0001| SENATE BILL 364
|
0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
|
0003| INTRODUCED BY
|
0004| SHANNON ROBINSON
|
0005|
|
0006|
|
0007|
|
0008|
|
0009|
|
0010| AN ACT
|
0011| RELATING TO RETIREE HEALTH CARE; AMENDING THE RETIREE HEALTH
|
0012| CARE ACT TO CHANGE CERTAIN DEFINITIONS, GIVE THE RETIREE HEALTH
|
0013| CARE BOARD MORE DISCRETION IN SETTING CONTRIBUTION LEVELS AND
|
0014| CHANGE CERTAIN PROVISIONS PERTAINING TO INSTITUTIONS OF HIGHER
|
0015| EDUCATION, MUNICIPALITIES AND COUNTIES; AMENDING SECTIONS OF
|
0016| THE NMSA 1978.
|
0017|
|
0018| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
|
0019| Section 1. Section 10-7C-4 NMSA 1978 (being Laws 1990,
|
0020| Chapter 6, Section 4, as amended) is amended to read:
|
0021| "10-7C-4. DEFINITIONS.--As used in the Retiree Health
|
0022| Care Act:
|
0023| A. "active employee" means an employee of a public
|
0024| institution or any other public employer participating in
|
0025| either the Educational Retirement Act, the Public Employees
|
0001| Retirement Act, the Judicial Retirement Act, [or] the
|
0002| Magistrate Retirement Act or the Public Employees Retirement
|
0003| Reciprocity Act or the employee of an independent public
|
0004| employer;
|
0005| B. "authority" means the retiree health care
|
0006| authority created pursuant to the Retiree Health Care Act;
|
0007| C. "basic plan of benefits" means only those
|
0008| coverages generally associated with a medical plan of benefits;
|
0009| D. "board" means the [governing] board of the
|
0010| retiree health care authority;
|
0011| E. "current retiree" means an eligible retiree who
|
0012| is receiving a disability or normal retirement benefit under
|
0013| the Educational Retirement Act, the Public Employees Retirement
|
0014| Act, the Judicial Retirement Act, the Magistrate Retirement Act
|
0015| [the Retirement Reciprocity Act, the Judicial Retirement
|
0016| Reciprocity Act] or the Public Employees Retirement
|
0017| Reciprocity Act or the retirement program of an independent
|
0018| public employer on or before July 1, 1990;
|
0019| F. "eligible dependent" means a person obtaining
|
0020| retiree health care coverage based upon that person's
|
0021| relationship to an eligible retiree as follows:
|
0022| (1) a spouse;
|
0023| (2) an unmarried child under the age of
|
0024| nineteen who is:
|
0025| (a) a natural child;
|
0001| (b) a legally adopted child;
|
0002| (c) a stepchild living in the same
|
0003| household who is primarily dependent on the eligible retiree
|
0004| for maintenance and support;
|
0005| (d) a child for whom the eligible
|
0006| retiree is the legal guardian and who is primarily dependent on
|
0007| the eligible retiree for maintenance and support, as long as
|
0008| evidence of the guardianship is evidenced in a court order or
|
0009| decree; or
|
0010| (e) a foster child living in the same
|
0011| household;
|
0012| (3) a child described in Subparagraphs (a)
|
0013| through (e) of Paragraph (2) of this subsection who is between
|
0014| the ages of nineteen and twenty-five and is a full-time student
|
0015| at an accredited educational institution, provided that "full-
|
0016| time student" shall be a student enrolled in and taking twelve
|
0017| or more semester hours or its equivalent contact hours in
|
0018| primary, secondary, undergraduate or vocational school or a
|
0019| student enrolled in and taking nine or more semester hours or
|
0020| its equivalent contact hours in graduate school;
|
0021| (4) a dependent child over nineteen who is
|
0022| wholly dependent on the eligible retiree for maintenance and
|
0023| support and who is incapable of self-sustaining employment by
|
0024| reason of mental retardation or physical handicap, provided
|
0025| that proof of incapacity and dependency shall be provided
|
0001| within thirty-one days after the child reaches the limiting age
|
0002| and at such times thereafter as may be required by the board;
|
0003| (5) a surviving spouse defined as follows:
|
0004| (a) "surviving spouse" means the spouse
|
0005| to whom a retiree was married at the time of death; or
|
0006| (b) "surviving spouse" means the spouse
|
0007| to whom a deceased vested active employee was married at the
|
0008| time of death; or
|
0009| (6) a surviving dependent child who is the
|
0010| dependent child of a deceased eligible retiree whose other
|
0011| parent is also deceased;
|
0012| G. "eligible employer" means either:
|
