SENATE BILL 529

52nd legislature - STATE OF NEW MEXICO - first session, 2015

INTRODUCED BY

Clemente Sanchez

AN ACT

RELATING TO PENSIONS; AUTHORIZING THE PUBLIC EMPLOYEES RETIREMENT BOARD TO DETERMINE AND ASSESS THE COSTS ATTRIBUTABLE TO ACTION TAKEN OR PROPOSED BY AN AFFILIATED PUBLIC EMPLOYER IF THE ACTION IS LIKELY TO CREATE AN ACTUARIAL LIABILITY TO FUNDS ADMINISTERED UNDER THE PUBLIC EMPLOYEES RETIREMENT ACT IN AN AMOUNT EQUAL TO OR GREATER THAN ONE MILLION DOLLARS ($1,000,000); PROVIDING FOR PAYMENTS, FEES AND INTEREST ENFORCEABLE BY THE RETIREMENT BOARD.

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

     SECTION 1. A new section of the Public Employees Retirement Act is enacted to read: 

     "[NEW MATERIAL] RETIREMENT BOARD AUTHORIZED TO DETERMINE COSTS OF BENEFIT CHANGES--EMPLOYER PAYS FOR ACTUARIAL STUDY--EMPLOYER PAYS ACTUARIAL COSTS OF ACTION TAKEN--ENFORCEMENT.--

          A. The association is authorized to contract with its actuaries for a study to determine the full actuarial present value attributable to action taken or proposed by an affiliated public employer if the action, as determined by the association, is likely to create an actuarial liability to funds administered under the Public Employees Retirement Act in an amount equal to or greater than one million dollars ($1,000,000). The association has the sole power and discretion to determine whether a study is required. If the action taken or proposed by an affiliated public employer is determined to create an actuarial liability to funds administered under the Public Employees Retirement Act in an amount equal to or greater than one million dollars ($1,000,000), the cost of the study shall be paid in full by the applicable affiliated public employer. Payment shall be remitted to the association in a time and manner prescribed by rules promulgated by the retirement board.

          B. Action taken or proposed by an affiliated public employer as provided in Subsection A of this section includes actions applicable to any or all members of a member coverage plan administered pursuant to the Public Employees Retirement Act and includes any action that exceeds the actuarial assumptions adopted by the retirement board.

          C. If an affiliated public employer takes action that is determined by a study authorized pursuant to this section to create an actuarial liability to funds administered under the Public Employees Retirement Act in an amount equal to or greater than one million dollars ($1,000,000), the affiliated public employer shall provide written acknowledgment of the liability and shall pay in full or contract to pay to the association an amount equal to the full actuarial present value attributable to the action taken by the affiliated public employer. Payments made pursuant to a contract between the employer and the association shall be paid in equal monthly installments not to exceed a period of twenty-four consecutive and continuous months and pursuant to rules promulgated by the retirement board. Failure by an affiliated public employer to pay the full actuarial present value as provided in this section shall result in a late fee and interest assessed in a manner and amount prescribed pursuant to rules promulgated by the retirement board.

          D. The retirement board, through the attorney general or other legal counsel, may bring such action as deemed necessary and proper for the enforcement of the provisions of this section."  

     SECTION 2. APPLICABILITY.--The provisions of this act apply to policies adopted, contracts executed and actions taken by an affiliated public employer that affect the public employees retirement association actuarial valuation for fiscal year 2015 or subsequent fiscal years.