SENATE BILL 88

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

INTRODUCED BY

George K. Munoz

AN ACT

RELATING TO PUBLIC EMPLOYEE RETIREMENT; INCREMENTALLY INCREASING THE EMPLOYER AND EMPLOYEE CONTRIBUTION RATES IN THE JUDICIAL RETIREMENT ACT AND THE MAGISTRATE RETIREMENT ACT.

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

     SECTION 1. Section 10-12B-10 NMSA 1978 (being Laws 1992, Chapter 111, Section 10, as amended) is amended to read:

     "10-12B-10. MEMBER CONTRIBUTIONS--TAX TREATMENT.--

          A. Members, while in office, shall contribute to the member contribution fund pursuant to the following schedule:

                (1) prior to July 1, 2005, five and one-half percent of salary;

                (2) from July 1, 2005 through June 30, 2006, six and one-half percent of salary; [and]

                (3) [on and after] from July 1, 2006 through

June 30, 2011, seven and one-half percent of 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 percent of salary;

                (4) from July 1, 2011 through June 30, 2012, eight and seventeen-hundredths percent of salary;

                (5) from July 1, 2012 through June 30, 2013, eight and eighty-four hundredths percent of salary;

                (6) from July 1, 2013 through June 30, 2014, nine and fifty-one hundredths percent of salary; and

                (7) on and after July 1, 2014, ten and seventeen-hundredths percent of salary.

          B. Upon implementation, the state, acting as employer of members covered pursuant to the provisions of the Judicial Retirement Act, shall, solely for the purpose of compliance with Section 414(h) of the Internal Revenue Code of 1986, pick up for the purposes specified in that section member contributions required by this section for all annual salary earned by the member. Member contributions picked up pursuant to the provisions of this section shall be treated as employer contributions for purposes of determining income tax obligations under the Internal Revenue Code of 1986; however, such picked-up member contributions shall be included in the determination of the member's gross annual salary for all other purposes under federal and state laws. Member contributions picked up pursuant to the provisions of this section shall continue to be designated member contributions for all purposes of the Judicial Retirement Act and shall be considered as part of the member's annual salary for purposes of determining the amount of the member's contribution. The provisions of this section are mandatory, and the member shall have no option concerning the pickup or concerning the receipt of the contributed amounts directly instead of having the amounts paid by the employer to the retirement system. Implementation occurs upon authorization by the board. In no event may implementation occur other than at the beginning of a pay period applicable to the member."

     SECTION 2. Section 10-12B-11 NMSA 1978 (being Laws 1992, Chapter 111, Section 11, as amended) is amended to read:

     "10-12B-11. EMPLOYER CONTRIBUTIONS.--

          A. The member's court shall contribute the following amounts to the fund:

                (1) prior to July 1, 2005, nine percent of salary for each member in office;

                (2) from July 1, 2005 through June 30, 2006, ten and one-half percent of salary for each member in office; [and]

                (3) [on and after] from July 1, 2006 through June 30, 2011, twelve percent of salary for each member in office, 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's court contribution rate shall be ten and one-half percent of salary for each member in office;

                (4) from July 1, 2011 through June 30, 2012, thirteen and thirty-three hundredths percent of salary for each member in office;

                (5) from July 1, 2012 through June 30, 2013, fourteen and sixty-six hundredths percent of salary for each member in office;

                (6) from July 1, 2013 through June 30, 2014, fifteen and ninety-nine hundredths percent of salary for each member in office; and

                (7) on and after July 1, 2014, seventeen and thirty-three hundredths percent of salary for each member in office.

          B. Thirty-eight dollars ($38.00) from each civil case docket fee paid in the district court, twenty-five dollars ($25.00) from each civil docket fee paid in metropolitan court and ten dollars ($10.00) from each jury fee paid in metropolitan court shall be paid by the court clerk to the employer's accumulation fund."

     SECTION 3. Section 10-12C-10 NMSA 1978 (being Laws 1992, Chapter 118, Section 10, as amended) is amended to read:

     "10-12C-10. MEMBER CONTRIBUTIONS--TAX TREATMENT.--

          A. Members, while in office, shall contribute the following amounts to the member contribution fund:

                (1) through June 30, 2006, six and one-half percent of salary; [and]

                (2) [on and after] from July 1, 2006 through June 30, 2011, seven and one-half percent of 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 percent of salary;

                (3) from July 1, 2011 through June 30, 2012, eight and seventeen-hundredths percent of salary;

                (4) from July 1, 2012 through June 30, 2013, eight and eighty-four hundredths percent of salary;

                (5) from July 1, 2013 through June 30, 2014, nine and fifty-one hundredths percent of salary; and

                (6) on and after July 1, 2014, ten and seventeen-hundredths percent of salary.

          B. Upon implementation, the state, acting as employer of members covered pursuant to the provisions of the Magistrate Retirement Act, shall, solely for the purpose of compliance with Section 414(h) of the Internal Revenue Code of 1986, pick up for the purposes specified in that section member contributions required by this section for all annual salary earned by the member. Member contributions picked up pursuant to the provisions of this section shall be treated as employer contributions for purposes of determining income tax obligations under the Internal Revenue Code of 1986; however, such picked-up member contributions shall be included in the determination of the member's gross annual salary for all other purposes under federal and state laws. Member contributions picked up pursuant to the provisions of this section shall continue to be designated member contributions for all purposes of the Magistrate Retirement Act and shall be considered as part of the member's annual salary for purposes of determining the amount of the member's contribution. The provisions of this section are mandatory, and the member shall have no option concerning the pick up or concerning the receipt of the contributed amounts directly instead of having the amounts paid by the employer to the retirement system. Implementation

occurs upon authorization by the board. In no event may implementation occur other than at the beginning of a pay period applicable to the member."

     SECTION 4. Section 10-12C-11 NMSA 1978 (being Laws 1992, Chapter 118, Section 11, as amended) is amended to read:

     "10-12C-11. EMPLOYER CONTRIBUTIONS.--

          A. The state, through the administrative office of the courts, shall contribute the following amounts to the fund:

                (1) through June 30, 2006, ten percent of salary for each member in office; [and]

                (2) [on and after] from July 1, 2006 through June 30, 2011, eleven percent of salary for each member in office, except that, from July 1, 2009 through June 30, 2011, for members whose annual salary is greater than twenty thousand dollars ($20,000), the state contribution rate shall be nine and one-half percent of salary for each member in office;

                (3) from July 1, 2011 through June 30, 2012, twelve and thirty-three hundredths percent of salary for each member in office;

                (4) from July 1, 2012 through June 30, 2013, thirteen and sixty-six hundredths percent of salary for each member in office;

                (5) from July 1, 2013 through June 30, 2014, fourteen and ninety-nine hundredths percent of salary for each member in office; and

                (6) on and after July 1, 2014, sixteen and thirty-three hundredths percent of salary for each member in office.

          B. Twenty-five dollars ($25.00) from each civil case docket fee paid in magistrate court and ten dollars ($10.00) from each civil jury fee paid in magistrate court shall be paid by the court clerk to the employer's accumulation fund."