0013| (1) a "retirement system employer", which
|
0014| means an institution of higher education, a school district or
|
0015| other entity participating in the public school insurance
|
0016| authority, a state agency, state court, magistrate court,
|
0017| municipality or county, each of which is affiliated under or
|
0018| covered by the Educational Retirement Act, the Public Employees
|
0019| Retirement Act, the Judicial Retirement Act, [or] the
|
0020| Magistrate Retirement Act or the Public Employees Retirement
|
0021| Reciprocity Act; or
|
0022| (2) an "independent public employer", which
|
0023| means a municipality or county which is not a retirement system
|
0024| employer;
|
0025| H. "eligible retiree" means:
|
0001| (1) a "nonsalaried eligible participating
|
0002| entity governing authority member" who is a person who is not a
|
0003| retiree and who:
|
0004| (a) has served without salary as a
|
0005| member of the governing authority of an employer eligible to
|
0006| participate in the benefits of the Retiree Health Care Act and
|
0007| is certified to be such by the executive director of the public
|
0008| school insurance authority;
|
0009| (b) has maintained group health
|
0010| insurance coverage through that member's governing authority if
|
0011| such group health insurance coverage was available and offered
|
0012| to the member during the member's service as a member of the
|
0013| governing authority; and
|
0014| (c) was participating in the group
|
0015| health insurance program under the Retiree Health Care Act
|
0016| prior to July 1, 1993; or
|
0017| (d) if a person eligible under
|
0018| Subparagraph (a) of this paragraph applies before August 1,
|
0019| 1993 to the authority to participate in the program, then he
|
0020| will be eligible to participate notwithstanding the provisions
|
0021| of Subparagraphs (b) and (c) of this paragraph;
|
0022| (2) a "salaried eligible participating entity
|
0023| governing authority member" who is a person who is not a
|
0024| retiree and who:
|
0025| (a) has served with salary as a member
|
0001| of the governing authority of an employer eligible to
|
0002| participate in the benefits of the Retiree Health Care Act;
|
0003| (b) has maintained group health
|
0004| insurance through that member's governing authority, if such
|
0005| group health insurance was available and offered to the member
|
0006| during the member's service as a member of the governing
|
0007| authority; and
|
0008| (c) was participating in the group
|
0009| health insurance program under the Retiree Health Care Act
|
0010| prior to July 1, 1993; or
|
0011| (d) if a person eligible under
|
0012| Subparagraph (a) of this paragraph applies before August 1,
|
0013| 1993 to the authority to participate in the program, then he
|
0014| will be eligible to participate notwithstanding the provisions
|
0015| of Subparagraphs (b) and (c) of this paragraph;
|
0016| (3) an "eligible participating retiree" who is
|
0017| a person who:
|
0018| (a) falls within the definition of a
|
0019| retiree, has made contributions to the fund for at least five
|
0020| years prior to retirement and whose eligible employer during
|
0021| that period of time made contributions as a participant in the
|
0022| Retiree Health Care Act on the person's behalf, unless that
|
0023| person retires on or before July 1, 1995, in which event the
|
0024| time period required for employee and employer contributions
|
0025| shall become the period of time between July 1, 1990 and the
|
0001| date of retirement, and who is certified to be a retiree by the
|
0002| educational retirement director, the executive secretary of the
|
0003| public employees retirement board or the governing authority of
|
0004| an independent public employer;
|
0005| (b) falls within the definition of a
|
0006| retiree, retired prior to July 1, 1990 and is certified to be a
|
0007| retiree by the educational retirement director, the executive
|
0008| secretary of the public employees retirement association or the
|
0009| governing authority or of an independent public employer; but
|
0010| this paragraph does not include a retiree who was an employee
|
0011| of an eligible employer who exercised the option not to be a
|
0012| participating employer pursuant to the Retiree Health Care Act
|
0013| and did not after January 1, 1993 elect to become a
|
0014| participating employer; unless the retiree: 1) retired on or
|
