0001| SENATE BILL 279
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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| BEN D. ALTAMIRANO
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0005|
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0006|
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0007|
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0008| FOR THE LEGISLATIVE EDUCATION STUDY COMMITTEE
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0009|
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0010| AN ACT
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0011| RELATING TO EDUCATIONAL RETIREMENT; INCREASING THE
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0012| CONTRIBUTIONS MADE BY THE LOCAL ADMINISTRATIVE UNITS; RAISING
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0013| THE AMOUNT OF RETIREMENT BENEFITS FOR CERTAIN MEMBERS;
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0014| CHANGING THE ADJUSTMENT FACTOR USED TO ADJUST THE ANNUITY;
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0015| MAKING AN APPROPRIATION.
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0016|
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0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0018| Section 1. Section 22-11-21 NMSA 1978 (being Laws 1967,
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0019| Chapter 16, Section 144, as amended) is amended to read:
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0020| "22-11-21. CONTRIBUTIONS--MEMBERS--LOCAL ADMINISTRATIVE
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0021| UNITS.--
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0022| A. Each member shall make contributions to the
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0023| fund in the amount of seven and six-tenths percent of his
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0024| annual salary.
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0025| B. Until June 30, 1993, each local administrative
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0001| unit shall make a yearly contribution to the fund of a sum
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0002| equal to seven and six-tenths percent of the annual salary of
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0003| each member employed by the local administrative unit.
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0004| C. ~[Beginning July 1, 1993 and thereafter]~ |From
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0005| July 1, 1993 through June 30, 1998|, each local administrative
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0006| unit shall make a yearly contribution to the fund of a sum
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0007| equal to eight and sixty-five hundredths percent of the annual
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0008| salary of each member employed by the local administrative
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0009| unit.
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0010| |D. Beginning July 1, 1998, each local
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0011| administrative unit shall make a yearly contribution to the
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0012| fund of a sum equal to nine and seventy-five hundredths
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0013| percent of the annual salary of each member employed by the
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0014| local administrative unit.|"
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0015| Section 2. Section 22-11-30 NMSA 1978 (being Laws 1967,
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0016| Chapter 16, Section 153, as amended) is amended to read:
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0017| "22-11-30. RETIREMENT BENEFITS.--
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0018| A. Retirement benefits for a member retired
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0019| pursuant to the Educational Retirement Act on or before June
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0020| 30, 1967 shall be paid monthly and shall be one-twelfth of a
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0021| sum equal to one and one-half percent of the first four
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0022| thousand dollars ($4,000) of the member's average annual
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0023| salary and one percent of the remainder of the member's
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0024| average annual salary multiplied by the number of years of the
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0025| member's total service credit.
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0001| B. Retirement benefits for a member retired
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0002| pursuant to the Educational Retirement Act on or after July 1,
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0003| 1967 but on or before June 30, 1971 shall be paid monthly and
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0004| shall be one-twelfth of a sum equal to one and one-half
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0005| percent of the first six thousand six hundred dollars ($6,600)
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0006| of the member's average annual salary and one percent of the
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0007| remainder of the member's average annual salary multiplied by
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0008| the number of years of the member's total service credit.
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0009| C. Retirement benefits for a member retired
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0010| pursuant to the Educational Retirement Act on or after July 1,
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0011| 1971 but on or before June 30, 1974 shall be paid monthly and
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0012| shall be one-twelfth of a sum equal to one and one-half
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0013| percent of the member's average annual salary multiplied by
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0014| the number of years of the member's total service credit.
