SENATE BILL 476

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Jay C. Block

 

 

 

 

 

AN ACT

RELATING TO RETIREE HEALTH CARE; EXEMPTING FIRST RESPONDERS FROM THE REQUIREMENT TO PAY PREMIUMS OR FEES TO PARTICIPATE IN THE RETIREE HEALTH CARE ACT; MAKING AN APPROPRIATION.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 10-7C-13 NMSA 1978 (being Laws 1990, Chapter 6, Section 13, as amended) is amended to read:

     "10-7C-13. PAYMENT OF PREMIUMS ON HEALTH CARE

PLANS.--

          A. Except as otherwise provided in this section, each eligible retiree shall pay a monthly premium for the basic plan in an amount set by the board not to exceed fifty dollars ($50.00) plus the amount, if any, of the compounded annual increases authorized by the board, which increases [shall not exceed nine percent until fiscal year 2008 after which the increases] shall not exceed the authority's group health care trend. In addition to the monthly premium for the basic plan, each current retiree and nonsalaried eligible participating entity governing authority member who becomes an eligible retiree shall also pay monthly an additional participation fee set by the board. That fee shall be five dollars ($5.00) plus the amount, if any, of the compounded annual increases authorized by the board, which increases [shall not exceed nine percent until fiscal year 2008 after which the increases] shall not exceed the authority's group health care trend. The additional monthly participation fee paid by the current retirees and nonsalaried eligible participating entity governing authority members who become eligible retirees shall be a consideration and a condition for being permitted to participate in the Retiree Health Care Act. A legislative member or a former participating employer governing authority member shall pay a monthly premium for any selected plan equal to one-twelfth of the annual cost of the claims and administrative costs of that plan allocated to the member by the board. In addition, a legislative member or a former participating employer governing authority member shall pay the additional monthly participation fee set by the board pursuant to this subsection as a consideration and condition for participation in the Retiree Health Care Act. Eligible dependents shall pay monthly premiums in amounts that with other money appropriated to the fund shall cover the cost of the basic plan for the eligible dependents.

          B. Eligible retirees and eligible dependents shall pay monthly premiums to cover the cost of the optional plans that they elect to receive, and the board shall adopt rules for the collection of additional premiums from eligible retirees and eligible dependents participating in the optional plans. An eligible retiree or eligible dependent may authorize the authority in writing to deduct the amount of these premiums from the monthly annuity payments, if applicable.

          C. The participating employers, active employees and retirees, except as provided in Subsection E of this section, are responsible for the financial viability of the program. The overall financial viability is not an additional financial obligation of the state.

          D. For eligible retirees who become eligible for participation on or after July 1, 2001, the board may determine monthly premiums based on the retirees' years of credited service with participating employers.

          E. An eligible retiree with at least twenty years of service as a first responder shall be exempt from paying any premium or fee to participate in the Retiree Health Care Act.

          F. As used in this section, "first responder" means a person certified or licensed by law as:

                (1) a law enforcement officer;

                (2) a firefighter or volunteer firefighter; or

                (3) an emergency medical technician."

     SECTION 2. APPROPRIATION.--Seven million five hundred thousand dollars ($7,500,000) is appropriated from the general fund to the retiree health care authority for expenditure in fiscal year 2026 to cover costs associated with exempting first responders from paying any premium or fee to participate in the Retiree Health Care Act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2026 shall revert to the general fund.

- 4 -