 10-12C-14 NMSA 1978 (being Laws 1992, Chapter 118, Section 14) is amended to read:

     "10-12C-14. COST-OF-LIVING ADJUSTMENT.--[A yearly cost-of-living adjustment shall be made to each pension]

          A. A qualified pension recipient is eligible for a cost-of-living adjustment payable pursuant to the provisions of the Magistrate Retirement Act [as provided in the Public Employees Retirement Act] as follows:

                (1) beginning July 1, 2013 and continuing through June 30, 2015, there shall not be a cost-of-living adjustment applied to a pension payable pursuant to the Magistrate Retirement Act; and

                (2) beginning on May 1, 2015 and no later than each May 1 thereafter, the board shall certify to the association the actuarial funded ratio of the fund as of January 31 of the calendar year in which the board certifies the funded ratio. On each July 1 following the board's certification of the funded ratio, the cost-of-living adjustment, if any, applied to a pension payable pursuant to the Magistrate Retirement Act shall be determined as follows:

                     (a) if the funded ratio of the fund, as certified by the board pursuant to this subsection, is greater than or equal to seventy percent, the amount of pension payable shall be increased two percent. The amount of the increase applied pursuant to this subparagraph shall be determined by multiplying the amount of the pension inclusive of all prior adjustments by two percent; and

                     (b) if the funded ratio of the fund, as certified by the board pursuant to this subsection, is less than seventy percent, the amount of pension payable shall not include a cost-of-living increase.

          B. Pursuant to the Magistrate Retirement Act, a qualified pension recipient is:

                (1) a normal retired member who:

                     (a) retires on or before June 30, 2014 and 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;

                     (b) retires between July 1, 2014 and June 30, 2015 and has been retired for at least three 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;

                     (c) retires between July 1, 2015 and June 30, 2016 and has been retired for at least four 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; or

                     (d) retires after July 1, 2016 and has been retired for at least seven 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 is at least sixty-five years of age and 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;

                (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.

          C. 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 15. Section 35-6-1 NMSA 1978 (being Laws 1968, Chapter 62, Section 92, as amended) is amended to read:

     "35-6-1. MAGISTRATE COSTS--SCHEDULE--DEFINITION OF

"CONVICTED".--

          A. Magistrate judges, including metropolitan court judges, shall assess and collect and shall not waive, defer or suspend the following costs:

     docket fee, criminal actions under Section 29-5-1 NMSA           1978. . . . . . . . . . . . . . . . . . . . $ 1.00;

     docket fee, to be collected prior to docketing any other

          criminal action, except as provided in Subsection B

          of Section 35-6-3 NMSA 1978. . . . . . . . . 20.00.

Proceeds from this docket fee shall be transferred to the administrative office of the courts for deposit in the court facilities fund;

docket fee, twenty dollars ($20.00) of which shall be deposited in the court automation fund [and], fifteen dollars ($15.00) of which shall be deposited in the civil legal services fund and twenty-five dollars ($25.00) of which shall be deposited in the

general fund, to be collected prior to docketing any civil action, except as provided in Subsection A of Section 35-6-3 NMSA 1978. . . . . . . . . . .72.00;

jury fee, ten dollars ($10.00) of which shall be deposited in the general fund, to be collected from the party demanding trial by jury in any civil action at the time the demand is filed or made. . . . . . .25.00;

copying fee, for making and certifying copies of any records in the court, for each page copied by photographic process. . . . . . . . . . . . . .0.50.

Proceeds from this copying fee shall be transferred to the administrative office of the courts for deposit in the court facilities fund; and

     copying fee, for computer-generated or electronically

transferred copies, per page. . . . . . . . . .1.00.

Proceeds from this copying fee shall be transferred

to the administrative office of the courts for

deposit in the court automation fund.

    Except as otherwise specifically provided by law, docket fees shall be paid into the court facilities fund.

         B. Except as otherwise provided by law, no other costs or fees shall be charged or collected in the magistrate or metropolitan court.

