0001| HOUSE BILL 1206 | 0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0003| INTRODUCED BY | 0004| KIP W. NICELY | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO PUBLIC EMPLOYEES; ENACTING THE PUBLIC EMPLOYEES | 0012| RETIREMENT ANNUITY ACT; ENACTING THE PUBLIC EMPLOYEES | 0013| RETIREMENT SAVINGS ACT; PROVIDING RETIREMENT BENEFITS FOR | 0014| CERTAIN PUBLIC EMPLOYEES EMPLOYED ON AND AFTER JULY 1, 1998; | 0015| AUTHORIZING A RETIREMENT SAVINGS PLAN; AMENDING AND ENACTING | 0016| SECTIONS OF THE NMSA 1978. | 0017| | 0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0019| Section 1. [NEW MATERIAL] SHORT TITLE.--Sections 1 | 0020| through 17 of this act may be cited as the "Public Employees | 0021| Retirement Annuity Act". | 0022| Section 2. [NEW MATERIAL] DEFINITIONS.--As used in the | 0023| Public Employees Retirement Annuity Act: | 0024| A. "affiliated public employer" means the state and | 0025| any public employer affiliated with the association as provided | 0001| in the Public Employees Retirement Act, but does not include an | 0002| employer pursuant to the Magistrate Retirement Act, the | 0003| Judicial Retirement Act or the Educational Retirement Act; | 0004| B. "association" means the public employees | 0005| retirement association defined in the Public Employees | 0006| Retirement Act; | 0007| C. "board" means the retirement board; | 0008| D. "employee" means any employee of an affiliated | 0009| public employer; | 0010| E. "dependent child" means a natural or adopted | 0011| child who is physically or mentally incapable of financial | 0012| self-support, regardless of age; | 0013| F. "educational retirement system" means the | 0014| retirement system provided for in the Educational Retirement | 0015| Act; | 0016| G. "effective date of retirement" means the first | 0017| day of the month following the month in which the participant | 0018| met all requirements for retirement; | 0019| H. "former participant" means a person who was | 0020| first employed by an affiliated public employer on or after | 0021| July 1, 1998 and who has terminated all such employment; | 0022| I. "fund" means the funds established pursuant to | 0023| the Public Employees Retirement Annuity Act; | 0024| J. "participant" means an employee first employed | 0025| by an affiliated public employer on or after July 1, 1998 who | 0001| is: | 0002| (1) currently employed by a affiliated public | 0003| employer; | 0004| (2) not currently employed by an affiliated | 0005| public employer and who has not retired; | 0006| K. "participation" means membership in the | 0007| association beginning on or after July 1, 1998; | 0008| L. "public employer" means the state, any | 0009| municipality, county, metropolitan arroyo flood control | 0010| authority, economic development district, regional housing | 0011| authority, soil and water conservation district, entity created | 0012| pursuant to a joint powers agreement, council of government, | 0013| conservancy district, water and sanitation district, water | 0014| district and metropolitan water board, including the boards, | 0015| departments, bureaus and agencies of a public employer, so long | 0016| as these entities fall within the meaning of "governmental | 0017| plan" as that term is used in Section 414(d) of the Internal | 0018| Revenue Code of 1986, as amended; | 0019| M. "retire" means to: | 0020| (1) terminate employment with all employers | 0021| covered by the state system or the educational retirement | 0022| system; and | 0023| (2) receive a pension or annuity from the | 0024| state system or a pension from the educational retirement | 0025| system; | 0001| N. "retired participant" means a person who has | 0002| retired and is receiving a retirement annuity from the fund; | 0003| O. "retirement annuity" means a series of monthly | 0004| payments to a retired participant or survivor beneficiary | 0005| pursuant to the provisions of the Public Employees Retirement | 0006| Annuity Act; | 0007| P. "salary" means the base salary or wages paid a | 0008| participant, including longevity pay, for personal services | 0009| rendered; provided that "salary" does not include overtime pay, | 0010| allowances for housing, clothing, equipment or travel, payments | 0011| for unused sick leave, unless the unused sick leave payment is | 0012| made through continuation of the participant on the regular | 0013| payroll for the period represented by that payment, and any | 0014| other form of remuneration not specifically designated by law | 0015| as included in salary pursuant to the provisions of the Public | 0016| Employees Retirement Annuity Act; | 0017| Q. "state system" means the retirement programs | 0018| provided pursuant to the provisions of the Public Employees | 0019| Retirement Act, the Public Employees Retirement Annuity Act, | 0020| the Judicial Retirement Act and the Magistrate Retirement Act; | 0021| R. "surviving spouse" means the spouse to whom the | 0022| participant was married at the time of the participant's death; | 0023| S. "survivor beneficiary" means a person who | 0024| receives a retirement annuity or who has been designated to be | 0025| paid a retirement annuity as a result of the death of a | 0001| participant or retired participant; and | 0002| T. "years of service" means a period of time | 0003| beginning on the date a person commences employment with an | 0004| affiliated public employer and ending on the date a person | 0005| ceases to be an employee of an affiliated public employer | 0006| because of termination of employment, death or disability and | 0007| includes any fractions of years of service. | 0008| Section 3. [NEW MATERIAL] PUBLIC EMPLOYEES RETIREMENT | 0009| ANNUITY FUND ESTABLISHED--ADMINISTRATION OF FUND--ACCOUNTING | 0010| FUNDS.-- | 0011| A. The "public employee retirement annuity fund" is | 0012| created as a trust fund in the state treasury. The fund shall | 0013| consist of public employer contributions and any investment | 0014| earnings on those contributions. The board is the trustee of | 0015| the fund and shall administer and invest it. Investment of the | 0016| fund shall be made in the types of investments authorized for | 0017| funds invested pursuant to the Public Employees Retirement Act. | 0018| B. The board shall administer the provisions of the | 0019| Public Employees Retirement Annuity Act. The board shall | 0020| promulgate necessary or appropriate rules and regulations to | 0021| implement and administer that act. | 0022| C. Expenses related to the investment of the fund | 0023| and administration of the Public Employees Retirement Annuity | 0024| Act shall be paid from the fund. | 0025| D. For purposes of this section, the board shall | 0001| establish, within the fund, separate accounting funds known as | 0002| the "employer's accumulation fund", the "retirement reserve | 0003| fund" and the "income fund". The maintenance of separate | 0004| accounting funds shall not require the actual segregation of the | 0005| assets of the fund. | 0006| E. The fund and the accounting funds provided for in | 0007| this section shall be held in trust for participants and shall | 0008| be used only as provided in the Public Employees Retirement | 0009| Annuity Act. | 0010| F. The employer's accumulation fund is the | 0011| accounting fund in which shall be accumulated the contributions | 0012| paid by affiliated public employers. Affiliated public | 0013| employers shall remit contributions to the association in | 0014| accordance with procedures and schedules established by the | 0015| association. The board may assess an interest charge and a | 0016| penalty charge on any late remittance. | 0017| G. The retirement reserve fund is the accounting | 0018| fund from which shall be paid all annuities to retired | 0019| participants and survivor beneficiaries. | 0020| H. Each year, following receipt of the report of the | 0021| annual actuarial valuation, the excess, if any, of the reported | 0022| actuarial present value of annuities being paid and likely to be | 0023| paid to retired participants and survivor beneficiaries over the | 0024| balance in the retirement reserve fund shall be transferred to | 0025| the retirement reserve fund from the employer's accumulation | 0001| fund. | 0002| I. The income fund is the accounting fund to which | 0003| shall be credited all interest, dividends, rents and other | 0004| income from investment of the fund, all gifts and bequests, all | 0005| unclaimed participant contributions and all other money the | 0006| disposition of which is not specifically provided for in the | 0007| Public Employees Retirement Annuity Act. Expenses related to | 0008| the administration of that act shall be paid from the income | 0009| fund. | 0010| J. The association shall at least annually | 0011| distribute all or a portion of the balance in the income fund to | 0012| the retirement reserve fund and the employer's accumulation | 0013| fund. Distribution rates shall be determined by the board and | 0014| may vary for the respective accounting funds. | 0015| Section 4. [NEW MATERIAL] PARTICIPATION.