HOUSE JOINT MEMORIAL 45

49th legislature - STATE OF NEW MEXICO - first session, 2009

INTRODUCED BY

Luciano "Lucky" Varela

A JOINT MEMORIAL

REQUESTING THE RETIREMENT BOARD OF THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION AND THE EDUCATIONAL RETIREMENT BOARD TO PREPARE SOLVENCY PLANS AND RECOMMENDATIONS TO ENSURE THAT THE RETIREMENT PLANS WILL BE FULLY SUFFICIENT TO PROTECT CURRENT AND FUTURE RETIREES.

     WHEREAS, New Mexico public employees provide vital services to the state, its political subdivisions and its residents; and

     WHEREAS, a healthy and attractive retirement plan is a key ingredient in attracting and maintaining a work force of dedicated public servants; and

     WHEREAS, vested members of the state retirement systems have a property right with due process protections under the constitution of New Mexico; and

     WHEREAS, the constitution of New Mexico also requires that the state maintain the actuarial soundness of the state retirement systems; and

     WHEREAS, the national and worldwide financial crisis and the resulting downturn in markets have seriously affected the corpus of New Mexico's retirement funds; and

     WHEREAS, public employees, retirees and state and local policymakers need assurances that the state retirement plans are now, and in the future will be, fully funded and capable of meeting all current and future obligations;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the retirement board of the public employees retirement association and the educational retirement board each prepare a solvency plan for its retirement system; and

     BE IT FURTHER RESOLVED that the solvency plans include analyses and recommendations that address:

          A. employer and employee contributions;

          B. retirement eligibility;

          C. the number of retirement plans;

          D. retirement benefits;

          E. investment policy and asset allocation;

          F. disability retirement and benefits;

          G. actuarial assumptions; and

          H. member services; and

     BE IT FURTHER RESOLVED that the solvency plans and recommendations be submitted, no later than October 1, 2009, to the interim investments and pensions oversight committee, the legislative finance committee and the governor; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the retirement board of the public employees retirement association and to the educational retirement board.

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