0001| HOUSE BILL 16
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0002| 42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
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0003| 1996
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0004| INTRODUCED BY
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0005| SAMUEL F. VIGIL
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0006|
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0007|
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0008|
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0009| FOR THE LEGISLATIVE EDUCATION STUDY COMMITTEE
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0010|
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0011| AN ACT
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0012| RELATING TO EDUCATIONAL RETIREMENT; AMENDING SECTIONS OF THE
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0013| EDUCATIONAL RETIREMENT ACT PERTAINING TO RETIREMENT BENEFITS,
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0014| COST-OF-LIVING ADJUSTMENTS AND EMPLOYER CONTRIBUTIONS.
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0015|
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0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017| Section 1. Section 22-11-11 NMSA 1978 (being Laws 1967,
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0018| Chapter 16, Section 135) is amended to read:
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0019| "22-11-11. EDUCATIONAL RETIREMENT FUND.--
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0020| A. The "educational retirement fund" is created.
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0021| B. The state treasurer shall be the custodian of the
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0022| fund, and the board shall be the trustee of the fund.
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0023| C. [All membership fees] Contributions from
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0024| members and local administrative units, securities evidencing
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0025| the investment of money from the fund, interest, gifts, grants
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0001| or bequests shall be deposited in the fund."
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0002| Section 2. Section 22-11-21 NMSA 1978 (being Laws 1967,
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0003| Chapter 16, Section 144, as amended) is amended to read:
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0004| "22-11-21. CONTRIBUTIONS--MEMBERS--LOCAL ADMINISTRATIVE
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0005| UNITS.--
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0006| A. Each member shall make contributions to the fund
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0007| in the amount of seven and six-tenths percent of his annual
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0008| salary.
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0009| B. [Until June 30, 1993] Beginning July 1, 1996,
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0010| each local administrative unit shall make a yearly contribution
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0011| to the fund of a sum equal to [seven and six-tenths] ten and
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0012| sixty-five hundredths percent of the annual salary of each
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0013| member employed by the local administrative unit.
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0014| [C. Beginning July 1, 1993 and thereafter, each
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local administrative unit shall make a yearly contribution to
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the fund of a sum equal to eight and sixty-five hundredths
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percent of the annual salary of each member employed by the
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local administrative unit.]
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0019| C. Beginning July 1, 1997, each local
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0020| administrative unit shall make a yearly contribution to the fund
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0021| of a sum equal to eleven and nine-tenths percent of the annual
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0022| salary of each member employed by the local administrative unit.
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0023| D. Beginning July 1, 1998, each local administrative
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0024| unit shall make a yearly contribution to the fund of a sum equal
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0025| to thirteen and fifteen hundredths percent of the annual salary
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0001| of each member employed by the local administrative unit."
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0002| Section 3. Section 22-11-30 NMSA 1978 (being Laws 1967,
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0003| Chapter 16, Section 153, as amended) is amended to read:
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0004| "22-11-30. RETIREMENT BENEFITS.--
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0005| A. Retirement benefits for a member retired pursuant
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0006| to the Educational Retirement Act on or before June 30, 1967
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0007| shall be paid monthly and shall be one-twelfth of a sum equal to
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0008| one and one-half percent of the first four thousand dollars
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0009| ($4,000) of the member's average annual salary and one percent
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0010| of the remainder of the member's average annual salary
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0011| multiplied by the number of years of the member's total service-credit.
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0012| B. Retirement benefits for a member retired pursuant
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0013| to the Educational Retirement Act on or after July 1, 1967 but
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0014| on or before June 30, 1971 shall be paid monthly and shall be
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0015| one-twelfth of a sum equal to one and one-half percent of the
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0016| first six thousand six hundred dollars ($6,600) of the member's
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0017| average annual salary and one percent of the remainder of the
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0018| member's average annual salary multiplied by the number of years
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0019| of the member's total service-credit.
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0020| C. Retirement benefits for a member retired pursuant
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0021| to the Educational Retirement Act on or after July 1, 1971 but
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0022| on or before June 30, 1974 shall be paid monthly and shall be
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0023| one-twelfth of a sum equal to one and one-half percent of the
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0024| member's average annual salary multiplied by the number of years
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0025| of the member's total service-credit.
