HOUSE BILL 467
56th legislature - STATE OF NEW MEXICO - first session, 2023
INTRODUCED BY
Rod Montoya
AN ACT
RELATING TO PENSION SOLVENCY; REPEALING THE EARLY CHILDHOOD EDUCATION AND CARE FUND AND THE EARLY CHILDHOOD EDUCATION AND CARE PROGRAM FUND AND TRANSFERRING THE BALANCE OF THOSE FUNDS TO THE INCOME FUND OF THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; INCREASING CERTAIN EMPLOYEE CONTRIBUTION RATES PURSUANT TO THE PUBLIC EMPLOYEES RETIREMENT ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 7-1-6.61 NMSA 1978 (being Laws 2017 (1st S.S.), Chapter 3, Section 3, as amended) is amended to read:
"7-1-6.61. DISTRIBUTION--OIL AND GAS EMERGENCY SCHOOL TAX [EXCESS EXTRACTION TAXES SUSPENSE FUND] TAX STABILIZATION RESERVE.--
A. A distribution pursuant to Section 7-1-6.20 NMSA 1978 shall be made to the [excess extraction taxes suspense fund] tax stabilization reserve in an amount as calculated pursuant to Subsection B of this section.
B. If the year-to-date amount plus the current net receipts exceeds the annual average amount, the excess shall be distributed by the taxation and revenue department to the [excess extraction taxes suspense fund. Each month the department of finance and administration shall make the calculation to determine the excess amount to be distributed] tax stabilization reserve. If there is not an excess amount, no distribution shall be made.
C. As used in this section:
(1) "annual average amount" means the total net receipts attributable to the tax imposed pursuant to Section 7-31-4 NMSA 1978 and distributed pursuant to Section 7-1-6.20 NMSA 1978 in the immediately preceding five fiscal years, divided by five; and
(2) "year-to-date amount" means the cumulative year-to-date net receipts attributable to the tax imposed pursuant to Section 7-31-4 NMSA 1978 and distributed to the general fund in the prior months of the current fiscal year."
SECTION 2. Section 10-11-26.5 NMSA 1978 (being Laws 1994, Chapter 128, Section 6, as amended) is amended to read:
"10-11-26.5. STATE GENERAL MEMBER COVERAGE PLAN 3--MEMBER CONTRIBUTION RATE.--A member under state general member coverage plan 3 shall contribute seven and forty-two hundredths percent of salary starting with the first full pay period that ends within the calendar month in which state general member coverage plan 3 becomes applicable to the member, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute:
A. beginning July 1, 2020 and continuing through June 30, 2021, nine and forty-two hundredths percent of salary;
B. beginning July 1, 2021 and continuing through June 30, 2022, nine and ninety-two hundredths percent of salary;
C. beginning July 1, 2022 and continuing through June 30, 2023, ten and forty-two hundredths percent of salary; and
D. beginning July 1, 2023 and thereafter, [ten] fourteen and ninety-two hundredths percent of salary."
SECTION 3. Section 10-11-31 NMSA 1978 (being Laws 1987, Chapter 253, Section 31, as amended) is amended to read:
"10-11-31. STATE POLICE MEMBER, CORRECTIONAL OFFICER MEMBER AND PROBATION AND PAROLE OFFICER MEMBER COVERAGE PLAN 1--MEMBER CONTRIBUTION RATE.--A member under state police member, correctional officer member and probation and parole officer member coverage plan 1 shall contribute seven and six-tenths percent of salary, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute [nine] thirteen and one-tenth percent of salary."
SECTION 4. Section 10-11-38.5 NMSA 1978 (being Laws 1994, Chapter 128, Section 13, as amended) is amended to read:
"10-11-38.5. JUVENILE CORRECTIONAL OFFICER MEMBER COVERAGE PLAN 2--MEMBER CONTRIBUTION RATE.--A member under juvenile correctional officer member coverage plan 2 shall contribute four and seventy-eight hundredths percent of salary starting with the first full pay period that ends within the calendar month in which juvenile correctional officer member coverage plan 2 becomes applicable to the member, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute:
A. beginning July 1, 2020 and continuing through June 30, 2021, six and seventy-eight hundredths percent of salary;
B. beginning July 1, 2021 and continuing through June 30, 2022, seven and twenty-eight hundredths percent of salary;
C. beginning July 1, 2022 and continuing through June 30, 2023, seven and seventy-eight hundredths percent of salary; and