-- | 0016| A. Every employee first employed by an affiliated | 0017| public employer on or after July 1, 1998 and every elected | 0018| official first elected to the position he holds with an | 0019| affiliated public employer after July 1, 1998 shall be a | 0020| participant, unless excluded from participation in accordance | 0021| with Subsection B of this section. | 0022| B. The following employees and elected officials are | 0023| excluded from participation: | 0024| (1) employees and elected officials covered | 0025| under the provisions of the Public Employees Retirement Act, the | 0001| Educational Retirement Act, the Judicial Retirement Act, the | 0002| Magistrate Retirement Act or the provisions of Sections 29-4-1 | 0003| through 29-4-11 NMSA 1978 governing the state police pension | 0004| fund; | 0005| (2) employees designated by the affiliated | 0006| public employer as seasonal or student employees; and | 0007| (3) employees of an affiliated public employer | 0008| who have retired under and are receiving a pension pursuant to | 0009| the provisions of the Educational Retirement Act, the Public | 0010| Employees Retirement Act, the Judicial Retirement Act or the | 0011| Magistrate Retirement Act or a retirement annuity pursuant to | 0012| the provisions of the Public Employees Retirement Annuity Act. | 0013| C. Employees designated as seasonal or student | 0014| employees shall be notified in writing by their affiliated | 0015| public employer of the designation and the consequences of the | 0016| designation with respect to participation, service credit and | 0017| benefits. A copy of the notification shall be filed with the | 0018| association within thirty days of the date of employment. | 0019| Section 5. [NEW MATERIAL] RETIREMENT ANNUITY--SERVICE | 0020| CREDIT--REQUIREMENTS--FORFEITURE--REINSTATEMENT.-- | 0021| A. Personal service rendered an affiliated public | 0022| employer by a participant shall be credited to the participant's | 0023| basic retirement annuity service credit account in accordance | 0024| with board rules and regulations. Service shall be credited to | 0025| the nearest month. In no case shall a participant be credited | 0001| with a year of service for less than twelve months of service in | 0002| a calendar year, more than a month of service for all service in | 0003| a calendar month or more than a year of service for all service | 0004| in a calendar year. | 0005| B. Service credit shall be forfeited if a | 0006| participant terminates employment with an affiliated public | 0007| employer, is not employed by any affiliated public employer and | 0008| has completed less than two years of service. | 0009| C. A participant who during a term of employment | 0010| enters an armed service of the United States shall be given | 0011| service credit for periods of active duty subject to the | 0012| following conditions: | 0013| (1) the participant returns to employment | 0014| within ninety days following termination of the period of active | 0015| duty; | 0016| (2) service credit shall not be given for | 0017| periods of active duty following voluntary re-enlistment; and | 0018| (3) service credit shall not be given for | 0019| periods of active duty that are used to obtain or increase a | 0020| benefit from another state system or the educational retirement | 0021| system. | 0022| D. A participant who entered an armed service of the | 0023| United States may purchase service credit for periods of active | 0024| duty subject to the following conditions: | 0025| (1) the participant pays the purchase cost | 0001| determined pursuant to the provisions of Subsection E of this | 0002| section; | 0003| (2) the participant has five or more years of | 0004| service credit accrued according to the provisions of the Public | 0005| Employees Retirement Annuity Act; | 0006| (3) the aggregate amount of service credit | 0007| purchased pursuant to the provisions of this subsection does not | 0008| exceed five years, reduced by any period of service credit | 0009| acquired for military service under any other provision of the | 0010| Public Employees Retirement Annuity Act; and | 0011| (4) service credit may not be purchased for | 0012| periods of active duty that are used to obtain or increase a | 0013| benefit from another state system or the educational retirement | 0014| system. | 0015| E. The purchase cost for each year of service credit | 0016| purchased pursuant to the provisions of this section shall be | 0017| the increase in the actuarial present value of the retirement | 0018| annuity of the member under the Public Employees Retirement | 0019| Annuity Act as a consequence of the purchase, as determined by | 0020| the association. Full payment shall be made in a single lump- | 0021| sum amount in accordance with procedures established by the | 0022| board. F. A participant shall be refunded, after | 0023| retirement and upon written request filed with the association, | 0024| the portion of the purchase cost of service credit purchased | 0025| pursuant to the provisions of this section that the association | 0001| determines to have been unnecessary to provide the participant | 0002| with the maximum retirement annuity applicable to the | 0003| participant. The association shall not pay interest on the | 0004| portion of the purchase cost refunded to the participant. | 0005| Section 6. [NEW MATERIAL] FUNDS NOT SUBJECT TO LEGAL | 0006| PROCESS--DIVISION OF FUNDS AS COMMUNITY PROPERTY--LEGAL PROCESS | 0007| TO SATISFY CHILD-SUPPORT OBLIGATIONS.-- | 0008| A. Except as provided in Subsections B and C of this | 0009| section, none of the money, annuities or other benefits provided | 0010| pursuant to the provisions of the Public Employees Retirement | 0011| Annuity Act shall be assignable either in law or in equity or be | 0012| subject to execution, levy, attachment, garnishment or other | 0013| legal process. | 0014| B. A court of competent jurisdiction, solely for the | 0015| purposes of effecting a division of community property in a | 0016| divorce or legal separation proceeding, may provide by | 0017| appropriate order for a determination and division of a | 0018| community interest in the retirement annuities or other benefits | 0019| provided for in the Public Employees Retirement Annuity Act. | 0020| The court shall fix the manner in which warrants are issued, may | 0021| order direct payments to a person with a community interest in | 0022| the retirement annuities or other benefits, may require the | 0023| election of a specific form of payment and designation of a | 0024| specific survivor beneficiary. Payments made pursuant to such | 0025| orders shall only be made when a participant's retirement | 0001| annuity is payable in accordance with the provisions of the | 0002| Public Employee Retirement Annuity Act. The court shall not | 0003| alter the manner in which the amount of retirement annuities or | 0004| other benefits are calculated by the association or cause any | 0005| increase in the actuarial present value of the retirement | 0006| annuities or other benefits to be paid by the association. | 0007| C. A court of competent jurisdiction, solely for the | 0008| purposes of enforcing current or delinquent child-support | 0009| obligations, may provide by appropriate order for withholding | 0010| amounts due in satisfaction of current or delinquent | 0011| child-support obligations from the retirement annuities or other | 0012| benefits provided for in the Public Employees Retirement Annuity | 0013| Act and for payment of such amounts to third parties. The court | 0014| shall not alter the manner in which the amount of retirement | 0015| annuities or other benefits are calculated by the association. | 0016| The court shall not cause any increase in the actuarial present | 0017| value of the retirement annuities or other benefits to be paid | 0018| from the fund. Payments made pursuant to such orders shall only | 0019| be made when a retirement annuity is payable in accordance with | 0020| the provisions of the Public Employees Retirement Annuity Act. | 0021| In no case shall more money be paid out, either in a lump sum or | 0022| in monthly annuity payments, of the fund in enforcement of | 0023| current or delinquent child-support obligations than would | 0024| otherwise be payable at that time. | 0025| Section 7. [NEW MATERIAL] RETIREMENT ANNUITY--AGE AND | 0001| SERVICE CREDIT REQUIREMENTS FOR NORMAL RETIREMENT.