HOUSE BILL 66

56th legislature - STATE OF NEW MEXICO - first session, 2023

INTRODUCED BY

William "Bill" R. Rehm and Luis M. Terrazas and Rod Montoya and

Randall T. Pettigrew

 

 

 

 

AN ACT

RELATING TO PUBLIC RETIREMENT; ADJUSTING THE CALCULATION TO DETERMINE MAXIMUM PENSION BENEFITS.

 

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

     SECTION 1. Section 10-11-26.3 NMSA 1978 (being Laws 1994, Chapter 128, Section 4, as amended) is amended to read:

     "10-11-26.3. STATE GENERAL MEMBER COVERAGE PLAN 3--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under state general member coverage plan 3:

          A. for a member with age and service requirements provided under Paragraph (1) or (3) of Subsection A of Section 10-11-26.2 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) three percent of the final average salary multiplied by credited service [credit. The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary; and

          B. for a member with age and service requirements provided under Paragraph (2) of Subsection A of Section 10-11-26.2 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two and one-half percent of the final average salary multiplied by service credit [The amount shall not exceed ninety percent of the final average salary] for that portion of service credit that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary."

     SECTION 2. Section 10-11-29 NMSA 1978 (being Laws 1987, Chapter 253, Section 29, as amended) is amended to read:

     "10-11-29. STATE POLICE MEMBER, CORRECTIONAL OFFICER MEMBER AND PROBATION AND PAROLE OFFICER MEMBER COVERAGE PLAN 1--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under state police member, correctional officer member and probation and parole officer member coverage plan 1, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) three percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary."

     SECTION 3. Section 10-11-38.3 NMSA 1978 (being Laws 1994, Chapter 128, Section 11, as amended) is amended to read:

     "10-11-38.3. JUVENILE CORRECTIONAL OFFICER MEMBER COVERAGE PLAN 2--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under juvenile correctional officer member coverage plan 2, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) three percent of the final average salary multiplied by credited service [credit. The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary."

     SECTION 4. Section 10-11-46 NMSA 1978 (being Laws 1987, Chapter 253, Section 46, as amended) is amended to read:

     "10-11-46. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 1--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal general member coverage plan 1, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary."

     SECTION 5. Section 10-11-52 NMSA 1978 (being Laws 1987, Chapter 253, Section 52, as amended) is amended to read:

     "10-11-52. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 2--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal general member coverage plan 2:

          A. for a member with age and service requirements provided in Subsection A of Section 10-11-51 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary; and

          B. for a member with age and service requirements provided in Subsection B of Section 10-11-51 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two percent of the final average salary multiplied by credited service [credit. The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary."

     SECTION 6. Section 10-11-55.3 NMSA 1978 (being Laws 1993, Chapter 58, Section 3, as amended) is amended to read:

     "10-11-55.3. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 3--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal general member coverage plan 3:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-55.2 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) three percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-55.2 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary."

     SECTION 7. Section 10-11-55.9 NMSA 1978 (being Laws 1998, Chapter 106, Section 3, as amended) is amended to read:

     "10-11-55.9. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 4--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal general member coverage plan 4:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-55.8 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) three percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-55.8 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary."

     SECTION 8. Section 10-11-58 NMSA 1978 (being Laws 1987, Chapter 253, Section 58, as amended) is amended to read:

     "10-11-58. MUNICIPAL POLICE MEMBER COVERAGE PLAN 1--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal police member coverage plan 1, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary."

     SECTION 9. Section 10-11-64 NMSA 1978 (being Laws 1987, Chapter 253, Section 64, as amended) is amended to read:

     "10-11-64. MUNICIPAL POLICE MEMBER COVERAGE PLAN 2--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal police member coverage plan 2:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-63 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-63 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary."

     SECTION 10. Section 10-11-70 NMSA 1978 (being Laws 1987, Chapter 253, Section 70, as amended) is amended to read:

     "10-11-70. MUNICIPAL POLICE MEMBER COVERAGE PLAN 3--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal police member coverage plan 3:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-69 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-69 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary."

     SECTION 11. Section 10-11-76 NMSA 1978 (being Laws 1987, Chapter 253, Section 76, as amended) is amended to read:

     "10-11-76. MUNICIPAL POLICE MEMBER COVERAGE PLAN 4--AMOUNT OF PENSION--FORM OF [PENSION] PAYMENT A.--Under municipal police member coverage plan 4:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-75 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) three percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-75 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary."

     SECTION 12. Section 10-11-82 NMSA 1978 (being Laws 1987, Chapter 253, Section 82, as amended) is amended to read:

     "10-11-82. MUNICIPAL POLICE MEMBER COVERAGE PLAN 5--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal police member coverage plan 5:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-81 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) three and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-81 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) three percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary."

     SECTION 13. Section 10-11-88 NMSA 1978 (being Laws 1987, Chapter 253, Section 88, as amended) is amended to read:

     "10-11-88. MUNICIPAL FIRE MEMBER COVERAGE PLAN 1--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal fire member coverage plan 1, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary."

     SECTION 14. Section 10-11-94 NMSA 1978 (being Laws 1987, Chapter 253, Section 94, as amended) is amended to read:

     "10-11-94. MUNICIPAL FIRE MEMBER COVERAGE PLAN 2--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal fire member [contribution] coverage plan 2:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-93 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-93 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary."

     SECTION 15. Section 10-11-100 NMSA 1978 (being Laws 1987, Chapter 253, Section 100, as amended) is amended to read:

     "10-11-100. MUNICIPAL FIRE MEMBER COVERAGE PLAN 3--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal fire member coverage plan 3:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-99 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-99 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary."

     SECTION 16. Section 10-11-106 NMSA 1978 (being Laws 1987, Chapter 253, Section 106, as amended) is amended to read:

     "10-11-106. MUNICIPAL FIRE MEMBER COVERAGE PLAN 4--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal fire member coverage plan 4:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-105 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) three percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-105 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary."

     SECTION 17. Section 10-11-112 NMSA 1978 (being Laws 1987, Chapter 253, Section 112, as amended) is amended to read:

     "10-11-112. MUNICIPAL FIRE MEMBER COVERAGE PLAN 5--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal fire member coverage plan 5:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-111 NMSA 1978,

the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) three and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-111 NMSA 1978, the amount of pension under form of payment A is equal to the following; provided that the amount shall not exceed one hundred percent of the final average salary:

                (1) three percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary] for that portion of service that will increase the amount of pension up to ninety percent of the final average salary; and

                (2) one percent of the final average salary multiplied by credited service for that portion of service that will increase the amount of pension in excess of ninety percent and up to one hundred percent of the final average salary."

     SECTION 18. APPLICABILITY.--The provisions of this act apply to credited service performed after the effective date of this act. Any credited service performed or amount of pension earned prior to the effective date of this act shall not be calculated or adjusted to conform to the provisions of this act.

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