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0015| D. Retirement benefits for a member retired
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0016| pursuant to the Educational Retirement Act on or before June
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0017| 30, 1974 but returning to employment on or after July 1, 1974
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0018| for a cumulation of one or more years shall be computed
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0019| pursuant to Subsection E of this section. Retirement benefits
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0020| for a member retired pursuant to the Educational Retirement
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0021| Act on or before June 30, 1974 but returning to employment on
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0022| or after July 1, 1974 for a cumulation of less than one year
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0023| shall be computed pursuant to Subsection A of this section if
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0024| his date of last retirement was on or before June 30, 1967 or
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0025| pursuant to Subsection B of this section if his date of last
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0001| retirement was on or after July 1, 1967 but not later than
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0002| June 30, 1971 or pursuant to Subsection C of this section if
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0003| his date of last retirement was on or after July 1, 1971 but
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0004| not later than June 30, 1974.
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0005| E. Retirement benefits for a member age sixty or
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0006| over, retired pursuant to the Educational Retirement Act on or
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0007| after July 1, 1974 but not later than June 30, 1987, shall be
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0008| paid monthly and shall be one-twelfth of a sum equal to:
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0009| (1) one and one-half percent of the member's
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0010| average annual salary multiplied by the number of years of
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0011| service credit for:
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0012| (a) prior employment; and
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0013| (b) allowed service credit for service
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0014| performed prior to July 1, 1957, except United States military
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0015| service credit purchased pursuant to Paragraph (3) of
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0016| Subsection A of Section 22-11-34 NMSA 1978; plus
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0017| (2) two percent of the member's average
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0018| annual salary multiplied by the number of years of service
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0019| credit for:
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0020| (a) contributory employment;
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0021| (b) allowed service credit for service
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0022| performed after July 1, 1957; and
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0023| (c) United States military service
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0024| credit for service performed prior to July 1, 1957 and
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0025| purchased pursuant to Paragraph (3) of Subsection A of Section
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0001| 22-11-34 NMSA 1978.
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0002| F. Retirement benefits for a member age sixty or
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0003| over, retired pursuant to the Educational Retirement Act on or
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0004| after July 1, 1987 but not later than June 30, 1991, shall be
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0005| paid monthly and shall be one-twelfth of a sum equal to two
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0006| and fifteen hundredths percent of the member's average annual
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0007| salary multiplied by the number of years of the member's total
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0008| service credit; provided that this subsection shall not apply
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0009| to any member who was retired in any of the four quarters
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0010| ending on June 30, 1987 without having accumulated not less
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0011| than 1.0 years earned service after June 30, 1987.
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0012| G. Retirement benefits for a member age sixty or
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0013| over, retired pursuant to the Educational Retirement Act on or
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0014| after July 1, 1991 |but not later than June 30, 1998|, shall
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0015| be paid monthly and shall be one-twelfth of a sum equal to two
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0016| and thirty-five hundredths percent of the member's average
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0017| annual salary multiplied by the number of years of the
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0018| member's total service credit; provided that this subsection
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0019| shall not apply to any member who was retired in any of the
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0020| four consecutive quarters ending on June 30, 1991 without
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0021| having accumulated at least one year earned service beginning
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0022| on or after July 1, 1991.
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0023| |H. Retirement benefits for a member age sixty or
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0024| over, retired pursuant to the Educational Retirement Act on or
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0025| after July 1, 1998, shall be paid monthly and shall be one-
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0001| twelfth of a sum equal to two and four hundred twenty-five
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0002| thousandths percent of the member's average annual salary
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0003| multiplied by the number of years of the member's total
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0004| service credit; provided that this subsection shall not apply
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0005| to any member who was retired in any of the four consecutive
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0006| quarters ending on June 30, 1998 without having accumulated at
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0007| least one year earned service beginning on or after July 1,
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0008| 1998.|
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0009| ~[H.]~ |I.| A member's average annual salary,
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0010| pursuant to this section, shall be computed on the basis of
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0011| the last five years for which contribution was made or upon
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0012| the basis of any consecutive five years for which contribution
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0013| was made by the member, whichever is higher. Members shall
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0014| begin receiving retirement benefits by age seventy and six
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0015| months, or upon termination of employment, whichever occurs
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0016| later."
