46th legislature - STATE OF NEW MEXICO - first session, 2003

RELATING TO STATE POLICE RETIREMENT; PROVIDING FOR A DEFERRED RETIREMENT OPTION PLAN.

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

Section 1. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] STATE POLICE RETIREMENT--DEFERRED RETIREMENT OPTION PLAN.--

A. On or after October 1, 2003, a state police member who is eligible to retire pursuant to Subsection G of Section 10-11-28 NMSA 1978 but remains an officer of the New Mexico state police may make an irrevocable election with the association to participate in a deferred retirement option plan. The election shall be made on a form prescribed by the executive director and shall specify the period for which the state police member agrees to participate in the plan; provided that the period shall be in annual increments and shall not be more than five years. The chief of the New Mexico state police shall approve a state police member's continuation of service before the member may elect to participate in a deferred retirement option plan.

B. During the period a state police member participates in a deferred retirement option plan:

(1) the member shall continue to make contributions to the member contribution fund;

(2) the state shall continue to make contributions to the employers' accumulation fund;

(3) no additional service credit shall be credited; and

(4) every month, the executive director shall credit to a deferred retirement option account, created for the state police member within the retirement reserve fund, an amount equal to the retirement benefit that the state police member would have received that month if the state police member had retired at the time of making the election pursuant to Subsection A of this section.

C. A salary paid to a state police member while participating in a deferred retirement option plan shall be excluded when calculating the member's final average annual salary pursuant to Section 10-11-30 NMSA 1978.

D. A state police member terminates participation in a deferred retirement option plan by:

(1) retirement;

(2) death; or

(3) expiration of the period for which the state police member elected to participate in the plan.

E. Upon the death of a state police member while participating in a deferred retirement option plan or after participation but before retirement, the member's refund beneficiary shall be paid the total amount credited to the member's deferred retirement option account plus interest at the rate set by the retirement board.

F. Upon retirement pursuant to the Public Employees Retirement Act, a state police member who participated in a deferred retirement option plan shall be paid the total amount credited to the member's deferred retirement option account plus interest at the rate set by the retirement board. The member may elect that the payment be made in one lump sum or in installments over a period of time as provided by rule of the retirement board.

G. A payment made pursuant to Subsection E or F of this section is in addition to a pension otherwise payable pursuant to the Public Employees Retirement Act."