HOUSE BILL 270
50th legislature - STATE OF NEW MEXICO - second session, 2012
INTRODUCED BY
Mimi Stewart
AN ACT
RELATING TO PENSIONS; AMENDING THE PUBLIC EMPLOYEES RETIREMENT ACT, THE JUDICIAL RETIREMENT ACT, THE MAGISTRATE RETIREMENT ACT AND THE EDUCATIONAL RETIREMENT ACT; PROVIDING FOR AN INCREASE IN EMPLOYEE CONTRIBUTIONS; DEFINING "PUBLIC SAFETY MEMBER"; REDUCING AND DELAYING COST-OF-LIVING ADJUSTMENTS FOR NON-VESTED, NON-PUBLIC SAFETY MEMBERS; INCREASING AGE AND SERVICE REQUIREMENTS FOR RETIREMENT OF NON-VESTED, NON-PUBLIC SAFETY MEMBERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 10-11-2 NMSA 1978 (being Laws 1987, Chapter 253, Section 2, as amended) is amended to read:
"10-11-2. DEFINITIONS.--As used in the Public Employees Retirement Act:
A. "accumulated member contributions" means the amounts deducted from the salary of a member and credited to the member's individual account, together with interest, if any, credited to that account;
B. "affiliated public employer" means the state and any public employer affiliated with the association as provided in the Public Employees Retirement Act, but does not include an employer pursuant to the Magistrate Retirement Act, the Judicial Retirement Act or the Educational Retirement Act;
C. "association" means the public employees retirement association established under the Public Employees Retirement Act;
D. "disability retired member" means a retired member who is receiving a pension pursuant to the disability retirement provisions of the Public Employees Retirement Act;
E. "disability retirement pension" means the pension paid pursuant to the disability retirement provisions of the Public Employees Retirement Act;
F. "educational retirement system" means that retirement system provided for in the Educational Retirement Act;
G. "employee" means any employee of an affiliated public employer;
H. "federal social security program" means that program or those programs created and administered pursuant to the act of congress approved August 14, 1935, Chapter 531, 49 Stat. 620, as that act may be amended;
I. "final average salary" means the final average salary calculated in accordance with the provisions of the applicable coverage plan;
J. "form of payment" means the applicable form of payment of a pension provided for in Section 10-11-117 NMSA 1978;
K. "former member" means a person who was previously employed by an affiliated public employer, who has terminated that employment and who has received a refund of member contributions;
L. "fund" means the funds included under the Public Employees Retirement Act;
M. "member" means a currently employed, contributing employee of an affiliated public employer, or a person who has been but is not currently employed by an affiliated public employer, who has not retired and who has not received a refund of member contributions; "member" also includes the following:
(1) "adult correctional officer member" means a member who is an adult correctional officer or an adult correctional officer specialist employed by a correctional facility of the corrections department or its successor agency;
(2) "hazardous duty member" means a member who is a juvenile correctional officer employed by the children, youth and families department or its successor agency;
(3) "municipal detention officer member" means a member who is employed by an affiliated public employer other than the state and who has inmate custodial responsibilities at a facility used for the confinement of persons charged with or convicted of a violation of a law or ordinance;
(4) "municipal fire member" means any member who is employed as a full-time nonvolunteer firefighter by an affiliated public employer and who has taken the oath prescribed for firefighters;
(5) "municipal police member" means any member who is employed as a police officer by an affiliated public employer, other than the state, and who has taken the oath prescribed for police officers; and
(6) "state police member" means any member who is an officer of the New Mexico state police and who has taken the oath prescribed for such officers;
N. "membership" means membership in the association;
O. "pension" means a series of monthly payments to a retired member or survivor beneficiary as provided in the Public Employees Retirement Act;
P. "public employer" means the state, any municipality, city, county, metropolitan arroyo flood control authority, economic development district, regional housing authority, soil and water conservation district, entity created pursuant to a joint powers agreement, council of government, conservancy district, irrigation district, water and sanitation district, water district and metropolitan water board, including the boards, departments, bureaus and agencies of a public employer, so long as these entities fall within the meaning of governmental plan as that term is used in Section 414(d) of the Internal Revenue Code of 1986, as amended;
Q. "public safety member" means a peace officer under state general member coverage plan 3 or a member in:
(1) state police member and adult correctional officer member coverage plan 1;
(2) state hazardous duty member coverage plan 1;
