0001|                        SENATE BILL 412
    |
0002|     42ND LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION,
    |
0003|     1996
    |
0004|                         INTRODUCED BY
    |
0005|                        VIRGIL O. RHODES
    |
0006|     
    |
0007|     
    |
0008|     
    |
0009|     
    |
0010|     
    |
0011|                             AN ACT
    |
0012|     RELATING TO EDUCATIONAL RETIREMENT; AMENDING A SECTION OF THE
    |
0013|     EDUCATIONAL RETIREMENT ACT TO EXTEND THE DATE TO PURCHASE
    |
0014|     SERVICE-CREDIT BY A MEMBER.
    |
0015|     
    |
0016|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
    |
0017|       Section 1.  Section 22-11-34 NMSA 1978 (being Laws 1967,
    |
0018|     Chapter 16, Section 157, as amended) is amended to read:
    |
0019|       "22-11-34.  ALLOWED SERVICE-CREDIT.--
    |
0020|            A.  A member shall be certified to have acquired
    |
0021|     allowed service-credit for those periods of time when he was:
    |
0022|                 (1)  employed prior to the effective date of the
    |
0023|     Educational Retirement Act in any federal educational program
    |
0024|     within New Mexico, including United States Indian schools and
    |
0025|     civilian conservation corps camps.  This service-credit shall be
    |
0001|     allowed without contribution;
    |
0002|                 (2)  engaged in military service that
    |
0003|     interrupted his employment in New Mexico, if he returned to his
    |
0004|     employment within eighteen months following honorable discharge. 
    |
0005|     This service-credit shall be allowed without contribution;
    |
0006|                 (3)  engaged in United States military service
    |
0007|     or the commissioned corps of the public health service from
    |
0008|     which he was honorably discharged if he contributes to the fund
    |
0009|     a sum equal to ten and one-half percent of his average annual
    |
0010|     salary for that period of time for which he has acquired earned
    |
0011|     service-credit under the Educational Retirement Act for each
    |
0012|     year of service-credit he desires to purchase.  Average annual
    |
0013|     salary shall be determined in accordance with rules promulgated
    |
0014|     by the board, but shall always be based upon actual salaries
    |
0015|     earned by the member where the actual salaries can be
    |
0016|     ascertained by the board.  The employer's contributions for
    |
0017|     service-credit shall not be paid by the employer.  The purchase
    |
0018|     of service-credit provided in this section shall be carried out
    |
0019|     by the member prior to <s>[July 1, 1992]</s> <u>July 1, 1998</u> or within
    |
0020|     three years after the date of the member's employment following
    |
0021|     service, whichever is later; or
    |
0022|                 (4)  employed:
    |
0023|                      (a)  in any public school or public
    |
0024|     institution of higher learning in another state, territory or
    |
0025|     possession of the United States;
    |
0001|                      (b)  in any United States military
    |
0002|     dependents' school operated by a branch of the armed forces of
    |
0003|     the United States;              
    |
0004|                           (c)  as provided in Paragraph (1) of this
    |
0005|     subsection after the effective date of the Educational
    |
0006|     Retirement Act; or
    |
0007|                      (d)  in any private school or institution
    |
0008|     of higher learning in New Mexico whose education program is
    |
0009|     accredited or approved by the state board at the time of
    |
0010|     employment.
    |
0011|            B.  The member or employer under Paragraph (4) of
    |
0012|     Subsection A of this section shall contribute to the fund for
    |
0013|     each year of allowed service-credit desired an amount equal to
    |
0014|     twelve percent of the member's annual salary at the time payment
    |
0015|     is made if the member is employed or twelve percent times the
    |
0016|     member's annual salary during the member's last year of
    |
0017|     employment if the member is not employed at the time of payment. 
    |
0018|     Contributions paid for the member who is not employed shall bear
    |
0019|     interest at the average rate earned by the fund during the five-fiscal-year period immediately preceding the date of payment. 
    |
0020|     Such interest shall run from the date the member last terminated
    |
0021|     employment to the date of payment.  Payment pursuant to
    |
0022|     Paragraph (4) of Subsection A of this section may be made in
    |
0023|     installments, at the discretion of the board, over a period of
    |
0024|     not to exceed one year, and, if the sum paid does not equal the
    |
0025|     amount required for any full year of allowed service-credit, the
    |
0001|     member shall acquire allowed service-credit for that period of
    |
0002|     time which is proportionate to the payment made.  Half credit
    |
0003|     may be allowed without contribution for not more than ten years
    |
0004|     of the educational service described by Subparagraph (a) of
    |
0005|     Paragraph (4) of Subsection A of this section if that service
    |
0006|     was prior to June 13, 1953 and if the member was employed in New
    |
0007|     Mexico prior to June 13, 1953 in any position covered by the
    |
0008|     Educational Retirement Act or any law repealed thereby.
    |
0009|            C.  No member shall be certified to have acquired
    |
0010|     allowed service-credit:
    |
0011|                 (1)  under any single paragraph or the
    |
0012|     combination of only Paragraphs (1) and (4) or only Paragraphs
    |
0013|     (2) and (3) of Subsection A of this section in excess of five
    |
0014|     years; or
    |
0015|                 (2)  in excess of ten years for any other
    |
0016|     combination of Paragraphs (1) through (4) of Subsection A of
    |
0017|     this section.
    |
0018|            D.  The provisions of this section are made
    |
0019|     applicable to the services described prior to as well as after
    |
0020|     the effective date of the Educational Retirement Act."
    |
0021|                              
    |
0022|     
    |
0023|     
    |
0024|     
    |
0025|     
    |
0001|     
    |
0002|     
    |
0003|     
    |
0004|     
    |
0005|     
    |
0006|     
    |
0007|     
    |
0008|     
    |
0009|     
    |
0010|     
    |
0011|     
    |
0012|     
    |
0013|     
    |
0014|     
    |
0015|     
    |