0001| SENATE EDUCATION COMMITTEE SUBSTITUTE FOR | 0002| SENATE BILL 1258 | 0003| 43rd legislature - STATE OF NEW MEXICO - first session, 1997 | 0004| | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| | 0011| AN ACT | 0012| RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; | 0013| AMENDING THE EDUCATIONAL RETIREMENT ACT TO ALLOW PROVISIONAL | 0014| MEMBERS TO ACQUIRE EARNED SERVICE CREDIT FOR CERTAIN PERIODS OF | 0015| EMPLOYMENT. | 0016| | 0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0018| Section 1. Section 22-11-17 NMSA 1978 (being Laws 1967, | 0019| Chapter 16, Section 141, as amended) is amended to read: | 0020| "22-11-17. PROVISIONAL MEMBERSHIP.-- | 0021| A. A provisional member shall be covered by the | 0022| provisions of the Educational Retirement Act but shall have the | 0023| option to exempt himself from its coverage. A provisional | 0024| member exempting himself from the provisions of the Educational | 0025| Retirement Act shall not be entitled to the benefits or | 0001| coverage under any other state retirement program except as | 0002| otherwise provided in this section. This section shall not | 0003| affect any rights a provisional member may have under the | 0004| provisions of the federal Social Security Act. This option to | 0005| exempt must be exercised within one year of employment | 0006| according to the regulations adopted by the board. Any | 0007| provisional member exempting himself pursuant to this section | 0008| shall be entitled to a refund of any contributions made | 0009| pursuant to the Educational Retirement Act prior to the | 0010| exercise of the exemption. | 0011| B. A provisional member not exempt from the | 0012| coverage of the Educational Retirement Act shall have the right | 0013| to earned service-credit for periods of employment subsequent | 0014| to July 1, 1957 and prior to July 1, 1961, provided that all | 0015| contributions at the rates in effect during that period of | 0016| employment are paid. If a provisional member chooses to make | 0017| the contributions for that period, the local administrative | 0018| unit employing a member during that period shall pay the | 0019| employer's contribution at the rate in effect during that | 0020| period of employment. Contributions prior to July 1, 1961 by | 0021| both the provisional member and the local administrative unit | 0022| shall bear interest at the rate of three percent a year from | 0023| July 1, 1961 until paid. | 0024| C. A provisional member exempt from the coverage of | 0025| the provisions of the Educational Retirement Act shall have the | 0001| right to revoke the exemption at any time; however, within the | 0002| first two weeks following the beginning of each school year, | 0003| such provisional member shall be informed by the local | 0004| administrative unit in writing of his right to revoke the | 0005| exemption and shall sign a statement to the effect that he does or | 0006| does not wish to revoke the exemption. A copy of such statement | 0007| shall be kept by the local administrative unit in the personnel | 0008| file of the provisional member. Any provisional member who | 0009| revokes his exemption from coverage shall have the right to | 0010| acquire earned service-credit for periods of employment during | 0011| which the exemption or exemptions were in force, under the | 0012| following conditions: | 0013| (1) both the member and the administrative unit | 0014| contributions, at the rates in effect during the periods of | 0015| employment and applied to the earnings of the member during such | 0016| periods, shall be paid to the fund, together with interest, at a | 0017| rate equal to the actuarial assumption rate by the board; | 0018| (2) member and administrative unit | 0019| contributions, together with interest, may both be paid by the | 0020| member; or | 0021| (3) if the member tenders payment of his | 0022| contributions, together with interest, the local administrative | 0023| unit by whom he was employed may, but shall not be obligated to, | 0024| pay the administrative unit contributions, together with interest; | 0025| and | 0001| (4) the right of a member to acquire earned | 0002| service-credit in accordance with this subsection shall expire on | 0003| June 30, 2001. | 0004| D. A provisional member employed by the board, the | 0005| department of education, the New Mexico school for the deaf, the | 0006| northern New Mexico state school, the New Mexico school for the | 0007| visually handicapped, the New Mexico girls' school, the New Mexico | 0008| boys' school or the Los Lunas mental hospital shall have the | 0009| option of qualifying for coverage under either the Educational | 0010| Retirement Act or the public employees retirement association of | 0011| New Mexico. This option shall be exercised by filing a written | 0012| election with both the educational retirement director and the | 0013| [director] executive secretary of the public employees retirement | 0014| association of New Mexico. This election shall be made within six | 0015| months after employment and shall be irrevocable regardless of | 0016| subsequent employment or reemployment in any administrative unit | 0017| enumerated in this subsection. Until this election is made, the | 0018| provisional member shall be covered and shall be required to make | 0019| contributions under the Educational Retirement Act." | 0020|  |