46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO EDUCATIONAL RETIREMENT; PROVIDING FOR RETURN TO EMPLOYMENT CONTINUED RETIREMENT BENEFITS; AMENDING THE EDUCATIONAL RETIREMENT ACT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 22-11-25.1 NMSA 1978 (being Laws 2001, Chapter 283, Section 2) is amended to read:

"22-11-25.1. RETURN TO EMPLOYMENT--BENEFITS CONTINUED--ADMINISTRATIVE UNIT CONTRIBUTIONS.--

A. Except as provided in Section 22-11-25.2 NMSA 1978, beginning January 1, 2002 and continuing until January 1, 2012, a retired member may begin employment at a local administrative unit and shall not be required to suspend retirement benefits if the member has not been employed as an employee or independent contractor by a local administrative unit for at least twelve consecutive months from the date of retirement to the commencement of employment or reemployment with a local administrative unit. If the retired member returns to employment without first completing twelve consecutive months of retirement, the retired member shall remove himself from retirement.

B. A retired member who returns to employment during retirement pursuant to Subsection A of this section is entitled to continue to receive retirement benefits but is not entitled to acquire service credit or to acquire or purchase service credit in the future for the period of the retired member's reemployment with a local administrative unit.

C. A retired member who returns to employment

shall not make contributions to the fund as specified in the

Educational Retirement Act; however, the local administrative

unit's contributions as specified in that act shall be paid

to the fund as if the retired member was a non-retired

employee."

Section 2. A new section of the Educational Retirement Act, Section 22-11-25.2 NMSA 1978, is enacted to read:

"22-11-25.2. [NEW MATERIAL] IMMEDIATE RETURN TO

EMPLOYMENT--BENEFITS CONTINUED--LOCAL ADMINISTRATIVE UNIT CONTRIBUTIONS.--

A. Beginning July 1, 2002 and continuing until July 1, 2012, a retired member may begin employment at a local administrative unit and shall not be required to suspend retirement benefits if:

(1) the retired member has completed twenty-eight years of service with a local administrative unit; and

(2) the retired member holds a bachelor's degree plus forty-five credit hours or a master's degree.

B. A retired member who returns to employment during retirement pursuant to Subsection A of this section is entitled to continue to receive retirement benefits but is not entitled to acquire service credit or acquire or purchase service credit in the future for the period of the retired member's reemployment with a local administrative unit.

C. A retired member who returns to employment shall not make contributions to the fund as specified in the Educational Retirement Act; however, the local administrative unit's contributions as specified in that act shall be paid to the fund as if the retired member was a non-retired employee.

D. A retired member who begins employment at a local administrative unit pursuant to the provisions of this section shall not be paid more than sixty-five percent of his last salary as a non-retired employee."