SENATE BILL 366

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

John Arthur Smith

AN ACT

RELATING TO RETIREE HEALTH CARE; CONTINUING A CERTAIN TAX DISTRIBUTION TO THE RETIREE HEALTH CARE FUND; INCREASING EMPLOYER AND EMPLOYEE CONTRIBUTIONS TO THE FUND.

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

     Section 1. Section 7-1-6.56 NMSA 1978 (being Laws 2007, Chapter 168, Section 1) is amended to read:

     "7-1-6.56. DISTRIBUTION--RETIREE HEALTH CARE FUND.--In addition to the distribution made pursuant to Section 7-1-6.30 NMSA 1978, [for the period beginning July 1, 2007 and ending June 30, 2010] a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the retiree health care fund in the amount of two hundred fifty thousand dollars ($250,000)."

     Section 2. Section 10-7C-15 NMSA 1978 (being Laws 1990, Chapter 6, Section 15, as amended) is amended to read:

     "10-7C-15. RETIREE HEALTH CARE FUND CONTRIBUTIONS.--

          A. Following completion of the preliminary contribution period, each participating employer shall make contributions to the fund [in the amount of:

                (1) one percent of each participating employee's annual salary for the period July 1, 1990 through June 30, 2002; and

                (2) up to one and three-tenths percent of each participating employee's annual salary beginning July 1, 2002] pursuant to the following provisions:

                (1) for participating employees who are not members of an enhanced retirement plan, the employer's contribution shall equal:

                     (a) one and three-tenths percent of each participating employee's salary for the period from July 1, 2002 through June 30, 2010;

                     (b) one and six hundred sixty-six thousandths percent of each participating employee's salary for the period from July 1, 2010 through June 30, 2011;

                     (c) one and eight hundred thirty-four thousandths percent of each participating employee's salary for the period from July 1, 2011 through June 30, 2012; and

                     (d) two percent of each participating employee's salary beginning July 1, 2012;

                (2) for participating employees who are members of an enhanced retirement plan, the employer's contribution shall equal:

                     (a) one and three-tenths percent of each participating employee's salary for the period from July 1, 2002 through June 30, 2010;

                     (b) two and eighty-four thousandths percent of each participating employee's salary for the period from July 1, 2010 through June 30, 2011;

                     (c) two and two hundred ninety-two thousandths percent of each participating employee's salary for the period from July 1, 2011 through June 30, 2012; and

                     (d) two and one-half percent of each participating employee's salary beginning July 1, 2012; and

                (3) each employer that chooses to become a participating employer after January 1, 1998 shall make contributions to the fund in the amount determined to be appropriate by the board.

          B. Following completion of the preliminary contribution period, each participating employee, as a condition of employment, shall contribute to the fund [an employee contribution in an amount equal to:

                (1) one-half of one percent of the employee's salary for the period July 1, 1990 through June 30, 2002; and

                (2) up to sixty-five hundredths of one percent beginning July 1, 2002] pursuant to the following provisions:

                (1) for a participating employee who is not a member of an enhanced retirement plan, the employee's contribution shall equal:

                     (a) sixty-five hundredths of one percent of the employee's salary for the period from July 1, 2002 through June 30, 2010;

                     (b) eight hundred thirty-three thousandths of one percent of the employee's salary for the period from July 1, 2010 through June 30, 2011;

                     (c) nine hundred seventeen thousandths of one percent of the employee's salary for the period from July 1, 2011 through June 30, 2012; and

                     (d) one percent of the employee's salary beginning July 1, 2012;

                (2) for a participating employee who is a member of an enhanced retirement plan, the employee's contribution shall equal:

                     (a) sixty-five hundredths of one percent of the employee's salary for the period from July 1, 2002 through June 30, 2010;

                     (b) one and forty-two thousandths percent of the employee's salary for the period from July 1, 2010 through June 30, 2011;

                     (c) one and one hundred forty-six thousandths percent of the employee's salary for the period from July 1, 2011 through June 30, 2012; and

                     (d) one and one-fourth percent of the employee's salary beginning July 1, 2012; and

                (3) as a condition of employment, each participating employee of an employer that chooses to become a participating employer after January 1, 1998 shall contribute to the fund an amount that is determined to be appropriate by the board. Each month, participating employers shall deduct the contribution from the participating employee's salary and shall remit it to the board as provided by any procedures that the board may require.

          C. A participating employer that fails to remit before the tenth day after the last day of the month all employer and employee deposits required by the Retiree Health Care Act to be remitted by the employer for the month shall pay to the fund, in addition to the deposits, interest on the unpaid amounts at the rate of six percent per year compounded monthly.

          D. The employer and employee contributions shall be paid in monthly installments based on the percent of payroll certified by the employer.

          E. Except in the case of erroneously made contributions or as may be otherwise provided in Subsection D of Section 10-7C-9 NMSA 1978, contributions from participating employers and participating employees shall become the property of the fund on receipt by the board and shall not be refunded under any circumstances, including termination of employment or termination of the participating employer's operation or participation in the Retiree Health Care Act.

          F. Notwithstanding any other provision in the Retiree Health Care Act and at the first session of the legislature following July 1, [2010] 2013, the legislature shall review and adjust the [distribution] distributions pursuant to Section 7-1-6.1 NMSA 1978 and the employer and employee contributions to the authority in order to ensure the actuarial soundness of the benefits provided under the Retiree Health Care Act.

          G. As used in this section, "member of an enhanced retirement plan" means;

                (1) a member of the public employees retirement association who, pursuant to the Public Employees Retirement Act, is included in:

                     (a) state police member and adult correctional officer member coverage plan 1;

                     (b) municipal police member coverage plan 3, 4 or 5;

                     (c) municipal fire member coverage plan 3, 4 or 5; or

                     (d) municipal detention officer member coverage plan 1; or

                (2) a member pursuant to the provisions of the Judicial Retirement Act."

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