-- | 0002| A. The age and service credit requirements for the | 0003| basic retirement annuity provided for in the Public Employees | 0004| Retirement Annuity Act are age sixty-two or older and five or | 0005| more years of service credit. | 0006| B. If a participant leaves elected office or | 0007| employment with an affiliated public employer before meeting the | 0008| age and service credit requirements for the retirement annuity | 0009| pursuant to Subsection A of this section, that participant may | 0010| apply for retirement when that participant meets the age and | 0011| service credit requirements for the retirement annuity pursuant | 0012| to the provisions of the Public Employees Retirement Annuity | 0013| Act. C. No participant shall be eligible to receive a | 0014| retirement annuity pursuant to the provisions of the Public | 0015| Employees Retirement Annuity Act while still holding elective | 0016| office or employed by an affiliated public employer, except as | 0017| otherwise provided in that act. | 0018| Section 8. [NEW MATERIAL] RETIREMENT ANNUITY--AMOUNT.- | 0019| -The amount of the basic annuity of a participant is equal to | 0020| one percent of final average salary multiplied by the basic | 0021| retirement annuity service credit. As used in this section, | 0022| "final average salary" means one thirty-sixth of the greatest | 0023| aggregate amount of salary paid a participant for thirty-six | 0024| consecutive but not necessarily continuous months of service | 0025| credit. | 0001| Section 9. [NEW MATERIAL] RETIREMENT ANNUITY--EMPLOYER | 0002| CONTRIBUTIONS.--An affiliated public employer shall contribute | 0003| for the participant's retirement annuity seven percent of the | 0004| salary of each participant that it employs starting with the | 0005| first pay period that ends within the calendar month in which | 0006| the Public Retirement Annuity Act becomes applicable to the | 0007| participant. | 0008| Section 10. [NEW MATERIAL] ELECTION OF FORM OF PAYMENT | 0009| OF RETIREMENT ANNUITY. -- | 0010| A. Except as otherwise provided in Section 6 of the | 0011| Public Employees Retirement Savings Plan Act, a participant may | 0012| elect to have payments made under any one of the forms of | 0013| payment provided in Section 11 of that act. The election of a | 0014| form of payment and the naming of survivor beneficiary shall be | 0015| made on a form furnished by and filed with the association prior | 0016| to the date the first retirement annuity payment is made. An | 0017| election of form of payment shall not be changed after the date | 0018| the first retirement annuity payment is made. If the | 0019| participant is married, the association shall obtain the consent | 0020| of the participant's spouse to the election of the form of | 0021| payment and any designation of survivor beneficiary before the | 0022| election or designation is effective. Except as provided in | 0023| Subsection C of this section, a named survivor beneficiary shall | 0024| not be changed after the date the first retirement annuity | 0025| payment is made if form of payment B or C is elected. Except as | 0001| otherwise provided in Section 6 of the Public Employees | 0002| Retirement Savings Plan Act, payment shall be made: | 0003| (1) under form of payment A if the participant | 0004| is not married at the time of retirement and if there is not a | 0005| timely election of another form of payment; or | 0006| (2) under form of payment C with the | 0007| participant's spouse as survivor beneficiary if the participant | 0008| is married at the time of retirement and there is not a timely | 0009| election of another form of payment. | 0010| B. The amount of retirement annuity under forms of | 0011| payment B, C and D shall have the same actuarial present value, | 0012| computed as of the effective date of the retirement annuity, as | 0013| the amount of retirement annuity under form of payment A. | 0014| C. A retired participant who is being paid a | 0015| retirement annuity under form of payment B or C with the | 0016| participant's spouse as the designated survivor beneficiary may, | 0017| upon becoming divorced from the named spouse and subject to an | 0018| order of a court as provided for in Section 6 of the Public | 0019| Employees Retirement Savings Plan Act, elect to have future | 0020| payments made under form of payment A. | 0021| Section 11. [NEW MATERIAL] FORMS OF PAYMENT OF A | 0022| RETIREMENT ANNUITY.-- | 0023| A. Straight life annuity is form of payment A. The | 0024| retired participant is paid the retirement annuity for life | 0025| under form of payment A. All payments stop upon the death of | 0001| the retired participant. The amount of retirement annuity is | 0002| determined in accordance with the coverage plan applicable to | 0003| the retired participant. | 0004| B. Life payments with full continuation to one | 0005| survivor beneficiary is form of payment B. The retired | 0006| participant is paid a reduced retirement annuity for life under | 0007| form of payment B. When the retired participant dies, the | 0008| designated survivor beneficiary is paid the full amount of the | 0009| reduced retirement annuity until death. If the designated | 0010| survivor beneficiary predeceases the retired participant, the | 0011| amount of retirement annuity shall be changed to the amount that | 0012| would have been payable had the retired member elected form of | 0013| payment A. | 0014| C. Life payment with one-half continuation to one | 0015| survivor beneficiary is form of payment C. The retired | 0016| participant is paid a reduced retirement annuity for life under | 0017| form of payment C. When the retired participant dies, the | 0018| designated survivor beneficiary is paid one-half the amount of | 0019| the reduced retirement annuity until death. If the designated | 0020| survivor beneficiary predeceases the retired participant, the | 0021| amount of pension shall be changed to the amount that would have | 0022| been payable had the retired participant elected form of payment | 0023| A. | 0024| D. Life payments with temporary survivor benefits | 0025| for children is form of payment D. The retired participant is | 0001| paid a reduced retirement annuity for life under form of payment | 0002| D. When the retired participant dies, each declared eligible | 0003| child is paid a share of the reduced retirement annuity until | 0004| death or age twenty-five years, whichever occurs first. The | 0005| share is the share specified in writing and filed with the | 0006| association by the retired participant. If shares are not | 0007| specified in writing and filed with the association, each | 0008| declared eligible child is paid an equal share of the reduced | 0009| retirement annuity. A redetermination of shares shall be made | 0010| when the retirement annuity of any child terminates. An | 0011| eligible child is a natural or adopted child of the retired | 0012| participant who is under age twenty-five years. A declared | 0013| eligible child is an eligible child whose name has been declared | 0014| in writing and filed with the association by the retired | 0015| participant at the time of election of form of payment D. The | 0016| amount of retirement annuity shall be changed to the amount of | 0017| retirement annuity that would have been payable had the retired | 0018| participant elected form of payment A upon there ceasing to be a | 0019| declared eligible child during the lifetime of the retired | 0020| participant. | 0021| Section 12. [NEW MATERIAL] DISABILITY RETIREMENT | 0022| ANNUITY.-- | 0023| A. A participant with five years or more of service | 0024| credit accrued pursuant to the provisions of the Public | 0025| Employees Retirement Annuity Act may apply to the board for a | 0001| determination of disability, and upon a determination of | 0002| disability, the participant shall receive a disability | 0003| retirement annuity from the fund so long as the disability | 0004| continues. Determination of disability shall be made by the | 0005| board in accordance with the provisions of the Public Employees | 0006| Retirement Act and rules promulgated pursuant to that act. | 0007| B. The amount of the disability retirement annuity | 0008| shall be calculated using the formula for normal retirement as | 0009| set out in the Public Employees Retirement Annuity Act. | 0010| Section 13. [NEW MATERIAL] SURVIVOR'S RETIREMENT | 0011| ANNUITY.