(3) state hazardous duty member coverage plan 2;
(4) municipal police member coverage plan 1;
(5) municipal police member coverage plan 2;
(6) municipal police member coverage plan 3;
(7) municipal police member coverage plan 4;
(8) municipal police member coverage plan 5;
(9) municipal fire member coverage plan 1;
(10) municipal fire member coverage plan 2;
(11) municipal fire member coverage plan 3;
(12) municipal fire member coverage plan 4;
(13) municipal fire member coverage plan 5; or
(14) municipal detention officer member coverage plan 1;
[Q.] R. "refund beneficiary" means a person designated by the member, in writing, in the form prescribed by the association, as the person who would be refunded the member's accumulated member contributions payable if the member dies and no survivor pension is payable or who would receive the difference between pension paid and accumulated member contributions if the retired member dies before receiving in pension payments the amount of the accumulated member contributions;
[R.] S. "retire" means to:
(1) terminate employment with all employers covered by any state system or the educational retirement system; and
(2) receive a pension from a state system or the educational retirement system;
[S.] T. "retired member" means a person who has met all requirements for retirement and who is receiving a pension from the fund;
[T.] U. "retirement board" means the retirement board provided for in the Public Employees Retirement Act;
[U.] V. "salary" means the base salary or wages paid a member, including longevity pay, for personal services rendered an affiliated public employer. "Salary" shall not include overtime pay, allowances for housing, clothing, equipment or travel, payments for unused sick leave, unless the unused sick leave payment is made through continuation of the member on the regular payroll for the period represented by that payment, and any other form of remuneration not specifically designated by law as included in salary for Public Employees Retirement Act purposes. Salary in excess of the limitations set forth in Section 401(a) (17) of the Internal Revenue Code of 1986, as amended, shall be disregarded. The limitation on compensation for eligible employees shall not be less than the amount that was allowed to be taken into account under the state retirement system acts in effect on July 1, 1993. For purposes of this subsection, "eligible employee" means an individual who was a member of a state system before the first plan year beginning after December 31, 1995;
[V.] W. "state system" means the retirement programs provided for in the Public Employees Retirement Act, the Magistrate Retirement Act and the Judicial Retirement Act;
[W.] X. "state retirement system acts" means collectively the Public Employees Retirement Act, the Magistrate Retirement Act, the Judicial Retirement Act and the Volunteer Firefighters Retirement Act; and
[X.] Y. "survivor beneficiary" means a person who receives a pension or who has been designated to be paid a pension as a result of the death of a member or retired member."
SECTION 2. 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] has five or more years of service credit on July 1, 2012, 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] or
(g) any age and twenty-five or more years of service credit; and
(2) for a member who is not a peace officer and [was not a retired member or a member on June 30, 2010] who does not have five or more years of service credit on July 1, 2012, the age and service requirements for normal retirement are:
(a) age [sixty-seven] sixty-five years or older and five or more years of service credit; or
[(b) any age if the sum of the member's age and years of service credit equals at least eighty; or
(c) any] (b) age fifty-five years or older 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 3. Section 10-11-26.5 NMSA 1978 (being Laws 1994, Chapter 128, Section 6, as amended) is amended to read:
"10-11-26.5. STATE GENERAL MEMBER COVERAGE PLAN 3--MEMBER CONTRIBUTION RATE.--
A. From July 1, 2012 through June 30, 2013, a member under state general member coverage plan 3 shall contribute seven and forty-two hundredths percent of salary starting with the first full pay period that ends within the calendar month in which state general member coverage plan 3 becomes applicable to the member, except that for members whose annual salary is greater than twenty thousand dollars ($20,000),
[A. from July 1, 2009 through June 30, 2011, the member contribution rate shall be eight and ninety-two hundredths percent of salary;
B. from July 1, 2011 through June 30, 2012, the member contribution rate shall be ten and sixty-seven hundredths percent of salary; and
C. from July 1, 2012 through June 30, 2013] the member contribution rate shall be eight and ninety-two hundredths percent of salary.
B. On and after July 1, 2013, a member under state general member coverage plan 3 shall contribute eight and ninety-two hundredths percent of salary starting with the first full pay period that ends within the calendar month in which state general member coverage plan 3 becomes applicable to the member."
