April 8, 1999

The Honorable Raymond G. Sanchez and

Members of the House of Representatives

Executive-Legislative Building

Santa Fe, New Mexico 87503

Honorable Speaker and Members of the House:

I have this day VETOED and am returning HOUSE BILL 855, as amended,

enacted by the Forty-Fourth Legislature, First Session, 1999.

This legislation would have allowed an unestimated number of Education Retirement Act(ERA) members, who are eligible to retire, to elect to continue working. While they continued to work, they would receive a regular monthly retirement check. In addition, they could establish a "lump-sum account" consisting of both the employee’s and employer’s regular contributions. When the employee finally quits and enters real retirement they would get both a monthly ERA pension payment and a lump sum payment consisting of all contributions plus interest at a rate that is 75% of that earned by the ERA plan.

This is double-dipping done at the expense of the ERA employers and our taxpayers. It is unknown how many ERA members would elect this option and it is even more unknown what the compelling public interest is that this legislation may serve. New Mexico’s education retirement benefits are already some of the best in the nation; double-dipping need not be added at public expense.

Sincerely,

Gary E. Johnson

Governor