0001| SENATE BILL 47
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| RICHARD M. ROMERO
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0005|
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO PUBLIC OFFICERS AND EMPLOYEES; AMENDING THE PUBLIC
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0012| EMPLOYEES RETIREMENT ACT, THE JUDICIAL RETIREMENT ACT AND THE
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0013| MAGISTRATE RETIREMENT ACT TO ALLOW THE PURCHASE OF SERVICE
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0014| CREDIT BY INSTALLMENT CONTRACT.
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0015|
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0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017| Section 1. Section 10-11-4 NMSA 1978 (being Laws 1987,
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0018| Chapter 253, Section 4, as amended) is amended to read:
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0019| "10-11-4. SERVICE CREDIT--REQUIREMENTS FOR--FORFEITURE--
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0020| REINSTATEMENT.--
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0021| A. Personal service rendered an affiliated public
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0022| employer by a member shall be credited to the member's service
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0023| credit account in accordance with retirement board rules and
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0024| regulations. Service shall be credited to the nearest month.
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0025| In no case shall any member be credited with a year of service
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0001| for less than twelve months of service in any calendar year or
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0002| more than a month of service for all service in any calendar
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0003| month or more than a year of service for all service in any
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0004| calendar year.
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0005| B. Personal service rendered an affiliated public
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0006| employer prior to August 1, 1947 shall be credited to a member
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0007| if the member acquires one year of service credit for personal
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0008| service rendered an affiliated public employer.
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0009| C. Personal service rendered an affiliated public
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0010| employer after July 31, 1947 but prior to the date the public
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0011| employer became an affiliated public employer is prior service
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0012| and shall be credited to a member if:
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0013| (1) the member acquires five years of service
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0014| credit for personal service rendered an affiliated public
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0015| employer; and
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0016| (2) the member pays the association the amount
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0017| determined in accordance with Subsection D of this section.
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0018| D. The purchase cost for each month of service
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0019| credit purchased under the provisions of this section is equal
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0020| to the member's final average salary multiplied by the sum of
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0021| the member contribution rate and employer contribution rate
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0022| determined in accordance with the coverage plan applicable to
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0023| the member at the time of the written election to purchase.
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0024| [Full] Payment shall be made in a single lump-sum amount or
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0025| by entering into an installment contract with the retirement
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0001| board in accordance with the procedures and terms
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0002| established by the board. Installment contracts may be paid by
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0003| payroll deduction. The retirement board is authorized to set
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0004| the rate of interest to be charged in installment contracts.
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0005| The portion of the purchase cost derived from the employer
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0006| contribution rate shall be credited to the employer
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0007| accumulation fund and shall not be refunded to the member in
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0008| the event of cessation of membership. In no case shall any
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0009| member be credited with a month of service for less than the
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0010| purchase cost as defined in this section.
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0011| E. Service credit shall be forfeited if a member
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0012| terminates employment with an affiliated public employer and
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0013| withdraws the member's accumulated member contributions.
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0014| F. A member or former member who is a member of
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0015| another state system or the educational retirement system and
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0016| who has forfeited service credit by withdrawal of member
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0017| contributions may reinstate the forfeited service credit by
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0018| repaying the amount withdrawn plus compound interest from the
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0019| date of withdrawal to the date of repayment at the rate set by
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0020| the retirement board. Withdrawn member contributions may be
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0021| repaid in increments of one year in accordance with the
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0022| procedures established by the retirement board. [Full]
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0023| Payment of each one-year increment shall be made in a single
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0024| lump-sum amount or by entering into an installment contract
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0025| with the retirement board in accordance with procedures and
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0001| terms established by the board. Installment contracts may be
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0002| paid by payroll deduction. The retirement board is authorized
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0003| to set interest to be charged in installment contracts."
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0004| Section 2. Section 10-11-7 NMSA 1978 (being Laws 1987,
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0005| Chapter 253, Section 7, as amended) is amended to read:
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0006| "10-11-7. CREDITED SERVICE--PURCHASE OF SERVICE.--
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0007| A. A member who entered an armed service of the
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0008| United States may purchase credited service for periods of
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0009| active duty, subject to the following conditions:
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0010| (1) the member pays the association the
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0011| purchase cost determined according to Subsection D of this
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0012| section;
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0013| (2) the member has five or more years of
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0014| credited service acquired as a result of personal service
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0015| rendered in the employ of an affiliated public employer;
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0016| (3) the aggregate amount of credited service
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0017| purchased under this subsection does not exceed five years
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0018| reduced by any period of credited service acquired for military
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0019| service under any other provision of the Public Employees
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0020| Retirement Act; and
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0021| (4) credited service may not be purchased for
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0022| periods of active duty that are used to obtain or increase a
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0023| benefit from another retirement program.
