SENATE BILL 26
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 PENSIONS; AMENDING THE PUBLIC EMPLOYEES RETIREMENT ACT, THE MAGISTRATE RETIREMENT ACT AND THE JUDICIAL RETIREMENT ACT; AUTHORIZING THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION TO DETERMINE AND IMPOSE SUPPLEMENTAL MEMBER CONTRIBUTION RATES AND COST-OF-LIVING ADJUSTMENTS FOR MEMBERS AND RETIRED MEMBERS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. 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. 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. In addition to the member contribution required pursuant to Subsection A of this section, a member under state general member coverage plan 3 shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in the first full pay period that ends within the calendar month in which state general member coverage plan 3 becomes applicable to the member. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan."
SECTION 2. 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. 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. In addition to the member contribution required pursuant to Subsection A of this section, a member under state hazardous duty member coverage plan 2 shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in 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. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan."
SECTION 3. 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. A member under municipal general member coverage plan 1 shall contribute seven percent of salary.
B. In addition to the member contribution required pursuant to Subsection A of this section, a member under municipal general member coverage plan 1 shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in the first full pay period that ends within the calendar month in which municipal general member coverage plan 1 becomes applicable to the member. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan."
SECTION 4. 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. A member under municipal general member coverage plan 2 shall contribute nine and [fifteen one-hundredths] fifteen-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.
B. In addition to the member contribution required pursuant to Subsection A of this section, a member under municipal general member coverage plan 2 shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in the first full pay period that ends within the calendar month in which municipal general member coverage plan 2 becomes applicable to the member. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan."
SECTION 5. 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. A member under municipal general member coverage plan 3 shall contribute thirteen and [fifteen one-hundredths] fifteen-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.
B. In addition to the member contribution required pursuant to Subsection A of this section, a member under municipal general member coverage plan 3 shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in the first full pay period that ends within the calendar month in which municipal general member coverage plan 3 becomes applicable to the member. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan."
SECTION 6. 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. A member under municipal general member coverage plan 4 shall contribute fifteen and sixty-five 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.
B. In addition to the member contribution required pursuant to Subsection A of this section, a member under municipal general member coverage plan 4 shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in the first full pay period that ends within the calendar month in which municipal general member coverage plan 4 becomes applicable to the member. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan."
SECTION 7. 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. A member under municipal police member coverage plan 1 shall contribute seven percent of salary.
B. In addition to the member contribution required pursuant to Subsection A of this section, a member under municipal police member coverage plan 1 shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in the first full pay period that ends within the calendar month in which municipal police member coverage plan 1 becomes applicable to the member. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan."
SECTION 8. 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. A member under municipal police member coverage plan 2 shall contribute seven percent of salary.
B. In addition to the member contribution required pursuant to Subsection A of this section, a member under municipal police member coverage plan 2 shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in the first full pay period that ends within the calendar month in which municipal police member coverage plan 2 becomes applicable to the member. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan."
SECTION 9. 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. A member under municipal police member coverage plan 3 shall contribute seven percent of salary.
B. In addition to the member contribution required pursuant to Subsection A of this section, a member under municipal police member coverage plan 3 shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in the first full pay period that ends within the calendar month in which municipal police member coverage plan 3 becomes applicable to the member. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan."
SECTION 10. 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. A member under municipal police member coverage plan 4 shall contribute twelve and thirty-five [one-hundredths] 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.
B. In addition to the member contribution required pursuant to Subsection A of this section, a member under municipal police member coverage plan 4 shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in the first full pay period that ends within the calendar month in which municipal police member coverage plan 4 becomes applicable to the member. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan."
SECTION 11. 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. A member under municipal police member coverage plan 5 shall contribute sixteen and three-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.
B. In addition to the member contribution required pursuant to Subsection A of this section, a member under municipal police member coverage plan 5 shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in the first full pay period that ends within the calendar month in which municipal police member coverage plan 5 becomes applicable to the member. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan."
SECTION 12. 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. A member under municipal fire member coverage plan 1 shall contribute eight percent of salary.
B. In addition to the member contribution required pursuant to Subsection A of this section, a member under municipal fire member coverage plan 1 shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in the first full pay period that ends within the calendar month in which municipal fire member coverage plan 1 becomes applicable to the member. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan."
SECTION 13. 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. A member under municipal fire member coverage plan 2 shall contribute eight percent of salary.
B. In addition to the member contribution required pursuant to Subsection A of this section, a member under municipal fire member coverage plan 2 shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in the first full pay period that ends within the calendar month in which municipal fire member coverage plan 2 becomes applicable to the member. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan."
SECTION 14. 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. A member under municipal fire member coverage plan 3 shall contribute eight percent of salary.
B. In addition to the member contribution required pursuant to Subsection A of this section, a member under municipal fire member coverage plan 3 shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in the first full pay period that ends within the calendar month in which municipal fire member coverage plan 3 becomes applicable to the member. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan."
SECTION 15. 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. A member under municipal fire member coverage plan 4 shall contribute twelve and eight-tenths percent of salary.
B. In addition to the member contribution required pursuant to Subsection A of this section, a member under municipal fire member coverage plan 4 shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in the first full pay period that ends within the calendar month in which municipal fire member coverage plan 4 becomes applicable to the member. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan."
SECTION 16. 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. A member under municipal fire member coverage plan 5 shall contribute sixteen and two-tenths percent of salary.
B. In addition to the member contribution required pursuant to Subsection A of this section, a member under municipal fire member coverage plan 5 shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in the first full pay period that ends within the calendar month in which municipal fire member coverage plan 5 becomes applicable to the member. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan."
SECTION 17. 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. A member under municipal detention officer member coverage plan 1 shall contribute sixteen and sixty-five 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.
B. In addition to the member contribution required pursuant to Subsection A of this section, a member under municipal detention officer member coverage plan 1 shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in 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. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan."
SECTION 18. 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) "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.] On March 1 of each year, the retirement board shall determine the funded status of each coverage plan in the state system. On May 1 of each year, the retirement board shall determine for each coverage plan a cost-of-living adjustment that is no less than zero percent and no greater than three percent. In determining the percentage of a cost-of-living adjustment, the retirement board shall:
(1) consider the solvency of that plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider the change, if any, in the consumer price index for the previous twelve months;
(3) consider any other relevant factors as determined by the retirement board; and
(4) act to enhance or preserve the actuarial soundness of the plan.
B. The amount of pension payable to a qualified pension recipient [shall] may 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] a cost-of-living adjustment determined by the retirement board pursuant to Subsection A of this section.
C. 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;
(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. 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 19. 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] 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].
B. In addition to the member contribution required pursuant to Subsection A of this section, a member under the Judicial Retirement Act shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in the first full pay period that the member is in office. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan.
[B.] C. 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 20. 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] 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].
B. In addition to the member contribution required pursuant to Subsection A of this section, a member under the Magistrate Retirement Act shall make a supplemental contribution as determined by the retirement board. The rate of the supplemental contribution, if any, shall be determined annually and shall take effect on July 1 of each year or in the first full pay period that the member is in office. In determining the supplemental contribution rate, the retirement board shall:
(1) consider the solvency of the coverage plan and whether the plan is projected to be ninety percent funded within thirty years;
(2) consider any other relevant factors as determined by the retirement board;
(3) not set a supplemental contribution rate in excess of thirty-five percent of the contribution rate set forth in Subsection A of this section; and
(4) act to enhance or preserve the actuarial soundness of the plan.
[B.] C. 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] 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 21. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.
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