0015| before June 30, 1990; and 2) at the time of retirement did not
|
0016| have a retirement health plan or retirement health insurance
|
0017| coverage available from his employer; or
|
0018| (c) is a retiree who: 1) was at the time
|
0019| of retirement an employee of an eligible employer who exercised
|
0020| the option not to be a participating employer pursuant to the
|
0021| Retiree Health Care Act, but which eligible employer
|
0022| subsequently elected after January 1, 1993 to become a
|
0023| participating employer; 2) has made contributions to the fund
|
0024| for at least five years prior to retirement and whose eligible
|
0025| employer during that period of time made contributions as a
|
0001| participant in the Retiree Health Care Act on the person's
|
0002| behalf, unless that person retires less than five years after
|
0003| the date participation begins, in which event the time period
|
0004| required for employee and employer contributions shall become
|
0005| the period of time between the date participation begins and
|
0006| the date of retirement; and 3) is certified to be a retiree by
|
0007| the educational retirement director, the executive secretary of
|
0008| the public employees retirement board or the governing
|
0009| authority of an independent public employer;
|
0010| I. "fund" means the retiree health care fund;
|
0011| J. "group health insurance" means coverage that
|
0012| includes but is not limited to life insurance, accidental death
|
0013| and dismemberment, hospital care and benefits, surgical care
|
0014| and treatment, medical care and treatment, dental care, eye
|
0015| care, obstetrical benefits, prescribed drugs, medicines and
|
0016| prosthetic devices, medicare supplement, medicare carveout,
|
0017| medicare coordination and other benefits, supplies and services
|
0018| through the vehicles of indemnity coverages, health maintenance
|
0019| organizations, preferred provider organizations and other
|
0020| health care delivery systems as provided by the Retiree Health
|
0021| Care Act and other coverages considered by the board to be
|
0022| advisable;
|
0023| K. "ineligible dependents" include but are not
|
0024| limited to:
|
0025| (1) those dependents created by common law
|
0001| relationships;
|
0002| (2) dependents while in active military
|
0003| service;
|
0004| (3) parents, aunts, uncles, brothers, sisters,
|
0005| grandchildren and other family members left in the care of an
|
0006| eligible retiree without evidence of legal guardianship; and
|
0007| (4) anyone not specifically referred to as an
|
0008| eligible dependent pursuant to the rules and regulations
|
0009| adopted by the board;
|
0010| L. "participating employee" means an employee of a
|
0011| participating employer, which employee has not been excluded
|
0012| from participation in the Retiree Health Care Act pursuant to
|
0013| [Subsection F of Section 10-7C-9 NMSA 1978 or] Section
|
0014| 10-7C-10 NMSA 1978;
|
0015| M. "participating employer" means an eligible
|
0016| employer who has satisfied the conditions for participating in
|
0017| the benefits of the Retiree Health Care Act, including the
|
0018| requirements of Subsection M of Section 10-7C-7 NMSA 1978 and
|
0019| Subsection D, [or] E or G of Section 10-7C-9 NMSA 1978, as
|
0020| applicable; and
|
0021| N. "retiree" means a person who:
|
0022| (1) is receiving:
|
0023| (a) a disability or normal retirement
|
0024| benefit or survivor's benefit under the Educational Retirement
|
0025| Act;
|
0001| (b) a disability or normal retirement
|
0002| benefit or survivor's benefit pursuant to the Public Employees
|
0003| Retirement Act, the Judicial Retirement Act, the Magistrate
|
0004| Retirement Act or the [Retirement Reciprocity Act or the
|
0005| Judicial Retirement Reciprocity Act] Public Employees
|
0006| Retirement Reciprocity Act; or
|
0007| (c) a disability or normal retirement
|
0008| benefit or survivor's benefit pursuant to the retirement
|
0009| program of an independent public employer to which that
|
0010| employer has made periodic contributions; or
|
0011| (2) is not receiving a survivor's benefit but
|
0012| is the eligible dependent of a person who received a disability
|
0013| or normal retirement benefit pursuant to the Educational
|
0014| Retirement Act, [or] the Public Employees Retirement Act,
|
0015| the Judicial Retirement Act, the Magistrate Retirement Act or
|
0016| the Public Employees Retirement Reciprocity Act."