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0001| D. Retirement benefits for a member retired pursuant
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0002| to the Educational Retirement Act on or before June 30, 1974 but
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0003| returning to employment on or after July 1, 1974 for a
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0004| cumulation of one or more years shall be computed pursuant to
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0005| Subsection E of this section. Retirement benefits for a member
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0006| retired pursuant to the Educational Retirement Act on or before
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0007| June 30, 1974 but returning to employment on or after July 1,
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0008| 1974 for a cumulation of less than one year shall be computed
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0009| pursuant to Subsection A of this section if his date of last
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0010| retirement was on or before June 30, 1967 or pursuant to
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0011| Subsection B of this section if his date of last retirement was
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0012| on or after July 1, 1967 but not later than June 30, 1971 or
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0013| pursuant to Subsection C of this section if his date of last
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0014| retirement was on or after July 1, 1971 but not later than June
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0015| 30, 1974.
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0016| E. Retirement benefits for a member age sixty or
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0017| over, retired pursuant to the Educational Retirement Act on or
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0018| after July 1, 1974 but not later than June 30, 1987, shall be
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0019| paid monthly and shall be one-twelfth of a sum equal to:
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0020| (1) one and one-half percent of the member's
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0021| average annual salary multiplied by the number of years of
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0022| service-credit for:
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0023| (a) prior employment; and
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0024| (b) allowed service-credit for service
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0025| performed prior to July 1, 1957, except United States military
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0001| service credit purchased pursuant to Paragraph (3) of Subsection
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0002| A of Section 22-11-34 NMSA 1978; plus
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0003| (2) two percent of the member's average annual
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0004| salary multiplied by the number of years of service-credit for:
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0005| (a) contributory employment;
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0006| (b) allowed service-credit for service
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0007| performed after July 1, 1957; and
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0008| (c) United States military service credit
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0009| for service performed prior to July 1, 1957 and purchased
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0010| pursuant to Paragraph (3) of Subsection A of Section 22-11-34
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0011| NMSA 1978.
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0012| F. Retirement benefits for a member age sixty or
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0013| over, retired pursuant to the Educational Retirement Act on or
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0014| after July 1, 1987 but not later than June 30, 1991, shall be
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0015| paid monthly and shall be one-twelfth of a sum equal to two and
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0016| fifteen hundredths percent of the member's average annual salary
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0017| multiplied by the number of years of the member's total service-credit; provided that this subsection shall not apply to any
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0018| member who was retired in any of the four quarters ending on
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0019| June 30, 1987 without having accumulated not less than 1.0 years
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0020| earned service after June 30, 1987.
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0021| G. Retirement benefits for a member age sixty or
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0022| over, retired pursuant to the Educational Retirement Act on or
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0023| after July 1, 1991, but not later than June 30, 1996, shall be
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0024| paid monthly and shall be one-twelfth of a sum equal to two and
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0025| thirty-five hundredths percent of the member's average annual
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0001| salary multiplied by the number of years of the member's total
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0002| service-credit; provided that this subsection shall not apply to
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0003| any member who was retired in any of the four consecutive
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0004| quarters ending on June 30, 1991 without having accumulated at
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0005| least one year earned service beginning on or after July 1,
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0006| 1991.
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0007| H. Retirement benefits for a member age sixty or
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0008| over, retired pursuant to the Educational Retirement Act on or
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0009| after July 1, 1996 shall be paid monthly and shall be one-twelfth of a sum equal to two and five-tenths percent of the
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0010| member's average annual salary multiplied by the number of years
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0011| of the member's total service-credit; provided that this
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0012| subsection shall not apply to any member who was retired in any
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0013| of the four consecutive quarters ending on June 30, 1996 without
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0014| having accumulated at least one year earned service beginning on
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0015| or after July 1, 1996.
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0016| [H.] I. A member's average annual salary,
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0017| pursuant to this section, shall be computed on the basis of the
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0018| last five years for which contribution was made or upon the
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0019| basis of any consecutive five years for which contribution was
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0020| made by the member, whichever is higher. Members shall begin
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0021| receiving retirement benefits by age seventy and six months, or
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0022| upon termination of employment, whichever occurs later."
