SENATE BILL 150
50th legislature - STATE OF NEW MEXICO - second session, 2012
INTRODUCED BY
Stuart Ingle
ENDORSED BY THE INVESTMENTS AND PENSIONS OVERSIGHT COMMITTEE
AN ACT
RELATING TO PENSIONS; AMENDING THE EDUCATIONAL RETIREMENT ACT; CHANGING THE COST-OF-LIVING ADJUSTMENT; CHANGING AGE AND SERVICE REQUIREMENTS FOR RETIREMENT OF CERTAIN EMPLOYEES; CHANGING MEMBER AND EMPLOYER CONTRIBUTION RATES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 22-11-21 NMSA 1978 (being Laws 1967, Chapter 16, Section 144, as amended) is amended to read:
"22-11-21. CONTRIBUTIONS--MEMBERS--LOCAL ADMINISTRATIVE
UNITS.--
A. Except as provided in Subsection C of this section, each member shall make contributions to the fund according to the following schedule:
(1) through June 30, 2005, an amount equal to seven and six-tenths percent of the member's annual salary;
(2) from July 1, 2005 through June 30, 2006, an amount equal to seven and six hundred seventy-five thousandths percent of the member's annual salary;
(3) from July 1, 2006 through June 30, 2007, an amount equal to seven and seventy-five hundredths percent of the member's annual salary;
(4) from July 1, 2007 through June 30, 2008, an amount equal to seven and eight hundred twenty-five thousandths percent of the member's annual salary; [and]
(5) [on and after] from July 1, 2008 through June 30, 2013, an amount equal to seven and nine-tenths percent of the member's annual salary, except that for members whose annual salary is greater than twenty thousand dollars ($20,000):
(a) from July 1, 2009 through June 30, 2011, the member contribution rate shall be nine and four-tenths percent of the member's annual salary;
(b) from July 1, 2011 through June 30, 2012, the member contribution rate shall be eleven and fifteen-hundredths percent of the member's annual salary; and
(c) from July 1, 2012 through June 30, 2013, the member contribution rate shall be nine and four-tenths of the member's annual salary;
(6) from July 1, 2013 through June 30, 2014, for members whose annual salary is greater than twenty thousand dollars ($20,000), an amount equal to nine and five-tenths percent of the member's annual salary, and for members whose annual salary is equal to or less than twenty thousand dollars ($20,000), an amount equal to eight and three-tenths percent of the member's annual salary;
(7) from July 1, 2014 through June 30, 2015, for members whose annual salary is greater than twenty thousand dollars ($20,000), an amount equal to nine and six-tenths percent of the member's annual salary, and for members whose annual salary is equal to or less than twenty thousand dollars ($20,000), an amount equal to eight and seven-tenths percent of the member's annual salary;
(8) from July 1, 2015 through June 30, 2016, for members whose annual salary is greater than twenty thousand dollars ($20,000), an amount equal to nine and seven-tenths percent of the member's annual salary, and for members whose annual salary is equal to or less than twenty thousand dollars ($20,000), an amount equal to nine and one-tenth percent of the member's annual salary;
(9) from July 1, 2016 through June 30, 2017, for members whose annual salary is greater than twenty thousand dollars ($20,000), an amount equal to nine and eight-tenths percent of the member's annual salary, and for members whose annual salary is equal to or less than twenty thousand dollars ($20,000), an amount equal to nine and five-tenths percent of the member's annual salary; and
(10) on and after July 1, 2017, the member contribution rate shall be a sum equal to nine and nine-tenths percent of the member's annual salary.
