SENATE BILL 206

47th legislature - STATE OF NEW MEXICO - second session, 2006

INTRODUCED BY

John Arthur Smith

FOR THE STATE PERMANENT FUND TASK FORCE

AN ACT

RELATING TO EDUCATIONAL RETIREMENT; ADJUSTING RETIREMENT ELIGIBILITY REQUIREMENTS.

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

     Section 1. Section 22-11-23 NMSA 1978 (being Laws 1981, Chapter 293, Section 2, as amended) is amended to read:

     "22-11-23. RETIREMENT ELIGIBILITY.--

          A. On and after July 1, 1984:

                (1) a member shall be eligible for retirement benefits pursuant to the Educational Retirement Act when [either] any of the following conditions occurs:

                     (a) for a person becoming a member prior to July 1, 2006, the sum of the member's age and years of earned service credit equals seventy-five; [or]

                     (b) for a person becoming a member on or after July 1, 2006, the sum of the member's age and years of earned service credit equals eighty; or

                     [(b)] (c) 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 birthdate but after the fifty-fifth birthdate, 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. A member shall be subject to the provisions of Paragraphs (2) and (3) of Subsection A 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 2. Section 22-11-27 NMSA 1978 (being Laws 1967, Chapter 16, Section 150, as amended) is amended to read:

     "22-11-27. DEFERRED RETIREMENT--RESTRICTION.--

          A. A member eligible for retirement may continue in employment and shall continue to pay contributions as provided by the Educational Retirement Act.

          B. A member may terminate [his] employment and retire at any time after [his] the member's age and [his] earned service credit equal the sum of seventy-five if the retirement is effective prior to July 1, 2006, or the sum of eighty if the retirement is effective on or after July 1, 2006; provided that the contributions [he] the member has made are left in the fund.

          C. A member having five years or more of earned service credit may terminate [his] employment and retire at any time after reaching the age of sixty-five years if the contributions [he] the member has made are left in the fund.

          D. No member shall be on a retirement status while engaged in employment unless the employment falls within exceptions established by statute or rule of the board."

     Section 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2006.

- 3 -