SECTION 4. Section 10-11-31 NMSA 1978 (being Laws 1987, Chapter 253, Section 31, as amended) is amended to read:
"10-11-31. STATE POLICE MEMBER AND ADULT CORRECTIONAL OFFICER MEMBER COVERAGE PLAN 1--MEMBER CONTRIBUTION RATE.--
A. From July 1, 2012 through June 30, 2013, a member under state police member and adult correctional officer member coverage plan 1 shall contribute seven and six-tenths percent of salary, except that for members whose annual salary is greater than twenty thousand dollars ($20,000),
[A. from July 1, 2009 through June 30, 2011, the member contribution rate shall be nine and one-tenth percent of salary;
B. from July 1, 2011 through June 30, 2012, the member contribution rate shall be ten and eighty-five hundredths percent of salary; and
C. from July 1, 2012 through June 30, 2013] the member contribution rate shall be nine and one-tenth percent of salary.
B. On and after July 1, 2013, a member under state police member and adult correctional officer member coverage plan 1 shall contribute nine and one-tenth percent of salary."
SECTION 5. Section 10-11-37 NMSA 1978 (being Laws 1987, Chapter 253, Section 37) is amended to read:
"10-11-37. STATE HAZARDOUS DUTY MEMBER COVERAGE PLAN 1--MEMBER CONTRIBUTION RATE.--A member under state hazardous duty member coverage plan 1 shall contribute [four] five and one-half percent of salary."
SECTION 6. Section 10-11-38.5 NMSA 1978 (being Laws 1994, Chapter 128, Section 13, as amended) is amended to read:
"10-11-38.5. STATE HAZARDOUS DUTY MEMBER COVERAGE PLAN
2--MEMBER CONTRIBUTION RATE.--
A. From July 1, 2012 through June 30, 2013, a member under state hazardous duty member coverage plan 2 shall contribute four and seventy-eight hundredths percent of salary starting with the first full pay period that ends within the calendar month in which state hazardous duty member coverage plan 2 becomes applicable to the member, except that for members whose annual salary is greater than twenty thousand dollars ($20,000),
[A. from July 1, 2009 through June 30, 2011, the member contribution rate shall be six and twenty-eight hundredths percent of salary;
B. from July 1, 2011 through June 30, 2012, the member contribution rate shall be eight and three-hundredths percent of salary; and
C. from July 1, 2012 through June 30, 2013] the member contribution rate shall be six and twenty-eight hundredths percent of salary.
B. On and after July 1, 2013, a member under state hazardous duty member coverage plan 2 shall contribute six and twenty-eight hundredths percent of salary."
SECTION 7. 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 has five or more years of service credit on July 1, 2012, and 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; and
B. for a member who [was not a retired member or a member on June 30, 2010] does not have five or more years of service credit on July 1, 2012, the age and service requirements for normal retirement are:
(1) age [sixty-seven] sixty-five years or older and five or more years of service credit; or
[(2) any age if the sum of the member's age and years of service credit equals at least eighty; or
(3) any] (2) age fifty-five years or older and thirty or more years of service credit."
SECTION 8. Section 10-11-48 NMSA 1978 (being Laws 1987, Chapter 253, Section 48) is amended to read:
"10-11-48. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 1--MEMBER CONTRIBUTION RATE.--A member under municipal general member coverage plan 1 shall contribute [seven] eight and one-half percent of salary."
SECTION 9. 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 has five or more years of service credit on July 1, 2012, and 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; and
B. for a member who [was not a retired member or a member on June 30, 2010] does not have five or more years of service credit on July 1, 2012, the age and service requirements for normal retirement are:
(1) age [sixty-seven] sixty-five years or older and five or more years of service credit; or
[(2) any age if the sum of the member's age and years of service credit equals at least eighty; or
(3) any] (2) age fifty-five years or older and thirty or more years of service credit."
SECTION 10. Section 10-11-54 NMSA 1978 (being Laws 1987, Chapter 253, Section 54) is amended to read:
"10-11-54. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 2--MEMBER CONTRIBUTION RATE.--A member under municipal general member coverage plan 2 shall contribute [nine and fifteen one-hundredths] ten and sixty-five hundredths percent of salary starting with the first full pay period in the calendar month in which coverage plan 2 becomes applicable to the member."
SECTION 11. 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 has five or more years of service credit on July 1, 2012, and 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; and
B. for a member who [was not a retired member or a member on June 30, 2010] does not have five or more years of service credit on July 1, 2012, the age and service requirements for normal retirement are:
(1) age [sixty-seven] sixty-five years or older and five or more years of service credit; or
[(2) any age if the sum of the member's age and years of service credit equals at least eighty; or
(3) any] (2) age fifty-five years or older and thirty or more years of service credit."