B. Except as provided in Subsection C of this section, each local administrative unit shall make an annual contribution to the fund according to the following schedule:
(1) through June 30, 2005, a sum equal to eight and sixty-five hundredths percent of the annual salary of each member employed by the local administrative unit;
(2) from July 1, 2005 through June 30, 2006, a sum equal to nine and forty-hundredths percent of the annual salary of each member employed by the local administrative unit;
(3) from July 1, 2006 through June 30, 2007, a sum equal to ten and fifteen-hundredths percent of the annual salary of each member employed by the local administrative unit;
(4) from July 1, 2007 through June 30, 2008, a sum equal to ten and ninety-hundredths percent of the annual salary of each member employed by the local administrative unit;
(5) from July 1, 2008 through June 30, 2009, a sum equal to eleven and sixty-five hundredths percent of the annual salary of each member employed by the local administrative unit;
(6) from July 1, 2009 through June 30, 2011, a sum equal to ten and nine-tenths percent of the annual salary of each member employed by the local administrative unit, except that for members whose annual salary is twenty thousand dollars ($20,000) or less, the local administrative unit shall contribute twelve and four-tenths percent of the member's annual salary;
(7) from July 1, 2011 through June 30, 2012, a sum equal to nine and fifteen-hundredths percent of the annual salary of each member employed by the local administrative unit, except that for members whose annual salary is twenty thousand dollars ($20,000) or less, the local administrative unit shall contribute twelve and four-tenths percent of the member's annual salary;
(8) from July 1, 2012 through June 30, 2013, a sum equal to ten and nine-tenths percent of the annual salary of each member employed by the local administrative unit, except that for members whose annual salary is twenty thousand dollars ($20,000) or less, the local administrative unit shall contribute twelve and four-tenths percent of the member's annual salary;
(9) from July 1, 2013 through June 30, 2014, a sum equal to [thirteen and fifteen-hundredths percent of the annual salary of each member employed by the local administrative unit; and
(10) on and after July 1, 2014, a sum equal to thirteen and nine-tenths percent of the annual salary of each member employed by the local administrative unit] eleven and four-tenths percent of the annual salary of each member employed by the local administrative unit, except that for members whose annual salary is equal to or less than twenty thousand dollars ($20,000), the local administrative unit shall contribute twelve and sixty-five hundredths percent of the member's annual salary;
(10) from July 1, 2014 through June 30, 2015, a sum equal to eleven and nine-tenths percent of the annual salary of each member employed by the local administrative unit, except that for members whose annual salary is equal to or less than twenty thousand dollars ($20,000), the local administrative unit shall contribute twelve and nine-tenths percent of the member's annual salary;
(11) from July 1, 2015 through June 30, 2016, a sum equal to twelve and four-tenths percent of the annual salary of each member employed by the local administrative unit, except that for members whose annual salary is equal to or less than twenty thousand dollars ($20,000), the local administrative unit shall contribute thirteen and fifteen-hundredths percent of the member's annual salary;
(12) from July 1, 2016 through June 30, 2017, a sum equal to twelve and nine-tenths percent of the annual salary of each member employed by the local administrative unit, except that for members whose annual salary is equal to or less than twenty thousand dollars ($20,000), the local administrative unit shall contribute thirteen and four-tenths percent of the member's annual salary;
(13) from July 1, 2017 through June 30, 2018, a sum equal to thirteen and four-tenths percent of the annual salary of each member employed by the local administrative unit, except that for members whose annual salary is equal to or less than twenty thousand dollars ($20,000), the local administrative unit shall contribute thirteen and sixty-five hundredths percent of the member's annual salary; and
(14) on and after July 1, 2018, a sum equal to thirteen and nine-tenths percent of the annual salary of each member employed by the local administrative unit.
C. If, in a calendar year, the salary of a member, initially employed by a local administrative unit on or after July 1, 1996, equals the annual compensation limit set pursuant to Section 401(a)(17) of the Internal Revenue Code of 1986, as amended, then:
(1) for the remainder of that calendar year, no additional member contributions or local administrative unit contributions for that member shall be made pursuant to this section; provided that no member shall be denied service credit solely because contributions are not made by the member or on behalf of the member pursuant to the provisions of this subsection; and
(2) the amount of the annual compensation limit shall be divided into four equal portions, and, for purposes of attributing contributory employment and crediting service credit, each portion shall be attributable to one of the four quarters of the calendar year."
