HOUSE BILL 260
54th legislature - STATE OF NEW MEXICO - second session, 2020
INTRODUCED BY
Sheryl Williams Stapleton and Linda M. Trujillo and Debra M. Sariñana and Joy Garratt and Susan K. Herrera
AN ACT
RELATING TO EDUCATION; ALLOWING CERTAIN RETIRED MEMBERS TO RETURN TO EMPLOYMENT AS SUBSTITUTE TEACHERS.
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, as amended) is amended to read:
"22-11-25.1. RETURN TO EMPLOYMENT--BENEFITS-- CONTRIBUTIONS.--
A. Except as otherwise provided in Subsections B, [and] F and H of this section, until January 1, 2022, a retired member who begins employment with a local administrative unit at a level greater than one-quarter full-time employee, regardless of salary level, is required to suspend the member's retirement benefits until the end of that employment unless the member has not rendered service to a local administrative unit for at least twelve consecutive months after the date of retirement.
B. Until January 1, 2022, a retired member who retired on or before January 1, 2001, has not suspended or been required to suspend retirement benefits pursuant to the Educational Retirement Act and returns to employment with a local administrative unit is not required to suspend the member's retirement benefits.
C. A retired member who returns to employment with a local administrative unit in accordance with this section is entitled to receive retirement benefits during that employment but is not entitled to acquire or purchase service credit for that employment.
D. A retired member may return to employment with a local administrative unit only if the member submits an application to return to work, on a form prescribed by the board, the board approves the application and the applicant complies with other application rules promulgated by the board.
E. Except as provided in Subsection H of this section, a retired member who returns to employment pursuant to Subsection A, B or F of this section shall make nonrefundable contributions to the fund as would be required by Section 22-11-21 NMSA 1978 if the retired member were a non-retired employee. The local administrative unit employing the retired member shall likewise make contributions as would be required by that section. In addition, on and after July 1, 2020, a retired member who has returned to employment at a level of one-fourth or less full-time employee, regardless of salary level, shall make nonrefundable contributions to the fund as would be required by Section 22-11-21 NMSA 1978 if the retired member were a non-retired employee. The local administrative unit employing the retired member shall likewise make contributions as would be required by that section.
F. Until January 1, 2022, a retired member who retired on or before January 1, 2001, who suspended or was required to suspend retirement benefits under the Educational Retirement Act is not required to suspend the member's retirement benefits if the retired member has not rendered service to a local administrative unit for an additional twelve or more consecutive months, not including any part of a summer or other scheduled break or vacation period, after the initial date of retirement.
G. A retired member who returns to employment with a local administrative unit shall make contributions to the retiree health care fund during the period of that employment and in the amount specified in Section 10-7C-15 NMSA 1978. The local administrative unit employing the retired member shall likewise make contributions during the period of that employment and in the amount specified in that section.
H. Until June 30, 2025, a retired member may return to employment with a local administrative unit up to a level of a full-time employee, without a suspension of a member's retirement benefit; provided that the:
(1) retired member returns to employment as a substitute teacher;
(2) local administrative unit and the retired member did not intend, at the time of retirement, for the retiree to immediately return to employment;
(3) retired member is not entitled to acquire or purchase service credit for that employment;
(4) local administrative unit employing the retired member shall make contributions to the fund as would be required by Section 22-11-21 NMSA 1978 if the retired member employed by the local administrative unit were a non-retired member; and
(5) retired member shall not be required to make contributions as would otherwise be required by Section 22-11-21 NMSA 1978.
[H.] I. As used in this section:
(1) "rendered service" includes employment, whether full or part time; substitute teaching; voluntarily performing duties that would otherwise be, or in the past have been, performed by a paid employee or independent contractor; and performing duties as an independent contractor or an employee of an independent contractor; and
(2) "local administrative unit" includes any entity incorporated, formed or otherwise organized by, or subject to the control of, a local administrative unit, regardless of whether the entity is created for profit or nonprofit purposes."
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