HOUSE APPROPRIATIONS AND FINANCE COMMITTEE SUBSTITUTE FOR
HOUSE LABOR AND HUMAN RESOURCES COMMITTEE SUBSTITUTE FOR
HOUSE BILL 798
49th legislature - STATE OF NEW MEXICO - first session, 2009
AN ACT
RELATING TO PUBLIC EMPLOYEES RETIREMENT; AMENDING THE PUBLIC EMPLOYEES RETIREMENT ACT TO CHANGE THE RETIREMENT ELIGIBILITY FOR NEW MEMBERS; RECONCILING MULTIPLE AMENDMENTS TO THE SAME SECTION OF LAW IN LAYS 2003.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 10-11-26.2 NMSA 1978 (being Laws 1994, Chapter 128, Section 3) is amended to read:
"10-11-26.2. STATE GENERAL MEMBER COVERAGE PLAN 3--AGE AND SERVICE CREDIT REQUIREMENTS FOR NORMAL RETIREMENT.--
A. Under state general member coverage plan 3:
(1) for a member who is a peace officer and for a member who is not a peace officer but was a retired member or a member on June 30, 2010, the age and service credit requirements for normal retirement are:
[A.] (a) age sixty-five years or older and five or more years of service credit;
[B.] (b) age sixty-four years and eight or more years of service credit;
[C.] (c) age sixty-three years and eleven or more years of service credit;
[D.] (d) age sixty-two years and fourteen or more years of service credit;
[E.] (e) age sixty-one years and seventeen or more years of service credit;
[F.] (f) age sixty years and twenty or more years of service credit; and
[G.] (g) any age and twenty-five or more years of service credit; and
(2) for a member who is not a peace officer and was not a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:
(a) age sixty-seven years or older and five or more years of service credit;
(b) any age if the sum of the member's age and years of service credit equals at least eighty; or
(c) any age and thirty or more years of service credit.
B. As used in this section, "peace officer" means any employee of the state with a duty to maintain public order or to make arrests for crime, whether that duty extends to all crimes or is limited to specific crimes, and who is not specifically covered by another coverage plan."
Section 2. Section 10-11-27 NMSA 1978 (being Laws 1987, Chapter 253, Section 27, as amended by Laws 2003, Chapter 268, Section 9 and by Laws 2003, Chapter 269, Section 1) is amended to read:
"10-11-27. STATE POLICE MEMBER AND ADULT CORRECTIONAL OFFICER MEMBER COVERAGE PLAN 1--APPLICABILITY.--
A. State police member and adult correctional officer member coverage plan 1 is applicable to state police members who are not specifically covered by another coverage plan and to adult correctional officer members. [The credited service of a state police member who has held the permanent rank of patrolman, sergeant, lieutenant or captain and does not hold an exempt rank or who is assigned to the aircraft division as a pilot, or of an adult correctional officer member, shall have actual credited service increased by twenty percent] For the purposes of state police member and adult correctional officer member coverage plan 1, a member shall have actual service credit increased by twenty percent if that member was a retired member or a member on June 30, 2010 and:
(1) is a state police member who holds the permanent rank of patrolman, sergeant, lieutenant or captain and does not hold an exempt rank;
(2) is a state police member who is assigned to the aircraft division as a pilot; or
(3) is an adult correctional officer member.
B. State police member and adult correctional officer member coverage plan 1 is applicable to adult correctional officer members in the first full pay period after July 1, 2004 if the retirement board certifies to the secretary of state that, of those adult correctional officer members to be covered under state police member and adult correctional officer member coverage plan 1, a majority of the members voting have voted to approve adoption of that plan at an election conducted pursuant to [Section 16 of this 2003 act] Laws 2003, Chapter 268, Section 16."
