AN ACT
RELATING TO PUBLIC EMPLOYEES; AMENDING THE PUBLIC EMPLOYEES
RETIREMENT ACT; PROVIDING FOR PURCHASE OF SERVICE CREDIT OF ONE YEAR BY ANY
MEMBER; CHANGING THE PURCHASE COST OF SERVICE CREDIT FOR LEGISLATOR MEMBERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 10-11-7 NMSA 1978 (being Laws 1987,
Chapter 253, Section 7, as amended) is amended to read:
"10-11-7. CREDITED SERVICE--PURCHASE OF SERVICE.--
A. A member who entered a uniformed service of
the United States may purchase service credit for periods of active duty in the
uniformed services subject to the following conditions:
(1) the member pays the association the purchase
cost determined according to Subsection E of this section;
(2) the member has five or more years of service
credit acquired as a result of personal service rendered in the employ of an
affiliated public employer;
(3) the aggregate amount of service credit
purchased pursuant to this subsection does not exceed five years reduced by any
period of service credit acquired for military service pursuant to any other
provision of the Public Employees Retirement Act;
(4) service credit may not be purchased for
periods of service in the uniformed services that are used to obtain or
increase a benefit from another retirement program; and
(5) the member must not have received a discharge
or separation from uniformed service under other than honorable conditions.
B. A member who was a civilian prisoner of war
captured while in service to the United States as an employee of the federal
government or as an employee of a contractor with the federal government may
purchase service credit for the period of internment as a civilian prisoner of
war, provided that:
(1) the member provides proof of employment with
the federal government or as a contractor to the federal government in a form
acceptable to the association;
(2) the member provides proof of the period of
internment in a form acceptable to the association;
(3) the member has at least five years of service
credit acquired as a result of personal service rendered in the employ of an
affiliated public employer;
(4) the aggregate amount of service credit
purchased pursuant to this subsection does not exceed five years reduced by any
period of service credit acquired for military service pursuant to any other
provision of the Public Employees Retirement Act;
(5) service credit may not be purchased for
periods of service in internment as a civilian prisoner of war if such periods
are used to obtain or increase a benefit from another retirement program; and
(6) the member pays the association the purchase
cost determined according to Subsection E of this section.
C. A member who was employed by a utility
company, library, museum, transit company or by a nonprofit organization
administering federally funded public service programs, which utility company,
library, museum, transit company or nonprofit organization administering
federally funded public service programs or federally funded public service
programs administered by a nonprofit organization are subsequently taken over
by an affiliated public employer, or a member who was employed by an entity
created pursuant to a joint powers agreement between two or more affiliated
public employers for the purpose of administering or providing drug or alcohol
addiction treatment services irrespective of whether the entity is subsequently
taken over by an affiliated public employer, may purchase credited service for
the period of employment subject to the following conditions:
(1) the member pays the association the purchase
cost determined according to Subsection E of this section;
(2) the member has five or more years of credited
service acquired as a result of personal service rendered in the employ of an
affiliated public employer; and
(3) the aggregate amount of credited service
purchased pursuant to this subsection does not exceed five years.
D. A member who was appointed to participate in
a cooperative work study training program established jointly by the state
highway and transportation department and the university of New Mexico or New
Mexico state university may purchase credited service for the period of
participation subject to the following conditions:
(1) the member pays the association the purchase
cost determined according to Subsection E of this section;
(2) the member has five or more years of credited
service acquired as a result of personal service rendered in the employ of an
affiliated public employer; and
(3) the aggregate amount of credited service
purchased pursuant to this subsection does not exceed five years.
E. Except for service to be used under a state
legislator coverage plan, the purchase cost for each month of credited service
purchased pursuant to the provisions of this section is equal to the member's
final average salary multiplied by the sum of the member contribution rate and
employer contribution rate, determined in accordance with the coverage plan
applicable to the member at the time of the written election to purchase. The purchase cost for each year of credited
service to be used under a state legislator coverage plan is equal to three
times the normal member contribution per year of credited service under the
state legislator coverage plan applicable to the member. Full payment shall be made in a single lump
sum within sixty days of the date the member is informed of the amount of the
payment. The portion of the purchase
cost derived from the employer contribution rate shall be credited to the
employers accumulation fund and shall not be paid out of the association in the
event of cessation of membership. In no
case shall a member be credited with a month of service for less than the
purchase cost as defined in this section.
F. A member shall be refunded, upon written
request filed with the association, the portion of the purchase cost of
credited service purchased pursuant to this section that the association
determines to have been unnecessary to provide the member with the maximum
pension applicable to the member. The
association shall not pay interest on the portion of the purchase cost refunded
to the member.
G. A member of the magistrate retirement system
who during his service as a magistrate was eligible to become a member of the
public employees retirement system and elected not to become a member of that
system may purchase service credit pursuant to the public employees retirement
system for the period for which the magistrate elected not to become a public
employees retirement system member, by paying the amount of the increase in the
actuarial present value of the magistrate pension as a consequence of the
purchase as determined by the association.
Full payment shall be made in a single lump-sum amount in accordance
with procedures established by the retirement board. Except as provided in Subsection F of this
section, seventy-five percent of the purchase cost shall be considered to be
employer contributions and shall not be refunded to the member in the event of
cessation of membership.
H. At any time prior to retirement, any member
may purchase service credit in monthly increments, subject to the following
conditions:
(1) the member has at least five years of service
credit acquired as a result of personal service rendered in the employ of an
affiliated public employer;
(2) the aggregate amount of service credit purchased pursuant to this subsection does
not exceed one year reduced by any period of service credit acquired for
service pursuant to any other provision of the Public Employees Retirement Act;
(3) the member pays full actuarial present value
of the amount of the increase in the employee's pension as a consequence of the
purchase as determined by the association;
(4) the member pays the full cost of the purchase
within sixty days of the date the member is informed of the amount of the
payment; and
(5) the purchase of service under this subsection
cannot be used to determine the final average salary, the pension factor or the
pension maximum."