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SPONSOR: |
Rodella |
DATE TYPED: |
|
HB |
660 |
||
SHORT TITLE: |
Volunteer Firefighter Maximum Age |
SB |
|
||||
|
ANALYST: |
Gilbert |
|||||
APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
||
FY03 |
FY04 |
FY03 |
FY04 |
|
|
|
|
|
$0.1
See Narrative |
Recurring |
PERA |
(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to HB 408, SB 533
Duplicates SB 575
LFC Files
Response
Received From
Public
Employees Retirement Association (PERA)
SUMMARY
Synopsis
of Bill
House Bill 660 expands the number of persons who could receive benefits under the Volunteer Firefighters Retirement Act. Currently, volunteer firefighters, whose first year of service credit was earned after the year in which they turned forty-five, are excluded from benefits. This bill eliminates the age limit for volunteer firefighter members.
Significant
Issues
There are approximately
13,000 volunteer firefighters in
The expanded benefits
provided by HB 660 would require a larger annual appropriation to keep the
volunteer firefighters fund actuarially sound. There is no appropriation
contained in this in this bill.
According to the PERA,
the proponents of this bill have not provided any demographic information that
would allow PERA’s actuaries to evaluate quantitatively the extent of the
negative actuarial impact this proposal may have on the volunteer firefighter
retirement fund. NM Const. Art. XX,
Section 22 prohibits increased benefits unless the benefits are properly funded
on an actuarially sound basis.
PERA states that if the added benefits provided by HB 660 were fully funded, it would not oppose this bill.
PERA would be required
to amend its regulations to address the statutory changes to the PERA Act and
would incur increased printing costs associated with reprinting pertinent
information about the Volunteer Firefighters Retirement Plan.
Additionally, PERA
states that expanding this program would have an administrative impact on
PERA. PERA is unable to assess the
extent of the impact, because it does not presently have information regarding
the number of persons who would be added to the program as the result of this
legislation. The legislation, if
enacted, would require changes to PERA’s computerized retirement information
systems.
PERA will also incur
additional per diem costs for staff members to travel throughout the state
presenting informational meetings on the program expansion.
OTHER SUBSTANTIVE ISSUES
According to PERA, this legislation was proposed to address a recurring allegation of age discrimination. PERA has ongoing litigation pertaining to this issue, which is now before the New Mexico Supreme Court.
RLG/yr/njw