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0023| Section 4. Section 22-11-31 NMSA 1978 (being Laws 1979,
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0024| Chapter 333, Section 2, as amended) is amended to read:
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0025| "22-11-31. COST-OF-LIVING ADJUSTMENT--ADDITIONAL
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0001| CONTRIBUTIONS.--
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0002| A. For the purposes of this section:
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0003| (1) "adjustment factor" means a multiplicative
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0004| factor computed to provide an annuity adjustment pursuant to the
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0005| provisions of Subsection B of this section;
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0006| (2) "annuity" means any benefit payable under
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0007| the Educational Retirement Act or the [Retirement Reciprocity
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Act] Public Employees Retirement Reciprocity Act as a
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0009| retirement benefit, disability benefit or survivor benefit;
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0010| (3) "calendar year" means the full twelve
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0011| months beginning January 1 and ending December 31;
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0012| (4) "consumer price index" means the average of
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0013| the monthly consumer price indexes for a calendar year for the
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0014| entire United States for all items as published by the United
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0015| States department of labor;
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0016| (5) "next preceding calendar year" means the
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0017| full calendar year immediately prior to the preceding calendar
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0018| year; and
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0019| (6) "preceding calendar year" means the full
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0020| calendar year preceding the July 1 on which a benefit is to be
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0021| adjusted.
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0022| B. On or after [July 1, 1984] July 1, 1996, each
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0023| annuity shall be adjusted annually and cumulatively commencing
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0024| on July 1 of the year in which a member attains the age of
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0025| [sixty-five] sixty-four or on July 1 following the year a
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0001| member retires, whichever is later. The annuity shall be
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0002| adjusted by applying an adjustment factor that results in either
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0003| an adjustment equal to [one-half] fifty-five percent of the
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0004| percentage increase or decrease of the consumer price index
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0005| between the next preceding calendar year and the preceding
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0006| calendar year, except that the adjustment shall not [exceed
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four percent, in absolute value, nor] be less than two percent,
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0008| in absolute value. In the event that the percentage increase or
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0009| decrease of the consumer price index is less than two percent,
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0010| in absolute value, the adjustment factor shall be the same as
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0011| the percentage increase or decrease of the consumer price index.
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0012| No negative adjustment in the retirement benefit shall reduce
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0013| the member's benefit below that which he received upon the date
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0014| of his retirement.
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0015| [C. A retired member whose benefit is subject to
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adjustment under the provisions of the Educational Retirement
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Act in effect prior to July 1, 1984 shall have his annuity
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readjusted annually and cumulatively under the provisions of
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that act in effect prior to July 1, 1984 until July 1 of the
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year in which he attains the age of sixty-five, when he shall
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have his annuity readjusted annually and cumulatively under the
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provisions of this section. A member who retires after
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attaining the age of sixty-five shall have his annuity adjusted
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annually and cumulatively commencing on July 1 of the year
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following his retirement.]
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0001| C. On or after July 1, 1997, each annuity shall be
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0002| adjusted annually and cumulatively commencing on July 1 of the
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0003| year in which a member attains the age of sixty-three or on July
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0004| 1 following the year a member retires, whichever is later. The
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0005| annuity shall be adjusted by applying the adjustment factor that
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0006| results in either an adjustment equal to sixty-five percent of
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0007| the percentage increase or decrease of the consumer price index
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0008| between the next preceding calendar year and the preceding
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0009| calendar year, except that the adjustment shall not be less than
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0010| two percent in absolute value. In the event that the percentage
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0011| increase or decrease of the consumer price index is less than
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0012| two percent in absolute value, the adjustment factor shall be
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0013| the same as the percentage increase or decrease of the consumer
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0014| price index. No negative adjustment in the retirement benefit
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0015| shall reduce the member's benefit below that which he received
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0016| upon the date of his retirement.
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0017| D. On or after July 1, 1998, each annuity shall be
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0018| adjusted annually and cumulatively commencing on July 1 of the
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0019| year in which a member attains the age of sixty-two or on July 1
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0020| following the year a member retires, whichever is later. The
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0021| annuity shall be adjusted by applying the adjustment factor that
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0022| results in either an adjustment equal to seventy-five percent of
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0023| the percentage increase or decrease of the consumer price index
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0024| between the next preceding calendar year and the preceding
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0025| calendar year, except that the adjustment shall not be less than
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0001| two percent in absolute value. In the event that the percentage
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0002| increase or decrease of the consumer price index is less than
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0003| two percent in absolute value, the adjustment factor shall be
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0004| the same as the percentage increase or decrease of the consumer
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0005| price index. No negative adjustment in the retirement benefit
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0006| shall reduce the member's benefit below that which he received
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0007| upon the date of his retirement.
