HOUSE BILL 270

47th legislature - STATE OF NEW MEXICO - first session, 2005

INTRODUCED BY

John A. Heaton

FOR THE LEGISLATIVE EDUCATION STUDY COMMITTEE

AN ACT

RELATING TO EDUCATIONAL RETIREMENT; INCREASING EMPLOYER CONTRIBUTIONS; MAKING APPROPRIATIONS.

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 and six-tenths percent of [his] the member's 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. Through June 30, 2005, each local administrative unit shall make [a yearly] an annual contribution to the fund of a sum equal to eight and sixty-five hundredths percent of the annual salary of each member employed by the local administrative unit.

          C. On July 1, 2005 and each July 1 thereafter until the local administrative unit contribution equals sixteen and fifteen hundredths percent, the annual local administrative unit contribution shall increase by an amount equal to seventy-five hundredths percent of the annual salary of each member employed by the local administrative unit."

     Section 2. APPROPRIATIONS.--

          A. Twelve million seven hundred thousand dollars ($12,700,000) is appropriated from the general fund to the public education department for expenditure in fiscal year 2006 to distribute to school districts and other local administrative units under the department's jurisdiction for the purpose of making the higher contributions provided for in Section 1 of this act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2006 shall revert to the general fund.

          B. Four million seven hundred thousand dollars ($4,700,000) is appropriated from the general fund to the commission on higher education for expenditure in fiscal year 2006 to distribute to institutions of higher education and other local administrative units under the commission's jurisdiction for the purpose of making the higher contributions provided for in Section 1 of this act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2006 shall revert to the general fund.

- 3 -