D. beginning July 1, 2023 and thereafter, [eight] twelve and twenty-eight hundredths percent of salary."
SECTION 5. Section 10-11-48 NMSA 1978 (being Laws 1987, Chapter 253, Section 48, as amended) is amended to read:
"10-11-48. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 1--MEMBER CONTRIBUTION RATE.--A member under municipal general member coverage plan 1 shall contribute seven percent of salary starting with the first full pay period in the calendar month in which municipal general member coverage plan 1 becomes applicable to the member, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute:
A. prior to July 1, 2022, eight and one-half percent of salary;
B. beginning July 1, 2022 and continuing through June 30, 2023, nine percent of salary;
C. beginning July 1, 2023 and continuing through June 30, 2024, [nine] thirteen and one-half percent of salary;
D. beginning July 1, 2024 and continuing through June 30, 2025, [ten] fourteen percent of salary; and
E. beginning July 1, 2025 and thereafter, [ten] fourteen and one-half percent of salary."
SECTION 6. Section 10-11-54 NMSA 1978 (being Laws 1987, Chapter 253, Section 54, as amended) is amended to read:
"10-11-54. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 2--MEMBER CONTRIBUTION RATE.--A member under municipal general member coverage plan 2 shall contribute nine and fifteen-hundredths percent of salary starting with the first full pay period in the calendar month in which municipal general member coverage plan 2 becomes applicable to the member, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute:
A. prior to July 1, 2022, ten and sixty-five hundredths percent of salary;
B. beginning July 1, 2022 and continuing through June 30, 2023, eleven and fifteen-hundredths percent of salary;
C. beginning July 1, 2023 and continuing through June 30, 2024, [eleven] fifteen and sixty-five hundredths percent of salary;
D. beginning July 1, 2024 and continuing through June 30, 2025, [twelve] sixteen and fifteen-hundredths percent of salary; and
E. beginning July 1, 2025 and thereafter, [twelve] sixteen and sixty-five hundredths percent of salary."
SECTION 7. Section 10-11-55.5 NMSA 1978 (being Laws 1993, Chapter 58, Section 5, as amended) is amended to read:
"10-11-55.5. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 3--MEMBER CONTRIBUTION RATE.--A member under municipal general member coverage plan 3 shall contribute thirteen and fifteen-hundredths percent of salary starting with the first full pay period in the calendar month in which municipal general member coverage plan 3 becomes applicable to the member, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute:
A. prior to July 1, 2022, fourteen and sixty-five hundredths percent of salary;
B. beginning July 1, 2022 and continuing through June 30, 2023, fifteen and fifteen-hundredths percent of salary;
C. beginning July 1, 2023 and continuing through June 30, 2024, [fifteen] nineteen and sixty-five hundredths percent of salary;
D. beginning July 1, 2024 and continuing through June 30, 2025, [sixteen] twenty and fifteen-hundredths percent of salary; and
E. beginning July 1, 2025 and thereafter, [sixteen] twenty and sixty-five hundredths percent of salary."
SECTION 8. Section 10-11-55.11 NMSA 1978 (being Laws 1998, Chapter 106, Section 5, as amended) is amended to read:
"10-11-55.11. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 4--MEMBER CONTRIBUTION RATE.--A member under municipal general member coverage plan 4 shall contribute fifteen and sixty-five hundredths percent of salary starting with the first full pay period in the calendar month in which municipal general member coverage plan 4 becomes applicable to the member, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute:
A. prior to July 1, 2022, seventeen and [fifteen hundredths] fifteen-hundredths percent of salary;
B. beginning July 1, 2022 and continuing through June 30, 2023, seventeen and sixty-five hundredths percent of salary;
C. beginning July 1, 2023 and continuing through June 30, 2024, [eighteen] twenty-two and [fifteen hundredths] fifteen-hundredths percent of salary;
D. beginning July 1, 2024 and continuing through June 30, 2025, [eighteen] twenty-two and sixty-five hundredths percent of salary; and
E. beginning July 1, 2025 and thereafter, [nineteen] twenty-three and [fifteen hundredths] fifteen-hundredths percent of salary."