SECTION 12. Section 10-11-55.5 NMSA 1978 (being Laws 1993, Chapter 58, Section 5) is amended to read:
"10-11-55.5. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 3--MEMBER CONTRIBUTION RATE.--A member under municipal general member coverage plan 3 shall contribute [thirteen and fifteen one-hundredths] fourteen and sixty-five hundredths percent of salary starting with the first full pay period in the calendar month in which coverage plan 3 becomes applicable to the member."
SECTION 13. 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 has five or more years of service credit on July 1, 2012, and 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; and
B. for a member who [was not a retired member or a member on June 30, 2010] does not have five or more years of service credit on July 1, 2012, the age and service requirements for normal retirement are:
(1) age [sixty-seven] sixty-five years or older and five or more years of service credit; or
[(2) any age if the sum of the member's age and years of service credit equals at least eighty; or
(3) any] (2) age fifty-five years or older and thirty or more years of service credit."
SECTION 14. Section 10-11-55.11 NMSA 1978 (being Laws 1998, Chapter 106, Section 5) is amended to read:
"10-11-55.11. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 4--MEMBER CONTRIBUTION RATE.--A member under municipal general member coverage plan 4 shall contribute [fifteen and sixty-five] seventeen and fifteen hundredths percent of salary starting with the first full pay period in the calendar month in which coverage plan 4 becomes applicable to the member."
SECTION 15. Section 10-11-60 NMSA 1978 (being Laws 1987, Chapter 253, Section 60) is amended to read:
"10-11-60. MUNICIPAL POLICE MEMBER COVERAGE PLAN 1--MEMBER CONTRIBUTION RATE.--A member under municipal police member coverage plan 1 shall contribute [seven] eight and one-half percent of salary."
SECTION 16. Section 10-11-66 NMSA 1978 (being Laws 1987, Chapter 253, Section 66) is amended to read:
"10-11-66. MUNICIPAL POLICE MEMBER COVERAGE PLAN 2--MEMBER CONTRIBUTION RATE.--A member under municipal police member coverage plan 2 shall contribute [seven] eight and one-half percent of salary."
SECTION 17. Section 10-11-72 NMSA 1978 (being Laws 1987, Chapter 253, Section 72) is amended to read:
"10-11-72. MUNICIPAL POLICE MEMBER COVERAGE PLAN 3--MEMBER CONTRIBUTION RATE.--A member under municipal police member coverage plan 3 shall contribute [seven] eight and one-half percent of salary."
SECTION 18. Section 10-11-78 NMSA 1978 (being Laws 1987, Chapter 253, Section 78) is amended to read:
"10-11-78. MUNICIPAL POLICE MEMBER COVERAGE PLAN 4--MEMBER CONTRIBUTION RATE.--A member under municipal police member coverage plan 4 shall contribute [twelve and thirty-five one-hundredths] thirteen and eighty-five hundredths percent of salary starting with the first full pay period in the calendar month in which municipal police member coverage plan 4 becomes applicable to the member."
SECTION 19. Section 10-11-84 NMSA 1978 (being Laws 1987,
Chapter 253, Section 84) is amended to read:
"10-11-84. MUNICIPAL POLICE MEMBER COVERAGE PLAN 5--MEMBER CONTRIBUTION RATE.--A member under municipal police member coverage plan 5 shall contribute [sixteen and three-tenths] seventeen and eight-tenths percent of salary starting with the first full pay period in the calendar month in which municipal police member coverage plan 5 becomes applicable to the member."
SECTION 20. Section 10-11-90 NMSA 1978 (being Laws 1987, Chapter 253, Section 90, as amended) is amended to read:
"10-11-90. MUNICIPAL FIRE MEMBER COVERAGE PLAN 1--MEMBER CONTRIBUTION RATE.--A member under municipal fire member coverage plan 1 shall contribute [eight] nine and one-half percent of salary."
SECTION 21. Section 10-11-96 NMSA 1978 (being Laws 1987, Chapter 253, Section 96, as amended) is amended to read:
"10-11-96. MUNICIPAL FIRE MEMBER COVERAGE PLAN 2--MEMBER CONTRIBUTION RATE.--A member under municipal fire member coverage plan 2 shall contribute [eight] nine and one-half percent of salary."