-- | 0012| A. Unless a participant has designated a survivor | 0013| beneficiary in accordance with Subsection B of this section, a | 0014| survivor retirement annuity shall be paid for life to a | 0015| participant's or retired participant's surviving spouse. | 0016| B. A participant may designate, in writing in a form | 0017| prescribed by the association, a survivor beneficiary to receive | 0018| the survivor's retirement annuity described in this section. If | 0019| the participant is married, a designation of survivor | 0020| beneficiary other than the participant's spouse may only be made | 0021| with the written consent of the participant's spouse. Marriage | 0022| subsequent to a designation of survivor beneficiary shall | 0023| automatically revoke the designation of survivor beneficiary. A | 0024| designation of survivor beneficiary made pursuant to a court | 0025| order issued under Section 6 of the Public Employees Retirement | 0001| Savings Plan Act shall not require the consent of the | 0002| participant's spouse, if any, and shall not be revoked by the | 0003| subsequent remarriage of the participant. A designation of | 0004| survivor beneficiary may be revoked by the participant at any | 0005| time prior to the participant's retirement. If the participant | 0006| is married, a revocation of designation of survivor beneficiary | 0007| may only be made with the written consent of the participant's | 0008| spouse. | 0009| C. If there is no surviving spouse and no designated | 0010| survivor beneficiary or if the surviving spouse dies while there | 0011| are still minor and dependent children of the participant, the | 0012| survivor's retirement annuity shall be paid to all minor and | 0013| dependent children, if any, of the participant, in equal shares, | 0014| so long as each child remains a minor or dependent child. As | 0015| each child ceases to be a minor or dependent child, the number | 0016| of shares shall be reduced and the amount payable to each | 0017| remaining child increased proportionately so that the total | 0018| survivor's retirement annuity remains unchanged as long as there | 0019| is any such child. | 0020| D. The survivor's retirement annuity is equal to | 0021| seventy-five percent of the participant's retirement annuity. | 0022| E. Survivor beneficiaries shall be eligible for | 0023| other benefits provided pursuant to the provisions of the Public | 0024| Employees Retirement Annuity Act, including continuation of | 0025| group insurance benefits. | 0001| F. If a participant dies while receiving a | 0002| disability retirement annuity, the survivor beneficiary shall | 0003| receive the survivor retirement annuity provided pursuant to the | 0004| provisions of the Public Employees Retirement Annuity Act. | 0005| Section 14. [NEW MATERIAL] GROUP INSURANCE-- | 0006| CONTINUATION.--If the provisions of the Public Employees | 0007| Retirement Annuity Act do not apply to a retired participant, | 0008| that retired participant may continue to be insured under the | 0009| provisions of any state group insurance plan in effect at the | 0010| time of retirement or under the terms of any separate subsequent | 0011| state group insurance plan, if the retired participant pays the | 0012| entire periodic premium charges for such insurance and consents | 0013| to have the periodic premium charges deducted from the retired | 0014| participant's retirement annuity. | 0015| Section 15. [NEW MATERIAL] SUSPENSION OR FORFEITURE OF | 0016| BENEFITS.--If a participant retires and is subsequently employed | 0017| by any employer covered by any state system or the educational | 0018| retirement system, the retired participant's retirement annuity | 0019| shall be suspended effective the first day of the month | 0020| following the month in which the subsequent employment begins. | 0021| The suspended retirement annuity of a previously retired | 0022| participant shall resume and be effective the first day of the | 0023| month following the month in which the participant leaves office | 0024| or terminates the subsequent employment. | 0025| Section 16. [NEW MATERIAL] ADJUSTMENT OF RETIREMENT | 0001| ANNUITY.-- | 0002| A. If payment of a retirement annuity or other | 0003| retirement benefit causes a decrease in the amount of monetary | 0004| payments or other needs-based benefits due to a payee from any | 0005| other governmental agency, the retirement annuity or other | 0006| retirement benefit shall be reduced for the period during which | 0007| the retirement annuity or other retirement benefit prevents | 0008| payment of another needs-based benefit to result in payment of | 0009| the maximum amount possible by the association and the other | 0010| governmental agency to the payee. Any amounts that would | 0011| otherwise be paid out that are not paid in accordance with the | 0012| provisions of this section shall not be recoverable by a payee | 0013| at any later date. | 0014| B. If there is a change in the effect of retirement | 0015| annuity or other retirement benefit on any monetary payments or | 0016| other needs-based benefits due to a payee from any other | 0017| governmental agency, the retirement annuity or other retirement | 0018| benefits shall be adjusted to result in the maximum total | 0019| benefit to the payee. In no event shall any pension be | 0020| increased in an amount greater than that authorized by the | 0021| Public Employees Retirement Annuity Act. | 0022| C. The provisions of this section are mandatory and | 0023| shall not be waived or declined by a payee. Each payee shall | 0024| provide the association with all information necessary for the | 0025| association to carry out the requirements imposed by this | 0001| section. | 0002| D. If the payee fails to provide all the facts | 0003| necessary to comply with the requirements imposed by this | 0004| section, and payment of a retirement annuity or other retirement | 0005| benefit is made without making the adjustment required by this | 0006| section, neither the board, the executive secretary nor any | 0007| officer or employee of the association or board shall be liable | 0008| to any third party because the adjustment was not made as | 0009| required. | 0010| E. As used in this section: | 0011| (1) "governmental agency" means the federal | 0012| government, any department or agency of the federal government, | 0013| any state and any department, agency or political subdivision of | 0014| a state; | 0015| (2) "needs-based benefit" means monetary or | 0016| other benefits for which a determination of eligibility is based | 0017| upon the recipient's level of income and resources; | 0018| (3) "payee" means a retired member or the | 0019| refund beneficiary or survivor beneficiary of a retired | 0020| participant; | 0021| (4) "retirement annuity" means a normal | 0022| retirement, survivor or disability retirement annuity payable to | 0023| a retired member or survivor beneficiary pursuant to the Public | 0024| Employees Retirement Annuity Act; and | 0025| (5) "total benefits" means annuities plus any | 0001| other monetary payments or other needs-based benefits due to the | 0002| payee from any governmental agency. | 0003| Section 17. [NEW MATERIAL] CORRECTIONS OF ERRORS AND | 0004| OMISSIONS--ESTOPPEL.-- | 0005| A. If an error or omission in an application or its | 0006| supporting documents results in overpayment to a participant or | 0007| beneficiary of a participant, the association shall recover all | 0008| overpayments made for a period of up to one year prior to the | 0009| date the error or omission was discovered. | 0010| B. A person who is paid more than the amount that is | 0011| lawfully due him as a result of fraudulent information provided | 0012| by the participant or beneficiary shall be liable for the | 0013| repayment of that amount to the association plus interest on | 0014| that amount at the rate set by the board plus all costs of | 0015| collection, including attorney fees if necessary. Recovery of | 0016| such overpayment shall extend back to the date the first payment | 0017| was made based on the fraudulent information. | 0018| C. Statements of fact or law made by board members | 0019| or employees of the board or the association shall not estop the | 0020| board or the association from acting in accordance with the | 0021| applicable statutes. | 0022| Section 18. [NEW MATERIAL] SHORT TITLE.--Sections 18 | 0023| through 29 of this act may be cited as the "Public Employees | 0024| Retirement Savings Act". | 0025| Section 19. DEFINITIONS.--As used in the Public Employees | 0001| Retirement Savings Act: | 0002| A. "affiliated public employer" means the state and | 0003| any public employer affiliated with the association as provided | 0004| in the Public Employees Retirement Act, but does not include an | 0005| employer pursuant to the Magistrate Retirement Act, the Judicial | 0006| Retirement Act or the Educational Retirement Act; | 0007| B. "association" means the public employees | 0008| retirement association defined in the Public Employees | 0009| Retirement Act; | 0010| C. "board" means the retirement board; | 0011| D. "employee" means any employee of an affiliated | 0012| public employer; | 0013| E. "dependent child" means a natural or adopted | 0014| child who is physically or mentally incapable of financial self- | 0015| support, regardless of age; | 0016| F. "effective date of retirement" means the first | 0017| day of the month following the month in which the participant | 0018| met all requirements for retirement; | 0019| G. "former participant" means a person who was first | 0020| employed by an affiliated public employer on or after July 1, | 0021| 1998 and who has terminated all such employment; | 0022| H. "fund" means the public employee retirement | 0023| savings fund; | 0024| I. "participant" means an employee first employed by | 0025| an affiliated employer on or after July 1, 