SECTION 9. Section 10-11-60 NMSA 1978 (being Laws 1987, Chapter 253, Section 60, as amended) is amended to read:
"10-11-60. MUNICIPAL POLICE MEMBER COVERAGE PLAN 1--MEMBER CONTRIBUTION RATE.--A member under municipal police member coverage plan 1 shall contribute seven percent of salary starting with the first full pay period in the calendar month in which municipal police member coverage plan 1 becomes applicable to the member, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute:
A. prior to July 1, 2022, eight and one-half percent of salary;
B. beginning July 1, 2022 and continuing through June 30, 2023, nine percent of salary;
C. beginning July 1, 2023 and continuing through June 30, 2024, [nine] thirteen and one-half percent of salary;
D. beginning July 1, 2024 and continuing through June 30, 2025, [ten] fourteen percent of salary; and
E. beginning July 1, 2025 and thereafter, [ten] fourteen and one-half percent of salary."
SECTION 10. Section 10-11-66 NMSA 1978 (being Laws 1987, Chapter 253, Section 66, as amended) is amended to read:
"10-11-66. MUNICIPAL POLICE MEMBER COVERAGE PLAN 2--MEMBER CONTRIBUTION RATE.--A member under municipal police member coverage plan 2 shall contribute seven percent of salary with the first full pay period in the calendar month in which municipal police member coverage plan 2 becomes applicable to the member, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute:
A. prior to July 1, 2022, eight and one-half percent of salary;
B. beginning July 1, 2022 and continuing through June 30, 2023, nine percent of salary;
C. beginning July 1, 2023 and continuing through June 30, 2024, [nine] thirteen and one-half percent of salary;
D. beginning July 1, 2024 and continuing through June 30, 2025, [ten] fourteen percent of salary; and
E. beginning July 1, 2025 and thereafter, [ten] fourteen and one-half percent of salary."
SECTION 11. Section 10-11-72 NMSA 1978 (being Laws 1987, Chapter 253, Section 72, as amended) is amended to read:
"10-11-72. MUNICIPAL POLICE MEMBER COVERAGE PLAN 3--MEMBER CONTRIBUTION RATE.--A member under municipal police member coverage plan 3 shall contribute seven percent of salary with the first full pay period in the calendar month in which municipal police member coverage plan 3 becomes applicable to the member, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute:
A. prior to July 1, 2022, eight and one-half percent of salary;
B. beginning July 1, 2022 and continuing through June 30, 2023, nine percent of salary;
C. beginning July 1, 2023 and continuing through June 30, 2024, [nine] thirteen and one-half percent of salary;
D. beginning July 1, 2024 and continuing through June 30, 2025, [ten] fourteen percent of salary; and
E. beginning July 1, 2025 and thereafter, [ten] fourteen and one-half percent of salary."
SECTION 12. Section 10-11-78 NMSA 1978 (being Laws 1987, Chapter 253, Section 78, as amended) is amended to read:
"10-11-78. MUNICIPAL POLICE MEMBER COVERAGE PLAN 4--MEMBER CONTRIBUTION RATE.--A member under municipal police member coverage plan 4 shall contribute twelve and thirty-five hundredths percent of salary starting with the first full pay period in the calendar month in which municipal police member coverage plan 4 becomes applicable to the member, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute:
A. prior to July 1, 2022, thirteen and eighty-five hundredths percent of salary;
B. beginning July 1, 2022 and continuing through June 30, 2023, fourteen and thirty-five hundredths percent of salary;
C. beginning July 1, 2023 and continuing through June 30, 2024, [fourteen] eighteen and eighty-five hundredths percent of salary;
D. beginning July 1, 2024 and continuing through June 30, 2025, [fifteen] nineteen and thirty-five hundredths percent of salary; and
