0001|                            HOUSE BILL 390
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                       JUDY VANDERSTAR RUSSELL
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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 EDUCATIONAL RETIREMENT; CHANGING PROVISIONS
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0012|     REGARDING PURCHASE OF SERVICE CREDIT FOR TIME SERVED IN THE
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0013|     MILITARY OR PUBLIC HEALTH SERVICE.
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0014|     
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0015|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016|          Section 1.  Section 22-11-34 NMSA 1978 (being Laws 1967,
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0017|     Chapter 16, Section 157, as amended) is amended to read:
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0018|          "22-11-34.  ALLOWED SERVICE CREDIT.--
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0019|               A.  A member shall be certified to have acquired
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0020|     allowed service credit for those periods of time when he was:
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0021|                    (1)  employed prior to the effective date of
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0022|     the Educational Retirement Act in <s>[any]</s> <u>a</u> federal
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0023|     educational program within New Mexico, including United States
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0024|     Indian schools and civilian conservation corps camps.  This
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0025|     service credit shall be allowed without contribution;
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0001|                    (2)  engaged in military service that
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0002|     interrupted his employment in New Mexico if he returned to his
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0003|     employment within eighteen months following honorable
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0004|     discharge.  This service credit shall be allowed without
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0005|     contribution;
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0006|                    (3)  engaged in United States military service
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0007|     or the commissioned corps of the public health service from
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0008|     which he was honorably discharged if he contributes to the
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0009|     fund a sum equal to <s>[ten and one-half percent of his average
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<s></s>0010| <s>    annual salary for that period of time for which he has
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<s></s>0011| <s>    acquired earned service credit under the Educational
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<s></s>0012| <s>    Retirement Act for each year of service credit he desires to
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<s></s>0013| <s>    purchase.  Average annual salary shall be determined in
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<s></s>0014| <s>    accordance with rules promulgated by the board but shall
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<s></s>0015| <s>    always be based upon actual salaries earned by the member
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<s></s>0016| <s>    where the actual salaries can be ascertained]</s> <u>the actuarial
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<u></u>0017| <u>    value of the service purchased as defined</u> by the board.  The
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0018|     employer's contributions for service credit shall not be paid
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0019|     by the employer <s>[The purchase of service credit provided in
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<s></s>0020| <s>    this section shall be carried out by the member within three
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<s></s>0021| <s>    years after the date of the member's employment following
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<s></s>0022| <s>    service]</s>; or
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0023|                    (4)  employed:
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0024|                         (a)  in <s>[any]</s> <u>a</u> public school or
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0025|     public institution of higher learning in another state,
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0001|     territory or possession of the United States;
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0002|                         (b)  in <s>[any]</s> <u>a</u> United States
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0003|     military dependents' school operated by a branch of the armed
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0004|     forces of the United States; 
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0005|                         (c)  as provided in Paragraph (1) of
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0006|     this subsection after the effective date of the Educational
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0007|     Retirement Act; or
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0008|                         (d)  in <s>[any]</s> <u>a</u> private school or
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0009|     institution of higher learning in New Mexico whose education
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0010|     program is accredited or approved by the <s>[state]</s> board at
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0011|     the time of employment.
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0012|               B.  The member or employer under Paragraph (4) of
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0013|     Subsection A of this section shall contribute to the fund for
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0014|     each year of allowed service credit desired an amount equal to
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0015|     twelve percent of the member's annual salary at the time
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0016|     payment is made if the member is employed or twelve percent
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0017|     times the member's annual salary during the member's last year
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0018|     of employment if the member is not employed at the time of
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0019|     payment.  Contributions paid for the member who is not
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0020|     employed shall bear interest at the average rate earned by the
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0021|     fund during the five-fiscal-year period immediately preceding
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0022|     the date of payment.  Such interest shall run from the date
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0023|     the member last terminated employment to the date of payment. 
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0024|     Effective July 1, 2001, the member or employer under Paragraph
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0025|     (4) of Subsection A of this section shall contribute to the
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0001|     fund for each year of allowed service credit desired an amount
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0002|     equal to the actuarial value of the service purchased as
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0003|     defined by the board.  Payment pursuant to Paragraph (4) of
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0004|     Subsection A of this section may be made in installments, at
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0005|     the discretion of the board, over a period <s>[of]</s> not to
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0006|     exceed one year and, if the sum paid does not equal the amount
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0007|     required for any full year of allowed service credit, the
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0008|     member shall acquire allowed service credit for that period of
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0009|     time <s>[which]</s> <u>that</u> is proportionate to the payment made. 
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0010|     Half credit may be allowed without contribution for not more
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0011|     than ten years of the educational service described by
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0012|     Subparagraph (a) of Paragraph (4) of Subsection A of this
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0013|     section if that service was prior to June 13, 1953 and if the
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0014|     member was employed in New Mexico prior to June 13, 1953 in
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0015|     <s>[any]</s> <u>a</u> position covered by the Educational Retirement Act
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0016|     or <s>[any]</s> <u>a</u> law repealed thereby.
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0017|               C.  No member shall be certified to have acquired
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0018|     allowed service credit:
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0019|                    (1)  under any single paragraph or the
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0020|     combination of only Paragraphs (1) and (4) or only Paragraphs
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0021|     (2) and (3) of Subsection A of this section in excess of five
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0022|     years; or
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0023|                    (2)  in excess of ten years for any other
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0024|     combination of Paragraphs (1) through (4) of Subsection A of
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0025|     this section.
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0001|               D.  The provisions of this section are made
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0002|     applicable to the services described prior to as well as after
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0003|     the effective date of the Educational Retirement Act."
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0004|                                  
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