SENATE CONSERVATION COMMITTEE SUBSTITUTE FOR

SENATE BILL 561

48th legislature - STATE OF NEW MEXICO - second session, 2008

AN ACT

RELATING TO THE PUBLIC PEACE, HEALTH, SAFETY AND WELFARE; PROVIDING FOR ALTERNATIVE MEANS OF PROVIDING BENEFITS FOR HIGHER EDUCATION RETIREMENT PLANS; MAKING AN APPROPRIATION.

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

     Section 1. Section 22-11-52 NMSA 1978 (being Laws 1991, Chapter 118, Section 10) is amended to read:

     "22-11-52. ALTERNATIVE RETIREMENT PLAN--SELECTION OF CONTRACTOR OR CARRIER--ADMINISTRATION.--

          A. The board shall solicit and review proposals for providing retirement, death and any other benefits deemed desirable by the board for participants in the alternative retirement plan. The board shall solicit proposals for providing the benefits through annuity contracts or certificates that are fixed or variable in nature or some combination thereof or through other contracts or investments that meet the requirements of Section 401(a) or 403(a) of the federal Internal Revenue Code of 1986, as amended or renumbered.

          B. The board, after consultation with the qualifying state educational institutions, shall select no less than two nor more than three contractors or carriers to provide the contracts or certificates. In making its selection, the board shall consider, among other things, the following criteria:

                (1) the portability of the benefits offered, based upon the number of states and institutions of higher education in which the offeror provides similar benefits;

                (2) the nature and extent of the rights and benefits that would be provided to the participants;

                (3) the relation of the rights and benefits to the contributions that would be made by the participants and the qualifying state educational institutions;

                (4) the ability of the offeror to provide the rights and benefits;

                (5) the suitability of the rights and benefits for recruitment and retention of employees by the qualifying state educational institutions; and

                (6) compliance with the requirements of the Educational Retirement Act.

          C. The board shall provide for the administration and maintenance of the alternative retirement plan and may adopt rules and regulations for that purpose."

     Section 2. APPROPRIATION.--One hundred thousand dollars ($100,000) is appropriated from the general fund to the educational retirement board for expenditure in fiscal year 2009 to fund administrative costs of the board related to providing alternative means of providing benefits for higher education retirement plans. Any unexpended or unencumbered balance remaining at the end of fiscal year 2009 shall revert to the general fund.

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