HOUSE BILL 251

50th legislature - STATE OF NEW MEXICO - first session, 2011

INTRODUCED BY

Mimi Stewart and Stuart Ingle

AN ACT

RELATING TO PENSIONS; AMENDING THE PUBLIC EMPLOYEES RETIREMENT ACT AND THE EDUCATIONAL RETIREMENT ACT; REDUCING COST-OF-LIVING ADJUSTMENTS AND INCREASING AGE AND SERVICE REQUIREMENTS FOR RETIREMENT OF CERTAIN LEGISLATORS AND EMPLOYEES.

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

     SECTION 1. Section 10-11-26.2 NMSA 1978 (being Laws 1994, Chapter 128, Section 3, as amended) is amended to read:

     "10-11-26.2. STATE GENERAL MEMBER COVERAGE PLAN 3--AGE AND SERVICE CREDIT REQUIREMENTS FOR NORMAL RETIREMENT.--

          A. Under state general member coverage plan 3:

                (1) for a member who is a peace officer and for a member who is not a peace officer but was a retired member or a member on June 30, 2010, the age and service credit requirements for normal retirement are:

                     (a) age sixty-five years or older and five or more years of service credit;

                     (b) age sixty-four years and eight or more years of service credit;

                     (c) age sixty-three years and eleven or more years of service credit;

                     (d) age sixty-two years and fourteen or more years of service credit;

                     (e) age sixty-one years and seventeen or more years of service credit;

                     (f) age sixty years and twenty or more years of service credit; [and]

                     (g) any age and twenty-five or more years of service credit for a member eligible to retire before July 1, 2014; or

                     (h) age fifty-five years or older and twenty-five or more years of service credit for a member eligible to retire on or after July 1, 2014; and

                (2) for a member who is not a peace officer and was not a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:

                     (a) age sixty-seven years or older and five or more years of service credit; or

                     (b) [any] age fifty-five years or older if the sum of the member's age and years of service credit equals at least eighty [or

                     (c) any age and thirty or more years of service credit].

          B. As used in this section, "peace officer" means any employee of the state with a duty to maintain public order or to make arrests for crime, whether that duty extends to all crimes or is limited to specific crimes, and who is not specifically covered by another coverage plan."

     SECTION 2. Section 10-11-40 NMSA 1978 (being Laws 1987, Chapter 253, Section 40) is amended to read:

     "10-11-40. STATE LEGISLATOR MEMBER COVERAGE PLAN 1--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under state legislator member coverage plan 1, the age and service requirements for normal retirement are:

          A. age sixty-five years or older and five or more years of credited service;

          B. age sixty-four years or older and eight or more years of credited service;

          C. age sixty-three years or older and eleven or more years of credited service;

          D. age sixty years or older and twelve or more years of credited service; [or]

          E. any age and fourteen or more years of credited service for a member eligible to retire before July 1, 2014; or

          F. age fifty-five years or older and fourteen or more years of service credit for a member eligible to retire on or after July 1, 2014."

     SECTION 3. Section 10-11-43.2 NMSA 1978 (being Laws 2003, Chapter 85, Section 8) is amended to read:

     "10-11-43.2. STATE LEGISLATOR MEMBER COVERAGE PLAN 2--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under state legislator member coverage plan 2, the age and service requirements for normal retirement are:

          A. age sixty-five years or older and five or more years of credited service; [or]

          B. any age and ten or more years of credited service for a member eligible to retire before July 1, 2014; or

          C. age fifty-five years or older and ten or more years of service credit for a member eligible to retire on or after July 1, 2014."

     SECTION 4. Section 10-11-45 NMSA 1978 (being Laws 1987, Chapter 253, Section 45, as amended) is amended to read:

     "10-11-45. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 1--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal general member coverage plan 1:

          A. for a member who was a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:

                (1) age sixty-five years or older and five or more years of service credit;

                (2) age sixty-four years and eight or more years of service credit;

                (3) age sixty-three years and eleven or more years of service credit;

                (4) age sixty-two years and fourteen or more years of service credit;

                (5) age sixty-one years and seventeen or more years of service credit;

                (6) age sixty years and twenty or more years of service credit; [or]

                (7) any age and twenty-five or more years of service credit for a member eligible to retire before July 1, 2014; or

                (8) age fifty-five years or older and twenty-five or more years of service credit for a member eligible to retire on or after July 1, 2014; and

          B. for a member who was not a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:

                (1) age sixty-seven years or older and five or more years of service credit; or

                (2) [any] age fifty-five years or older if the sum of the member's age and years of service credit equals at least eighty [or

                (3) any age and thirty or more years of service credit]."

