SENATE BILL 181
47th legislature - STATE OF NEW MEXICO - first session, 2005
INTRODUCED BY
John Arthur Smith
AN ACT
RELATING TO EDUCATIONAL RETIREMENT; INCREASING EMPLOYER CONTRIBUTIONS; CHANGING ELIGIBILITY REQUIREMENTS FOR MEMBERS INITIALLY EMPLOYED AFTER JULY 1, 2005.
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, each local administrative unit shall make a yearly 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.]
B. Each local administrative unit shall make an annual contribution to the fund according to the following schedule:
(1) through June 30, 2005, a sum equal to eight and sixty-five hundredths percent of the annual salary of each member employed by the local administrative unit;
(2) from July 1, 2005 through June 30, 2006, a sum equal to nine and forty hundredths percent of the annual salary of each member employed by the local administrative unit;
(3) from July 1, 2006 through June 30, 2007, a sum equal to ten and fifteen hundredths percent of the annual salary of each member employed by the local administrative unit;
(4) from July 1, 2007 through June 30, 2008, a sum equal to ten and ninety hundredths percent of the annual salary of each member employed by the local administrative unit; and
(5) on and after July 1, 2008, a sum equal to eleven and sixty-five hundredths percent of the annual salary of each member employed by the local administrative unit."
Section 2. Section 22-11-23 NMSA 1978 (being Laws 1981, Chapter 293, Section 2, as amended) is amended to read:
"22-11-23. RETIREMENT ELIGIBILITY--MEMBERS EMPLOYED PRIOR TO JULY 1, 2005.--
A. The provisions of this section apply to a member whose initial employment for a local administrative unit began prior to July 1, 2005.
[A.] B. On and after July 1, 1984:
(1) a member shall be eligible for retirement benefits pursuant to the Educational Retirement Act when either of the following conditions occurs:
(a) the sum of the member's age and years of earned service-credit equals seventy-five; or
(b) upon completion of five years of earned service-credit and upon becoming sixty-five years of age;
(2) a member under sixty years of age eligible to retire under Paragraph (1) of this subsection may retire and receive retirement benefits pursuant to the Educational Retirement Act that [he] the member would be eligible to receive if [he] the member were to retire at the age of sixty years reduced by six-tenths of one percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member's sixtieth birth date but after the fifty-fifth birth date, and one and eight-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to age fifty-five; or
(3) a member under sixty years of age acquiring twenty-five or more years of earned and allowed service-credit may retire and receive retirement benefits pursuant to the Educational Retirement Act computed on the same basis as if the member were sixty years of age.
[B.] C. A member shall be subject to the provisions of Paragraphs (2) and (3) of Subsection [A] B of this section as they existed at the beginning of [his] the member's last cumulated four quarters of earned service-credit, regardless of later amendment."
Section 3. A new section of the Educational Retirement Act, Section 22-11-23.1 NMSA 1978, is enacted to read:
"22-11-23.1. [NEW MATERIAL] RETIREMENT ELIGIBILITY--MEMBERS INITIALLY EMPLOYED ON OR AFTER JULY 1, 2005.--
A. The provisions of this section apply to a member whose initial employment for a local administrative unit began on or after July 1, 2005.
B. A member shall be eligible for retirement benefits pursuant to the Educational Retirement Act when either of the following conditions occurs:
(1) the sum of the member's age and years of earned service-credit equals eighty; or
(2) upon completion of five years of earned service-credit and upon becoming sixty-five years of age.
C. A member under sixty years of age who meets the requirement of Paragraph (1) of Subsection B of this section may retire and receive retirement benefits pursuant to the Educational Retirement Act computed on the same basis as if the member were sixty years of age."
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