0001|                           HOUSE BILL 1210
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0002|     43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003|                            INTRODUCED BY
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0004|                           DAVID M. PARSONS
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0005|     
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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|     
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0011|                                AN ACT
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0012|     AMENDING THE PUBLIC EMPLOYEES RETIREMENT ACT; ALLOWING PURCHASE
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0013|     OF SERVICE CREDIT FOR CERTAIN PERIODS OF PROBATIONARY
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0014|     EMPLOYMENT.
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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 10-11-4 NMSA 1978 (being Laws 1987,
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0018|     Chapter 253, Section 4, as amended) is amended to read:
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0019|          "10-11-4.  SERVICE CREDIT--REQUIREMENTS FOR--FORFEITURE--
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0020|     REINSTATEMENT.--
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0021|               A.  Personal service rendered an affiliated public
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0022|     employer by a member shall be credited to the member's service
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0023|     credit account in accordance with retirement board rules and
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0024|     regulations.  Service shall be credited to the nearest month. 
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0025|     In no case shall any member be credited with a year of service
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0001|     for less than twelve months of service in any calendar year or
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0002|     more than a month of service for all service in any calendar
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0003|     month or more than a year of service for all service in any
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0004|     calendar year.
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0005|               B.  Personal service rendered an affiliated public
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0006|     employer prior to August 1, 1947 shall be credited to a member
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0007|     if the member acquires one year of service credit for personal
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0008|     service rendered an affiliated public employer.
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0009|               C.  Personal service rendered an affiliated public
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0010|     employer after July 31, 1947 but prior to the date the public
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0011|     employer became an affiliated public employer is prior service
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0012|     and shall be credited to a member if:
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0013|                    (1)  the member acquires five years of service
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0014|     credit for personal service rendered an affiliated public
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0015|     employer; and
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0016|                    (2)  the member pays the association the amount
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0017|     determined in accordance with Subsection <s>[D]</s> <u>E</u> of this
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0018|     section.
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0019|               <u>D.  Personal service rendered a municipal
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<u></u>0020| <u>    affiliated public employer that was not credited to the
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<u></u>0021| <u>    member's service credit account because the service was
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<u></u>0022| <u>    rendered during a probationary employment period is prior
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<u></u>0023| <u>    service and shall be credited to the member if:
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<u></u>0024| <u>                   (1)  the member acquires five years of service
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<u></u>0025| <u>    credit for personal service rendered an affiliated public
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<u></u>0001| <u>    employer; and
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<u></u>0002| <u>                   (2)  the member pays the association the amount
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<u></u>0003| <u>    determined in accordance with Subsection E of this section.</u>
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0004|               <s>[D.]</s> <u>E.</u>  The purchase cost for each month of
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0005|     service credit purchased under the provisions of this section
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0006|     is equal to the member's final average salary multiplied by the
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0007|     sum of the member contribution rate and employer contribution
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0008|     rate determined in accordance with the coverage plan applicable
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0009|     to the member at the time of the written election to purchase. 
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0010|     Full payment shall be made in a single lump-sum amount in
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0011|     accordance with the procedures established by the <u>retirement</u>
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0012|     board.  The portion of the purchase cost derived from the
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0013|     employer contribution rate shall be credited to the
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0014|     <s>[employer]</s> <u>employers</u> accumulation fund and shall not be
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0015|     refunded to the member in the event of cessation of membership. 
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0016|     In no case shall any member be credited with a month of service
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0017|     for less than the purchase cost as defined in this section.
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0018|               <s>[E.]</s> <u>F.</u>  Service credit shall be forfeited if a
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0019|     member terminates employment with an affiliated public employer
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0020|     and withdraws the member's accumulated member contributions.
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0021|               <s>[F.]</s> <u>G.</u>  A member or former member who is a
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0022|     member of another state system or the educational retirement
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0023|     system <u>and</u> who has forfeited service credit by withdrawal of
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0024|     member contributions may reinstate the forfeited service credit
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0025|     by repaying the amount withdrawn plus compound interest from
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0001|     the date of withdrawal to the date of repayment at the rate set
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0002|     by the <u>retirement</u> board.  Withdrawn member contributions may
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0003|     be repaid in increments of one year in accordance with the
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0004|     procedures established by the <u>retirement</u> board.  Full payment
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0005|     of each one-year increment shall be made in a single lump-sum
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0006|     amount in accordance with procedures established by the
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0007|     <u>retirement</u> board."
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0008|                              
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