Section 3. Section 10-11-45 NMSA 1978 (being Laws 1987, Chapter 253, Section 45) is amended to read:
"10-11-45. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 1--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal general member coverage plan 1:
A. for a member who was a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:
[A.] (1) age sixty-five years or older and five or more years of [credited] service credit;
[B.] (2) age sixty-four years and eight or more years of [credited] service credit;
[C.] (3) age sixty-three years and eleven or more years of [credited] service credit;
[D.] (4) age sixty-two years and fourteen or more years of [credited] service credit;
[E.] (5) age sixty-one years and seventeen or more years of [credited] service credit;
[F.] (6) age sixty years and twenty or more years of [credited] service credit; or
[G.] (7) any age and twenty-five or more years of [credited] service credit; and
B. for a member who was not a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:
(1) age sixty-seven years or older and five or more years of service credit;
(2) any age if the sum of the member's age and years of service credit equals at least eighty; or
(3) any age and thirty or more years of service credit."
Section 4. Section 10-11-51 NMSA 1978 (being Laws 1987, Chapter 253, Section 51) is amended to read:
"10-11-51. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 2--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal general member coverage plan 2:
A. for a member who was a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:
[A.] (1) age sixty-five years or older and five or more years of [credited] service credit;
[B.] (2) age sixty-four years and eight or more years of [credited] service credit;
[C.] (3) age sixty-three years and eleven or more years of [credited] service credit;
[D.] (4) age sixty-two years and fourteen or more years of [credited] service credit;
[E.] (5) age sixty-one years and seventeen or more years of [credited] service credit;
[F.] (6) age sixty years and twenty or more years of [credited] service credit; or
[G.] (7) any age and twenty-five or more years of [credited] service credit; and
B. for a member who was not a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:
(1) age sixty-seven years or older and five or more years of service credit;
(2) any age if the sum of the member's age and years of service credit equals at least eighty; or
(3) any age and thirty or more years of service credit."
Section 5. Section 10-11-55.2 NMSA 1978 (being Laws 1993, Chapter 58, Section 2) is amended to read:
"10-11-55.2. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 3--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal general member coverage plan 3:
A. for a member who was a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:
[A.] (1) age sixty-five years or older and five or more years of [credited] service credit;
[B.] (2) age sixty-four years and eight or more years of [credited] service credit;
[C.] (3) age sixty-three years and eleven or more years of [credited] service credit;
[D.] (4) age sixty-two years and fourteen or more years of [credited] service credit;
[E.] (5) age sixty-one years and seventeen or more years of [credited] service credit;
[F.] (6) age sixty years and twenty or more years of [credited] service credit; or
[G.] (7) any age and twenty-five or more years of [credited] service credit; and
B. for a member who was not a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:
(1) age sixty-seven years or older and five or more years of service credit;
(2) any age if the sum of the member's age and years of service credit equals at least eighty; or
(3) any age and thirty or more years of service credit."
Section 6. Section 10-11-55.8 NMSA 1978 (being Laws 1998, Chapter 106, Section 2) is amended to read:
"10-11-55.8. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 4--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal general member coverage plan 4:
A. for a member who was a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:
[A.] (1) age sixty-five years or older and five or more years of [credited] service credit;
[B.] (2) age sixty-four years and eight or more years of [credited] service credit;
[C.] (3) age sixty-three years and eleven or more years of [credited] service credit;
[D.] (4) age sixty-two years and fourteen or more years of [credited] service credit;
[E.] (5) age sixty-one years and seventeen or more years of [credited] service credit;
[F.] (6) age sixty years and twenty or more years of [credited] service credit; or
[G.] (7) any age and twenty-five or more years of [credited] service credit; and
B. for a member who was not a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:
(1) age sixty-seven years or older and five or more years of service credit;
(2) any age if the sum of the member's age and years of service credit equals at least eighty; or
(3) any age and thirty or more years of service credit."
Section 7. Section 10-11-69 NMSA 1978 (being Laws 1987, Chapter 253, Section 69) is amended to read:
"10-11-69. MUNICIPAL POLICE MEMBER COVERAGE PLAN 3--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal police member coverage plan 3, the age and service requirements for normal retirement are:
A. age sixty-five years or older and five or more years of [credited] service credit;
B. age sixty-four years and eight or more years of [credited] service credit;
C. age sixty-three years and eleven or more years of [credited] service credit;
D. age sixty-two years and fourteen or more years of [credited] service credit;
E. age sixty-one years and seventeen or more years of [credited] service credit; [or]
F. any age and twenty or more years of [credited] service credit for an individual who was a retired member or a member on June 30, 2010; or
G. any age and twenty-five or more years of service credit for an individual who was not a retired member or a member on June 30, 2010."