         C. The magistrate or metropolitan court may grant free process to any party in any civil proceeding or special statutory proceeding upon a proper showing of indigency. The magistrate or metropolitan court may deny free process if it finds that the complaint on its face does not state a cause of action.

         D. As used in this subsection, "convicted" means the defendant has been found guilty of a criminal charge by the magistrate or metropolitan judge, either after trial, a plea of guilty or a plea of nolo contendere. Magistrate judges, including metropolitan court judges, shall assess and collect and shall not waive, defer or suspend the following costs:

             (1) corrections fee, to be collected upon conviction from persons convicted of violating any provision of the Motor Vehicle Code involving the operation of a motor vehicle, convicted of a crime constituting a misdemeanor or a petty misdemeanor or convicted of violating any ordinance that may be enforced by the imposition of a term of imprisonment as follows:

in a county with a metropolitan court. . . . . . . .$10.00;

     in a county without a metropolitan court. . . . . . 20.00;

             (2) court automation fee, to be collected upon conviction from persons convicted of violating any provision of the Motor Vehicle Code involving the operation of a motor vehicle, convicted of a crime constituting a misdemeanor or a petty misdemeanor or convicted of violating any ordinance that may be enforced by the imposition of a term of

imprisonment. . . . . . . . . . . . . . . . . . . . . . .10.00;

             (3) traffic safety fee, to be collected upon

conviction from persons convicted of violating any provision of the Motor Vehicle Code involving the operation of a motor vehicle. . . . . . . . . . . . . . . . . . . . . . . . . 3.00;

             (4) judicial education fee, to be collected upon conviction from persons convicted of operating a motor vehicle in violation of the Motor Vehicle Code, convicted of a crime constituting a misdemeanor or a petty misdemeanor or convicted of violating any ordinance punishable by a term of

imprisonment. . . . . . . . . . . . . . . . . . . . . . .3.00;

             (5) jury and witness fee, to be collected upon conviction from persons convicted of operating a motor vehicle in violation of the Motor Vehicle Code, convicted of a crime constituting a misdemeanor or a petty misdemeanor or convicted of violating any ordinance punishable by a term of

imprisonment . . . . . . . . . . . . . . . . . . . . . . .5.00;

             (6) brain injury services fee, to be collected upon conviction from persons convicted of violating any provision of the Motor Vehicle Code involving the operation of a motor vehicle. . . . . . . . . . . . . . . . . . . . . 5.00;

and

             (7) court facilities fee, to be collected upon conviction from persons convicted of violating any provision of the Motor Vehicle Code involving the operation of a motor vehicle, convicted of a crime constituting a misdemeanor or a petty misdemeanor or convicted of violating any ordinance that may be enforced by the imposition of a term of imprisonment as follows:

    in a county with a metropolitan court. . . . . . . .24.00;

in any other county. . . . . . . . . . . . . . . .  10.00.

         E. Metropolitan court judges shall assess and collect and shall not waive, defer or suspend as costs a mediation fee not to exceed five dollars ($5.00) for the docketing of small claims and criminal actions specified by metropolitan court rule. Proceeds of the mediation fee shall be deposited into the metropolitan court mediation fund."

    SECTION 16. APPROPRIATION.--Three million one hundred ninety-seven thousand eighty-seven dollars ($3,197,087) is appropriated from the general fund to the department of finance and administration for expenditure in fiscal year 2014 and subsequent fiscal years for distribution to the supreme court, court of appeals, district courts, Bernalillo county metropolitan court and administrative office of the courts to pay the increased employer contributions. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

    SECTION 17. APPROPRIATION.--

         A. Fifteen million dollars ($15,000,000) is appropriated from the general fund for expenditure in fiscal year 2014 and subsequent fiscal years to improve the funded ratios of the judicial retirement fund and the magistrate retirement fund as follows:

             (1) eleven million dollars ($11,000,000) to the judicial retirement fund; and

             (2) four million dollars ($4,000,000) to the magistrate retirement fund.

         B. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

    SECTION 18. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.

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