SECTION 2. Section 22-11-23 NMSA 1978 (being Laws 1981, Chapter 293, Section 2, as amended by Laws 2009, Chapter 286, Section 1 and by Laws 2009, Chapter 288, Section 14) is amended to read:
"22-11-23. RETIREMENT ELIGIBILITY--INITIAL MEMBERSHIP PRIOR TO JULY 1, 2010--SAFE HARBOR.--
A. On or before June 30, 2022, the retirement benefits eligibility pursuant to the Educational Retirement Act for a member who [either] was a member on or before June 30, 2010, [or was a member at any time prior to that date] and had not, on or before that date, been refunded all member contributions pursuant to Subsection A of Section 22-11-15 NMSA 1978 [is as follows] or was a member at any time on or before June 30, 2010 and had been refunded any or all member contributions pursuant to that subsection and had restored refunded contributions on or before June 30, 2010 occurs when:
[(1) a member shall be eligible for retirement benefits pursuant to the Educational Retirement Act when either of the following conditions occurs:
(a)] (1) the sum of the member's age and years of earned service credit equals at least seventy-five; [or
(b) upon completion of five years of earned service-credit and upon becoming sixty-five years of age]
(2) the member is at least sixty-five years of age and has five or more years of earned service credit; or
(3) the member has twenty-five or more years of earned and allowed service credit. A member younger than sixty years of age eligible for retirement pursuant to this paragraph may retire and receive retirement benefits pursuant to the Educational Retirement Act computed on the same basis as if the member were sixty years of age.
[(2)] B. A member [under] younger than sixty years of age [eligible to retire under Paragraph (1)] who retires pursuant to the provisions of Paragraph (1) of Subsection A of this [subsection may retire and receive retirement benefits pursuant to the Educational Retirement Act that the member would be eligible to receive if the member were to retire at the age of sixty years reduced by six-tenths of one percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member's sixtieth birthday but after the fifty-fifth birthday, and one and eight-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to age fifty-five; or
(3) a member under sixty years of age acquiring twenty-five or more years of earned and allowed service credit may retire and receive retirement benefits pursuant to the Educational Retirement Act computed on the same basis as if the member were sixty years of age] section shall be subject to the benefit reductions provided in Paragraphs (1) and (2) of Subsection G of Section 22-11-30 NMSA 1978.
[B.] C. A member shall be subject to the provisions of Paragraphs [(2)] (1) and (3) of Subsection A of this section as they existed at the beginning of the member's last cumulated four quarters of earned service credit, regardless of later amendment.
D. On or after July 1, 2022, the retirement benefits eligibility pursuant to the Educational Retirement Act for a member who was a member on or before June 30, 2010 and had not, on or before that date, been refunded all member contributions pursuant to Subsection A of Section 22-11-15 NMSA 1978 or was a member at any time on or before June 30, 2010 and had been refunded any or all member contributions pursuant to that subsection and had restored refunded contributions on or before June 30, 2010 occurs when:
(1) the member is at least fifty-five years of age with five or more years of earned service credit and the sum of the member's age and years of earned service credit equals at least seventy-five;
(2) the member is at least sixty-five years of age and has five or more years of earned service credit; or
(3) the member is at least fifty-five years of age and has twenty-five or more years of earned and allowed service credit.
E. A member who is younger than sixty years of age and who is eligible to retire pursuant to the provisions of Paragraph (1) of Subsection D of this section shall be subject to the benefit reductions provided in Paragraph (1) of Subsection G of Section 22-11-30 NMSA 1978.
F. A member shall be subject to the provisions of Paragraphs (1) and (3) of Subsection D of this section as they existed at the beginning of the member's last cumulated four quarters of earned service credit, regardless of later amendments."
SECTION 3. Section 22-11-23.1 NMSA 1978 (being Laws 2009, Chapter 286, Section 2 and Laws 2009, Chapter 288, Section 15) is amended to read:
"22-11-23.1. RETIREMENT ELIGIBILITY--INITIAL MEMBERSHIP ON OR AFTER JULY 1, 2010.--
[A. A member who initially became a member on or after July 1, 2010 or a member who was a member at any time prior to that date and had, before that date, been refunded all member contributions pursuant to Subsection A of Section
22-11-15 NMSA 1978, shall be eligible for retirement benefits pursuant to the Educational Retirement Act when one of the following conditions occurs:
(1) the member is any age and has thirty or more years of earned service credit;
(2) the member is at least sixty-seven years of age and has five or more years of earned service credit; or
(3) the sum of the member's age and years of earned service credit equals at least eighty; provided that a member who retires pursuant to this paragraph shall be subject to the benefit reductions provided in Paragraphs (1) and (2) of Subsection H of Section 22-11-30 NMSA 1978.]
