0001| HOUSE JOINT RESOLUTION 11
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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| GARY K. KING
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0006|
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0008|
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0009|
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0010| A JOINT RESOLUTION
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0011| PROPOSING AN AMENDMENT TO THE CONSTITUTION OF NEW MEXICO TO
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0012| PROHIBIT THE EXPENDITURE OR ENCUMBRANCE OF TRUST FUNDS CREATED
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0013| FOR PUBLIC EMPLOYEE RETIREMENT FOR ANY PURPOSE EXCEPT FOR THE
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0014| SOLE AND EXCLUSIVE BENEFIT OF THE TRUST BENEFICIARIES;
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0015| PROVIDING FOR THE ADMINISTRATION OF THE TRUST FUNDS; AFFIRMING
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0016| CERTAIN PROPERTY RIGHTS.
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0017|
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0018| BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0019| Section 1. It is proposed to amend Article 20 of the
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0020| constitution of New Mexico by adding a new Section 22 to read:
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0021| "A. All funds, assets, proceeds, income,
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0022| contributions, gifts and payments from any source whatsoever
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0023| paid into or held by a public employees retirement system or
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0024| an educational retirement system created by the laws of this
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0025| state shall be held by each respective system in a trust fund
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<center>- 1 -</center>
0001| to be administered and invested by each respective system for
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0002| the sole and exclusive benefit of the members, retirees and
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0003| other beneficiaries of that system. Expenditures from a
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0004| system trust fund shall only be made for the benefit of the
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0005| trust beneficiaries and for expenses of administering the
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0006| system. A system trust fund shall never be used, diverted,
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0007| loaned, assigned, pledged, invested, encumbered or
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0008| appropriated for any other purpose. To the extent consistent
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0009| with the provisions of this section, each trust fund shall be
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0010| invested and the systems administered as provided by law.
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0011| B. The retirement board of the public employees
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0012| retirement system and the board of the educational retirement
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0013| system shall be the trustees for their respective systems and
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0014| have the sole and exclusive fiduciary duty and responsibility
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0015| for administration and investment of the trust fund held by
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0016| their respective systems. The retirement board of the public
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0017| employees retirement system shall consist of no fewer than
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0018| seven members who shall be elected by the members or retirees
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0019| of that system, in a manner provided by law, and up to two ex-
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0020| officio members who may be provided by law. The board of the
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0021| educational retirement system shall be selected in a manner
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0022| provided by law.
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0023| C. The board of each system shall employ a
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0024| director and such other professional, technical, clerical and
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0025| other personnel as are required for the operation of its
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<center>- 2 -</center>
0001| system. The board of each system shall fix the compensation
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0002| for its employee services. In addition to any other
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0003| contractors deemed necessary to administer its system, the
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0004| board of each system shall contract with an independent
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0005| actuary. Each board shall have the sole and exclusive power
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0006| and authority to adopt actuarial assumptions for their system
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0007| based upon the recommendations made by the independent actuary
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0008| with whom it contracts. The legislature shall not enact any
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0009| law that increases the benefits paid by either system in any
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0010| manner or changes the funding formula for any retirement plan
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0011| unless adequate sources of funding are provided in accordance
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0012| with a prior certification of the cost by the board of the
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0013| affected system based on accepted actuarial standards.
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0014| D. Upon meeting the minimum service requirements
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0015| of an applicable retirement plan created by law for employees
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0016| of the state or any of its political subdivisions or
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0017| institutions, a member of a plan shall acquire a vested
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0018| property right with due process protections under the
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0019| applicable provisions of the New Mexico and United States
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0020| constitutions.
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0021| E. Nothing in this section shall be construed to
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0022| prohibit modifications to retirement benefits that enhance or
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0023| preserve the actuarial soundness of an affected trust fund or
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0024| individual retirement plan."
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0025| Section 2. The amendment proposed by this resolution
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<center>- 3 -</center>
0001| shall be submitted to the people for their approval or
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0002| rejection at the next general election or at any special
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0003| election prior to that date which may be called for that
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0004| purpose.
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0005|
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