SENATE JOINT RESOLUTION 5
56th legislature - STATE OF NEW MEXICO - second session, 2024
Roberto "Bobby" J. Gonzales
ENDORSED BY THE INVESTMENTS AND PENSIONS OVERSIGHT COMMITTEE
A JOINT RESOLUTION
PROPOSING AN AMENDMENT TO ARTICLE 20 OF THE CONSTITUTION OF NEW MEXICO BY ADDING A NEW SECTION TO PROHIBIT THE EXPENDITURE OR ENCUMBRANCE OF TRUST FUNDS CREATED FOR PUBLIC EMPLOYEES RETIREE HEALTH CARE FOR ANY PURPOSE EXCEPT FOR THE SOLE AND EXCLUSIVE BENEFIT OF THE TRUST BENEFICIARIES; PROVIDING FOR THE ADMINISTRATION OF THE TRUST FUNDS; AFFIRMING CERTAIN PROPERTY RIGHTS.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. It is proposed to amend Article 20 of the constitution of New Mexico by adding a new section to read:
"A. All funds, assets, proceeds, income, contributions, gifts and payments from any source whatsoever paid into or held by a public employees retiree health care system created by the laws of this state shall be held in a retiree health care trust fund to be administered and invested for the sole and exclusive benefit of the members, retirees and other beneficiaries. Expenditures from the trust fund shall only be made for the benefit of the trust fund beneficiaries and for expenses of administering the public employees retiree health care system. The trust fund shall never be used, diverted, loaned, assigned, pledged, invested, encumbered or appropriated for any other purpose. To the extent consistent with the provisions of this section, the trust fund shall be invested and the public employees retiree health care system administered as provided by law.
B. The board of the public employees retiree health care system shall be the trustees of the trust fund, and the board has the sole and exclusive fiduciary duty and responsibility for administration and investment of the trust fund.
C. The board of the public employees retiree health care system has the sole and exclusive power and authority to adopt actuarial assumptions based upon the recommendations made by an independent actuary with whom it contracts. The legislature shall not enact any law that alters the funding formula for a retiree health care plan unless the legislature preserves benefits and provides adequate funding.
D. Upon meeting the minimum service requirements of an applicable retiree health care plan created by law for employees of the state and any of its institutions or political subdivisions, a member of a retiree health care plan shall acquire a vested property right with due process protections under the applicable provisions of the constitution of New Mexico and United States constitution.
E. Nothing in this section shall be construed to prohibit modifications to retiree health care plans that enhance or preserve the actuarial soundness of the trust fund or individual retiree health care plan."
SECTION 2. The amendment proposed by this resolution shall be submitted to the people for their approval or rejection at the next general election or at any special election prior to that date that may be called for that purpose.
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