SECTION 22. Section 10-11-102 NMSA 1978 (being Laws 1987, Chapter 253, Section 102, as amended) is amended to read:
"10-11-102. MUNICIPAL FIRE MEMBER COVERAGE PLAN 3--MEMBER CONTRIBUTION RATE.--A member under municipal fire member coverage plan 3 shall contribute [eight] nine and one-half percent of salary."
SECTION 23. Section 10-11-108 NMSA 1978 (being Laws 1987, Chapter 253, Section 108, as amended) is amended to read:
"10-11-108. MUNICIPAL FIRE MEMBER COVERAGE PLAN 4--MEMBER CONTRIBUTION RATE.--A member under municipal fire member coverage plan 4 shall contribute [twelve and eight-tenths] fourteen and three-tenths percent of salary."
SECTION 24. Section 10-11-114 NMSA 1978 (being Laws 1987, Chapter 253, Section 114, as amended) is amended to read:
"10-11-114. MUNICIPAL FIRE MEMBER COVERAGE PLAN 5--MEMBER CONTRIBUTION RATE.--A member under municipal fire member coverage plan 5 shall contribute [sixteen and two-tenths] seventeen and seven-tenths percent of salary."
SECTION 25. Section 10-11-115.5 NMSA 1978 (being Laws 2003, Chapter 268, Section 6) is amended to read:
"10-11-115.5. MUNICIPAL DETENTION OFFICER MEMBER COVERAGE PLAN 1--MEMBER CONTRIBUTION RATE.--A member under municipal detention officer member coverage plan 1 shall contribute [sixteen and sixty-five] eighteen and fifteen hundredths percent of salary starting with the first full pay period that ends within the calendar month in which municipal detention officer member coverage plan 1 becomes applicable to the member."
SECTION 26. 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 department of labor;
[(1)] (3) "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)] (4) "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 who is a public safety member or who is not a public safety member but who had five or more years of service credit on July 1, 2012 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. The increase shall commence when the member 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.
C. The amount of pension payable to a qualified pension recipient who is not a public safety member and who did not have five or more years of service credit on July 1, 2012 shall be adjusted annually and cumulatively each July 1 but shall not be increased more than four percent nor be decreased if there is a decrease in the consumer price index between the second preceding calendar year and the preceding calendar year. The amount of the annual increase shall be one-half percent of the consumer price index between the second preceding calendar year and the preceding calendar year, or if the percentage increase of the consumer price index is less than two percent in absolute value, the same as the percentage increase of the consumer price index. The increase shall commence in the year the qualified pension recipient attains the age of sixty-five or the year the qualified pension recipient retires, whichever is later.
[C.] D. A qualified pension recipient is:
(1) a normal retired member [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] pursuant to Subsections B and C of this section; [(3)] (2) 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)] (3) a survivor beneficiary who has received a survivor pension for at least two full calendar years; or
[(5)] (4) 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 27. 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 July 1, 2006]
(1) from July 1, 2012 through June 30 2013, seven and one-half percent of salary, except that for members whose annual salary is greater than twenty thousand dollars ($20,000),
[(a) from July 1, 2009 through June 30, 2011, the member contribution rate shall be nine percent of salary;
(b) from July 1, 2011 through June 30, 2012, the member contribution rate shall be ten and three-fourths percent of salary; and
(c) from July 1, 2012 through June 30, 2013] the member contribution rate shall be nine percent of salary; and
(2) on and after July 1, 2013, nine 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 28. Section 10-12C-8 NMSA 1978 (being Laws 1992, Chapter 118, Section 8) is amended to read:
"10-12C-8. AGE AND SERVICE CREDIT REQUIREMENTS FOR NORMAL RETIREMENT.--
A. The age and service credit requirements for retirement provided for in the Magistrate Retirement Act for a member who has five or more years of service credit on July 1, 2012 are:
(1) age sixty-four or older and five or more years of service credit;
(2) age sixty or older and fifteen or more years of service credit; or
(3) any age and twenty-four or more years of service credit.
B. The age and service credit requirements for retirement provided for in the Magistrate Retirement Act for a member who does not have five or more years of service credit on July 1, 2012 are:
(1) age sixty-four or older and five or more years of service credit;
(2) age sixty or older and fifteen or more years of service credit; or
(3) age fifty-five or older and twenty-four or more years of service credit.
