NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

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(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

Public Employees Retirement Association of New Mexico (PERA)

SUMMARY

Synopsis of Bill

This bill would amend the Public Employees Retirement Act, the Judicial Retirement Act, and the Magistrate Retirement Act. Most of the changes are technical changes that clarify amendments to current statutes. Other significant changes are as follows:

Allow a trust or estate be named as a beneficiary. Current legislation requires the beneficiary to be a person only.

Allow the pension of surviving children to be the same regardless of the number of children of deceased member. Currently, for a duty-related death, fifty percent of pension payable, based on a deceased member's final average salary is divided between two or more surviving children, if they are declared the beneficiaries. If there is only one child, only twenty-five percent is distributed to the surviving child. This bill would allow the one child to receive pension benefits in the amount of fifty percent, based on the deceased member's final average salary.

FISCAL IMPLICATIONS

The Public Employees Retirement Association of New Mexico (PERA) does not report that this bill has any fiscal impact or any significant impact to the retirement fund.

ADMINISTRATIVE IMPLICATIONS

None.

TECHNICAL ISSUES

The following technical issues were provided by the Public Employees Retirement Association (PERA) Assistant General Counsel, Tracy Hughes.

Page 6, line 5: After the word "payments" add, "that are not part of the members' fixed periodical compensation,"

Page 6, line 7: Strike "that are not part of the member's fixed periodical compensation."

10-11-2(U) Amends the definition of salary to match the definition currently in PERA Regulations.

10-11-3 Clarifies Exemption for city or county managers by allowing members flexibility to continue or change retirement plans when a job change occurs.

10-11-4.2 Clarifies that PERA can collect overpayments and withhold same from any future pension payment or refund of contributions. This amendment will make the Public Employees Retirement Act congruent to the current Educational Retirement Act in this respect.

10-11-6 Clarifies when a member is entitled to free service credit for intervening military service.

10-11-10.1(J) Expands the time frame that a member can apply for disability benefits.

10-11-10.1(0) Clarifies the definition of gainful employment as it relates to disability retirement.

10-11-14.5(L) Clarifies that if no survivor pension is payable, then a refund of member contributions is paid to the refund beneficiary.

10-11-117 Clarifies that proof of a designated surviving beneficiary's death is required by PERA under payment plan B. This would be consistent with language under payment plans C & D.

10-11-130 Allows the names and addresses of members and retirees to be provided to certain retiree organizations.

Similar changes are also made to the Judicial Retirement Act and the Magistrate Retirement Act.

Specific to the Judicial Retirement Act and the Magistrate Retirement Act is the change to section 10-12B-14 and section 10-12C-13 respectively. The change clarifies the amount of annuity that is payable for a judge or magistrate who dies prior to retirement.

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