     SECTION 5. Section 10-11-51 NMSA 1978 (being Laws 1987, Chapter 253, Section 51, as amended) is amended to read:

     "10-11-51. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 2--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal general member coverage plan 2:

           A. for a member who was a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:

                (1) age sixty-five years or older and five or more years of service credit;

                (2) age sixty-four years and eight or more years of service credit;

                (3) age sixty-three years and eleven or more years of service credit;

                (4) age sixty-two years and fourteen or more years of service credit;

                (5) age sixty-one years and seventeen or more years of service credit;

                (6) age sixty years and twenty or more years of service credit; [or]

                (7) any age and twenty-five or more years of service credit for a member eligible to retire before July 1, 2014; or

                (8) age fifty-five years or older and twenty-five or more years of service credit for a member eligible to retire on or after July 1, 2014; and

          B. for a member who was not a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:

                (1) age sixty-seven years or older and five or more years of service credit; or

                (2) [any] age fifty-five years or older if the sum of the member's age and years of service credit equals at least eighty [or

                (3) any age and thirty or more years of service credit]."

     SECTION 6. Section 10-11-55.2 NMSA 1978 (being Laws 1993, Chapter 58, Section 2, as amended) is amended to read:

     "10-11-55.2. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 3--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal general member coverage plan 3:

          A. for a member who was a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:

                (1) age sixty-five years or older and five or more years of service credit;

                (2) age sixty-four years and eight or more years of service credit;

                (3) age sixty-three years and eleven or more years of service credit;

                (4) age sixty-two years and fourteen or more years of service credit;

                (5) age sixty-one years and seventeen or more years of service credit;

                (6) age sixty years and twenty or more years of service credit; [or]

                (7) any age and twenty-five or more years of service credit for a member eligible to retire before July 1, 2014; or

                (8) age fifty-five years or older and twenty-five or more years of service credit for a member eligible to retire on or after July 1, 2014; and

          B. for a member who was not a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:

                (1) age sixty-seven years or older and five or more years of service credit; or

                (2) [any] age fifty-five years or older if the sum of the member's age and years of service credit equals at least eighty [or

                (3) any age and thirty or more years of service credit]."

     SECTION 7. Section 10-11-55.8 NMSA 1978 (being Laws 1998, Chapter 106, Section 2, as amended) is amended to read:

     "10-11-55.8. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 4--AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under municipal general member coverage plan 4:

          A. for a member who was a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:

                (1) age sixty-five years or older and five or more years of service credit;

                (2) age sixty-four years and eight or more years of service credit;

                (3) age sixty-three years and eleven or more years of service credit;

                (4) age sixty-two years and fourteen or more years of service credit;

                (5) age sixty-one years and seventeen or more years of service credit;

                (6) age sixty years and twenty or more years of service credit; [or]

                (7) any age and twenty-five or more years of service credit for a member eligible to retire before July 1, 2014; or

                (8) age fifty-five years or older and twenty-five or more years of service credit for a member eligible to retire on or after July 1, 2014; and

          B. for a member who was not a retired member or a member on June 30, 2010, the age and service requirements for normal retirement are:

                (1) age sixty-seven years or older and five or more years of service credit; or

                (2) [any] age fifty-five years or older if the sum of the member's age and years of service credit equals at least eighty [or

                (3) any age and thirty or more years of service credit]."

     SECTION 8. Section 10-11-118 NMSA 1978 (being Laws 1987, Chapter 253, Section 118, as amended) is amended to read:

     "10-11-118. COST-OF-LIVING ADJUSTMENTS.--

          A. For the purposes of this section:

                (1) "adjustment factor" means a multiplicative factor computed to provide a pension adjustment pursuant to the provisions of Subsection C of this section;

                (2) "consumer price index" means the average of the monthly consumer price indexes for a calendar year for the entire United States for all items as published by the United States;

                (3) "next preceding calendar year" means the full calendar year immediately prior to the preceding calendar year; and

                [(1)] (4) "preceding calendar year" means the twelve-month period ending on the December 31 preceding the July 1 in which pensions are being adjusted [and

                (2) "second preceding calendar year" means the full calendar year prior to the preceding calendar year].

          B. The amount of pension payable to a qualified pension recipient eligible to retire before July 1, 2014 shall be increased three percent each July 1. The amount of the increase shall be determined by multiplying the amount of pension inclusive of all prior adjustments by three percent.

          C. The amount of pension payable to a qualified pension recipient eligible to retire on or after July 1, 2014 shall be increased each July 1. The amount of the increase shall be determined by applying an adjustment factor that results in an adjustment equal to three-fourths of the percentage increase of the consumer price index between the next preceding calendar year and the preceding calendar year, except that the adjustment shall not exceed three percent nor shall it be less than zero percent. The amount of pension payable shall not be decreased in the event that there is a decrease in the consumer price index between the next preceding calendar year and the preceding calendar year.

          [C.] D. A qualified pension recipient is:

                (1) a normal retired member who is eligible to retire before July 1, 2014 and who has been retired for at least two full calendar years from the effective date of the latest retirement prior to July 1 of the year in which the pension is being adjusted;

                (2) a normal retired member who has attained age sixty-five years and been retired for at least one full calendar year from the effective date of the latest retirement prior to July 1 of the year in which the pension is being adjusted; 

                (3) a disability retired member who has been retired for at least one full calendar year from the effective date of the latest retirement prior to July 1 of the year in which the pension is being adjusted;

                (4) a survivor beneficiary who has received a survivor pension for at least two full calendar years; or

                (5) a survivor beneficiary of a deceased retired member who otherwise would have been retired at least two full calendar years from the effective date of the latest retirement prior to July 1 of the year in which the pension is being adjusted.