1998 who elects to | 0001| participate in the plan and who: | 0002| (1) is currently employed by an affiliated | 0003| public employer; or | 0004| (2) is not currently employed by an affiliated | 0005| public employer and who has not withdrawn his participant | 0006| contributions and has not retired; | 0007| J. "participant contributions" means the amounts | 0008| deducted from the salary of a participant and credited to the | 0009| participant's individual plan account; | 0010| K. "participation" means an election to participate | 0011| in the plan by a participant; | 0012| L. "plan" means the retirement savings plan | 0013| established by the Public Employees Retirement Savings Act; | 0014| M. "public employer" means the state, any | 0015| municipality, county, metropolitan arroyo flood control | 0016| authority, economic development district, regional housing | 0017| authority, soil and water conservation district, entity created | 0018| pursuant to a joint powers agreement, council of government, | 0019| conservancy district, water and sanitation district, water | 0020| district and metropolitan water board, including the boards, | 0021| departments, bureaus and agencies of a public employer, so long | 0022| as these entities fall within the meaning of "governmental plan" | 0023| as that term is used in Section 414(d) of the Internal Revenue | 0024| Code of 1986, as amended; | 0025| N. "refund beneficiary" means a person designated by | 0001| the participant, in writing in the form prescribed by the | 0002| association, as the person to whom the participant's accumulated | 0003| individual plan account balance is payable if the participant | 0004| dies prior to retirement or termination of employment with an | 0005| affiliated public employer; | 0006| O. "retire" means to: | 0007| (1) terminate employment with all employers | 0008| covered by the state system or the Educational Retirement Act; | 0009| and | 0010| (2) receive a pension or annuity from the | 0011| state system or a pension pursuant to provisions of the | 0012| Educational Retirement Act; | 0013| P. "retired participant" means a person who has | 0014| retired and who is receiving a retirement annuity from the fund; | 0015| Q. "retirement annuity" means a series of monthly | 0016| payments to a retired participant or survivor beneficiary | 0017| pursuant to the provisions of the Public Employees Retirement | 0018| Savings Act; | 0019| R. "salary" means the base salary or wages paid a | 0020| participant, including longevity pay, for personal services | 0021| rendered; provided that "salary" does not include overtime pay, | 0022| allowances for housing, clothing, equipment or travel, payments | 0023| for unused sick leave, unless the unused sick leave payment is | 0024| made through continuation of the participant on the regular | 0025| payroll for the period represented by that payment, and any | 0001| other form of remuneration not specifically designated by law as | 0002| included in salary pursuant to the provisions of the Public | 0003| Employees Retirement Savings Act; | 0004| S. "state system" means the retirement programs | 0005| provided pursuant to the provisions of the Public Employees | 0006| Retirement Act, the Public Employees Retirement Annuity Act, the | 0007| Judicial Retirement Act and the Magistrate Retirement Act; | 0008| T. "surviving spouse" means the spouse to whom the | 0009| participant was married at the time of the participant's death; | 0010| and | 0011| U. "survivor beneficiary" means a person who | 0012| receives a retirement annuity or who has been designated to be | 0013| paid a retirement annuity as a result of the death of a | 0014| participant or retired participant. | 0015| Section 19. [NEW MATERIAL] PARTICIPATION.-- | 0016| A. Every employee first employed by an affiliated | 0017| public employer on or after July 1, 1998 and every elected | 0018| official first elected to an office with an affiliated public | 0019| employer after July 1, 1998 may elect to be a participant, | 0020| unless excluded from participation pursuant to Subsection B of | 0021| this section. | 0022| B. The following employees and elected officials are | 0023| excluded from participation: | 0024| (1) employees and elected officials covered | 0025| under the provisions of the Public Employees Retirement Act, the | 0001| Educational Retirement Act, the Judicial Retirement Act, the | 0002| Magistrate Retirement Act or the provisions of Sections 29-4-1 | 0003| through 29-4-11 NMSA 1978 governing the state police pension | 0004| fund; | 0005| (2) employees designated by the affiliated | 0006| public employer as seasonal or student employees; and | 0007| (3) employees of an affiliated public employer | 0008| who have retired under and are receiving a pension or annuity | 0009| pursuant to the provisions of the Educational Retirement Act, | 0010| the Public Employees Retirement Act, the Judicial Retirement Act | 0011| or the Magistrate Retirement Act or a retirement annuity | 0012| pursuant to the provisions of the Public Employees Retirement | 0013| Annuity Act. | 0014| C. Employees designated as seasonal or student | 0015| employees shall be notified in writing by their affiliated | 0016| public employer of the designation and the consequences of the | 0017| designation with respect to participation, service credit and | 0018| benefits. A copy of the notification shall be filed with the | 0019| association within thirty days of the date of employment. | 0020| D. During their term of service for an affiliated | 0021| public employer, employees and elected officials who have | 0022| elected not to be participants may subsequently elect to become | 0023| participants by filing a participation election form with the | 0024| association. Participation shall commence the first day of the | 0025| first pay period following the date the election is filed. | 0001| E. An election pursuant to this section shall not be | 0002| made or changed more often than once annually, except for | 0003| hardship as determined by the association. | 0004| F. The participation of an employee or elected | 0005| official shall cease if the employee terminates employment with | 0006| an affiliated public employer or the elected official leaves | 0007| office and the employee or elected official requests and | 0008| receives a refund of participant contributions or his account | 0009| balance. | 0010| Section 20. [NEW MATERIAL] PUBLIC EMPLOYEES RETIREMENT | 0011| SAVINGS FUND ESTABLISHED--ADMINISTRATION OF FUND--ACCOUNTING | 0012| FUNDS.-- | 0013| A. The "public employee retirement savings fund" is | 0014| created as a trust fund in the state treasury. The fund shall | 0015| consist of participant contributions, public employer | 0016| contributions and any investment earnings on those | 0017| contributions. The board is the trustee of the fund, and shall | 0018| administer and invest it. Investment of the fund shall be made | 0019| in the types of investments authorized for funds invested | 0020| pursuant to the Public Employees Retirement Act; provided that | 0021| the association shall adopt regulations creating investment | 0022| classifications, including growth, income and other | 0023| classifications, which participants may elect for investment of | 0024| amounts in their individual accounts. | 0025| B. The board may create separate subfunds for | 0001| purposes of administration. The board shall promulgate | 0002| necessary or appropriate rules and regulations to implement and | 0003| administer that act. | 0004| C. Expenses related to the investment of the fund | 0005| and administration of the Public Employees Retirement Savings | 0006| Act shall be paid from the fund. | 0007| D. A separate account within the fund shall be | 0008| maintained for each participant. However, the participant | 0009| accounts shall not be maintained as segregated funds. | 0010| E. The accounts and fund provided for in this | 0011| section are held in trust for participants and shall be used | 0012| only as provided in the Public Employees Retirement Savings Act. | 0013| Section 21. [NEW MATERIAL] FUND NOT SUBJECT TO LEGAL | 0014| PROCESS--DIVISION OF FUNDS AS COMMUNITY PROPERTY--LEGAL PROCESS | 0015| TO SATISFY CHILD-SUPPORT OBLIGATIONS.