Section 8. Section 10-11-75 NMSA 1978 (being Laws 1987, Chapter 253, Section 75) is amended to read:
"10-11-75. MUNICIPAL POLICE MEMBER COVERAGE PLAN 4--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal police member coverage plan 4, the age and service requirements for normal retirement are:
A. age sixty-five years or older and five or more years of [credited] service credit;
B. age sixty-four years and eight or more years of [credited] service credit;
C. age sixty-three years and eleven or more years of [credited] service credit;
D. age sixty-two years and fourteen or more years of [credited] service credit;
E. age sixty-one years and seventeen or more years of [credited] service credit; [or]
F. any age and twenty or more years of [credited] service credit for an individual who was a retired member or a member on June 30, 2010; or
G. any age and twenty-five or more years of service credit for an individual who was not a retired member or a member on June 30, 2010."
Section 9. Section 10-11-81 NMSA 1978 (being Laws 1987, Chapter 253, Section 81) is amended to read:
"10-11-81. MUNICIPAL POLICE MEMBER COVERAGE PLAN 5--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal police member coverage plan 5, the age and service requirements for normal retirement are:
A. age sixty-five years or older and five or more years of [credited] service credit;
B. age sixty-four years and eight or more years of [credited] service credit;
C. age sixty-three years and eleven or more years of [credited] service credit;
D. age sixty-two years and fourteen or more years of [credited] service credit;
E. age sixty-one years and seventeen or more years of [credited] service credit; [or]
F. any age and twenty or more years of [credited] service credit for an individual who was a retired member or a member on June 30, 2010; or
G. any age and twenty-five or more years of service credit for an individual who was not a retired member or a member on June 30, 2010."
Section 10. Section 10-11-99 NMSA 1978 (being Laws 1987, Chapter 253, Section 99) is amended to read:
"10-11-99. MUNICIPAL FIRE MEMBER COVERAGE PLAN 3--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal fire member coverage plan 3, the age and service requirements for normal retirement are:
A. age sixty-five years or older and five or more years of [credited] service credit;
B. age sixty-four years and eight or more years of [credited] service credit;
C. age sixty-three years and eleven or more years of [credited] service credit;
D. age sixty-two years and fourteen or more years of [credited] service credit;
E. age sixty-one years and seventeen or more years of [credited] service credit; [or]
F. any age and twenty or more years of [credited] service credit for an individual who was a retired member or a member on June 30, 2010; or
G. any age and twenty-five or more years of service credit for an individual who was not a retired member or a member on June 30, 2010."
Section 11. Section 10-11-105 NMSA 1978 (being Laws 1987, Chapter 253, Section 105) is amended to read:
"10-11-105. MUNICIPAL FIRE MEMBER COVERAGE PLAN 4--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal fire member coverage plan 4, the age and service requirements for normal retirement are:
A. age sixty-five years or older and five or more years of [credited] service credit;
B. age sixty-four years and eight or more years of [credited] service credit;
C. age sixty-three years and eleven or more years of [credited] service credit;
D. age sixty-two years and fourteen or more years of [credited] service credit;
E. age sixty-one years and seventeen or more years of [credited] service credit; [or]
F. any age and twenty or more years of [credited] service credit for an individual who was a retired member or a member on June 30, 2010; or
G. any age and twenty-five or more years of service credit for an individual who was not a retired member or a member on June 30, 2010."
Section 12. Section 10-11-111 NMSA 1978 (being Laws 1987, Chapter 253, Section 111) is amended to read:
"10-11-111. MUNICIPAL FIRE MEMBER COVERAGE PLAN 5--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal fire member coverage plan 5, the age and service requirements for normal retirement are:
A. age sixty-five years or older and five or more years of [credited] service credit;
B. age sixty-four years and eight or more years of [credited] service credit;
C. age sixty-three years and eleven or more years of [credited] service credit;
D. age sixty-two years and fourteen or more years of [credited] service credit;
E. age sixty-one years and seventeen or more years of [credited] service credit; [or]
F. any age and twenty or more years of [credited] service credit for an individual who was a retired member or a member on June 30, 2010; or
G. any age and twenty-five or more years of service credit for an individual who was not a retired member or a member on June 30, 2010."