|
0017| Section 2. Section 10-7C-7 NMSA 1978 (being Laws 1990,
|
0018| Chapter 6, Section 7) is amended to read:
|
0019| "10-7C-7. BOARD--DUTIES.--In order to achieve the
|
0020| purposes of the Retiree Health Care Act, the board may take all
|
0021| actions reasonably necessary to implement that act, including
|
0022| but not limited to the following:
|
0023| A. employ or contract for the services of the state
|
0024| fiscal agent or select its own fiscal agent in accordance with
|
0025| the Procurement Code;
|
0001| B. employ or contract for persons to assist it in
|
0002| carrying out the Retiree Health Care Act and determine the
|
0003| duties and compensation of these employees;
|
0004| C. collect and disburse funds;
|
0005| D. collect all current and historical claims and
|
0006| financial information necessary for effective procurement of
|
0007| lines of insurance coverage;
|
0008| E. promulgate and adopt necessary rules,
|
0009| regulations and procedures for implementation of the Retiree
|
0010| Health Care Act;
|
0011| F. negotiate insurance policies covering additional
|
0012| or lesser benefits as determined appropriate by the board, and
|
0013| at the board's discretion determine various benefit levels
|
0014| based on retirees' accumulated years of credited service, but
|
0015| the board shall maintain all coverage as required by federal or
|
0016| state law for each eligible retiree. In the event it is
|
0017| practical to wholly self-insure part or all of the retiree
|
0018| health care coverages, the board may do so;
|
0019| G. procure group health care and other coverages
|
0020| authorized by the Retiree Health Care Act in accordance with
|
0021| the Procurement Code;
|
0022| H. establish the procedures for contributions and
|
0023| deductions;
|
0024| I. determine methods and procedures for claims
|
0025| administration;
|
0001| J. administer the fund;
|
0002| K. contract for and make available to all eligible
|
0003| retirees and eligible dependents basic and optional group
|
0004| health insurance plans. The optional coverage may include a
|
0005| lower deductible, lower coinsurance or additional categories of
|
0006| benefits permitted under this section and all other applicable
|
0007| sections of the Retiree Health Care Act to provide additional
|
0008| levels of coverages and benefits. Any additional contributions
|
0009| for these optional plans shall be paid for by the eligible
|
0010| retiree or eligible dependent. The coverage provided by the
|
0011| plan or plans shall be secondary to all other benefit coverages
|
0012| to which the eligible retiree or eligible dependent is
|
0013| entitled. In the event a covered eligible retiree becomes
|
0014| employed by an employer offering its employees a basic plan of
|
0015| benefits, the coverage provided by the plan under the Retiree
|
0016| Health Care Act shall be secondary to such coverage regardless
|
0017| of whether the employee enrolls in that employer's plan. In
|
0018| the event the eligible retiree or eligible dependent is en-
|
0019|
|
0020| titled to receive medicare hospital insurance benefits at no
|
0021| charge, then the coverage provided by the plan under the
|
0022| Retiree Health Care Act shall be secondary to medicare hospital
|
0023| and medical insurance to the extent permitted by federal law;
|
0024| L. provide, at its discretion, different plans for
|
0025| eligible retirees and eligible dependents covered by medicare
|
0001| than the plans provided for eligible retirees and eligible
|
0002| dependents who are not covered by medicare; and
|
0003| M. promulgate and adopt rules and regulations
|
0004| governing eligibility, participation, enrollment, length of
|
0005| service and any other conditions or requirements for providing
|
0006| substantially equal treatment to participating employers [who
|
0007| are independent public employers and their retirees and
|
0008| participating employees]."
|
0009| Section 3. Section 10-7C-9 NMSA 1978 (being Laws 1990,
|
0010| Chapter 6, Section 9, as amended) is amended to read:
|
0011| "10-7C-9. PARTICIPATION.--
|
0012| A. All eligible employers shall participate in the
|
0013| Retiree Health Care Act except as provided in Subsection D or
|
0014| [Subsection] E of this section. Participating employers are
|
0015| required to continue existing group health insurance coverages
|
0016| until such time as similar coverages are offered by the board
|
0017| under the Retiree Health Care Act.
|
0018| B. Participation in the basic health insurance
|
0019| coverages provided by the authority shall be conditioned upon
|
0020| receipt by the board of a certificate of eligibility from the
|
0021| educational retirement director, the executive secretary of the
|
0022| public employees retirement association, the [executive]
|
0023| director of the public school insurance authority or the
|
0024| governing body of an independent public employer. Once
|
0025| eligibility is established, for each eligible retiree who
|
0001| retires on or after [the effective date of the Retiree Health
|
0002| Care Act] February 13, 1990, the board shall contribute from
|
0003| money in the fund the authority's portion of the premium for
|
0004| the basic plan of benefits commencing no earlier than January
|
0005| 1, 1991, plus the balance of the premium which shall be
|
0006| collected from the retiree.
|
0007| C. Each eligible retiree shall accept or reject
|
0008| enrollment in the basic plan of benefits on an enrollment form
|
0009| provided by the board. An eligible retiree who rejects
|
0010| enrollment or fails to return a properly executed enrollment
|
0011| form within the open enrollment period as established by the
|
0012| board forfeits all entitlement and eligibility for benefits
|
0013| under the Retiree Health Care Act until the next open
|
0014| enrollment period as established by the board.
