0001|                            HOUSE BILL 328
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                       JUDY VANDERSTAR RUSSELL
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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|                                AN ACT
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0011|     RELATING TO MUNICIPAL EMPLOYEE RETIREMENT; AMENDING THE PUBLIC
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0012|     EMPLOYEES RETIREMENT ACT TO ALLOW A MUNICIPAL AFFILIATED
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0013|     PUBLIC EMPLOYER TO CONTRIBUTE UP TO SEVENTY-FIVE PERCENT OF
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0014|     EMPLOYEES' MEMBER 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 10-11-5 NMSA 1978 (being Laws 1987,
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0018|     Chapter 253, Section 5) is amended to read:
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0019|          "10-11-5.  CREDITED SERVICE--MUNICIPAL ELECTION TO MAKE
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0020|     EMPLOYEE CONTRIBUTIONS.--A municipal affiliated public
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0021|     employer may elect by resolution of its governing body and in
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0022|     the manner prescribed by the retirement board to be
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0023|     responsible for making contributions of <u>up to</u> seventy-five
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0024|     percent of its employees' member contributions as follows:
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0025|               A.  the resolution shall be irrevocable, shall
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<center>- 1 -</center>

0001|     apply to all employees or else to specified employee divisions
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0002|     of the municipal affiliated public employer and shall be
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0003|     effective the first pay period of the month following the
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0004|     filing of the resolution with the retirement board;
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0005|               B.  the portion of the employee contributions made
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0006|     by the municipal affiliated public employer on behalf of a
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0007|     member shall be credited to the member's individual
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0008|     accumulated member contribution account in the member
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0009|     contribution fund.  The member shall be responsible for the
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0010|     difference between the contributions the member would be
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0011|     required to make if the municipal affiliated public employer
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0012|     had not made the election provided for in this section and the
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0013|     amount contributed by the municipal affiliated public employer
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0014|     under the provisions of this section; <s>[and]</s>
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0015|               C.  pensions payable to members whose municipal
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0016|     affiliated public employer makes the election provided for in
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0017|     this section shall be the same as if the member had made the
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0018|     entire member contribution; <u>and</u>
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0019|               <u>D.  any municipal affiliated public employer
</u>    |
<u></u>0020| <u>    increasing the percentage amount of the employees' member
</u>    |
<u></u>0021| <u>    contributions it elects to make pursuant to this section shall
</u>    |
<u></u>0022| <u>    submit a resolution to the association by July 1 of the fiscal
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<u></u>0023| <u>    year in which the increase will take place indicating the
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<u></u>0024| <u>    percentage of the employee contribution that will be made by
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<u></u>0025| <u>    the municipal affiliated public employer</u>."
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<center>- 2 -</center>

0001|          Section 2.  EFFECTIVE DATE--CONTINGENCY--INTERNAL REVENUE
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0002|     SERVICE RULING.--On or before May 31, 1998, the public
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0003|     employees retirement association shall seek a ruling from the
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0004|     internal revenue service that the provisions of Section 1 of
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0005|     this act do not jeopardize the qualified status of the public
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0006|     employees retirement plan.  The provisions of Section 1 of
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0007|     this act shall become effective on the date the association
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0008|     receives a favorable ruling.  If the association receives an
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0009|     unfavorable ruling, the provisions of Section 1 of this act
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0010|     are null and void.
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0011|                            - 3 -
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