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0017| Section 3. Section 22-11-31 NMSA 1978 (being Laws 1979,
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0018| Chapter 333, Section 2, as amended) is amended to read:
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0019| "22-11-31. COST OF LIVING ADJUSTMENT--ADDITIONAL
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0020| CONTRIBUTIONS.--
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0021| A. For the purposes of this section:
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0022| (1) "adjustment factor" means a
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0023| multiplicative factor computed to provide an annuity
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0024| adjustment pursuant to the provisions of Subsection B of this
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0025| section;
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0001| (2) "annuity" means any benefit payable under
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0002| the Educational Retirement Act or the Retirement Reciprocity
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0003| Act as a retirement benefit, disability benefit or survivor
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0004| benefit;
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0005| (3) "calendar year" means the full twelve
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0006| months beginning January 1 and ending December 31;
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0007| (4) "consumer price index" means the average
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0008| of the monthly consumer price indexes for a calendar year for
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0009| the entire United States for all items as published by the
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0010| United States department of labor;
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0011| (5) "next preceding calendar year" means the
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0012| full calendar year immediately prior to the preceding calendar
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0013| year; and
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0014| (6) "preceding calendar year" means the full
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0015| calendar year preceding the July 1 on which a benefit is to be
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0016| adjusted.
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0017| B. On or after July 1, 1984, each annuity shall be
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0018| adjusted annually and cumulatively commencing on July 1 of the
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0019| year in which a member attains the age of sixty-five or on
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0020| July 1 following the year a member retires, whichever is
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0021| later. The annuity shall be adjusted by applying an
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0022| adjustment factor that results in either an adjustment equal
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0023| to one-half of the percentage increase or decrease of the
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0024| consumer price index between the next preceding calendar year
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0025| and the preceding calendar year, except that the adjustment
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0001| shall not exceed four percent, in absolute value, nor be less
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0002| than two percent, in absolute value. In the event that the
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0003| percentage increase or decrease of the consumer price index is
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0004| less than two percent, in absolute value, the adjustment
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0005| factor shall be the same as the percentage increase or
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0006| decrease of the consumer price index. No negative adjustment
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0007| in the retirement benefit shall reduce the member's benefit
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0008| below that which he received upon the date of his retirement.
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0009| C. A retired member whose benefit is subject to
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0010| adjustment under the provisions of the Educational Retirement
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0011| Act in effect prior to July 1, 1984 shall have his annuity
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0012| readjusted annually and cumulatively under the provisions of
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0013| that act in effect prior to July 1, 1984 until July 1 of the
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0014| year in which he attains the age of sixty-five, when he shall
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0015| have his annuity readjusted annually and cumulatively under
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0016| the provisions of this section. A member who retires after
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0017| attaining the age of sixty-five shall have his annuity
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0018| adjusted annually and cumulatively commencing on July 1 of the
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0019| year following his retirement.
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0020| D. A retired member who returns to work shall be
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0021| subject to the provisions of this section as they exist at the
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0022| time of his final retirement.
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0023| E. Benefits of a member who is on a disability
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0024| status in accordance with Section 22-11-35 NMSA 1978 or a
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0025| member whom the board certifies was disabled at regular
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0001| retirement shall be adjusted in accordance with Subsections B
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0002| and C of this section, except that the benefits shall be
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0003| adjusted annually and cumulatively commencing on July 1 of the
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0004| third full year following the year in which the member was
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0005| approved by the board for disability or retirement.
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0006| F. The board shall adjust the benefits of each
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0007| person receiving an annuity as of June 30, ~[1991]~ |1998|.
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0008| The adjustment shall be made on July 1, ~[1991]~ |1998| on the
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0009| basis of an increase of two dollars ($2.00) per month for each
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0010| year since the member's last retirement plus an increase of
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0011| one dollar ($1.00) per month for each year of credited service
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0012| at the time of retirement."