|
0015| D. On or before January 1, 1991, municipalities,
|
0016| counties and institutions of higher education that are
|
0017| retirement system employers may at their option determine by
|
0018| ordinance, or for institutions of higher education, by
|
0019| resolution, to be excluded from coverage under the Retiree
|
0020| Health Care Act; that determination shall be subject to the
|
0021| following conditions:
|
0022| (1) any contributions paid into the fund by a
|
0023| municipality, county or institution of higher education that
|
0024| exercises timely an irrevocable option not to participate in
|
0025| the Retiree Health Care Act under this subsection shall be
|
0001| returned without interest to that municipality, county or
|
0002| institution of higher education for return of the employee
|
0003| contributions to the employees and for crediting of the
|
0004| employer contributions to the appropriate fund of the
|
0005| municipality, county or institution of higher education. If
|
0006| the determination to be excluded from coverage is exercised by
|
0007| a municipality, county or institution of higher education prior
|
0008| to July 1, 1990, then that municipality, county or institution
|
0009| of higher education shall not be required to make the
|
0010| contributions that would otherwise be required by Section 10-
|
0011| 7C-15 NMSA 1978;
|
0012| (2) any municipality, county or institution of
|
0013| higher education, in addition to complying with all other
|
0014| required notice and public hearing or meeting requirements,
|
0015| shall, no less than thirty days prior to the public hearing or
|
0016| public meeting on a proposed ordinance or proposed resolution,
|
0017| notify the authority of the public hearing or public meeting by
|
0018| certified mail; and
|
0019| (3) in the event that:
|
0020| (a) the number of active employees
|
0021| employed by municipalities contributing to the fund reaches a
|
0022| number equaling sixty percent or more of all active employees
|
0023| employed by all municipalities that are retirement system
|
0024| employers, the municipal position on the board of the authority
|
0025| shall be restored within sixty days of the date that percentage
|
0001| is reached; provided, however, that if a municipality with a
|
0002| population greater than one hundred thousand that is located in
|
0003| a class "A" county exercises this option, then the sixty-
|
0004| percent requirement shall be applied to the remaining
|
0005| municipalities only;
|
0006| (b) the number of active employees
|
0007| employed by counties contributing to the fund reaches a number
|
0008| equaling sixty percent or more of all active employees employed
|
0009| by all counties that are retirement system employers, the
|
0010| county position on the board of the authority shall be restored
|
0011| within sixty days of the date that percentage is reached;
|
0012| provided, however, that if a class "A" county exercises this
|
0013| option, then the eighty-percent requirement shall be applied to
|
0014| the remaining counties only; or
|
0015| (c) the number of active employees
|
0016| employed by institutions of higher learning contributing to the
|
0017| fund reaches a number equaling seventy percent or more of all
|
0018| active employees employed by an institution of higher education
|
0019| contributing to the educational retirement fund, the
|
0020| institution of higher education position on the board shall be
|
0021| restored within sixty days of the date that percentage is
|
0022| reached.
|
0023| E. An independent public employer may become a
|
0024| participating employer if that employer satisfies the
|
0025| requirements imposed pursuant to Subsection M of Section
|
0001| 10-7C-7 NMSA 1978 and if that employer also files with the
|
0002| authority on or prior to January 1, 1991 or prior to July 1,
|
0003| 1993 or July 1 of any year a written irrevocable election by
|
0004| the governing body of that employer to participate in the
|
0005| Retiree Health Care Act. Any such independent public employer
|
0006| that chooses to become a participating employer after January
|
0007| 1, 1993 shall begin making the appropriate preliminary
|
0008| employer and employee contributions to the fund on the July 1
|
0009| immediately following the adoption of the ordinance or
|
0010| resolution. On the following January 1, eligible retirees of
|
0011| those participating employers and their eligible dependents
|
0012| shall be eligible to receive group health insurance coverage
|
0013| pursuant to the provisions of the Retiree Health Care Act.
|
0014| F. Any other provisions of the Retiree Health Care
|
0015| Act notwithstanding, retirees [or active employees] of
|
0016| institutions of higher education participating in the Retiree
|
0017| Health Care Act for whom those institutions of higher education
|
0018| have existing plans, programs, policies or contracts for health
|
0019| care benefits shall not be required to participate in the
|
0020| Retiree Health Care Act [nor shall employer or employee
|
0021| contributions be made to the authority on their behalf].
