HOUSE BILL 812

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

INTRODUCED BY

Ben Lujan

AN ACT

RELATING TO RETIREE HEALTH CARE; PROVIDING FOR ACCOUNTABILITY AND SUSTAINABILITY OF THE RETIREE HEALTH CARE FUND.

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

     Section 1. Section 10-7C-8 NMSA 1978 (being Laws 1990, Chapter 6, Section 8) is amended to read:

     "10-7C-8. FUND CREATED--INVESTMENT--PREMIUMS--APPROPRIATION.--

          A. There is created the "retiree health care fund". All money in the fund shall be invested as provided for in Subsection D of this section. All income earned from investment of the fund shall be credited to the fund. Except as otherwise specifically provided [herein] in the Retiree Health Care Act, the money in the fund is appropriated to the board to carry out the provisions of [the Retiree Health Care] that act. Any funds remaining at the end of any fiscal year shall not revert to the general fund.

          B. The board shall provide for the collection of premiums from eligible retirees and eligible dependents, which money when combined with other money appropriated to the fund shall be sufficient to provide the required insurance coverage and to pay the expenses of the authority. All premiums and other money appropriated to the fund shall be credited to the fund.

          C. [All premiums and other money collected by the authority shall be received and disbursed directly by the authority.] Disbursements from the fund other than to procure and pay for a basic plan of benefits, group health insurance, administration, claims, cost containment and related activities, shall be made only upon warrant drawn by the secretary of finance and administration pursuant to vouchers signed by the director of the authority; provided that the president of the board may sign vouchers if the position of director is vacant. Receipts and disbursements are subject to audit by the state auditor.

          D. [The board shall determine] Before determining which money in the fund constitutes the long-term reserves of the authority, the board shall obtain investment advice from state agencies with investment expertise, including the state treasurer, the state investment council, the state investment officer and the state board of finance. The state investment officer shall invest the long-term reserves of the authority in accordance with the provisions of Sections 6-8-1 through 6-8-16 NMSA 1978. The state treasurer shall invest the money in the fund that does not constitute the long-term reserves of the fund in accordance with the applicable provisions of Chapter 6, Article 10 NMSA 1978.

          E. The fund shall be maintained in actuarially sound condition as evidenced by the annual written certification of a qualified actuary."

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