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|
SPONSOR: |
Hamilton |
DATE TYPED: |
01/23/02 |
HB |
210 |
||
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SHORT TITLE: |
Increase Annual Earning Cap for Retirees |
SB |
|
||||
|
|
ANALYST: |
Gilbert |
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APPROPRIATION
|
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or Non-Rec |
Fund Affected |
||
|
FY02 |
FY03 |
FY02 |
FY03 |
|
|
|
|
|
NFI |
|
PERA
Trust Fund |
|
(Parenthesis
( ) Indicate Expenditure Decreases)
Relates
to: SB144
LFC Files
Public Employees Retirement Association (PERA)
SUMMARY
Synopsis
of Bill
House Bill 210 amends
Section 10-11-8 NMSA 1978 to allow Public Employees Retirement Association
(PERA) retirees to return to work for any PERA affiliated public employer and
earn up to $25,000 per year without suspension of their retirement benefits.
Reemployed retirees, however, would not accrue additional service credit for
such employment.
Significant
Issues
The current earning
limit for PERA retirees returning to work for a PERA affiliated employer is
$15,000 per year. This bill would give state and local governmental entities
greater flexibility in hiring PERA retirees.
FISCAL IMPLICATIONS
According to
PERA’s actuary, increasing the PERA earnings amount up to $25,000 per calendar
year from the current $15,000 would have minimal impact on their fund.
ADMINISTRATIVE IMPLICATIONS
Passage of this bill would require PERA to
revise their board procedures and update member/retiree information packets.
TECHNICAL ISSUES
PERA believes
that HB 210 would not violate the Constitution of New Mexico, Article
XX, §22(E), which prohibits modifications to public employment retirement
systems that do not enhance or preserve the actuarial soundness of the affected
trust fund.
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