|
0022| G. A municipality or county that enacted an
|
0023| ordinance or an institution of higher education that enacted a
|
0024| resolution prior to January 1, 1991 pursuant to Subsection D of
|
0025| this section to be excluded from coverage under the Retiree
|
0001| Health Care Act may [enact] become a participating employer
|
0002| if that employer satisfies the requirements imposed pursuant to
|
0003| Subsection M of Section 10-7C-7 NMSA 1978 and if that employer
|
0004| also enacts an ordinance or resolution, as applicable, after a
|
0005| public hearing and published notice of the hearing, prior to
|
0006| July 1, 1993 or July 1 of any year to choose to become a
|
0007| participating employer under the Retiree Health Care Act. Any
|
0008| such municipality, county or institution of higher education
|
0009| that chooses to become a participating employer after January
|
0010| 1, 1993 shall begin making the appropriate preliminary
|
0011| employer and employee contributions to the fund on the July 1
|
0012| immediately following the adoption of the ordinance or
|
0013| resolution. On the following January 1, eligible retirees of
|
0014| those participating employers and their eligible dependents
|
0015| shall be eligible to receive group health insurance coverage
|
0016| pursuant to the provisions of the Retiree Health Care Act."
|
0017| Section 4. Section 10-7C-13 NMSA 1978 (being Laws 1990,
|
0018| Chapter 6, Section 13, as amended) is amended to read:
|
0019| "10-7C-13. PAYMENT OF PREMIUMS ON HEALTH CARE PLANS.--
|
0020| A. Each eligible retiree shall pay a monthly
|
0021| premium for the basic plan in an amount set by the board not to
|
0022| exceed the sum of fifty dollars ($50.00) plus the amount, if
|
0023| any, of the compounded annual increases authorized by the board
|
0024| [which increases shall not exceed three percent in any fiscal
|
0025| year]. In addition to the monthly premium for the basic plan,
|
0001| each current retiree and nonsalaried eligible participating
|
0002| entity governing authority member who becomes an eligible
|
0003| retiree shall also pay monthly an additional participation fee
|
0004| set by the board. That fee shall be five dollars ($5.00) plus
|
0005| the amount, if any, of the compounded annual increases
|
0006| authorized by the board [which increases shall not exceed
|
0007| three percent in any fiscal year]. The additional monthly
|
0008| participation fee paid by the current retirees and nonsalaried
|
0009| eligible participating entity governing authority members who
|
0010| become eligible retirees shall be a consideration and a
|
0011| condition for being permitted to participate in the Retiree
|
0012| Health Care Act. Eligible dependents shall pay monthly
|
0013| premiums in amounts that with other money appropriated to the
|
0014| fund shall cover the cost of the basic plan for the eligible
|
0015| dependents.
|
0016| B. Eligible retirees and eligible dependents shall
|
0017| pay monthly premiums to cover the cost of the optional plans
|
0018| that they elect to receive, and the board shall adopt rules for
|
0019| the collection of additional premiums from eligible retirees
|
0020| and eligible dependents participating in the optional plans.
|
0021| An eligible retiree or eligible dependent may authorize the
|
0022| authority in writing to deduct the amount of these premiums
|
0023| from the monthly annuity payments, if applicable.
|
0024| C. The participating employers, active employees
|
0025| and retirees are responsible for the financial viability of the
|
0001| program. The overall financial viability is not an additional
|
0002| financial obligation of the state."
|
0003| Section 5. Section 10-7C-15 NMSA 1978 (being Laws 1990,
|
0004| Chapter 6, Section 15) is amended to read:
|
0005| "10-7C-15. RETIREE HEALTH CARE FUND CONTRIBUTIONS.--
|
0006| A. Following completion of the preliminary
|
0007| contribution period, each participating employer for the
|
0008| fiscal year beginning July 1, 1990 and thereafter shall make
|
0009| contributions to the fund in the amount of one percent of each
|
0010| participating employee's annual salary.
|
0011| B. Following completion of the preliminary
|
0012| contribution period, each participating employee as a
|
0013| condition of employment for the fiscal year commencing July 1,
|
0014| 1990 and thereafter shall contribute to the fund an employee
|
0015| contribution in an amount equal to one-half of one percent of
|
0016| the employee's salary. Each month, participating employers
|
0017| shall deduct the contribution from the participating employee's
|
0018| salary and shall remit it to the board as provided by any
|
0019| procedures that the board may require.
|
0020| C. A participating employer that fails to remit
|
0021| before the tenth day after the last day of the month all
|
0022| employer and employee deposits required by the Retiree Health
|
0023| Care Act to be remitted by the employer for the month shall pay
|
0024| to the fund, in addition to the deposits, interest on the
|
0025| unpaid amounts at the rate of six percent per [annum] year
|
0001| compounded monthly.
|
0002| D. The employer and employee contributions shall be
|
0003| paid in monthly installments based on the percent of payroll
|
0004| certified by the employer.
