SENATE MEMORIAL 29

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

INTRODUCED BY

H. Diane Snyder

A MEMORIAL

REQUESTING THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION TO REPORT ON THE IMPACT THAT WOULD RESULT FROM CHANGING HOW AN EMPLOYEE'S FINAL AVERAGE SALARY IS CALCULATED.

     WHEREAS, the formula for calculating a public employee's final average salary for purposes of determining the employee's pension under plans offered by the public employees retirement association is based on the highest salary the employee received for any consecutive thirty-six month period; and

     WHEREAS, the formula puts at a financial disadvantage some dedicated public employees whose salary histories have peak salary periods that are not consecutive; and

     WHEREAS, there may be potential benefits and costs to changing the formula so that an employee's final average salary is based on the employee's highest salaried thirty-six months regardless of whether those months are consecutive; and

     WHEREAS, the legislature wishes to be fully informed before changing the statutory formula;

     NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF NEW MEXICO that the public employees retirement association be requested to assess the impact that would result from basing an employee's final average salary on the employee's highest salaried thirty-six months regardless of whether the months are consecutive and that the association be requested to report its findings to the appropriate interim committee of the legislature in 2006; and

     BE IT FURTHER RESOLVED that a copy of this memorial be transmitted to the executive director of the public employees retirement association.

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