0001|                      SENATE JOINT RESOLUTION 6
    |
0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
    |
0003|                            INTRODUCED BY
    |
0004|                          BEN D. ALTAMIRANO
    |
0005|     
    |
0006|                                   
    |
0007|     
    |
0008|     
    |
0009|     
    |
0010|                          A JOINT RESOLUTION
    |
0011|     PROPOSING AN AMENDMENT TO THE CONSTITUTION OF NEW MEXICO TO
    |
0012|     PROHIBIT THE EXPENDITURE OR ENCUMBRANCE OF TRUST FUNDS CREATED
    |
0013|     FOR PUBLIC EMPLOYEE RETIREMENT FOR ANY PURPOSE EXCEPT FOR THE
    |
0014|     SOLE AND EXCLUSIVE BENEFIT OF THE TRUST BENEFICIARIES;
    |
0015|     PROVIDING FOR THE ADMINISTRATION OF THE TRUST FUNDS; AFFIRMING
    |
0016|     CERTAIN PROPERTY RIGHTS.
    |
0017|     
    |
0018|     BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
    |
0019|          Section 1.  It is proposed to amend Article 20 of the
    |
0020|     constitution of New Mexico by adding a new Section 22 to read:
    |
0021|               "A.  All funds, assets, proceeds, income,
    |
0022|     contributions, gifts and payments from any source whatsoever
    |
0023|     paid into or held by a public employees retirement system or
    |
0024|     an educational retirement system created by the laws of this
    |
0025|     state shall be held by each respective system in a trust fund
    |
<center>- 1 -</center>

0001|     to be administered and invested by each respective system for
    |
0002|     the sole and exclusive benefit of the members, retirees and
    |
0003|     other beneficiaries of that system.  Expenditures from a
    |
0004|     system trust fund shall only be made for the benefit of the
    |
0005|     trust beneficiaries and for expenses of administering the
    |
0006|     system.  A system trust fund shall never be used, diverted,
    |
0007|     loaned, assigned, pledged, invested, encumbered or
    |
0008|     appropriated for any other purpose.  To the extent consistent
    |
0009|     with the provisions of this section, each trust fund shall be
    |
0010|     invested and the systems administered as provided by law.
    |
0011|               B.  The retirement board of the public employees
    |
0012|     retirement system and the board of the educational retirement
    |
0013|     system shall be the trustees for their respective systems and
    |
0014|     have the sole and exclusive fiduciary duty and responsibility
    |
0015|     for administration and investment of the trust fund held by
    |
0016|     their respective systems.  The retirement board of the public
    |
0017|     employees retirement system shall consist of no fewer than
    |
0018|     seven members who shall be elected by the members or retirees
    |
0019|     of that system, in a manner provided by law, and up to two ex
    |
0020|     officio members who may be provided by law.  The board of the
    |
0021|     educational retirement system shall be selected in a manner
    |
0022|     provided by law.
    |
0023|               C.  The board of each system shall employ a
    |
0024|     director and such other professional, technical, clerical and
    |
0025|     other personnel as are required for the operation of its
    |
<center>- 2 -</center>

0001|     system.  The board of each system shall fix the compensation
    |
0002|     for its employee services.  In addition to any other
    |
0003|     contractors deemed necessary to administer its system, the
    |
0004|     board of each system shall contract with an independent
    |
0005|     actuary.  Each board shall have the sole and exclusive power
    |
0006|     and authority to adopt actuarial assumptions for their system
    |
0007|     based upon the recommendations made by the independent actuary
    |
0008|     with whom it contracts.  The legislature shall not enact any
    |
0009|     law that increases the benefits paid by either system in any
    |
0010|     manner or changes the funding formula for any retirement plan
    |
0011|     unless adequate sources of funding are provided in accordance
    |
0012|     with a prior certification of the cost by the board of the
    |
0013|     affected system based on accepted actuarial standards.
    |
0014|               D.  Upon meeting the minimum service requirements
    |
0015|     of an applicable retirement plan created by law for employees
    |
0016|     of the state or any of its political subdivisions or
    |
0017|     institutions, a member of a plan shall acquire a vested
    |
0018|     property right with due process protections under the
    |
0019|     applicable provisions of the New Mexico and United States
    |
0020|     constitutions.
    |
0021|               E.  Nothing in this section shall be construed to
    |
0022|     prohibit modifications to retirement benefits that enhance or
    |
0023|     preserve the actuarial soundness of an affected trust fund or
    |
0024|     individual retirement plan."
    |
0025|          Section 2.  The amendment proposed by this resolution
    |
<center>- 3 -</center>

0001|     shall be submitted to the people for their approval or
    |
0002|     rejection at the next general election or at any special
    |
0003|     election prior to that date which may be called for that
    |
0004|     purpose.
    |
0005|                              
    |