E. beginning July 1, 2025 and thereafter, [fifteen] nineteen and eighty-five hundredths percent of salary."
SECTION 13. Section 10-11-84 NMSA 1978 (being Laws 1987, Chapter 253, Section 84, as amended) is amended to read:
"10-11-84. MUNICIPAL POLICE MEMBER COVERAGE PLAN 5--MEMBER CONTRIBUTION RATE.--A member under municipal police member coverage plan 5 shall contribute sixteen and three-tenths percent of salary starting with the first full pay period in the calendar month in which municipal police member coverage plan 5 becomes applicable to the member, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute:
A. prior to July 1, 2022, seventeen and eight-tenths percent of salary;
B. beginning July 1, 2022 and continuing through June 30, 2023, eighteen and three-tenths percent of salary;
C. beginning July 1, 2023 and continuing through June 30, 2024, [eighteen] twenty-two and eight-tenths percent of salary;
D. beginning July 1, 2024 and continuing through June 30, 2025, [nineteen] twenty-three and three-tenths percent of salary; and
E. beginning July 1, 2025 and thereafter, [nineteen] twenty-three and eight-tenths percent of salary."
SECTION 14. Section 10-11-90 NMSA 1978 (being Laws 1987, Chapter 253, Section 90, as amended) is amended to read:
"10-11-90. MUNICIPAL FIRE MEMBER COVERAGE PLAN 1--MEMBER CONTRIBUTION RATE.--A member under municipal fire member coverage plan 1 shall contribute eight percent of salary with the first full pay period in the calendar month in which municipal fire member coverage plan 1 becomes applicable to the member, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute:
A. beginning July 1, 2021 and continuing through June 30, 2022, eleven percent of salary;
B. beginning July 1, 2022 and continuing through June 30, 2023, eleven and one-half percent of salary;
C. beginning July 1, 2023 and continuing through June 30, 2024, [twelve] sixteen percent of salary;
D. beginning July 1, 2024 and continuing through June 30, 2025, [twelve] sixteen and one-half percent of salary; and
E. beginning July 1, 2025 and thereafter, [thirteen] seventeen percent of salary."
SECTION 15. Section 10-11-96 NMSA 1978 (being Laws 1987, Chapter 253, Section 96, as amended) is amended to read:
"10-11-96. MUNICIPAL FIRE MEMBER COVERAGE PLAN 2--MEMBER CONTRIBUTION RATE.--A member under municipal fire member coverage plan 2 shall contribute eight percent of salary with the first full pay period in the calendar month in which municipal fire member coverage plan 2 becomes applicable to the member, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute:
A. beginning July 1, 2021 and continuing through June 30, 2022, eleven percent of salary;
B. beginning July 1, 2022 and continuing through June 30, 2023, eleven and one-half percent of salary;
C. beginning July 1, 2023 and continuing through June 30, 2024, [twelve] sixteen percent of salary;
D. beginning July 1, 2024 and continuing through June 30, 2025, [twelve] sixteen and one-half percent of salary; and
E. beginning July 1, 2025 and thereafter, [thirteen] seventeen percent of salary."
SECTION 16. Section 10-11-102 NMSA 1978 (being Laws 1987, Chapter 253, Section 102, as amended) is amended to read:
"10-11-102. MUNICIPAL FIRE MEMBER COVERAGE PLAN 3--MEMBER CONTRIBUTION RATE.--A member under municipal fire member coverage plan 3 shall contribute eight percent of salary with the first full pay period in the calendar month in which municipal fire member coverage plan 3 becomes applicable to the member, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute:
A. beginning July 1, 2021 and continuing through June 30, 2022, eleven percent of salary;
B. beginning July 1, 2022 and continuing through June 30, 2023, eleven and one-half percent of salary;
C. beginning July 1, 2023 and continuing through June 30, 2024, [twelve] sixteen percent of salary;
D. beginning July 1, 2024 and continuing through June 30, 2025, [twelve] sixteen and one-half percent of salary; and
E. beginning July 1, 2025 and thereafter, [thirteen] seventeen percent of salary."
SECTION 17. Section 10-11-108 NMSA 1978 (being Laws 1987, Chapter 253, Section 108, as amended) is amended to read:
"10-11-108. MUNICIPAL FIRE MEMBER COVERAGE PLAN 4--MEMBER CONTRIBUTION RATE.--A member under municipal fire member coverage plan 4 shall contribute twelve and eight-tenths percent of salary with the first full pay period in the calendar month in which municipal fire member coverage plan 4 becomes applicable to the member, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute:
A. beginning July 1, 2021 and continuing through June 30, 2022, fifteen and eight-tenths percent of salary;
B. beginning July 1, 2022 and continuing through June 30, 2023, sixteen and three-tenths percent of salary;
C. beginning July 1, 2023 and continuing through June 30, 2024, [sixteen] twenty and eight-tenths percent of salary;
D. beginning July 1, 2024 and continuing through June 30, 2025, [seventeen] twenty-one and three-tenths percent of salary; and