-- | 0016| A. Except as provided in Subsections B and C of this | 0017| section, none of the money, annuities or other benefits provided | 0018| pursuant to the provisions of the Public Employees Retirement | 0019| Savings Act shall be assignable either in law or in equity or be | 0020| subject to execution, levy, attachment, garnishment or other | 0021| legal process. | 0022| B. A court of competent jurisdiction, solely for the | 0023| purposes of effecting a division of community property in a | 0024| divorce or legal separation proceeding, may provide by | 0025| appropriate order for a determination and division of a | 0001| community interest in the retirement annuities or other benefits | 0002| provided pursuant to the Public Employees Retirement Savings | 0003| Act. The court shall fix the manner in which warrants are | 0004| issued, may order direct payments to a person with a community | 0005| interest in the retirement annuities or other benefits, may | 0006| require the election of a specific form of payment and | 0007| designation of a specific survivor beneficiary or refund | 0008| beneficiary and may enjoin the refund or withdrawal of the | 0009| individual plan account. Payments pursuant to such orders shall | 0010| only be made when a participant's individual account is refunded | 0011| or withdrawn, or when a retirement annuity is payable, pursuant | 0012| to the Public Employees Retirement Savings Act. The court shall | 0013| not alter the manner in which the amount of annuities or other | 0014| benefits are calculated by the association or cause any increase | 0015| in the actuarial present value of the retirement annuities or | 0016| other benefits to be paid by the association. | 0017| C. A court of competent jurisdiction, solely for the | 0018| purposes of enforcing current or delinquent child-support | 0019| obligations, may provide by appropriate order for withholding | 0020| amounts due in satisfaction of current or delinquent | 0021| child-support obligations from the retirement annuities or other | 0022| benefits provided in the Public Employees Retirement Savings Act | 0023| and for payment of such amounts to third parties. The court | 0024| shall not alter the manner in which the amount of retirement | 0025| annuities or other benefits are calculated by the association. | 0001| The court shall not cause any increase in the actuarial present | 0002| value of the retirement annuities or other benefits to be paid | 0003| from the fund. Payments made pursuant to such orders shall only | 0004| be made when a participant's individual account is refunded or | 0005| withdrawn, or when a retirement annuity is payable, pursuant to | 0006| the Public Employees Retirement Savings Act. In no case shall | 0007| more money be paid out, either in a lump sum or in annuity | 0008| payments, for current or delinquent child-support obligations | 0009| than would otherwise be payable at that time. | 0010| Section 22. [NEW MATERIAL] RETIREMENT ANNUITY--AGE AND | 0011| SERVICE CREDIT REQUIREMENTS FOR NORMAL RETIREMENT.-- | 0012| A. The age and service credit requirements for the | 0013| retirement annuity option provided in the Public Employees | 0014| Retirement Savings Act are age sixty-two or older and at least | 0015| two full years of service credit. | 0016| B. If a participant leaves elected office or | 0017| employment with an affiliated public employer before meeting the | 0018| age and service credit requirements for the retirement annuity | 0019| pursuant to Subsection A of this section, that participant may: | 0020| (1) leave the balance in his individual plan | 0021| account in the fund to be invested on an ongoing basis and apply | 0022| for retirement when the participant meets the age and service | 0023| credit requirements specified in Subsection A of this section; | 0024| (2) have the plan account balance transferred | 0025| to another retirement plan; | 0001| (3) if the participant has met the service | 0002| credit but not the age requirement, withdraw his entire | 0003| individual plan account balance, including investment earnings; | 0004| or | 0005| (4) if the participant has met neither the | 0006| service credit nor the age requirement, withdraw the | 0007| participant's contributions only. | 0008| C. No participant shall be eligible to receive a | 0009| retirement annuity or other benefits, including withdrawal of | 0010| his individual account, pursuant to the provisions of the Public | 0011| Employees Retirement Savings Act while still holding elective | 0012| office or employed by an affiliated public employer, except as | 0013| otherwise provided in that act. | 0014| Section 23. [NEW MATERIAL] RETIREMENT ANNUITY-- | 0015| AMOUNT.--The amount of a participant's basic plan annuity is | 0016| equal to the total amount credited to his individual account or | 0017| the date he retires, plus estimated future earnings on that | 0018| amount, amortized over the term of his life expectancy, as | 0019| determined by the board. | 0020| Section 24. [NEW MATERIAL] RETIREMENT ANNUITY PLAN-- | 0021| PARTICIPANT AND EMPLOYER CONTRIBUTIONS.-- | 0022| A. A participant may elect to contribute any amount | 0023| not to exceed six percent of his salary to the fund for credit | 0024| to his individual account. Contribution rates or amounts may | 0025| not be changed more often than twice annually, except for cases | 0001| of hardship as determined by the board. | 0002| B. A participant's affiliated public employer shall | 0003| contribute to the fund for credit to the participant's account | 0004| one-half of the participant's contribution, not to exceed three | 0005| percent of the participant's salary, starting with the first pay | 0006| period ending within the calendar month in which the participant | 0007| elects to participate. | 0008| Section 25. [NEW MATERIAL] ELECTION OF FORM OF PAYMENT | 0009| OF RETIREMENT ANNUITY.-- | 0010| A. Except as otherwise provided in Section 22 of | 0011| this act, a participant may elect to have annuity payments made | 0012| under any one of the forms of payment provided in Section 27 of | 0013| this act. The election of a form of payment and the naming of a | 0014| survivor beneficiary shall be made on a form furnished by and | 0015| filed with the association prior to the date the first | 0016| retirement annuity payment is made. An election of form of | 0017| payment shall not be changed after the date the first retirement | 0018| annuity payment is made. If the participant is married, the | 0019| association shall obtain the consent of the participant's spouse | 0020| to the election of the form of payment and any designation of | 0021| survivor beneficiary before the election or designation is | 0022| effective. Except as provided in Subsection C of this section, | 0023| a named survivor beneficiary shall not be changed after the date | 0024| the first retirement annuity payment is made if form of payment | 0025| B or C is elected. Except as otherwise provided in Section 22 | 0001| of this act, payment shall be made, at the participant's option, | 0002| as follows: | 0003| (1) a lump sum totaling the entire balance in | 0004| his individual account, including accrued investment earnings; | 0005| or | 0006| (2) if the participant is not married at the | 0007| time of retirement and if there is not a timely election of | 0008| another form of payment, under form of payment A; or | 0009| (3) if the participant is married at the time | 0010| of retirement and there is not a timely election of another form | 0011| of payment, under form of payment C with the participant's | 0012| spouse as survivor beneficiary. | 0013| B. The amount of retirement annuity under forms of | 0014| payment B, C and D shall have the same actuarial present value, | 0015| computed as of the effective date of the retirement annuity, as | 0016| the amount of retirement annuity under form of payment A. | 0017| C. A retired participant who is being paid a | 0018| retirement annuity under form of payment B or C with the | 0019| participant's spouse as the designated survivor beneficiary may, | 0020| upon becoming divorced from the named spouse and subject to an | 0021| order of a court as provided in Section 22 of this act, elect to | 0022| have future payments made under form of payment A. | 0023| Section 26. [NEW MATERIAL] FORMS OF PAYMENT OF | 0024| RETIREMENT ANNUITY.