SENATE BILL 460

46th legislature - STATE OF NEW MEXICO - second session, 2004

INTRODUCED BY

Timothy Z. Jennings

AN ACT

RELATING TO EDUCATIONAL RETIREMENT; AMENDING THE EDUCATIONAL RETIREMENT ACT TO INCREASE THE CONTRIBUTION RATES OF MEMBERS AND LOCAL ADMINISTRATIVE UNITS; MAKING AN APPROPRIATION TO THE EDUCATIONAL RETIREMENT FUND.

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

     Section 1. Section 22-11-21 NMSA 1978 (being Laws 1967, Chapter 16, Section 144, as amended) is amended to read:

     "22-11-21. CONTRIBUTIONS--MEMBERS--LOCAL ADMINISTRATIVE

UNITS.--

          A. Each member shall make contributions to the fund in the amount of [seven] eight and six-tenths percent of his annual salary.

          [B. Until June 30, 1993, each local administrative unit shall make a yearly contribution to the fund of a sum equal to seven and six-tenths percent of the annual salary of each member employed by the local administrative unit.

          C. Beginning July 1, 1993 and thereafter]

          B. Each local administrative unit shall make a yearly contribution to the fund of a sum equal to [eight] nine and sixty-five hundredths percent of the annual salary of each member employed by the local administrative unit."

     Section 2. APPROPRIATION.--Forty million dollars ($40,000,000) is appropriated from the general fund to the educational retirement fund for expenditure in fiscal year 2005 and subsequent fiscal years for the purpose of making disbursements pursuant to the Educational Retirement Act. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

     Section 3. APPLICABILITY.--The provisions of Section 1 of this act are applicable to the first full pay period beginning on or after July 1, 2004.

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