SENATE BILL 25
51st legislature - STATE OF NEW MEXICO - first session, 2013
INTRODUCED BY
George K. Munoz
FOR THE INVESTMENTS AND PENSIONS OVERSIGHT COMMITTEE
AN ACT
RELATING TO JUDICIAL RETIREMENT; CHANGING AGE AND SERVICE CREDIT REQUIREMENTS FOR CERTAIN RETIREES IN THE JUDICIAL RETIREMENT ACT AND THE MAGISTRATE RETIREMENT ACT; CHANGING THE WAY THE AMOUNT OF PENSION IS CALCULATED FOR CERTAIN RETIREES 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-2 NMSA 1978 (being Laws 1992, Chapter 111, Section 2, as amended) is amended to read:
"10-12B-2. DEFINITIONS.--As used in the Judicial Retirement Act:
A. "association" means the public employees retirement association provided for in the Public Employees Retirement Act;
B. "board" means the retirement board provided for in the Public Employees Retirement Act;
C. "current judge or justice" means a judge or justice who occupied such an office on July 1, 1980 but who elected to be covered under the provisions of the retirement plan in effect at that time;
D. "dependent child" means a natural or adopted child who is physically or mentally incapable of financial self-support, regardless of age;
E. "educational retirement system" means the retirement system provided for in the Educational Retirement Act;
F. "effective date of retirement" means the first day of the month following the month in which the member met all requirements for retirement;
G. "final average salary" means one thirty-sixth of the greatest amount of salary paid to a member for thirty-six consecutive but not necessarily continuous months of credit service;
[G.] H. "former judge or justice" means a judge or justice who occupied such an office prior to July 1, 1980 but who had ceased to hold such an office prior to that date and who elected to be excluded from the provisions of the Judicial Retirement Act;
[H.] I. "former member" means a person no longer in office who was previously covered pursuant to the provisions of Sections 10-12-1 through 10-12-18 NMSA 1978, but who has not retired pursuant to the provisions of the Judicial Retirement Act and who has received a refund of member contributions pursuant to the provisions of Sections 10-12B-1 through 10-12B-19 NMSA 1978;
[I.] J. "fund" means the judicial retirement fund;
[J.] K. "judge" means a judge of the metropolitan court, district court or court of appeals of New Mexico;
[K.] L. "justice" means a justice of the supreme court of New Mexico;
[L.] M. "member" means any judge or justice who is in office and covered pursuant to the provisions of the Judicial Retirement Act, or any person no longer in office who was previously a judge or justice covered pursuant to the provisions of the Judicial Retirement Act, who has not retired and who has not received a refund of member contributions from the fund;
[M.] N. "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 thereto;
[N.] O. "minor child" means a natural or adopted child who has not reached [his] the child's eighteenth birthday and who has not been emancipated by marriage or otherwise;
[O.] P. "new judge or justice" means:
(1) a judge or justice who first occupied such an office after July 1, 1980; or
(2) a judge or justice who occupied such an office on or before July 1, 1980 and who has elected to be covered under the provisions of the Judicial Retirement Act;
[P.] Q. "pension" means a series of monthly payments to a retired member or survivor beneficiary pursuant to the provisions of the Judicial Retirement Act;
[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 one 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. "salary" means the base salary or wages paid a member, including longevity pay, for personal services rendered; provided that salary does 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 pursuant to the provisions of the Judicial Retirement Act;
[U.] V. "state system" means the retirement programs provided pursuant to the provisions of the Public Employees Retirement Act, the Magistrate Retirement Act and the Judicial Retirement Act;
[V.] W. "surviving spouse" means the spouse to whom the member was married at the time of the member's death;
[W.] X. "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; and
[X.] Y. "years of service" means a period of time beginning on the date a person commences to hold office as a judge or justice because of appointment or election and ending on the date a person ceases to hold office as a judge or justice because of expiration of the judge's or justice's term, voluntary resignation, death or disability and shall include any fractions of years of service."
SECTION 2. Section 10-12B-8 NMSA 1978 (being Laws 1992, Chapter 111, Section 8, as amended) is amended to read:
"10-12B-8. AGE AND SERVICE CREDIT REQUIREMENTS FOR NORMAL RETIREMENT.--
A. For an individual who initially became a member prior to July 1, 2005, the age and service credit requirements for retirement provided for in the Judicial Retirement Act are:
(1) age sixty-four or older and five or more years of service credit; or
(2) age sixty or older and fifteen or more years of service credit.
B. For an individual who initially became a member on or after July 1, 2005, but prior to July 1, 2013, the age and service credit requirements for retirement provided for in the Judicial Retirement Act are:
(1) age sixty-four or older and five or more years of service credit; or
(2) age fifty-five or older and sixteen or more years of service credit.
C. For an individual who initially became a member on or after July 1, 2013, the age and service credit requirements for retirement provided for in the Judicial Retirement Act are:
(1) age sixty-seven years or older and five or more years of service credit;
(2) any age 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.
[C.] D. 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 member] the member's 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 Judicial Retirement Act or provisions of the Public Employees Retirement Reciprocity Act.
[D.] E. No member shall be eligible to receive a pension pursuant to the provisions of the Judicial Retirement Act while still in office."