-- | 0025| A. Straight life annuity is form of payment A. The | 0001| retired participant is paid the retirement annuity for life | 0002| under form of payment A. All payments stop upon the death of | 0003| the retired participant. The amount of retirement annuity is | 0004| determined in accordance with the individual plan account | 0005| balance applicable to the retired participant. | 0006| B. Life payments with full continuation to one | 0007| survivor beneficiary is form of payment B. The retired | 0008| participant is paid a reduced retirement annuity for life under | 0009| form of payment B. When the retired participant dies, the | 0010| designated survivor beneficiary is paid the full amount of the | 0011| reduced retirement annuity until death. If the designated | 0012| survivor beneficiary predeceases the retired participant, the | 0013| amount of retirement annuity shall be changed to the amount that | 0014| would have been payable had the retired member elected form of | 0015| payment A. | 0016| C. Life payment with one-half continuation to one | 0017| survivor beneficiary is form of payment C. The retired | 0018| participant is paid a reduced retirement annuity for life under | 0019| form of payment C. When the retired participant dies, the | 0020| designated survivor beneficiary is paid one-half the amount of | 0021| the reduced retirement annuity until death. If the designated | 0022| survivor beneficiary predeceases the retired participant, the | 0023| amount of pension shall be changed to the amount that would have | 0024| been payable had the retired participant elected form of payment | 0025| A. | 0001| D. Life payments with temporary survivor benefits | 0002| for children is form of payment D. The retired participant is | 0003| paid a reduced retirement annuity for life under form of payment | 0004| D. When the retired participant dies, each declared eligible | 0005| child is paid a share of the reduced retirement annuity until | 0006| death or age twenty-five years, whichever occurs first. The | 0007| share is the share specified in writing and filed with the | 0008| association by the retired participant. If shares are not | 0009| specified in writing and filed with the association, each | 0010| declared eligible child is paid an equal share of the reduced | 0011| retirement annuity. A redetermination of shares shall be made | 0012| when the retirement annuity of any child terminates. An | 0013| eligible child is a natural or adopted child of the retired | 0014| participant who is under age twenty-five years. A declared | 0015| eligible child is an eligible child whose name has been declared | 0016| in writing and filed with the association by the retired | 0017| participant at the time of election of form of payment D. The | 0018| amount of retirement annuity shall be changed to the amount of | 0019| retirement annuity that would have been payable had the retired | 0020| participant elected form of payment A upon there ceasing to be a | 0021| declared eligible child during the lifetime of the retired | 0022| participant. | 0023| Section 27. [NEW MATERIAL] SURVIVOR'S RETIREMENT | 0024| ANNUITY.-- | 0025| A. Unless a participant has designated a survivor | 0001| beneficiary in accordance with Subsection B of this section, a | 0002| survivor retirement annuity shall be paid for life to a | 0003| participant's or retired participant's surviving spouse. | 0004| B. A participant may designate, in writing in a form | 0005| prescribed by the association, a survivor beneficiary to receive | 0006| the survivor's retirement annuity described in this section. If | 0007| the participant is married, a designation of survivor | 0008| beneficiary other than the participant's spouse may only be made | 0009| with the written consent of the participant's spouse. Marriage | 0010| subsequent to a designation of survivor beneficiary shall | 0011| automatically revoke the designation of survivor beneficiary. A | 0012| designation of survivor beneficiary made pursuant to a court | 0013| order issued under Section 22 of the this act shall not require | 0014| the consent of the participant's spouse, if any, and shall not | 0015| be revoked by the subsequent remarriage of the participant. A | 0016| designation of survivor beneficiary may be revoked by the | 0017| participant at any time prior to the participant's retirement. | 0018| If the participant is married, a revocation of designation of | 0019| survivor beneficiary may only be made with the written consent | 0020| of the participant's spouse. | 0021| C. If there is no surviving spouse and no designated | 0022| survivor beneficiary or if the surviving spouse dies while there | 0023| are still minor and dependent children of the participant, the | 0024| survivor's retirement annuity shall be paid to all minor and | 0025| dependent children, if any, of the participant, in equal shares, | 0001| so long as each child remains a minor or dependent child. As | 0002| each child ceases to be a minor or dependent child, the number | 0003| of shares shall be reduced and the amount payable to each | 0004| remaining child increased proportionately so that the total | 0005| survivor's retirement annuity remains unchanged as long as there | 0006| is any such child. | 0007| D. The survivor's retirement annuity is equal to a | 0008| percentage of the participant's retirement annuity as determined | 0009| by the association based on sound actuarial principles. | 0010| Section 28. [NEW MATERIAL] SUSPENSION OR FORFEITURE OF | 0011| BENEFITS.--If a participant retires and is subsequently employed | 0012| by any employer covered by the state system or the Educational | 0013| Retirement Act, the retired participant's retirement annuity | 0014| pursuant to the Public Employees Retirement Savings Act shall | 0015| not be suspended or otherwise affected. However, the retired | 0016| participant may not then become a participant or eligible to | 0017| contribute further to the plan. | 0018| Section 29. [NEW MATERIAL] CORRECTIONS OF ERRORS AND | 0019| OMISSIONS-- ESTOPPEL.-- | 0020| A. If an error or omission in an application or its | 0021| supporting documents results in overpayment to a participant or | 0022| beneficiary of a participant, the association shall recover all | 0023| overpayments made for a period of up to one year prior to the | 0024| date the error or omission was discovered. | 0025| B. A person who is paid more than the amount that is | 0001| lawfully due him as a result of fraudulent information provided | 0002| by the participant or beneficiary shall be liable for the | 0003| repayment of that amount to the association plus interest on | 0004| that amount at the rate set by the board plus all costs of | 0005| collection, including attorney fees if necessary. Recovery of | 0006| such overpayment shall extend back to the date the first payment | 0007| was made based on the fraudulent information. | 0008| C. Statements of fact or law made by board members | 0009| or employees of the board or the association shall not estop the | 0010| board or the association from acting in accordance with | 0011| applicable statutes. | 0012| Section 30. Section 10-11-2 NMSA 1978 (being Laws 1987, | 0013| Chapter 253, Section 2, as amended) is amended to read: | 0014| "10-11-2. DEFINITIONS.--As used in the Public Employees | 0015| Retirement Act: | 0016| A. "accumulated member contributions" means the | 0017| amounts deducted from the salary of a member and credited to the | 0018| member's individual account, together with interest, if any, | 0019| credited to that account; | 0020| B. "affiliated public employer" means the state and | 0021| any public employer affiliated with the association as provided | 0022| in the Public Employees Retirement Act, but does not include an | 0023| employer pursuant to the Magistrate Retirement Act, the Judicial | 0024| Retirement Act or the Educational Retirement Act; | 0025| C. "association" means the public employees | 0001| retirement association established under the Public Employees | 0002| Retirement Act; | 0003| D. "disability retired member" means a retired | 0004| member who is receiving a pension pursuant to the disability | 0005| retirement provisions of the Public Employees Retirement Act; | 0006| E. "disability retirement pension" means the pension | 0007| paid pursuant to the disability retirement provisions of the | 0008| Public Employees Retirement Act; | 0009| F. "educational retirement system" means that | 0010| retirement system provided for in the Educational Retirement | 0011| Act; | 0012| G. "employee" means any employee of an affiliated | 0013| public employer; | 0014| H. "federal social security program" means that | 0015| program or those programs created and administered pursuant to | 0016| the act of congress approved August 14, 1935, Chapter 531, 49 | 0017| Stat. 620, as that act may be amended; | 0018| I. "final average salary" means the final average | 0019| salary calculated in accordance with the provisions of the | 0020| applicable coverage plan; | 0021| J. "form of payment" means the applicable form of | 0022| payment of a pension provided for in Section 10-11-117 NMSA | 0023| 1978; | 0024| K. "former member" means a person who was previously | 0025| employed by an affiliated public employer, who has terminated | 0001| that employment and who has received a refund of member | 0002| contributions; | 0003| L. "fund" means the funds included under the Public | 0004| Employees Retirement Act; | 0005| M. "member" means a person who first became an | 0006| employee before July 1, 1998 who is a currently employed, | 0007| contributing employee ~~[of an affiliated public employer]~~ or | 0008| ~~[a person]~~ who has been but is not currently ~~[employed by an~~ | 0009| ~~affiliated public employer]~~ an employee and who has not | 0010| retired ~~[and who has not]~~ or received a refund of member | 0011| contributions; "member" also includes the following persons | 0012| regardless of the date they first became employees: | 0013| (1) "hazardous duty member" means a state | 0014| policeman who is a member and who is a juvenile or adult | 0015| correctional officer employed by a corrections facility of the | 0016| corrections department or its successor agency; | 0017| (2) "municipal fire member" means