FORTY-THIRD LEGISLATURE            SB 128/a
                        SECOND SESSION, 1998
  
                                                 February 4, 1998
  
  Mr. President:
  
      Your JUDICIARY COMMITTEE, to whom has been referred
  
                          SENATE BILL 128
  
  has had it under consideration and reports same with
  recommendation that it DO PASS, amended as follows:
  
      1.  On page 1, lines 12 and 13, strike "AMENDING A SECTION OF
  THE MAGISTRATE RETIREMENT ACT; MAKING AN APPROPRIATION." and
  insert in lieu thereof "INCREASING CONTRIBUTION RATES; AUTHORIZING
  AN EXCEPTION TO SUSPENSION OF RETIREMENT BENEFITS FOR MAGISTRATES;
  AMENDING SECTIONS OF THE MAGISTRATE RETIREMENT ACT.".
  
      2.  On page 1, between lines 24 and 25, insert the following
  new sections:
  
      "Section 2.  Section 10-12C-10 NMSA 1978 (being Laws 1992,
  Chapter 118, Section 10) is amended to read:
  
      "10-12C-10.  MEMBER CONTRIBUTIONS--TAX TREATMENT.--
  
          A.  Members, while in office, shall contribute [five] six
  and one-tenth percent of salary to the member contribution fund.
  
          B.  Upon implementation, the state, acting as employer of
  members covered pursuant to the provisions of the Magistrate
  Retirement Act, shall, solely for the purpose of compliance with
  Section 414(h) of the Internal Revenue Code of 1986, pick up for
  the purposes specified in that section member contributions
  required by this section for all annual salary earned by the
  member.  Member contributions picked up pursuant to the provisions
  of this section shall be treated as employer contributions for
  purposes of determining income tax obligations under the Internal
  Revenue Code of 1986; however, such picked-up member contributions
  shall be included in the determination of the member's gross
  annual salary for all other purposes under federal and state laws. 
  Member contributions picked up pursuant to the provisions of this
  section shall continue to be designated member contributions for
  all purposes of the Magistrate Retirement Act and shall be
  considered as part of the member's annual salary for purposes of
  determining the amount of the member's contribution.  The
  provisions of this section are mandatory, and the member shall
  have no option concerning the pick up or to the receipt of the
  contributed amounts directly instead of having the amounts paid by
  the employer to the retirement system.  Implementation occurs upon
  authorization by the board.  In no event may implementation occur
  other than at the beginning of a pay period applicable to the
  member."
  
      Section 3.  Section 10-12C-11 NMSA 1978 (being Laws 1992,
  Chapter 118, Section 11) is amended to read:
  
      "10-12C-11.  EMPLOYER CONTRIBUTIONS.--
  
          A.  The state, through the administrative office of the
  courts, shall contribute [nine] eleven and three-tenths percent of
  salary for each member in office to the fund.
  
          B.  Twenty-five dollars ($25.00) from each civil case
  docket fee paid in magistrate or metropolitan court and ten
  dollars ($10.00) from each civil jury fee paid in magistrate or
  metropolitan court shall be paid by the court clerk to the
  employer's accumulation fund."
  
      Section 4.  Section 10-12C-16 NMSA 1978 (being Laws 1992,
  Chapter 118, Section 16) is amended to read:
  
      "10-12C-16.  SUSPENSION OR FORFEITURE OF BENEFITS--EXCEPTION.--
  
          A.  If a member retires and is subsequently employed by
  any employer covered by any state system or the educational
  retirement system, the retired member's pension shall be suspended
  effective the first day of the month following the month in which
  the subsequent employment begins.  The suspended pension of a
  previously retired member shall resume and be effective the first
  day of the month following the month in which the member leaves
  office or terminates the subsequent employment.
  
          B.  The right to receive a pension pursuant to the
  provisions of the Magistrate Retirement Act shall be forfeited if
  the member is removed from office pursuant to the provisions of
  Article 6, Section 32 of the constitution of New Mexico and the
  member's only entitlement from the fund shall be the refund of the
  member's own contributions.
  
          C.  The provisions of Subsection A of this section do not
  apply to a retired member who is elected to serve as an elected
  public official if the retired member files an irrevocable
  exemption from membership in any other state retirement system. 
  The retired member shall file the irrevocable exemption with the
  association within thirty days of beginning his duties as an
  elected public official.  The filing of an irrevocable exemption
  from membership in any other state retirement system bars the
  retired member from acquiring service credit for his service as an
  elected public official."".
  
      3.  Renumber the succeeding section accordingly.
  
    and thence referred to the FINANCE COMMITTEE. 
               
                               Respectfully submitted,
  
                               __________________________________
                               Fernando R. Macias, Chairman 
  
  
  Adopted_______________________   Not Adopted_______________________
            (Chief Clerk)                          (Chief Clerk)
  
                    Date ________________________
  
  
  The roll call vote was  7  For  0  Against
          Yes:    7
          No:     0
  Excused: Tsosie
          Absent: None
  
  S0128JU1                                              .122915.2