0001| SENATE EDUCATION COMMITTEE SUBSTITUTE FOR
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0002| SENATE BILL 1258
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0003| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0004|
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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| RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE;
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0013| AMENDING THE EDUCATIONAL RETIREMENT ACT TO ALLOW PROVISIONAL
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0014| MEMBERS TO ACQUIRE EARNED SERVICE CREDIT FOR CERTAIN PERIODS OF
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0015| EMPLOYMENT.
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0016|
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0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018| Section 1. Section 22-11-17 NMSA 1978 (being Laws 1967,
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0019| Chapter 16, Section 141, as amended) is amended to read:
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0020| "22-11-17. PROVISIONAL MEMBERSHIP.--
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0021| A. A provisional member shall be covered by the
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0022| provisions of the Educational Retirement Act but shall have the
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0023| option to exempt himself from its coverage. A provisional
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0024| member exempting himself from the provisions of the Educational
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0025| Retirement Act shall not be entitled to the benefits or
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0001| coverage under any other state retirement program except as
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0002| otherwise provided in this section. This section shall not
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0003| affect any rights a provisional member may have under the
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0004| provisions of the federal Social Security Act. This option to
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0005| exempt must be exercised within one year of employment
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0006| according to the regulations adopted by the board. Any
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0007| provisional member exempting himself pursuant to this section
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0008| shall be entitled to a refund of any contributions made
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0009| pursuant to the Educational Retirement Act prior to the
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0010| exercise of the exemption.
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0011| B. A provisional member not exempt from the
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0012| coverage of the Educational Retirement Act shall have the right
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0013| to earned service-credit for periods of employment subsequent
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0014| to July 1, 1957 and prior to July 1, 1961, provided that all
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0015| contributions at the rates in effect during that period of
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0016| employment are paid. If a provisional member chooses to make
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0017| the contributions for that period, the local administrative
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0018| unit employing a member during that period shall pay the
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0019| employer's contribution at the rate in effect during that
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0020| period of employment. Contributions prior to July 1, 1961 by
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0021| both the provisional member and the local administrative unit
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0022| shall bear interest at the rate of three percent a year from
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0023| July 1, 1961 until paid.
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0024| C. A provisional member exempt from the coverage of
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0025| the provisions of the Educational Retirement Act shall have the
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0001| right to revoke the exemption at any time; however, within the
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0002| first two weeks following the beginning of each school year,
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0003| such provisional member shall be informed by the local
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0004| administrative unit in writing of his right to revoke the
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0005| exemption and shall sign a statement to the effect that he does or
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0006| does not wish to revoke the exemption. A copy of such statement
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0007| shall be kept by the local administrative unit in the personnel
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0008| file of the provisional member. Any provisional member who
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0009| revokes his exemption from coverage shall have the right to
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0010| acquire earned service-credit for periods of employment during
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0011| which the exemption or exemptions were in force, under the
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0012| following conditions:
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0013| (1) both the member and the administrative unit
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0014| contributions, at the rates in effect during the periods of
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0015| employment and applied to the earnings of the member during such
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0016| periods, shall be paid to the fund, together with interest, at a
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0017| rate equal to the actuarial assumption rate by the board;
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0018| (2) member and administrative unit
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0019| contributions, together with interest, may both be paid by the
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0020| member; or
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0021| (3) if the member tenders payment of his
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0022| contributions, together with interest, the local administrative
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0023| unit by whom he was employed may, but shall not be obligated to,
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0024| pay the administrative unit contributions, together with interest;
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0025| and
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0001| (4) the right of a member to acquire earned
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0002| service-credit in accordance with this subsection shall expire on
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0003| June 30, 2001.
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0004| D. A provisional member employed by the board, the
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0005| department of education, the New Mexico school for the deaf, the
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0006| northern New Mexico state school, the New Mexico school for the
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0007| visually handicapped, the New Mexico girls' school, the New Mexico
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0008| boys' school or the Los Lunas mental hospital shall have the
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0009| option of qualifying for coverage under either the Educational
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0010| Retirement Act or the public employees retirement association of
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0011| New Mexico. This option shall be exercised by filing a written
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0012| election with both the educational retirement director and the
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0013| [director] executive secretary of the public employees retirement
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0014| association of New Mexico. This election shall be made within six
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0015| months after employment and shall be irrevocable regardless of
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0016| subsequent employment or reemployment in any administrative unit
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0017| enumerated in this subsection. Until this election is made, the
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0018| provisional member shall be covered and shall be required to make
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0019| contributions under the Educational Retirement Act."
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