SENATE BILL 91

49th legislature - STATE OF NEW MEXICO - second session, 2010

INTRODUCED BY

John Arthur Smith

FOR THE LEGISLATIVE FINANCE COMMITTEE

AN ACT

RELATING TO PUBLIC EMPLOYEE RETIREMENT; DELAYING CONTRIBUTION INCREASES FOR EDUCATIONAL RETIREMENT.

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. Except as provided in Subsection C of this section, each member shall make contributions to the fund according to the following schedule:

                (1) through June 30, 2005, an amount equal to seven and six-tenths percent of the member's annual salary;

                (2) from July 1, 2005 through June 30, 2006, an amount equal to seven and six hundred seventy-five thousandths percent of the member's annual salary;

                (3) from July 1, 2006 through June 30, 2007, an amount equal to seven and seventy-five hundredths percent of the member's annual salary;

                (4) from July 1, 2007 through June 30, 2008, an amount equal to seven and eight hundred twenty-five thousandths percent of the member's annual salary; and

                (5) on and after July 1, 2008, an amount equal to seven and nine-tenths percent of the member's annual salary, except that, from July 1, 2009 through June 30, 2011, for members whose annual salary is greater than twenty thousand dollars ($20,000), the member contribution rate shall be nine and four-tenths percent of the member's annual salary.

          B. Except as provided in Subsection C of this section, 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;

                (5) from July 1, 2008 through June 30, 2009, a sum equal to eleven and sixty-five hundredths percent of the annual salary of each member employed by the local administrative unit;

                (6) from July 1, 2009 through June 30, [2010] 2011, a sum equal to ten and nine-tenths percent of the annual salary of each member employed by the local administrative unit, except that, for members whose annual salary is twenty thousand dollars ($20,000) or less, the local administrative unit shall contribute twelve and four-tenths percent of the member's annual salary;

                (7) from July 1, [2010] 2011 through June 30, [2011] 2012, a sum equal to [eleven and sixty-five hundredths] thirteen and fifteen-hundredths percent of the annual salary of each member employed by the local administrative unit [except that, for members whose annual salary is twenty thousand dollars ($20,000) or less, the local administrative unit shall contribute thirteen and fifteen-hundredths percent of the member's annual salary]; and

                (8) on and after July 1, [2011] 2012, a sum equal to thirteen and nine-tenths percent of the annual salary of each member employed by the local administrative unit.

          C. If, in a calendar year, the salary of a member, initially employed by a local administrative unit on or after July 1, 1996, equals the annual compensation limit set pursuant to Section 401(a)(17) of the Internal Revenue Code of 1986, as amended, then:

                (1) for the remainder of that calendar year, no additional member contributions or local administrative unit contributions for that member shall be made pursuant to this section; provided that no member shall be denied service credit solely because contributions are not made by the member or on behalf of the member pursuant to the provisions of this subsection; and

                (2) the amount of the annual compensation limit shall be divided into four equal portions, and, for purposes of attributing contributory employment and crediting service credit, each portion shall be attributable to one of the four quarters of the calendar year."

     Section 2. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2010.

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