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0008| E. A retired member whose benefit is subject to
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0009| adjustment under a provision of the Educational Retirement Act
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0010| that has been repealed shall continue to receive the adjustment
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0011| until the retired member becomes eligible for adjustment under
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0012| the provisions of Subsections B through D of this section.
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0013| [D.] F. A retired member who returns to work
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0014| shall be subject to the provisions of this section as they exist
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0015| at the time of his final retirement.
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0016| [E.] G. Benefits of a member who is on a
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0017| disability status in accordance with Section 22-11-35 NMSA 1978
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0018| or a member whom the board certifies was disabled at regular
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0019| retirement shall be adjusted in accordance with Subsections B
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0020| [and C] through D of this section, except that the benefits
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0021| shall be adjusted annually and cumulatively commencing on July 1
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0022| of the third full year following the year in which the member
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0023| was approved by the board for disability or retirement
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0024| [F. The board shall adjust the benefits of each
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person receiving an annuity as of June 30, 1991. The adjustment
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shall be made on July 1, 1991 on the basis of an increase of two
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dollars ($2.00) per month for each year since the member's last
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retirement plus an increase of one dollar ($1.00) per month for
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each year of credited service at the time of retirement.] or
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0005| the age set forth in Subsections B through D of this section, as
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0006| applicable, whichever is sooner."
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0007|
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0008|
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0009| State of New Mexico
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0010| State of New Mexico
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0011| House of Representatives
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0012|
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0013| FORTY-SECOND LEGISLATURE
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0014| SECOND SESSION, 1996
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0015|
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0016|
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0017| January 29, 1996
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0018|
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0019|
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0020| Mr. Speaker:
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0021|
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0022| Your EDUCATION COMMITTEE, to whom has been referred
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0023|
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0024| HOUSE BILL 16
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0025|
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0001| has had it under consideration and reports same with
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0002| recommendation that it DO PASS, and thence referred to the
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0003| APPROPRIATIONS AND FINANCE COMMITTEE.
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0004|
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0005| Respectfully submitted,
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0006|
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0007|
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0008|
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0009|
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0010| Samuel F. Vigil, Chairman
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0011|
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0012|
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0013| Adopted Not Adopted
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0014|
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0015| (Chief Clerk) (Chief Clerk)
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0016|
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0017| Date
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0018|
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0019| The roll call vote was 8 For 1 Against
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0020| Yes: 8
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0021| No: Dolliver
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0022| Excused: Charley, Weeks
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0023| Absent: Nicely
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0024|
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0025|
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0001|
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0002| H0016EC1 State of New Mexico
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0003| House of Representatives
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0004|
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0005| FORTY-SECOND LEGISLATURE
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0006| SECOND SESSION, 1996
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0007|
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0008|
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0009| January 29, 1996
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0010|
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0011|
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0012| Mr. Speaker:
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0013|
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0014| Your JUDICIARY COMMITTEE, to whom has been referred
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0015|
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0016| HOUSE BILL 116
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0017|
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0018| has had it under consideration and reports same with
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0019| recommendation that it DO PASS, and thence referred to the
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0020| APPROPRIATIONS AND FINANCE COMMITTEE.
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0021|
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0022| Respectfully submitted,
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0023|
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0024|
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0025|
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0001|
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0002| Cisco McSorley, Chairman
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0003|
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0004|
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0005| Adopted Not Adopted
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0006|
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0007| (Chief Clerk) (Chief Clerk)
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0008|
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0009| Date
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0010|
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0011| The roll call vote was 8 For 3 Against
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0012| Yes: 8
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0013| No: Christensen, Gubbels, Larranaga
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0014| Excused: Alwin, Sanchez, R.G.
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0015| Absent: None
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0016|
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0017|
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0018|
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0019|
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0020| H0116JC1
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