          [D.] E. A qualified pension recipient may decline an increase in a pension by giving the association written notice of the decision to decline the increase at least thirty days prior to the date the increase would take effect."

     SECTION 9. Section 22-11-23 NMSA 1978 (being Laws 1981, Chapter 293, Section 2, as amended by Laws 2009, Chapter 286, Section 1 and by Laws 2009, Chapter 288, Section 14) is amended to read:

     "22-11-23. RETIREMENT ELIGIBILITY--INITIAL MEMBERSHIP PRIOR TO JULY 1, 2010.--

          A. The retirement eligibility for a member who either was a member on June 30, 2010, or was a member at any time prior to that date and had not, on that date, been refunded all member contributions pursuant to Subsection A of Section 22-11-15 NMSA 1978, is as follows:

                (1) a member shall be eligible for retirement benefits pursuant to the Educational Retirement Act when either of the following conditions occurs:

                     (a) for a member eligible to retire before July 1, 2014, the sum of the member's age and years of earned service credit equals seventy-five; [or]

                     (b) the member is at least fifty-five years of age and has twenty or more years of earned service credit; or

                     (c) upon completion of five years of earned service credit and upon becoming sixty-five years of age;

                (2) a member under sixty years of age eligible to retire under Paragraph (1) of this subsection may retire and receive retirement benefits pursuant to the Educational Retirement Act that the member would be eligible to receive if the member were to retire at the age of sixty years reduced by six-tenths of one percent for each one-fourth, or portion thereof, year that retirement occurs prior to the member's sixtieth birthday but after the fifty-fifth birthday and one and eight-tenths percent for each one-fourth, or portion thereof, year that retirement occurs prior to age fifty-five; or

                (3) through July 1, 2014, a member under sixty years of age acquiring twenty-five or more years of earned and allowed service credit may retire and receive retirement benefits pursuant to the Educational Retirement Act computed on the same basis as if the member were sixty years of age.

          B. A member shall be subject to the provisions of Paragraphs (2) and (3) of Subsection A of this section as they existed at the beginning of the member's last cumulated four quarters of earned service credit, regardless of later amendment."

     SECTION 10. Section 22-11-23.1 NMSA 1978 (being Laws 2009, Chapter 286, Section 2 and Laws 2009, Chapter 288, Section 15) is amended to read:

     "22-11-23.1. RETIREMENT ELIGIBILITY--INITIAL MEMBERSHIP ON OR AFTER JULY 1, 2010.--

          A. A member who initially became a member on or after July 1, 2010 or a member who was a member at any time prior to that date and had, before that date, been refunded all member contributions pursuant to Subsection A of Section 22-11-15 NMSA 1978, shall be eligible for retirement benefits pursuant to the Educational Retirement Act when one of the following conditions occurs:

                (1) the member is [any] age fifty-five years or older and has thirty or more years of earned service credit;

                (2) the member is at least sixty-seven years of age and has five or more years of earned service credit; or

                (3) the sum of the member's age and years of earned service credit equals at least eighty; provided that a member who retires pursuant to this paragraph shall be subject to the benefit reductions provided in Paragraphs (1) and (2) of Subsection H of Section 22-11-30 NMSA 1978.

          B. A member shall be subject to the provisions of this section as they existed at the beginning of the member's last cumulated four quarters of earned service credit, regardless of later amendment."

     SECTION 11. Section 22-11-27 NMSA 1978 (being Laws 1967, Chapter 16, Section 150, as amended) is amended to read:

     "22-11-27. DEFERRED RETIREMENT--RESTRICTION.--

          A. A member eligible for retirement may continue in employment and shall continue to pay contributions as provided by the Educational Retirement Act.

          B. A member eligible to retire before July 1, 2014 may terminate [his] employment and retire at any time after [his] the member's age and [his] earned service credit equal the sum of seventy-five if the contributions [he] the member has made are left in the fund.

          C. A member eligible to retire on or after July 1, 2014 may terminate employment and retire at any time after the member is at least fifty-five years of age and has twenty or more years of earned service credit if the contributions the member has made are left in the fund.

          [C.] D. A member who was a member on or before June 30, 2010 having five years or more of earned service credit may terminate [his] employment and retire at any time after reaching the age of sixty-five years if the contributions [he] the member has made are left in the fund.

          E. A member who initially became a member on or after July 1, 2010 having five years or more of earned service credit may terminate employment and retire at any time after reaching the age of sixty-seven years if the contributions the member has made are left in the fund.

          [D.] F. No member shall be on a retirement status while engaged in employment unless the employment falls within exceptions established by statute or rule of the board."

     SECTION 12. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.

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