[B.] C. If a member leaves office for any reason, other than removal pursuant to Article 6, Section 32 of the constitution of New Mexico before meeting the age and service credit requirements for retirement pursuant to the provisions of this section and if that member leaves [his] the member contributions on deposit in the fund, that member may apply for retirement when that member meets the age and service credit requirements for retirement pursuant to the provisions of the Magistrate Retirement Act or provisions of the Public Employees Retirement Reciprocity Act. [if enacted by the second session of the fortieth legislature of the state of New Mexico.
C.] D. No member shall be eligible to receive a pension pursuant to the provisions of the Magistrate Retirement Act while still in office."
SECTION 29. 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 July 1, 2006]
(1) from July 1, 2012 through June 30, 2013, seven and one-half percent of salary, except that for members whose annual salary is greater than twenty thousand dollars ($20,000),
[(a) from July 1, 2009 through June 30, 2011, the member contribution rate shall be nine percent of salary;
(b) from July 1, 2011 through June 30, 2012, the member contribution rate shall be ten and three-fourths percent of salary; and
(c) from July 1, 2012 through June 30, 2013] the member contribution rate shall be nine percent of salary; and
(2) on and after July 1, 2013, nine 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 30. 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] from July 1, 2008 through June 30, 2013, an amount equal to seven and nine-tenths percent of the member's annual salary, except that for members whose annual salary is greater than twenty thousand dollars ($20,000):
(a) from July 1, 2009 through June 30, 2011, the member contribution rate shall be nine and four-tenths percent of the member's annual salary;
(b) from July 1, 2011 through June 30, 2012, the member contribution rate shall be eleven and fifteen-hundredths percent of the member's annual salary; and
(c) from July 1, 2012 through June 30, 2013, the member contribution rate shall be nine and four-tenths percent of the member's annual salary; and
(6) on and after July 1, 2013, nine and four-tenths percent of the member's annual salary; provided, however, that if the local administrative unit's annual contribution per member in Paragraph (9) of Subsection B of this section is reduced to a sum less than thirteen and fifteen-hundredths percent of the member's annual salary from July 1, 2013 through June 30, 2014, the member contribution rate from July 1, 2013 through June 30, 2014 shall be seven and nine-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, 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, 2011 through June 30, 2012, a sum equal to nine 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 twelve and four-tenths percent of the member's annual salary;
(8) from July 1, 2012 through June 30, 2013, 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;
(9) from July 1, 2013 through June 30, 2014, a sum equal to thirteen and fifteen-hundredths percent of the annual salary of each member employed by the local administrative unit; and
(10) on and after July 1, 2014, 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 31. 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 has five or more years of service credit on or before June 30, 2012 and who [either was a member on June 30, 2010, or was a member at any time prior to] on or before that date [and] had [not, on that date] been refunded all member contributions pursuant to Subsection A of Section 22-11-15 NMSA 1978 and had restored all of the refunded contributions, 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) the sum of the member's age and years of earned service credit equals seventy-five; or
(b) 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) 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 32. 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] does not have five or more years of service credit on or before June 30, 2012 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 and had not restored all of the refunded contributions, 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 or older and has thirty or more years of earned service credit;
(2) the member is at least [sixty-seven] sixty-five years of age and has five or more years of earned service credit; or
(3) the member is at least fifty-five years of age and 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 33. 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 may terminate his employment and retire at any time after his age and his earned service credit equal the sum of seventy-five if the contributions he member has made are left in the fund.
C. A member 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 has made are left in the fund.]
B. Provided that the contributions the member has made are left in the fund, a member who is eligible to retire pursuant to Subsection A of Section 22-11-23 NMSA 1978 may terminate employment and retire at any time:
(1) if the sum of the member's age and years of earned service credit equals at least seventy-five; or
(2) after the member has at least five years of earned service credit and is at least sixty-five years of age.
C. Provided that the contributions the member has made are left in the fund, a member who is eligible to retire pursuant to Subsection A of Section 22-11-23.1 NMSA 1978 may terminate employment and retire at any time:
(1) if the member is age fifty-five years of age or older and has thirty or more years of earned service credit;
(2) after the member has at least five years of earned service credit and is at least sixty-five years of age; or
(3) if the member is age fifty-five years of age or older and the sum of the member's age and years of earned service credit equals at least eighty.
D. 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 34. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2012.
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