A. On or before June 30, 2022, the retirement eligibility pursuant to the Educational Retirement Act for a member who, on or after July 1, 2010, became a member or was a member at any time on or before July 1, 2010 and had been refunded any or all member contributions pursuant to Subsection A of Section 22-11-15 NMSA 1978 and had not restored refunded contributions prior to July 1, 2010 occurs when:
(1) the member has thirty or more years of earned service credit;
(2) the member is at least sixty-seven years of age and has five or more years of earned service credit; or
(3) the sum of the member's age and earned service credit equals at least eighty; provided that a member who is younger than sixty-five years of age and who retires pursuant to this paragraph shall be subject to the benefit reductions provided in Paragraphs (1) and (2) of Subsection H of Section 22-11-30 NMSA 1978.
B. On or after July 1, 2022, the retirement benefits eligibility pursuant to the Educational Retirement Act for a member who, on or after July 1, 2010, became a member or was a member at any time on or before July 1, 2010 and had, before that date, been refunded all member contributions pursuant to Subsection A of Section 22-11-15 NMSA 1978 and had not restored refunded contributions prior to July 1, 2010 occurs when:
(1) the member is at least fifty-five years of age and has thirty or more years of earned service credit;
(2) the member is at least sixty-seven years of age and has five or more years of earned service credit; or
(3) the member is at least fifty-five years of age and the sum of the member's age and earned service credit equals at least eighty.
C. A member younger than sixty-five years of age who is eligible to retire pursuant to the provisions of Paragraph (3) of Subsection B of this section shall be subject to the benefit reductions provided in Paragraphs (1) and (2) of Subsection H of Section 22-11-30 NMSA 1978.
[B.] D. A member shall be subject to the provisions of this section as they existed at the beginning of the member's last cumulated four quarters of earned service credit, regardless of later amendment."
SECTION 4. Section 22-11-27 NMSA 1978 (being Laws 1967, Chapter 16, Section 150, as amended) is amended to read:
"22-11-27. DEFERRED RETIREMENT--RESTRICTION.--
A. A member who is eligible for retirement may continue in employment and shall continue to pay contributions as provided by the Educational Retirement Act.
[B. A member may terminate his employment and retire at any time after his age and his earned service credit equal the sum of seventy-five if the contributions he has made are left in the fund.
C. A member having five years or more of earned service credit may terminate his employment and retire at any time after reaching the age of sixty-five years if the contributions he has made are left in the fund.]
B. Provided that the contributions that the member has made are left in the fund, a member eligible for retirement benefits pursuant to the provisions of Subsection A of Section 22-11-23 NMSA 1978 may terminate employment and retire at any time prior to July 1, 2022:
(1) if the sum of the member's age and earned service credit equals at least seventy-five;
(2) after the member has at least five years of earned service credit and is at least sixty-five years of age; or
(3) after the member has at least twenty-five years of earned and allowed service credit.
C. Provided that the contributions that the member has made are left in the fund, a member eligible for retirement benefits pursuant to the provisions of Subsection D of Section 22-11-23 NMSA 1978 may terminate employment and retire at any time:
(1) if the member is at least fifty-five years of age if the sum of the member's age and earned service credit equals at least seventy-five;
(2) after the member has at least five years of earned service credit and is at least sixty-five years of age; or
(3) after the member has at least twenty-five years of earned and allowed service credit and is at least fifty-five years of age.
D. Provided that the contributions that the member has made are left in the fund, a member eligible for retirement benefits pursuant to the provisions of Subsection A of Section 22-11-23.1 NMSA 1978 may terminate employment and retire at any time prior to July 1, 2022:
(1) if the sum of the member's age and earned service credit equals at least eighty;
(2) after the member has at least five years of earned service credit and is at least sixty-seven years of age; or
(3) after the member has at least thirty years of earned service credit.
E. Provided that the contributions that the member has made are left in the fund, a member eligible for retirement benefits pursuant to the provisions of Subsection B of Section 22-11-23.1 NMSA 1978 may terminate employment and retire at any time:
(1) if the member is at least fifty-five years of age if the sum of the member's age and earned service credit equals at least eighty;
(2) after the member has at least five years of earned service credit and is at least sixty-seven years of age; or
(3) after the member has at least thirty years of earned service credit and is at least fifty-five years of age.
