SENATE BILL 86
51st legislature - STATE OF NEW MEXICO - first session, 2013
INTRODUCED BY
Sue Wilson Beffort
AN ACT
RELATING TO PENSIONS; AMENDING THE PUBLIC EMPLOYEES RETIREMENT ACT TO PROVIDE A LIMIT IN THE CALCULATION OF THE FINAL AVERAGE SALARY OF NON-PUBLIC SAFETY MEMBERS; DEFINING "PUBLIC SAFETY MEMBER"; AMENDING THE EDUCATIONAL RETIREMENT ACT TO PROVIDE A LIMIT IN THE CALCULATION OF ANNUAL AVERAGE SALARY.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 10-11-14.6 NMSA 1978 (being Laws 2009, Chapter 288, Section 12) is amended to read:
"10-11-14.6. CALCULATION OF FINAL AVERAGE SALARY--LIMITATIONS.--
A. Under each coverage plan of the Public Employees Retirement Act, [the] a member's final average salary is one thirty-sixth of the greatest aggregate amount of salary paid [a] the member for thirty-six consecutive but not necessarily continuous months of service credit; provided, however, for all members except public safety members as defined in Subsection B of this section, if the member's salary paid in any year beginning on or after July 1, 2013 is an amount that exceeds that of the previous year by more than twenty percent:
(1) the amount in excess of twenty percent shall be excluded in the computation of the member's final average salary; and
(2) the salary, as adjusted to exclude any increase in excess of the twenty percent limitation as provided in this subsection, shall be used to determine if the salary paid in the subsequent year exceeds the twenty percent limitation.
B. As used in this section, "public safety member" means a peace officer under state general member coverage plan 3 or a member under:
(1) state police member and adult correctional officer member coverage plan 1;
(2) state hazardous duty member coverage plan 1;
(3) state hazardous duty member coverage plan 2;
(4) municipal police member coverage plan 1;
(5) municipal police member coverage plan 2;
(6) municipal police member coverage plan 3;
(7) municipal police member coverage plan 4;
(8) municipal police member coverage plan 5;
(9) municipal fire member coverage plan 1;
(10) municipal fire member coverage plan 2;
(11) municipal fire member coverage plan 3;
(12) municipal fire member coverage plan 4; (13) municipal fire member coverage plan 5; or
(14) municipal detention officer member coverage plan 1."
SECTION 2. Section 22-11-30 NMSA 1978 (being Laws 1967, Chapter 16, Section 153, as amended by Laws 2009, Chapter 286, Section 3 and by Laws 2009, Chapter 288, Section 17) is amended to read:
"22-11-30. RETIREMENT BENEFITS.--
A. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or before June 30, 1967 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the first four thousand dollars ($4,000) of the member's average annual salary and one percent of the remainder of the member's average annual salary multiplied by the number of years of the member's total service credit.
B. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or after July 1, 1967 but on or before June 30, 1971 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the first six thousand six hundred dollars ($6,600) of the member's average annual salary and one percent of the remainder of the member's average annual salary multiplied by the number of years of the member's total service credit.
C. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or after July 1, 1971 but on or before June 30, 1974 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the member's average annual salary multiplied by the number of years of the member's total service credit.
D. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or before June 30, 1974 but returning to employment on or after July 1, 1974 for a cumulation of one or more years shall be computed pursuant to Subsection E of this section. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or before June 30, 1974 but returning to employment on or after July 1, 1974 for a cumulation of less than one year shall be computed pursuant to Subsection A of this section if the member's date of last retirement was on or before June 30, 1967 or pursuant to Subsection B of this section if the member's date of last retirement was on or after July 1, 1967 but not later than June 30, 1971 or pursuant to Subsection C of this section if the member's date of last retirement was on or after July 1, 1971 but not later than June 30, 1974.
E. Retirement benefits for a member age sixty years or [over] older, retired pursuant to the Educational Retirement Act on or after July 1, 1974 but not later than June 30, 1987, shall be paid monthly and shall be one-twelfth of a sum equal to:
(1) one and one-half percent of the member's average annual salary multiplied by the number of years of service credit for:
(a) prior employment; and
(b) allowed service credit for service performed prior to July 1, 1957, except United States military service credit purchased pursuant to Paragraph (3) of Subsection A of Section 22-11-34 NMSA 1978; plus
(2) two percent of the member's average annual salary multiplied by the number of years of service credit for:
(a) contributory employment;
(b) allowed service credit for service performed after July 1, 1957; and
(c) United States military service credit for service performed prior to July 1, 1957 and purchased pursuant to Paragraph (3) of Subsection A of Section 22-11-34 NMSA 1978.
F. Retirement benefits for a member age sixty years or [over] older, retired pursuant to the Educational Retirement Act on or after July 1, 1987 but not later than June 30, 1991, shall be paid monthly and shall be one-twelfth of a sum equal to two and fifteen hundredths percent of the member's average annual salary multiplied by the number of years of the member's total service credit; provided that this subsection shall not apply to any member who was retired in any of the four quarters ending on June 30, 1987 without having accumulated not less than 1.0 years earned service credit after June 30, 1987.
G. Retirement benefits for a member age sixty years or [over] older, retired pursuant to Section 22-11-23 NMSA 1978 on or after July 1, 1991, shall be paid monthly and shall be one-twelfth of a sum equal to two and thirty-five hundredths percent of the member's average annual salary multiplied by the number of years of the member's total service credit; provided that this subsection shall not apply to any member who was retired in any of the four consecutive quarters ending on June 30, 1991 without having accumulated at least one year earned service credit beginning on or after July 1, 1991.
H. Retirement benefits for a member, retired pursuant to Section 22-11-23.1 NMSA 1978, shall be paid monthly and shall be one-twelfth of a sum equal to two and thirty-five hundredths percent of the member's average annual salary multiplied by the number of years of the member's total service credit; provided that the benefit for a member retiring pursuant to Paragraph (3) of Subsection A of Section 22-11-23.1 NMSA 1978 shall be reduced by:
(1) six-tenths of one percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member's sixty-fifth birthday but after the sixtieth birthday; and
(2) one and eight-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member's sixtieth birthday.
I. A member's average annual salary, pursuant to this section, shall be computed on the basis of the last five years for which contribution was made or upon the basis of any consecutive five years for which contribution was made by the member, whichever is higher; provided, however [that lump-sum payments made after July 1, 2010 of accrued sick leave or annual leave shall be excluded from the calculation of salary]:
(1) if the salary paid in any year beginning
on or after July 1, 2013 exceeds that of the previous year by
more than twenty percent:
(a) the amount in excess of twenty
percent shall be excluded in the computation of average annual
salary; and
(b) the salary, as adjusted to exclude
any increase of the twenty percent limitation, shall be used
to determine if the salary paid in the subsequent year exceeds
the twenty percent limitation; and
(2) lump-sum payments made after July 1, 2013
of accrued sick leave or annual leave shall be excluded from
the calculation of salary.
J. Unless otherwise required by the provisions of the Internal Revenue Code of 1986, members shall begin receiving retirement benefits by age seventy and six months, or upon termination of employment, whichever occurs later."
SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.
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