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0024| B. A member who was employed by a utility company,
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0025| library, museum, transit company or by a nonprofit organization
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0001| administering federally funded public service programs, which
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0002| utility company, library, museum, transit company or nonprofit
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0003| organization administering federally funded public service
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0004| programs or federally funded public service programs
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0005| administered by a nonprofit organization are subsequently taken
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0006| over by an affiliated public employer, or a member who was
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0007| employed by an entity created pursuant to a joint powers
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0008| agreement between two or more affiliated public employers for
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0009| the purpose of administering or providing drug or alcohol
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0010| addiction treatment services irrespective of whether the entity
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0011| is subsequently taken over by an affiliated public employer,
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0012| may purchase credited service for the period of employment
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0013| subject to the following conditions:
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0014| (1) the member pays the association the
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0015| purchase cost determined according to Subsection D of this
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0016| section;
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0017| (2) the member has five or more years of
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0018| credited service acquired as a result of personal service
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0019| rendered in the employ of an affiliated public employer; and
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0020| (3) the aggregate amount of credited service
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0021| purchased under this subsection does not exceed five years.
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0022| C. A member who was appointed to participate in a
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0023| cooperative work study training program established jointly by
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0024| the state highway and transportation department and the
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0025| university of New Mexico or New Mexico state university may
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0001| purchase credited service for the period of participation
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0002| subject to the following conditions:
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0003| (1) the member pays the association the
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0004| purchase cost determined according to Subsection D of this
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0005| section;
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0006| (2) the member has five or more years of
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0007| credited service acquired as a result of personal service
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0008| rendered in the employ of an affiliated public employer; and
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0009| (3) the aggregate amount of credited service
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0010| purchased under this subsection does not exceed five years.
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0011| D. Except for service to be used under a state
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0012| legislator coverage plan, the purchase cost for each month of
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0013| credited service purchased under the provisions of this section
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0014| is equal to the member's final average salary multiplied by the
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0015| sum of the member contribution rate and employer contribution
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0016| rate, determined in accordance with the coverage plan
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0017| applicable to the member at the time of the written election to
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0018| purchase. The purchase cost for each year of credited service
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0019| to be used under a state legislator coverage plan is equal to
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0020| the sum of the member contribution and an employer contribution
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0021| of ten times the annual amount of pension per year of credited
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0022| service under the state legislator coverage plan applicable to
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0023| the member. [Full] Payment shall be made in a single lump-sum
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0024| [within sixty days of the date the member is informed of the
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amount of the payment] amount or by entering into an
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0001| installment contract with the retirement board in accordance
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0002| with the procedures and terms established by the board.
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0003| Installment contracts may be paid by payroll deduction. The
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0004| retirement board is authorized to set the rate of interest to
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0005| be charged in installment contracts. The portion of the
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0006| purchase cost derived from the employer contribution rate shall
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0007| be credited to the employer accumulation fund and shall not be
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0008| paid out of the association in the event of cessation of
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0009| membership. In no case shall any member be credited with a
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0010| month of service for less than the purchase cost as defined in
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0011| this section.
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0012| E. A member shall be refunded, upon written request
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0013| filed with the association, the portion of the purchase cost of
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0014| credited service purchased under this section that the
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0015| association determines to have been unnecessary to provide the
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0016| member with the maximum pension applicable to the member. The
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0017| association shall not pay interest on the portion of the
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0018| purchase cost refunded to the member.
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0019| F. A member of the magistrate retirement system who
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0020| during his service as a magistrate was eligible to become a
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0021| member of the public employees retirement system and elected
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0022| not to become a member of that system may [upon the effective
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date of this subsection] purchase service credit under the
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0024| public employees retirement system for the period for which the
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0025| magistrate elected not to become a public employees retirement
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0001| system member, by paying the amount of the increase in the
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0002| actuarial present value of the magistrate pension as a
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0003| consequence of the purchase as determined by the association.
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0004| [Full] Payment shall be made in a single lump-sum amount or
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0005| by entering into an installment contract with the retirement
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0006| board in accordance with procedures and terms established by
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0007| the board. Installment contracts may be paid by payroll
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0008| deduction. The retirement board is authorized to set the rate
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0009| of interest to be charged in installment contracts. Except as
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0010| provided in Subsection E of this section, seventy-five percent
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0011| of the purchase cost shall be considered to be employer
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0012| contributions and shall not be refunded to the member in the
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0013| event of cessation of membership."