[D.] F. No member shall be on a retirement status while engaged in employment unless the employment falls within exceptions established by statute or rule of the board."
SECTION 5. Section 22-11-30 NMSA 1978 (being Laws 1967, Chapter 16, Section 153, as amended by Laws 2009, Chapter 286, Section 3 and by Laws 2009, Chapter 288, Section 17) is amended to read:
"22-11-30. RETIREMENT BENEFITS.--
A. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or before June 30, 1967 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the first four thousand dollars ($4,000) of the member's average annual salary and one percent of the remainder of the member's average annual salary multiplied by the number of years of the member's total service credit.
B. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or after July 1, 1967 but on or before June 30, 1971 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the first six thousand six hundred dollars ($6,600) of the member's average annual salary and one percent of the remainder of the member's average annual salary multiplied by the number of years of the member's total service credit.
C. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or after July 1, 1971 but on or before June 30, 1974 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the member's average annual salary multiplied by the number of years of the member's total service credit.
D. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or before June 30, 1974 but returning to employment on or after July 1, 1974 for a cumulation of one or more years shall be computed pursuant to Subsection E of this section. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or before June 30, 1974 but returning to employment on or after July 1, 1974 for a cumulation of less than one year shall be computed pursuant to Subsection A of this section if the member's date of last retirement was on or before June 30, 1967 or pursuant to Subsection B of this section if the member's date of last retirement was on or after July 1, 1967 but not later than June 30, 1971 or pursuant to Subsection C of this section if the member's date of last retirement was on or after July 1, 1971 but not later than June 30, 1974.
E. Retirement benefits for a member age sixty years or [over] older, retired pursuant to the Educational Retirement Act on or after July 1, 1974 but not later than June 30, 1987, shall be paid monthly and shall be one-twelfth of a sum equal to:
(1) one and one-half percent of the member's average annual salary multiplied by the number of years of service credit for:
(a) prior employment; and
(b) allowed service credit for service performed prior to July 1, 1957, except United States military service credit purchased pursuant to Paragraph (3) of Subsection A of Section 22-11-34 NMSA 1978; plus
(2) two percent of the member's average annual salary multiplied by the number of years of service credit for:
(a) contributory employment;
(b) allowed service credit for service performed after July 1, 1957; and
(c) United States military service credit for service performed prior to July 1, 1957 and purchased pursuant to Paragraph (3) of Subsection A of Section 22-11-34 NMSA 1978.
F. Retirement benefits for a member age sixty years or [over] older, retired pursuant to the Educational Retirement Act on or after July 1, 1987 but not later than June 30, 1991, shall be paid monthly and shall be one-twelfth of a sum equal to two and fifteen hundredths percent of the member's average annual salary multiplied by the number of years of the member's total service credit; provided that this subsection shall not apply to any member who was retired in any of the four quarters ending on June 30, 1987 without having accumulated not less than 1.0 years earned service credit after June 30, 1987.
G. The retirement benefits provisions of this subsection shall not apply to a member who was retired in any of the four consecutive quarters ending on June 30, 1991 without having acquired at least one year of earned service credit beginning on or after July 1, 1991. Retirement benefits for a member [age sixty or over] retired pursuant to Section 22-11-23 NMSA 1978 on or after July 1, 1991, shall be paid monthly and shall be one-twelfth of a sum equal to two and thirty-five hundredths percent of the member's average annual salary multiplied by the number of years of the member's total service credit; provided that [this subsection shall not apply to any member who was retired in any of the four consecutive quarters ending on June 30, 1991 without having accumulated at least one year earned service credit beginning on or after July 1, 1991] the benefits for a member who is younger than sixty years of age and is retiring pursuant to Paragraph (1) of Subsection A or Paragraph (1) of Subsection D of Section
22-11-23 NMSA 1978 shall be reduced by:
(1) six-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member's sixtieth birthday but after the member's fifty-fifth birthday; and
(2) one and eight-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member reaching the age of fifty-five years.