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0013| Section 4. APPROPRIATION.--
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0014| A. Fourteen million five hundred seventeen
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0015| thousand dollars ($14,517,000) is appropriated from the
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0016| general fund to the educational retirement fund for
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0017| expenditure in fiscal year 1999 for the purpose of funding the
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0018| retirement benefits increase and the cost-of-living adjustment
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0019| for retirees as follows:
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0020| (1) to the boards of regents of the
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0021| following:
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0022| (a) university of New Mexico, one
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0023| million five hundred fifty-seven thousand dollars
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0024| ($1,557,000);
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0025| (b) New Mexico state university, eight
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0001| hundred fifty-five thousand dollars ($855,000);
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0002| (c) New Mexico highlands university,
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0003| one hundred twenty-five thousand dollars ($125,000);
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0004| (d) western New Mexico university,
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0005| eighty-two thousand dollars ($82,000);
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0006| (e) eastern New Mexico university, one
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0007| hundred fifty-three thousand dollars ($153,000);
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0008| (f) New Mexico institute of mining and
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0009| technology, one hundred forty-one thousand dollars ($141,000);
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0010| (g) university of New Mexico, Gallup,
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0011| forty-nine thousand dollars ($49,000);
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0012| (h) university of New Mexico, Los
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0013| Alamos, eleven thousand dollars ($11,000);
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0014| (i) university of New Mexico, Valencia,
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0015| twenty-three thousand dollars ($23,000);
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0016| (j) New Mexico state university,
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0017| Alamogordo, thirty-two thousand dollars ($32,000);
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0018| (k) New Mexico state university,
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0019| Carlsbad, eighteen thousand dollars ($18,000);
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0020| (l) New Mexico state university, Dona
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0021| Ana, fifty-nine thousand dollars ($59,000);
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0022| (m) New Mexico state university,
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0023| Grants, eleven thousand dollars ($11,000);
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0024| (n) eastern New Mexico university,
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0025| Roswell, fifty-one thousand dollars ($51,000);
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0001| (o) northern New Mexico state school,
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0002| thirty-six thousand dollars ($36,000);
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0003| (p) New Mexico military institute,
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0004| eighty-one thousand dollars ($81,000); and
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0005| (q) New Mexico school for the deaf,
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0006| fifty thousand dollars ($50,000);
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0007| (2) to the community college board of Santa
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0008| Fe community college, fifty-four thousand dollars ($54,000);
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0009| (3) to the governing boards of:
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0010| (a) Albuquerque technical-vocational
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0011| institute, two hundred forty-six thousand dollars ($246,000);
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0012| (b) Luna vocational-technical institute,
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0013| twenty-four thousand dollars ($24,000);
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0014| (c) Mesa technical college, nine
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0015| thousand dollars ($9,000);
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0016| (d) New Mexico junior college, fifty
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0017| thousand dollars ($50,000);
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0018| (e) San Juan college, seventy-six
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0019| thousand dollars ($76,000); and
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0020| (f) Clovis community college, fifty-one
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0021| thousand dollars ($51,000);
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0022| (4) to the state department of public
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0023| education for:
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0024| (a) public school support, ten million
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0025| five hundred thirty thousand dollars ($10,530,000);
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0001| (b) its employees, forty-two thousand
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0002| dollars (42,000); and
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0003| (c) the vocational rehabilitation
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0004| division, seven thousand dollars ($7,000);
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0005| (5) to the educational retirement board, two
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0006| thousand dollars ($2,000);
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0007| (6) to the corrections department, thirty-
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0008| seven thousand dollars ($37,000);
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0009| (7) to the department of health, twenty-two
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0010| thousand dollars ($22,000);
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0011| (8) to the children, youth and families
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0012| department, twenty-five thousand dollars ($25,000); and
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0013| (9) to the commission for the blind, eight
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0014| thousand dollars ($8,000).
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0015| B. Any unexpended or unencumbered balance
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0016| remaining at the end of fiscal year 1999 shall revert to the
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0017| general fund.
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0018|
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