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0014| Section 3. Section 10-12B-5 NMSA 1978 (being Laws 1992,
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0015| Chapter 111, Section 5) is amended to read:
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0016| "10-12B-5. SERVICE CREDIT--REINSTATEMENT OF FORFEITED
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0017| SERVICE--PRIOR SERVICE--MILITARY SERVICE.--
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0018| A. Personal service rendered by a member shall be
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0019| credited to the member's service credit account in accordance
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0020| with board rules and regulations. Service shall be credited to
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0021| the nearest month. In no case shall any member be credited
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0022| with a year of service for less than twelve months of service
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0023| in any calendar year or more than a month of service for all
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0024| service in any calendar month or more than a year of service
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0025| for all service in any calendar year.
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0001| B. Service credit shall be forfeited if a member
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0002| leaves office and withdraws the member's accumulated member
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0003| contributions. A member or former member who is a member of a
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0004| state system or the educational retirement system who has
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0005| forfeited service credit by withdrawal of member contributions
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0006| may reinstate the forfeited service credit by repaying the
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0007| amount withdrawn plus compound interest from the date of
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0008| withdrawal to the date of repayment at a rate set by the board.
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0009| Withdrawn member contributions may be repaid in increments of
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0010| one year in accordance with procedures established by the
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0011| board. [Full] Payment of each one-year increment shall be
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0012| made in a single lump-sum amount or by entering into an
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0013| installment contract with the retirement board in accordance
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0014| with procedures and terms established by the board.
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0015| Installment contracts may be paid by payroll deduction. The
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0016| retirement board is authorized to set the rate of interest to
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0017| be charged in installment contracts.
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0018| C. Service credit that a member would have earned
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0019| if the member had not elected to be excluded from membership
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0020| may be purchased if the member pays the purchase cost
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0021| determined pursuant to the provisions of Subsection F of this
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0022| section.
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0023| D. A member who during a term of office enters an
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0024| armed service of the United States shall be given service
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0025| credit for periods of active duty subject to the following
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0001| conditions:
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0002| (1) the member returns to office within ninety
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0003| days following termination of the period of active duty;
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0004| (2) the member reinstates any forfeited
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0005| service credit;
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0006| (3) service credit shall not be given for
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0007| periods of active duty following voluntary re-enlistment; and
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0008| (4) service credit shall not be given for
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0009| periods of active duty that are used to obtain or increase a
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0010| benefit from another state system or the educational retirement
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0011| system.
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0012| E. A member who entered an armed service of the
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0013| United States may purchase service credit for periods of active
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0014| duty subject to the following conditions:
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0015| (1) the member pays the purchase cost
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0016| determined pursuant to the provisions of Subsection F of this
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0017| section;
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0018| (2) the member has five or more years of
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0019| service credit accrued according to the provisions of the
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0020| Judicial Retirement Act;
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0021| (3) the aggregate amount of service credit
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0022| purchased pursuant to the provisions of this subsection does
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0023| not exceed five years, reduced by any period of service credit
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0024| acquired for military service under any other provision of the
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0025| Judicial Retirement Act; and
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0001| (4) service credit may not be purchased for
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0002| periods of active duty that are used to obtain or increase a
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0003| benefit from another state system or the educational retirement
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0004| system.
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0005| F. The purchase cost for each year of service
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0006| credit purchased pursuant to the provisions of this section
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0007| shall be the increase in the actuarial present value of the
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0008| pension of the member under the Judicial Retirement Act as a
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0009| consequence of the purchase, as determined by the association.
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0010| [Full] Payment shall be made in a single lump-sum amount or
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0011| by entering into an installment contract with the retirement
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0012| board in accordance with procedures and terms established by
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0013| the board. Installment contracts may be paid by payroll
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0014| deduction. The retirement board is authorized to set the rate
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0015| of interest to be charged in installment contracts. Except as
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0016| provided in Subsection G of this section, seventy-five percent
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0017| of the purchase cost shall be considered to be employer
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0018| contributions and shall not be refunded to the member in the
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0019| event of cessation of membership.
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0020| G. A member shall be refunded, after retirement and
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0021| upon written request filed with the association, the portion of
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0022| the purchase cost of service credit purchased pursuant to the
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0023| provisions of this section that the association determines to
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0024| have been unnecessary to provide the member with the maximum
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0025| pension applicable to the member. The association shall not
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0001| pay interest on the portion of the purchase cost refunded to
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0002| the member."
