SENATE MEMORIAL 16

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

INTRODUCED BY

Bill Tallman

 

 

 

 

 

A MEMORIAL

REQUESTING THE OFFICE OF THE STATE AUDITOR TO CONVENE A TASK FORCE TO STUDY THE FEASIBILITY OF IMPLEMENTING A DEFINED CONTRIBUTION PENSION PLAN FOR PUBLIC EMPLOYEES.

 

     WHEREAS, a defined contribution plan allows the employee or the employer, or both, to contribute to the employee's individual account under the plan, and those contributions are invested on the employee's behalf; and

     WHEREAS, at retirement, the employee will receive the balance in the employee's individual account under the plan, based on contributions plus investment gains; and

     WHEREAS, defined contribution plan holders are empowered to prepare for retirement by having complete control over the amount of income they are investing in their financial future; and

     WHEREAS, nineteen other states have implemented defined contribution plans for public employees and almost all of those nineteen states have more robust general funds, indicating that a defined contribution plan could benefit New Mexico in a similar way; and

     WHEREAS, a shift from defined benefit plans to defined contribution plans may save the state money;

     NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the office of the state auditor be requested to convene and administratively support a task force to study the feasibility and effects of implementing a defined contribution pension plan for public employees; and

     BE IT FURTHER RESOLVED that the task force be composed of representatives of the following:

          A. two members of the educational retirement board;

          B. two members of the public employees retirement association;

          C. one member who is a representative of the interests of the retired public employees of New Mexico;

          D. one member appointed by the governor;

          E. one member appointed by the chair of the senate finance committee; and

          F. one member of the legislative finance committee staff; and

     BE IT FURTHER RESOLVED that the task force present a report on the results of its study to the legislative interim committee that is responsible for investments and pensions oversight by December 2023; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the executive director and board members of the educational retirement board, the executive director and board members of the public employees retirement association, the president of the retired public employees of New Mexico, the governor, the chair of the senate finance committee, the director of the legislative finance committee and the co-chairs of the New Mexico legislative council.

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