HOUSE JOINT MEMORIAL 55

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

INTRODUCED BY

Rhonda S. King

A JOINT MEMORIAL

REQUESTING THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION AND THE ADMINISTRATIVE OFFICE OF THE COURTS TO STUDY THE ACTUARIAL SOUNDNESS OF THE JUDICIAL RETIREMENT FUND AND MAGISTRATE RETIREMENT FUND AND TO PREPARE A SOLVENCY PLAN FOR THE JUDICIAL RETIREMENT FUND AND MAGISTRATE RETIREMENT FUND.

     WHEREAS, the basic financial objective of the public employees retirement association is to ensure that statutory employee and employer contributions, when combined with present assets and future investment returns, will be sufficient to meet the present and future financial obligations of the association; and

     WHEREAS, the primary source of funding for the statutory obligations of the judicial retirement fund and the magistrate retirement fund is district, metropolitan and magistrate civil case docket and jury fees while the statutory obligations of the judicial retirement fund and the magistrate retirement fund are pension benefits directly related to payroll; and

     WHEREAS, the current statutory contribution rates in combination with court fees are insufficient to amortize the unfunded actuarial accrued liability of both the judicial retirement fund and the magistrate retirement fund; and

     WHEREAS, in the absence of significant investment and experience gains, the funded condition of both the judicial retirement fund and the magistrate retirement fund will continue to deteriorate unless the statutory contribution structure is addressed; and

     WHEREAS, as of June 30, 2009, there has been a decrease in the funding status of both the judicial and the magistrate retirement plans; and

     WHEREAS, the legislature recognizes the urgency of taking immediate steps to mitigate further deterioration of the funded status of the judicial retirement fund and the magistrate retirement fund;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the public employees retirement association, with the administrative office of the courts, be requested to study the feasibility of converting the judicial retirement system and the magistrate retirement system to actuarially sound, salary-based retirement systems, emphasizing statutory employee and employer contributions, and to provide a plan and an analysis that includes appropriate contribution levels, retirement eligibility, the feasibility of merging the plans and other actuarial issues that may arise during the study; and

     BE IT FURTHER RESOLVED that the public employees retirement association and the administrative office of the courts present the findings of their study to the interim investments oversight committee no later than November 1, 2010; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the executive director of the public employees retirement association, the executive director of the administrative office of the courts and the governor.

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