E. beginning July 1, 2025 and thereafter, [seventeen] twenty-one and eight-tenths percent of salary."
SECTION 18. Section 10-11-114 NMSA 1978 (being Laws 1987, Chapter 253, Section 114, as amended) is amended to read:
"10-11-114. MUNICIPAL FIRE MEMBER COVERAGE PLAN 5--MEMBER CONTRIBUTION RATE.--A member under municipal fire member coverage plan 5 shall contribute sixteen and two-tenths percent of salary with the first full pay period in the calendar month in which municipal fire member coverage plan 5 becomes applicable to the member, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute:
A. beginning July 1, 2021 and continuing through June 30, 2022, nineteen and two-tenths percent of salary;
B. beginning July 1, 2022 and continuing through June 30, 2023, nineteen and seven-tenths percent of salary;
C. beginning July 1, 2023 and continuing through June 30, 2024, [twenty] twenty-four and two-tenths percent of salary;
D. beginning July 1, 2024 and continuing through June 30, 2025, [twenty] twenty-four and seven-tenths percent of salary; and
E. beginning July 1, 2025 and thereafter, [twenty-one] twenty-five and two-tenths percent of salary."
SECTION 19. Section 10-11-115.5 NMSA 1978 (being Laws 2003, Chapter 268, Section 6, as amended) is amended to read:
"10-11-115.5. MUNICIPAL DETENTION OFFICER MEMBER COVERAGE PLAN 1--MEMBER CONTRIBUTION RATE.--A member under municipal detention officer member coverage plan 1 shall contribute sixteen and sixty-five hundredths percent of salary with the first full pay period in the calendar month in which municipal detention officer member coverage plan 1 becomes applicable to the member, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute:
A. prior to July 1, 2022, eighteen and fifteen-hundredths percent of salary;
B. beginning July 1, 2022 and continuing through June 30, 2023, eighteen and sixty-five hundredths percent of salary;
C. beginning July 1, 2023 and continuing through June 30, 2024, [nineteen] twenty-three and fifteen-hundredths percent of salary;
D. beginning July 1, 2024 and continuing through June 30, 2025, [nineteen] twenty-three and sixty-five hundredths percent of salary; and
E. beginning July 1, 2025 and thereafter, [twenty] twenty-four and fifteen-hundredths percent of salary."
SECTION 20. Section 22-8-34 NMSA 1978 (being Laws 1967, Chapter 16, Section 90, as amended) is amended to read:
"22-8-34. FEDERAL MINERAL LEASING FUNDS.--
A. Money received by the state pursuant to the provisions of the federal Mineral Leasing Act shall be distributed to the public school fund, except as follows:
(1) an annual appropriation to the instructional material fund;
(2) an annual appropriation to the board of regents of the New Mexico institute of mining and technology for the bureau of geology and mineral resources; and
(3) the distribution made pursuant to Subsection B of this section [and
(4) the distribution made pursuant to Section 3 of this 2020 act].
B. Money received by the state as its share of a prepayment of royalties pursuant to 30 U.S.C. 1726(b), as that section may be amended or renumbered, shall be distributed as follows:
(1) a portion of the receipts, estimated by the taxation and revenue department to be equal to the amount that the state would have received as its share of royalties in the same fiscal year if the prepayment had not been made, shall be distributed to the public school fund; and
(2) the remainder shall be distributed to the common school permanent fund."
SECTION 21. FUND TRANSFER.--On the effective date of this act, the balance of the early childhood education and care fund and the early childhood education and care program fund is transferred to the income fund of the public employees retirement association.
SECTION 22. REPEAL.--Section 6-4-27 NMSA 1978 (being Laws 2020, Chapter 3, Section 4) is repealed.
SECTION 23. REPEAL.--Sections 9-29A-1 through 9-29A-3 NMSA 1978 (being Laws 2020, Chapter 3, Sections 1 through 3) are repealed.
SECTION 24. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2023.
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