0001|                           SENATE BILL 411
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0002|     43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003|                            INTRODUCED BY
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0004|                          LEONARD LEE RAWSON
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0005|     
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0006|                                   
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0007|     
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0008|     
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO RETIREMENT BENEFITS; AMENDING SECTION 10-11-118
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0012|     NMSA 1978 (BEING LAWS 1987, CHAPTER 253, SECTION 118, AS
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0013|     AMENDED) TO PROVIDE FOR THE PAYMENT OF COST OF LIVING INCREASES
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0014|     TO CERTAIN FORMER SPOUSES OF RETIRED MEMBERS.
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0015|     
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0016|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017|          Section 1.  Section 10-11-118 NMSA 1978 (being Laws 1987,
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0018|     Chapter 253, Section 118, as amended) is amended to read:
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0019|          "10-11-118.  COST OF LIVING ADJUSTMENTS.--
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0020|               A.  For the purposes of this section:
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0021|                    (1)  "preceding calendar year" means the
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0022|     twelve- month period ending on <s>[the]</s> December 31 preceding
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0023|     the July 1 in which pensions are being adjusted; and
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0024|                    (2)  "second preceding calendar year" means the
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0025|     full calendar year prior to the preceding calendar year.
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0001|               B.  The amount of pension payable to a qualified
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0002|     pension recipient shall be increased three percent each July 1. 
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0003|     The amount of the increase shall be determined by multiplying
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0004|     the amount of pension inclusive of all prior adjustments by
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0005|     three percent.
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0006|               C.  A qualified pension recipient is:
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0007|                    (1)  a normal retired member who has been
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0008|     retired for at least two full calendar years from the effective
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0009|     date of the latest retirement prior to July 1 of the year in
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0010|     which the pension is being adjusted;
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0011|                    (2)  a normal retired member who has attained
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0012|     age sixty-five years and been retired for at least one full
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0013|     calendar year from the effective date of the latest retirement
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0014|     prior to July 1 of the year in which the pension is being
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0015|     adjusted;
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0016|                    (3)  a disability retired member who has been
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0017|     retired for at least one full calendar year from the effective
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0018|     date of the latest retirement prior to July 1 of the year in
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0019|     which the pension is being adjusted;
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0020|                    (4)  a survivor beneficiary who has received a
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0021|     survivor pension for at least two full calendar years; <s>[or]</s>
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0022|                    (5)  a survivor beneficiary of a deceased
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0023|     retired member who otherwise would have been retired at least
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0024|     two full calendar years from the effective date of the latest
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0025|     retirement prior to July 1 of the year in which the pension is
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0001|     being adjusted; <u>or</u>
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0002|          <u>         (6)  a former spouse of a retired member who
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<u></u>0003| <u>    has received a part of the retired member's pension as the
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<u></u>0004| <u>    result of a court decree entered in a proceeding for divorce,
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<u></u>0005| <u>    legal separation or division of property if the former spouse
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<u></u>0006| <u>    has received the part of the pension for at least two full
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<u></u>0007| <u>    calendar years from the effective date of the latest retirement
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<u></u>0008| <u>    of the retired member prior to July 1 of the year in which the
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<u></u>0009| <u>    former spouse's payment is being adjusted</u>.
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0010|               D.  A qualified pension recipient may decline an
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0011|     increase in a pension by giving the association written notice
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0012|     of the decision to decline the increase at least thirty days
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0013|     prior to the date the increase would take effect."
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0014|          Section 2.  EFFECTIVE DATE.--The effective date of the
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0015|     provisions of this act is July 1, 1997.
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0016|                            - 3 -
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