0001| HOUSE BILL 341
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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| BOBBIE K. MALLORY
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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 VOLUNTEER FIREFIGHTERS RETIREMENT; PROVIDING THAT
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0012| RETIREES FROM ANOTHER STATE PROGRAM MAY ALSO BE MEMBERS UNDER
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0013| THE VOLUNTEER FIREFIGHTERS RETIREMENT ACT; PROVIDING THAT
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0014| MEMBERS UNDER THE EDUCATIONAL RETIREMENT ACT MAY ALSO BE
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0015| MEMBERS UNDER THE VOLUNTEER FIREFIGHTERS RETIREMENT ACT;
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0016| MAKING AN APPROPRIATION.
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0017|
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0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0019| Section 1. Section 10-11A-2 NMSA 1978 (being Laws 1983,
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0020| Chapter 263, Section 2) is amended to read:
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0021| "10-11A-2. DEFINITIONS.--As used in the Volunteer
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0022| Firefighters Retirement Act:
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0023| A. "association" means the public employees
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0024| retirement association;
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0025| B. "board" means the retirement board of the
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0001| public employees retirement association;
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0002| C. "fire department" means any volunteer fire
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0003| department certified by the state fire marshal's office;
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0004| D. "fund" means the volunteer firefighters
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0005| retirement fund; and
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0006| E. "member" means any volunteer nonsalaried
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0007| firefighter who is listed as an active member on the rolls of
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0008| a fire department and whose first year of service credit was
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0009| accumulated during or after the year he attained the age of
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0010| sixteen and no later than during the year in which he attained
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0011| the age of forty-five. [Excluded from membership is any
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volunteer nonsalaried firefighter who has been retired by or
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is receiving an annuity from any other retirement, pension or
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annuity plan created and established by the state or any of
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its political subdivisions, except the state police pension
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fund established under the provisions of Sections 29-4-1
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through 29-4-11 NMSA 1978.]"
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0018| Section 2. Section 10-11A-3 NMSA 1978 (being Laws 1983,
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0019| Chapter 263, Section 3, as amended) is amended to read:
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0020| "10-11A-3. VOLUNTEER FIREFIGHTERS RETIREMENT FUND--
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0021| CREATION--TRANSFER OF FUNDS FROM THE FIRE PROTECTION FUND.--
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0022| A. There is created the "volunteer firefighters
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0023| retirement fund" in the state treasury. All annuities and
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0024| benefits in lieu of annuities shall be paid from the fund as
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0025| provided in the Volunteer Firefighters Retirement Act.
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0001| B. [Beginning] In fiscal year 1998, the state
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0002| treasurer shall transfer [annually] on or before the last
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0003| day of July seven hundred fifty thousand dollars ($750,000)
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0004| plus an additional two hundred fifty thousand dollars
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0005| ($250,000) for fiscal year 1998 plus an additional two hundred
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0006| fifty thousand dollars ($250,000) for fiscal year 1999 [plus
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an additional five hundred thousand dollars ($500,000) for
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fiscal year 2000] from the fire protection fund to the credit
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0009| of the volunteer firefighters retirement fund.
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0010| C. In July of fiscal year 2000 and in July of
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0011| each year thereafter, the executive director of the
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0012| association shall calculate the amount necessary to amortize
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0013| the unfunded actuarial accrued liability of the firefighters
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0014| retirement fund. Upon certification by the executive director
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0015| to the state treasurer, the state treasurer shall transfer the
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0016| amount from the fire protection fund to the firefighter
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0017| retirement fund. Amounts to be transferred pursuant to this
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0018| subsection are appropriated."