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0003| Section 4. Section 10-12C-5 NMSA 1978 (being Laws 1992,
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0004| Chapter 118, Section 5) is amended to read:
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0005| "10-12C-5. SERVICE CREDIT--REINSTATEMENT OF FORFEITED
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0006| SERVICE--PRIOR SERVICE--MILITARY SERVICE.--
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0007| A. Personal service rendered by a member shall be
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0008| credited to the member's service credit account in accordance
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0009| with board rules and regulations. Service shall be credited to
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0010| the nearest month. In no case shall any member be credited
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0011| with a year of service for less than twelve months of service
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0012| in any calendar year or more than a month of service for all
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0013| service in any calendar month or more than a year of service
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0014| for all service in any calendar year.
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0015| B. Service credit shall be forfeited if a member
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0016| leaves office and withdraws the member's accumulated member
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0017| contributions. A member or former member who is a member of
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0018| another state system or the educational retirement system who
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0019| has forfeited service credit by withdrawal of member
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0020| contributions may reinstate the forfeited service credit by
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0021| repaying the amount withdrawn plus compound interest from the
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0022| date of withdrawal to the date of repayment at a rate set by
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0023| the board. Withdrawn member contributions may be repaid in
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0024| increments of one year in accordance with procedures
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0025| established by the board. [Full] Payment of each one-year
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0001| increment shall be made in a single lump-sum amount or by
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0002| entering into an installment contract with the retirement
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0003| board in accordance with procedures and terms established by
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0004| the board. Installment contracts may be paid by payroll
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0005| deduction. The retirement board is authorized to set the rate
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0006| of interest to be charged in installment contracts.
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0007| C. Service credit that a member would have earned
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0008| if the member had not elected to be excluded from membership
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0009| may be purchased if the member pays the purchase cost
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0010| determined pursuant to the provisions of Subsection F of this
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0011| section.
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0012| D. A member who during a term of office enters an
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0013| armed service of the United States shall be given service
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0014| credit for periods of active duty subject to the following
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0015| conditions:
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0016| (1) the member returns to office within ninety
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0017| days following termination of the period of active duty;
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0018| (2) the member reinstates any forfeited
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0019| service credit;
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0020| (3) service credit shall not be given for
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0021| periods of active duty following voluntary re-enlistment; and
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0022| (4) service credit shall not be given for
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0023| periods of active duty that are used to obtain or increase a
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0024| benefit from another state system or the educational retirement
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0025| system.
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0001| E. A member who entered an armed service of the
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0002| United States may purchase service credit for periods of active
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0003| duty subject to the following conditions:
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0004| (1) the member pays the purchase cost
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0005| determined pursuant to the provisions of Subsection F of this
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0006| section;
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0007| (2) the member has five or more years of
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0008| service credit accrued according to the provisions of the
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0009| Magistrate Retirement Act;
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0010| (3) the aggregate amount of service credit
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0011| purchased pursuant to the provisions of this subsection does
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0012| not exceed five years, reduced by any period of service credit
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0013| acquired for military service under any other provision of the
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0014| Magistrate Retirement Act; and
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0015| (4) service credit may not be purchased for
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0016| periods of active duty that are used to obtain or increase a
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0017| benefit from another state system or the educational retirement
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0018| system.
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0019| F. The purchase cost for each year of service
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0020| credit purchased pursuant to the provisions of this section
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0021| shall be the increase in the actuarial present value of the
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0022| pension of the member under the Magistrate Retirement Act as a
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0023| consequence of the purchase, as determined by the association.
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0024| [Full] Payment shall be made in a single lump-sum amount or
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0025| by entering into an installment contract with the retirement
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0001| board in accordance with procedures and terms established by
|
0002| the board. Installment contracts may be paid by payroll
|
0003| deduction. The retirement board is authorized to set the rate
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0004| of interest to be charged in installment contracts. Except as
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0005| provided in Subsection G of this section, seventy-five percent
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0006| of the purchase cost shall be considered to be employer
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0007| contributions and shall not be refunded to the member in the
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0008| event of cessation of membership.
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0009| G. A member shall be refunded, after retirement and
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0010| upon written request filed with the association, the portion of
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0011| the purchase cost of service credit purchased pursuant to the
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0012| provisions of this section that the association determines to
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0013| have been unnecessary to provide the member with the maximum
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0014| pension applicable to the member. The association shall not
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0015| pay interest on the portion of the purchase cost refunded to
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0016| the member."
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0017|
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0018|
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0019|
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