SECTION 3. Section 10-12B-9 NMSA 1978 (being Laws 1992, Chapter 111, Section 9, as amended) is amended to read:
"10-12B-9. AMOUNT OF PENSION.--The amount of monthly pension is equal to:
A. in the case of a former or current judge or justice, an amount equal to one-twelfth of:
seventy-five percent number of years of
of salary received X service, not exceeding
during last year in ten years, divided
office prior to retirement by ten; B. in the case of a new judge or justice who initially became a member prior to July 1, 2005, an amount equal to one-twelfth of:
seventy-five percent of (number of years of salary received during X .05 X service, not last year in office exceeding fifteen prior to retirement years, plus five years); [or]
C. in the case of a new judge or justice who initially became a member on or after July 1, 2005, but prior to July 1, 2013, an amount equal to one-twelfth of the salary received during the last year in office prior to retirement multiplied by the product of three and seventy-five hundredths percent times the sum of the number of years of service; provided that a pension calculated pursuant to this subsection shall not exceed seventy-five percent of one-twelfth of the salary received during the last year in office; or
D. in the case of a new judge or justice who initially became a member on or after July 1, 2013, an amount equal to two and one-half percent of final average salary multiplied by service credit. The amount shall not exceed eighty percent of final average salary."
SECTION 4. Section 10-12C-2 NMSA 1978 (being Laws 1992, Chapter 118, Section 2, as amended) is amended to read:
"10-12C-2. DEFINITIONS.--As used in the Magistrate Retirement Act:
A. "association" means the public employees retirement association provided for in the Public Employees Retirement Act;
B. "board" means the retirement board provided for in the Public Employees Retirement Act;
C. "dependent child" means a natural or adopted child who is physically or mentally incapable of financial self-support, regardless of age;
D. "educational retirement system" means the retirement system provided for in the Educational Retirement Act;
E. "effective date of retirement" means the first day of the month following the month in which the member met all requirements for retirement;
F. "final average salary" means one thirty-sixth of the greatest amount of salary paid to a member for thirty-six consecutive but not necessarily continuous months of credit service;
[F.] G. "former member" means a person no longer in office who was previously covered pursuant to the provisions of Sections 10-12A-1 through 10-12A-13 NMSA 1978, but who has not retired pursuant to the provisions of the Magistrate Retirement Act and who has received a refund of member contributions pursuant to the provisions of Sections 10-12C-1 through 10-12C-18 NMSA 1978;
[G.] H. "fund" means the magistrate retirement fund;
[H.] I. "magistrate" means a magistrate judge;
[I.] J. "member" means any magistrate who is in office and covered pursuant to the provisions of the Magistrate Retirement Act, or any person no longer in office who was previously a magistrate covered pursuant to the provisions of the Magistrate Retirement Act, who has not retired and who has not received a refund of member contributions from the fund;
[J.] K. "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 thereto;
[K.] L. "minor child" means a natural or adopted child who has not reached [his] the natural or adopted child's eighteenth birthday and who has not been emancipated by marriage or otherwise;
[L.] M. "pension" means a series of monthly payments to a retired member or survivor beneficiary pursuant to the provisions of the Magistrate Retirement Act;
[M.] N. "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 as the person 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;
[N.] O. "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 one state system or the educational retirement system;
[O.] P. "retired member" means a person who has met all requirements for retirement and who is receiving a pension from the fund;
[P.] Q. "salary" means the base salary or wages paid a member, including longevity pay, for personal services rendered; provided that salary does 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 pursuant to the provisions of the Magistrate Retirement Act;
[Q.] R. "state system" means the retirement programs provided pursuant to the provisions of the Public Employees Retirement Act, the Magistrate Retirement Act and the Judicial Retirement Act;
[R.] S. "surviving spouse" means the spouse to whom the member was married at the time of the member's death;
[S.] T. "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; and
[T.] U. "years of service" means a period of time beginning on the date a person commences to hold office as a magistrate because of appointment or election and ending on the date a person ceases to hold office as a magistrate because of expiration of the magistrate's term, voluntary resignation, death or disability and shall include any fractions of years of service."
SECTION 5. 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. For an individual who initially became a member prior to July 1, 2013, the age and service credit requirements for retirement provided for in the Magistrate Retirement Act 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. For an individual who initially became a member on or after July 1, 2013, the age and service credit requirements for retirement provided for in the Magistrate Retirement Act are:
(1) age sixty-seven years or older and five or more years of service credit;
(2) any age 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.
[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 member] the member's 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 6. Section 10-12C-9 NMSA 1978 (being Laws 1992, Chapter 118, Section 9) is amended to read:
"10-12C-9. AMOUNT OF PENSION.--The amount of monthly pension:
A. in the case of a magistrate who initially became a member prior to July 1, 2013, is equal to one-twelfth of:
seventy-five percent of (number of years of
salary received during service, not exceeding
last year in office X .05 X fifteen years, [+]
prior to retirement plus five years); or
B. in the case of a magistrate who initially became a member on or after July 1, 2013, is equal to two and one-half percent of final average salary multiplied by service credit. The amount shall not exceed eighty percent of final average salary."
SECTION 7. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.
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