|
0005| E. Except in the case of erroneously made
|
0006| contributions or as may be otherwise provided in Subsection D
|
0007| of Section [9 of the Retiree Health Care Act] 10-7C-9 NMSA
|
0008| 1978, contributions from participating employers and
|
0009| participating employees shall become the property of the fund
|
0010| on receipt by the board and shall not be refunded under any
|
0011| circumstances, including termination of employment or
|
0012| termination of the participating employer's operation or
|
0013| participation in the Retiree Health Care Act.
|
0014| F. Notwithstanding any other provision in the
|
0015| Retiree Health Care Act and at the first session of the
|
0016| legislature following July 1, 1995, the legislature shall
|
0017| review and adjust the distribution pursuant to Section 7-1-6.1
|
0018| NMSA 1978 and the employer and employee contributions to the
|
0019| authority in order to [insure] ensure the actuarial sound-
|
0020|
|
0021| ness of the benefits provided under the Retiree Health Care
|
0022| Act."
|
0023| Section 6. Section 10-7C-16 NMSA 1978 (being Laws 1990,
|
0024| Chapter 6, Section 16, as amended) is amended to read:
|
0025| "10-7C-16. RETIREE HEALTH CARE FUND--BUDGET.--
|
0001| Expenditures for the administration of the Retiree Health Care
|
0002| Act shall be made as provided by an operating budget adopted by
|
0003| the board and approved by the state budget division of the
|
0004| department of finance and administration as provided by law and
|
0005| pursuant to appropriation by the legislature. [For the
|
0006| development and administration of the program, up to ten full-
|
0007| time equivalents are hereby authorized by the legislature.]"
|
0008|
|
0009|
|
0010| FORTY-THIRD LEGISLATURE
|
0011| FIRST SESSION, 1997 SB 364/a
|
0012|
|
0013|
|
0014| March 5, 1997
|
0015|
|
0016| Mr. President:
|
0017|
|
0018| Your PUBLIC AFFAIRS COMMITTEE, to whom has been
|
0019| referred
|
0020|
|
0021| SENATE BILL 364
|
0022|
|
0023| has had it under consideration and reports same with
|
0024| recommendation that it DO PASS, amended as follows:
|
0025|
|
0001| 1. On page 1, line 15, after the semicolon insert
|
0002| "PROVIDING FOR HEALTH CARE COVERAGE FOR DELAYED RETIREES;".
|
0003|
|
0004| 2. On page 2, between lines 17 and 18, insert the following
|
0005| new subsection:
|
0006|
|
0007| "F. "delayed retiree" means a retiree who is receiving
|
0008| a disability or normal retirement benefit from an eligible
|
0009| participating employer and who, at the time of leaving the
|
0010| employment of the eligible employer, was fully vested in that
|
0011| employer's retirement program but was not yet eligible to receive
|
0012| retirement benefits from that program;".
|
0013|
|
0014| 3. Reletter the succeeding subsections accordingly.
|
0015|
|
0016| 4. On page 7, line 7, strike "paragraph" and insert in lieu
|
0017| thereof "subparagraph".
|
0018|
|
0019| 5. On page 7, line 14, strike "or".
|
0020|
|
0021| 6. On page 8, line 6, after the semicolon insert "or".
|
0022|
|
0023| 7. On page 8, between lines 6 and 7, insert the following
|
0024| new subparagraph:
|
0025|
|
0001| "(d) is a delayed retiree;".
|
0002|
|
0003|
|
0004|
|
0005|
|
0006|
|
0007|
|
0008|
|
0009|
|
0010| 8. On page 11, line 10, before the comma, insert "for
|
0011| delayed retirees effective July 1, 1997 and for eligible retirees
|
0012| retiring on or after July 1, 1998".,
|
0013|
|
0014| and thence referred to the FINANCE COMMITTEE.
|
0015|
|
0016| Respectfully submitted,
|
0017|
|
0018|
|
0019|
|
0020|
|
0021| __________________________________
|
0022| Shannon Robinson, Chairman
|
0023|
|
0024|
|
0025|
|
0001| Adopted_______________________ Not
|
0002| Adopted_______________________
|
0003| (Chief Clerk) (Chief Clerk)
|
0004|
|
0005|
|
0006| Date ________________________
|
0007|
|
0008|
|
0009| The roll call vote was 4 For 1 Against
|
0010| Yes: 4
|
0011| No: Smith
|
0012| Excused: Adair, Garcia, Ingle, Vernon
|
0013| Absent: None
|
0014|
|
0015|
|
0016|
|
0017|
|
0018|
|
0019| S0364PA1 .118041.1
|
0020|
|
0021| FORTY-THIRD LEGISLATURE
|
0022| FIRST SESSION, 1997
|
0023|
|
0024|
|
0025| March 12, 1997
|
0001|
|
0002| Mr. President:
|
0003|
|
0004| Your FINANCE COMMITTEE, to whom has been referred
|
0005|
|
0006| SENATE BILL 364, as amended
|
0007|
|
0008| has had it under consideration and reports same with
|
0009| recommendation that it DO PASS.