Section 13. Section 10-11-115.2 NMSA 1978 (being Laws 2003, Chapter 268, Section 3) is amended to read:
"10-11-115.2. MUNICIPAL DETENTION OFFICER MEMBER COVERAGE PLAN 1--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT--CALCULATION OF [CREDITED] SERVICE CREDIT.--
A. Under municipal detention officer member coverage plan 1, the age and service requirements for normal retirement are:
(1) age sixty-five years or older and five or more years of [credited] service credit;
(2) age sixty-four years and eight or more years of [credited] service credit;
(3) age sixty-three years and eleven or more years of [credited] service credit;
(4) age sixty-two years and fourteen or more years of [credited] service credit;
(5) age sixty-one years and seventeen or more years of [credited] service credit;
(6) age sixty years and twenty or more years of [credited] service credit; or
(7) any age and twenty-five or more years of [credited] service credit.
B. In calculating [credited] service credit for the purposes of determining retirement eligibility and amount of pension, the [credited] service credit of a municipal detention officer member who was a retired member or a member on June 30, 2010 shall have actual [credited] service credit increased by twenty percent for the purposes of municipal detention officer member coverage plan 1."
Section 14. TEMPORARY PROVISION--RETIREMENT SYSTEMS SOLVENCY TASK FORCE--CREATION--DUTIES--REPORT.--
A. The "retirement systems solvency task force" is created. The task force consists of twenty-five members as follows:
(1) the director of the public employees retirement association and a member of the public employees retirement board, selected by the board;
(2) the educational retirement director and a member of the educational retirement board, selected by the board;
(3) the director of the retiree health care authority and a member of the board of the retiree health care authority, selected by the board;
(4) one member from each of the following organizations that represent members of the public employees retirement association or members under the Educational Retirement Act:
(a) the American federation of state, county and municipal employees;
(b) the communications workers of America;
(c) the international association of firefighters;
(d) the fraternal order of police;
(e) the national education association; and
(f) the American federation of teachers;
(5) the chair and vice chair of the interim investments and pensions oversight committee; provided that, if that interim committee is not created, then the New Mexico legislative council shall appoint the chair and vice chair of the appropriate interim committee;
(6) a representative of the New Mexico municipal league;
(7) a representative of the New Mexico association of counties;
(8) two majority party members and one minority party member of the house of representatives, appointed by the New Mexico legislative council;
(9) two majority party members and one minority party member of the senate, appointed by the New Mexico legislative council; and
(10) three members appointed by the governor, at least one of whom shall be experienced in financial investing of pension funds.
B. The chair of the task force shall be elected by the task force. The task force shall meet at the call of the chair.
C. The public members of the task force shall receive per diem and mileage pursuant to the Per Diem and Mileage Act.
D. The legislative council service, with assistance from the legislative finance committee, the public employees retirement association, the educational retirement association and the retiree health care authority, shall provide staff for the task force.
E. The task force shall study the actuarial soundness and solvency of the retirement plans of the public employees retirement association and the educational retirement association and the health care plan of the retiree health care authority and prepare a solvency plan for each entity. The solvency plans shall include analyses and recommendations that address:
(1) employer and employee contributions;
(2) retirement eligibility;
(3) the number of retirement plans;
(4) retirement benefits;
(5) investment policy and asset allocation;
(6) disability retirement and benefits;
(7) actuarial assumptions;
(8) health insurance plan benefits and eligibility;
(9) the costs of health insurance plans; and
(10) member services.
F. The solvency plans and recommendations shall be submitted, no later than October 1, 2009, to the interim investments and pensions oversight committee or other appropriate interim committee, the legislative finance committee and the governor.
Section 15. EFFECTIVE DATE.--The effective date of the provisions of Sections 1 through 13 of this act is July 1, 2010.
Section 16. EMERGENCY.--It is necessary for the public peace, health and safety that this act take effect immediately.
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