SENATE BILL 80

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

Sue Wilson Beffort

AN ACT

RELATING TO THE RETIREMENT OF PUBLIC EMPLOYEES; PROVIDING THAT, IN THE EVENT OF CERTAIN ACTUARIAL LIABILITIES, A STATE RETIREMENT SYSTEM SHALL PROPOSE A PLAN TO ENSURE THAT THE RETIREMENT SYSTEM REMAINS ACTUARIALLY SOUND; PROHIBITING CERTAIN INCREASES IN CONTRIBUTION RATES.

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

     Section 1. STATE RETIREMENT SYSTEMS--PLAN TO ADDRESS ACTUARIAL LIABILITIES--CERTAIN INCREASES PROHIBITED.--

          A. Upon a finding by the governing body of a state retirement system that the actuarial liability of the system is such that a retirement program cannot be maintained at the current benefit levels and contribution rates, the governing body shall propose to the legislature a plan that will ensure that the system remains actuarially sound by:

                (1) reducing benefits paid under the plan;

                (2) increasing contribution rates for the plan; provided that any proposal for increasing contribution rates shall require equal increases in the rates paid by both the employer and the employee; or

                (3) a combination of such reduced benefits and increased contribution rates.

          B. Notwithstanding any other provision of law, the employer contribution rate shall not be increased in a state retirement system without an equal and corresponding increase in the employee contribution rate; provided that the prohibition of this subsection is not applicable to a new retirement plan that specifies new benefits and contribution rates.

          C. As used in this section, "state retirement system" means a retirement program provided for in the Educational Retirement Act, the Public Employees Retirement Act, the Magistrate Retirement Act or the Judicial Retirement Act.

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