|
0010|
|
0011| Respectfully submitted,
|
0012|
|
0013|
|
0014|
|
0015|
|
0016| __________________________________
|
0017| Ben D. Altamirano, Chairman
|
0018|
|
0019|
|
0020|
|
0021| Adopted_______________________ Not
|
0022| Adopted_______________________
|
0023| (Chief Clerk) (Chief Clerk)
|
0024|
|
0025|
|
0001|
|
0002| Date ________________________
|
0003|
|
0004|
|
0005| The roll call vote was 6 For 0 Against
|
0006| Yes: 6
|
0007| No: None
|
0008| Excused: Carraro, Ingle, Lyons, McKibben, Fidel
|
0009| Absent: None
|
0010|
|
0011|
|
0012| S0364FC1
|
0013| FORTY-THIRD LEGISLATURE
|
0014| FIRST SESSION
|
0015|
|
0016|
|
0017| March 13, 1997
|
0018|
|
0019|
|
0020| SENATE FLOOR AMENDMENT number _______ to SENATE BILL 364, as
|
0021| amended
|
0022|
|
0023| Amendment sponsored by Senator Shannon Robinson
|
0024|
|
0025|
|
0001| 1. On page 18, line 17, before the period insert ", which
|
0002| increases shall not exceed the group's projected medical trend
|
0003| for the fiscal year".
|
0004|
|
0005|
|
0006|
|
0007|
|
0008|
|
0009|
|
0010| __________________________
|
0011| Shannon Robinson
|
0012|
|
0013|
|
0014|
|
0015| Adopted ___________________ Not Adopted _______________________
|
0016| (Chief Clerk) (Chief Clerk)
|
0017|
|
0018|
|
0019| Date _________________
|
0020| FORTY-THIRD LEGISLATURE
|
0021| FIRST SESSION
|
0022|
|
0023|
|
0024| March 13, 1997
|
0025|
|
0001|
|
0002| SENATE FLOOR AMENDMENT number _______ to SENATE BILL 364, as
|
0003| amended
|
0004|
|
0005| Amendment sponsored by Senator Shannon Robinson
|
0006|
|
0007|
|
0008| 1. On page 18, line 17, before the period insert ", which
|
0009| increases shall not exceed the group's projected medical trend
|
0010| for the fiscal year".
|
0011|
|
0012|
|
0013|
|
0014|
|
0015|
|
0016|
|
0017| __________________________
|
0018| Shannon Robinson
|
0019|
|
0020|
|
0021|
|
0022| Adopted ___________________ Not Adopted _______________________
|
0023| (Chief Clerk) (Chief Clerk)
|
0024|
|
0025|
|
0001| Date _________________
|
0002| State of New Mexico
|
0003| House of Representatives
|
0004|
|
0005| FORTY-THIRD LEGISLATURE
|
0006| FIRST SESSION, 1997
|
0007|
|
0008|
|
0009| March 18, 1997
|
0010|
|
0011|
|
0012| Mr. Speaker:
|
0013|
|
0014| Your GOVERNMENT AND URBAN AFFAIRS COMMITTEE, to
|
0015| whom has been referred
|
0016|
|
0017| SENATE BILL 364, as amended
|
0018|
|
0019| has had it under consideration and reports same with
|
0020| recommendation that it DO PASS, and thence referred to the
|
0021| APPROPRIATIONS AND FINANCE COMMITTEE.
|
0022|
|
0023| Respectfully submitted,
|
0024|
|
0025|
|
0001|
|
0002|
|
0003| Lynda M. Lovejoy, Chairwoman
|
0004|
|
0005|
|
0006| Adopted Not Adopted
|
0007|
|
0008| (Chief Clerk)
|
0009| (Chief Clerk)
|
0010|
|
0011| Date
|
0012|
|
0013| The roll call vote was 5 For 0 Against
|
0014| Yes: 5
|
0015| Excused: Hobbs, Pederson, Taylor, JG
|
0016| Absent: None
|
0017|
|
0018|
|
0019| G:\BILLTEXT\BILLW_97\S0364
|