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0019| Section 3. Section 10-13A-4 NMSA 1978 (being Laws 1992,
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0020| Chapter 116, Section 16, as amended) is amended to read:
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0021| "10-13A-4. NORMAL RETIREMENT--PENSION BENEFIT.--If a
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0022| member has one month or more of eligible reciprocal service
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0023| credit under each of two or more state systems, the following
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0024| provisions shall apply, together with the applicable
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0025| provisions of the Public Employees Retirement Reciprocity Act,
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0001| the Educational Retirement Act, the Public Employees
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0002| Retirement Act, the Judicial Retirement Act, the Magistrate
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0003| Retirement Act and the rules and regulations for those acts
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0004| promulgated by the board:
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0005| A. a member's total eligible reciprocal service
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0006| credit under all state systems shall be used in satisfying the
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0007| service credit requirements for normal retirement under the
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0008| state system from which the member retires;
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0009| B. when a member with eligible reciprocal service
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0010| credit retires, the member shall receive a pension that is
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0011| equal to the sum of the pensions attributable to the service
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0012| credit the member has accrued under each state system, subject
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0013| to the following restrictions:
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0014| (1) the salary used in calculating each
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0015| component of the pension shall be the salary, average annual
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0016| salary or final average salary, as those terms are defined
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0017| under the applicable act, earned while the member was covered
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0018| under the state system calculating that component as follows:
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0019| (a) the member's entire salary history
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0020| under the public employees retirement system and the
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0021| educational retirement system shall be used to determine the
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0022| final average salary and annual average salary under each
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0023| state system if the member has eligible reciprocal service
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0024| credit under both state systems;
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0025| (b) the member's entire salary history
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0001| under the educational retirement system and the judicial
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0002| retirement system or the magistrate retirement system, or
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0003| both, shall be used to determine the average annual salary
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0004| under the Educational Retirement Act if the member has
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0005| eligible reciprocal service credit under those state systems,
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0006| but has less than five years of service credit under the
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0007| educational retirement system;
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0008| (c) the member's salary history under
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0009| the educational retirement system shall be used to determine
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0010| the average annual salary under that system if the member has
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0011| eligible reciprocal service credit under the Educational
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0012| Retirement Act and the Judicial Retirement Act or the
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0013| Magistrate Retirement Act, or both, and has five or more years
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0014| of service credit under the educational retirement system; or
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0015| (d) if a member has less than twelve
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0016| months of credited service under the judicial retirement
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0017| system or the magistrate retirement system, the final year's
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0018| salary shall be the aggregate amount of salary paid to the
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0019| member for the period of credited service divided by the
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0020| member's credited service times twelve;
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0021| (2) the member shall meet the age and service
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0022| credit requirements for retirement under each applicable state
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0023| system before the component of the pension attributable to
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0024| service credit accrued under that state system may be paid;
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0025| provided the member's total eligible reciprocal service credit
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0001| under all state systems shall be used in satisfying the
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0002| service credit requirement for normal retirement under each
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0003| state system;
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0004| (3) the member shall terminate employment
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0005| under all state systems before the member may receive a
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0006| pension from any state system; and
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0007| (4) the member shall file an application for
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0008| retirement under the state system under which the member was
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0009| last employed, in accordance with the requirements of that
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0010| state system;
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0011| C. subject to the restrictions contained in this
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0012| section, the component of the pension attributable to each
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0013| state system shall be calculated based upon:
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0014| (1) the member's eligible reciprocal service
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0015| credit acquired as a member of that state system; and
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0016| (2) the pension calculation formula
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0017| applicable to the member under that state system;
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0018| D. the following limitations shall apply to
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0019| pensions calculated under the Public Employees Retirement
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0020| Reciprocity Act:
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0021| (1) in no case shall the total amount of the
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0022| pension, calculated under the Public Employees Retirement
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0023| Reciprocity Act and received by a member attributable to all
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0024| state systems exceed the amount allowable under Section 415 of
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0025| the Internal Revenue Code; and
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0001| (2) where the member has less than five years
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0002| of service credit in one state system, the pension from that
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0003| state system shall not exceed six hundred twenty-five one
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0004| thousandths percent per month of service under that state
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0005| system multiplied by the following amount applicable under
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0006| that state system:
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0007| (a) one-twelfth of the member's
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0008| magistrate salary received during the last year in office;
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0009| (b) one-twelfth of the member's
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0010| judicial salary received during the last year in office; or
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0011| (c) the member's final average salary
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0012| as defined pursuant to the Public Employees Retirement Act;
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0013| E. the state system from which a member with
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0014| eligible reciprocal service credit retires shall be the payor
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0015| fund for the pension; provided that:
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0016| (1) each state system shall reimburse the
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0017| payor fund the amount of the component of the pension
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0018| attributable to service credit accrued under that state
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0019| system; and
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0020| (2) reimbursements shall be made in the
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0021| manner and frequency determined by the boards;
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0022| F. in no case shall any member retire from more
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0023| than one state system; provided that, for purposes of this
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0024| subsection, "state system" does not include the system
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0025| established for volunteer firefighters pursuant to the
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0001| Volunteer Firefighters Retirement Act; and
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0002| G. if a member retires from any state system with
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0003| eligible reciprocal service credit and is subsequently
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0004| employed by any employer covered by a state system, the
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0005| retired member's eligibility to continue to receive pension
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0006| payments shall be governed by the retirement act governing the
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0007| state system from which the member retired. Subsequent
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0008| membership in the retirement program under which the
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0009| subsequent employee is covered shall be governed by that
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0010| retirement act."
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0011| Section 4. Section 22-11-16 NMSA 1978 (being Laws 1967,
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0012| Chapter 16, Section 140) is amended to read:
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0013| "22-11-16. REGULAR MEMBERSHIP.--Except as otherwise
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0014| provided in the Educational Retirement Act, being a regular
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0015| member shall be a condition of employment and shall exclude
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0016| membership and participation in any other state retirement
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0017| program except the program established for volunteer
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0018| firefighters pursuant to the Volunteer Firefighters Retirement
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0019| Act."
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0020|
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