H. Retirement benefits for a member, retired pursuant to Section 22-11-23.1 NMSA 1978, shall be paid monthly and shall be one-twelfth of a sum equal to two and thirty-five hundredths percent of the member's average annual salary multiplied by the number of years of the member's total service credit; provided that the benefit for a member retiring pursuant to Paragraph (3) of Subsection A or Paragraph (3) of Subsection B of Section 22-11-23.1 NMSA 1978 shall be reduced by:
(1) six-tenths [of one] percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member's sixty-fifth birthday but after the sixtieth birthday; and
(2) one and eight-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member's sixtieth birthday.
I. A member's average annual salary, pursuant to this section, shall be computed on the basis of the last five years for which contribution was made or upon the basis of any consecutive five years for which contribution was made by the member, whichever is higher; provided, however, that lump-sum payments made after July 1, 2010 of accrued sick leave or annual leave shall be excluded from the calculation of salary.
J. Unless otherwise required by the provisions of the Internal Revenue Code of 1986, members shall begin receiving retirement benefits by age seventy and six months, or upon termination of employment, whichever occurs later."
SECTION 6. Section 22-11-31 NMSA 1978 (being Laws 1979, Chapter 333, Section 2, as amended) is amended to read:
"22-11-31. COST-OF-LIVING ADJUSTMENT--ADDITIONAL CONTRIBUTIONS.--
A. For the purposes of this section:
(1) "adjustment factor" means a multiplicative factor computed to provide an annuity adjustment pursuant to the provisions of Subsection B of this section;
(2) "annuity" means any benefit payable under the Educational Retirement Act or the Public Employees Retirement Reciprocity Act as a retirement benefit, disability benefit or survivor benefit;
(3) "calendar year" means the full twelve months beginning January 1 and ending December 31;
(4) "consumer price index" means the average of the monthly consumer price indexes for a calendar year for the entire United States for all items as published by the United States department of labor;
(5) "next preceding calendar year" means the full calendar year immediately prior to the preceding calendar year; and
(6) "preceding calendar year" means the full calendar year preceding the July 1 on which a benefit is to be adjusted.
B. On or after July 1, 1984, each annuity shall be adjusted annually and cumulatively commencing on July 1 of the year in which a member attains the age of sixty-five or on July 1 following the year a member retires, whichever is later.
C. If the percentage increase in the consumer price index is equal to two percent or greater, the annuity shall be adjusted by applying an adjustment factor that results in an adjustment equal to [one-half] forty-three and seventy-five hundredths percent of the percentage increase of the consumer price index between the next preceding calendar year and the preceding calendar year, except that the adjustment shall not exceed [four] three and one-half percent, in absolute value, nor be less than [two] one and three-fourths percent, in absolute value.
D. In the event that the percentage increase of the consumer price index is less than two percent, in absolute value, the adjustment factor shall be [the same as] eighty-seven and five-tenths percent of the percentage increase of the consumer price index.
E. Annuities shall not be decreased in the event that there is a decrease in the consumer price index between the next preceding calendar year and the preceding calendar year.
[C.] F. A retired member whose benefit is subject to adjustment under the provisions of the Educational Retirement Act in effect prior to July 1, 1984 shall have the member's annuity readjusted annually and cumulatively under the provisions of that act in effect prior to July 1, 1984 until July 1 of the year in which the member attains the age of sixty-five, when the member shall have the annuity readjusted annually and cumulatively under the provisions of this section. A member who retires after attaining the age of sixty-five shall have the member's annuity adjusted annually and cumulatively commencing on July 1 of the year following the member's retirement.
[D.] G. A retired member who returns to work shall be subject to the provisions of this section as they exist at the time of the member's final retirement.
[E.] H. Benefits of a member who is on a disability status in accordance with Section 22-11-35 NMSA 1978 or a member who is certified by the board [certifies was] as disabled at regular retirement shall be adjusted in accordance with Subsections B and [C] F of this section, except that the benefits shall be adjusted annually and cumulatively commencing on July 1 of the third full year following the year in which the member was approved by the board for disability or retirement.
[F.] I. The board shall adjust the benefits of each person receiving an annuity as of June 30, 1999. The adjustment shall be made on July 1, 1999 on the basis of an increase of two dollars ($2.00) per month for each year since the member's last retirement plus an increase of one dollar ($1.00) per month for each year of credited service at the time of the last retirement."
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