any member | 0018| who is employed as a full-time nonvolunteer firefighter by an | 0019| affiliated public employer and who has taken the oath prescribed | 0020| for firefighters; | 0021| (3) "municipal police member" means any member | 0022| who is employed as a police officer by an affiliated public | 0023| employer, other than the state, and who has taken the oath | 0024| prescribed for police officers; and | 0025| (4) "state police member" means any member who | 0001| is an officer of the New Mexico state police and who has taken | 0002| the oath prescribed for such officers; | 0003| N. "membership" means membership in the association; | 0004| O. "pension" means a series of monthly payments to a | 0005| retired member or survivor beneficiary as provided in the Public | 0006| Employees Retirement Act; | 0007| P. "public employer" means the state, any | 0008| municipality, city, county, metropolitan arroyo flood control | 0009| authority, economic development district, regional housing | 0010| authority, soil and water conservation district, entity created | 0011| pursuant to a joint powers agreement, council of government, | 0012| conservancy district, water and sanitation district, water | 0013| district and metropolitan water board, including the boards, | 0014| departments, bureaus and agencies of a public employer, so long | 0015| as these entities fall within the meaning of governmental plan | 0016| as that term is used in Section 414(d) of the Internal Revenue | 0017| Code of 1986, as amended; | 0018| Q. "refund beneficiary" means a person designated by | 0019| the member, in writing, in the form prescribed by the | 0020| association, as the person who would be refunded the member's | 0021| accumulated member contributions payable if the member dies and | 0022| no survivor pension is payable or who would receive the | 0023| difference between pension paid and accumulated member | 0024| contributions if the retired member dies before receiving in | 0025| pension payments the amount of the accumulated member | 0001| contributions; | 0002| R. "retire" means to: | 0003| (1) terminate employment with all employers | 0004| covered by any state system or the educational retirement | 0005| system; and | 0006| (2) receive a pension from a state system or | 0007| the educational retirement system; | 0008| S. "retired member" means a person who has met all | 0009| requirements for retirement and who is receiving a pension from | 0010| the fund; | 0011| T. "retirement board" means the retirement board | 0012| provided for in the Public Employees Retirement Act; | 0013| U. "salary" means the base salary or wages paid a | 0014| member, including longevity pay, for personal services rendered | 0015| an affiliated public employer. "Salary" shall not include | 0016| overtime pay, allowances for housing, clothing, equipment or | 0017| travel, payments for unused sick leave, unless the unused sick | 0018| leave payment is made through continuation of the member on the | 0019| regular payroll for the period represented by that payment, and | 0020| any other form of remuneration not specifically designated by | 0021| law as included in salary for Public Employees Retirement Act | 0022| purposes. Salary in excess of the limitations set forth | 0023| in Section 401(a) (17) of the Internal Revenue Code of 1986, as | 0024| amended shall be disregarded. The limitation on compensation | 0025| for eligible employees shall not be less than the amount that | 0001| was allowed to be taken into account under the state retirement | 0002| system acts in effect on July 1, 1993. For purposes of this | 0003| section, "eligible employee" means an individual who was a | 0004| member of a state system before the first plan year beginning | 0005| after December 31, 1995; | 0006| V. "state system" means the retirement programs | 0007| provided for in the Public Employees Retirement Act, the Public | 0008| Employees Retirement Annuity Act, the Magistrate Retirement Act | 0009| and the Judicial Retirement Act; | 0010| W. "state retirement system acts" means collectively | 0011| the Public Employees Retirement Act, the Public Employees | 0012| Retirement Annuity Act, the Magistrate Retirement Act, the | 0013| Judicial Retirement Act and the Volunteer Firefighters | 0014| Retirement Act; and | 0015| X. "survivor beneficiary" means a person who | 0016| receives a pension or who has been designated to be paid a | 0017| pension as a result of the death of a member or retired member." | 0018| Section 31. Section 10-11-3 NMSA 1978 (being Laws 1987, | 0019| Chapter 253, Section 3, as amended) is amended to read: | 0020| "10-11-3. MEMBERSHIP--REQUIREMENTS--EXCLUSIONS-- | 0021| TERMINATION.-- | 0022| A. Except as may be provided for in the Public | 0023| Employees Retirement Annuity Act, the Volunteer Firefighters | 0024| Retirement Act, the Judicial Retirement Act, the Magistrate | 0025| Retirement Act, the Educational Retirement Act and the | 0001| provisions of Sections 29-4-1 through 29-4-11 NMSA 1978 | 0002| governing the state police pension fund, each employee and | 0003| elected official of every affiliated public employer shall be a | 0004| member of the association, unless excluded from membership in | 0005| accordance with Subsection B of this section. | 0006| B. The following employees and elected officials are | 0007| excluded from membership in the association: | 0008| (1) elected officials who file with the | 0009| association a written application for exemption from membership | 0010| within thirty days of taking office; | 0011| (2) elected officials who file with the | 0012| association a written application for exemption from membership | 0013| within thirty days of the date the elected official's public | 0014| employer becomes an affiliated public employer; | 0015| (3) employees designated by the affiliated | 0016| public employer as seasonal or student employees; | 0017| (4) employees who file with the association a | 0018| written application for exemption from membership within thirty | 0019| days of the date the employee's public employer becomes an | 0020| affiliated public employer; | 0021| (5) employees of an affiliated public employer | 0022| that is making contributions to a private retirement program on | 0023| behalf of the employee as part of a compensation arrangement who | 0024| file with the association a written application for exemption | 0025| within thirty days of employment, unless the employee has | 0001| previously retired under the provisions of the Public Employees | 0002| Retirement Act; and | 0003| (6) employees of an affiliated public employer | 0004| who have retired under and are receiving a pension pursuant to | 0005| the provisions of the Educational Retirement Act. | 0006| C. Employees designated as seasonal and student | 0007| employees shall be notified in writing by their affiliated | 0008| public employer of the designation and the consequences of the | 0009| designation with respect to membership, service credit and | 0010| benefits. A copy of the notification shall be filed with the | 0011| association within thirty days of the date of employment. | 0012| D. An exemption from membership by an elected | 0013| official shall expire at the end of the term of office for which | 0014| filed. | 0015| E. Employees and elected officials who have exempted | 0016| themselves from membership may subsequently withdraw the | 0017| exemption by filing a membership application. Membership shall | 0018| commence the first day of the first pay period following the | 0019| date the application is filed. | 0020| F. The membership of an employee or elected official | 0021| shall cease if the employee terminates employment with an | 0022| affiliated public employer or the elected official leaves office | 0023| and the employee or elected official requests and receives a | 0024| refund of member contributions." | 0025| Section 32. TEMPORARY PROVISION--NON-APPLICABILITY OF | 0001| PUBLIC EMPLOYEES RETIREMENT ACT.-- | 0002| A. Notwithstanding any other provision of law, the | 0003| Public Employees Retirement Act does not apply to any employee | 0004| of an affiliated public employer, as defined in that act, first | 0005| employed by such an employer on and after July 1, 1998, except: | 0006| (1) hazardous duty members; | 0007| (2) municipal fire members; | 0008| (3) municipal police members; and | 0009| (4) state police members. | 0010| B. Nothing in this act affects the rights of former | 0011| members of the public employees retirement association first | 0012| employed before July 1, 1998 to become members and receive | 0013| benefits under the Public Employees Retirement Act by purchasing | 0014| forfeited service credit, so long as such forfeited service | 0015| credit accrued prior to July 1, 1998 aggregates at least five | 0016| full years' service credit. | 0017| Section 33. EFFECTIVE DATE.--The effective date of the | 0018| provisions of this act is July 1, 1998. | 0019| - 48 - |