SB0562

SENATE BILL 562

51st legislature - STATE OF NEW MEXICO - first session, 2013

INTRODUCED BY

John M. Sapien

AN ACT

RELATING TO PENSIONS; AMENDING THE PUBLIC EMPLOYEES RETIREMENT ACT BY CREATING THE PENSION INVESTMENT PLAN; PROVIDING FOR CERTAIN RETIREES TO WORK FOR AN AFFILIATED PUBLIC EMPLOYER WHILE INVESTING THEIR PENSION BENEFIT IN THE PENSION INVESTMENT PLAN; PROVIDING THAT A PARTICIPANT IN THE PENSION INVESTMENT PLAN AND THE AFFILIATED PUBLIC EMPLOYER SHALL MAKE THE REQUIRED CONTRIBUTIONS; INCREASING EMPLOYEE AND EMPLOYER CONTRIBUTION RATES.

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

SECTION 1. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] PURPOSE.--The purpose of the pension investment plan is to improve the funded status of the public employees retirement association funds, while also providing an incentive for skilled and trained members who retire after meeting the age and service requirements for normal retirement, to return to work for affiliated public employers, make the applicable employee contributions for that employment and invest their pension benefits into the public employees retirement association funds."

SECTION 2. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] PENSION INVESTMENT PLAN CREATED.--The "pension investment plan" is created. The plan shall be administered by the association pursuant to the provisions of the Public Employees Retirement Act. The pension benefit money deposited into the fund shall be invested by the retirement board as provided in the Public Employees Retirement Act."

SECTION 3. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] PENSION INVESTMENT PLAN PARTICIPATION.--An individual may participate in the pension investment plan if the individual:

A. retires after meeting the age and service requirements for normal retirement pursuant to the applicable coverage plan under the Public Employees Retirement Act;

B. submits to the association, in a form and manner prescribed by the association, an application for participation in the pension investment plan, including with the application, verification of:

(1) the date of retirement;

(2) subsequent employment with an affiliated public employer, including the date the employment begins; and

(3) a signed consent agreeing to the terms of participation in the pension investment plan, including the requirements that:

(a) the participant's pension benefit shall be deposited by the association directly to the fund and credited to the participant's pension investment plan account;

(b) the participant shall make member contributions pursuant to the coverage plan applicable to the participant's employment with the affiliated public employer;

(c) the participant's affiliated public employer shall make the employer contributions pursuant to the coverage plan applicable to the participant's employment;

(d) the participant shall not earn service credit for the employment with the affiliated public employer; and

(e) the pension benefit amount and form of payment selected by the retiree upon retirement shall not be adjusted upon termination of participation in the pension investment plan;

C. receives written confirmation from the association approving participation in the pension investment plan;

D. begins participation in the pension investment plan within five calendar years from the date of retirement; and

E. terminates participation in the pension investment plan within ten years of the date of retirement."

SECTION 4. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] PENSION BENEFIT INVESTED IN FUND--PENSION INVESTMENT PLAN PARTICIPANT ACCOUNT.--

A. The association shall automatically deposit the pension benefit of a pension investment plan participant into the fund and shall credit the amount of the pension benefit to the participant's pension investment plan account.

B. All pension investment plan participant pension benefits deposited into the fund shall be invested by the retirement board pursuant to the provisions of the Public Employees Retirement Act."

SECTION 5. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] PENSION INVESTMENT PLAN--ELIGIBILITY PERIOD--TERMS OF PARTICIPATION.--

A. A retired member approved for participation in the pension investment plan pursuant to the provisions of Subsection C of Section 3 of this 2013 act is eligible to participate in the pension investment plan.

B. Participation in the pension investment plan may begin at any time prior to a date that is five years from the participant's retirement date, and participation and employment with an affiliated public employer must continue for at least twelve consecutive months from the date the participant becomes a pension investment plan participant, but no longer than ten consecutive years from the date of the retirement.

C. If a pension investment plan participant terminates employment with the affiliated public employer prior to meeting the twelve consecutive months of employment requirement provided in Subsection B of this section, the participant's participation in the pension investment plan shall be terminated and the former participant shall receive a lump-sum payment of the balance in the participant's pension investment plan account, less investment earnings and less any annual association service fee due and any penalties or taxes withheld pursuant to state or federal law.

D. A participant who applies for, and receives a written approval for, a hardship exception may terminate employment before meeting the twelve consecutive months of employment requirement, and the penalty for early employment termination may be waived by the retirement board. Penalties or taxes withheld pursuant to state or federal law shall not be waived. The participant's application for a hardship release waiver shall be made immediately upon the termination of employment, and in a form and manner prescribed by the association. The retirement board shall issue its decision to approve or deny the application within forty-five days of receiving the request. The retirement board's decision shall be final."

SECTION 6. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] PENSION INVESTMENT PLAN--SERVICE FEE--PENALTIES.--

A. Each pension investment plan account shall be debited an annual service fee. The service fee shall be in an amount equal to thirty percent of the investment earnings on the balance in the participant's account or two thousand five hundred dollars ($2,500), whichever is greater.

B. In addition to the annual service fee debited from a pension investment plan account, a participant's account may be debited in an amount of any penalties or taxes withheld pursuant to state or federal law."

SECTION 7. A new section of the Public Employees Retirement Act is enacted to read:

"[NEW MATERIAL] PENSION INVESTMENT PLAN--TERMINATION OF EMPLOYMENT--FORM OF PAYMENT.--

A. Upon termination of a pension investment plan participant's employment with the affiliated public employer, provided the participant meets the minimum twelve consecutive months of employment requirement provided in Section 6 of this 2013 act, the participant may apply to receive payment from the pension investment plan account. Such payments shall be:

(1) a one-time payment of the balance in the participant's pension investment plan account, including investment earnings and less any annual service fees due and penalties or taxes withheld pursuant to state or federal law; or

(2) a monthly payment, including investment earnings and less any annual service fees due and penalties or taxes withheld pursuant to state or federal law, the payments to be paid over a period of not less than ten years and not more than thirty years in a manner prescribed by the association.

B. The association shall promulgate rules to allow for a pension investment plan participant to withdraw once during any calendar year up to fifty percent of the balance in the participant's account less a three percent withdrawal fee and less any state or federal taxes that may apply.

C. Balances remaining in a pension investment plan participant account after the termination of employment shall be credited with investment earnings and less any annual service fees due and penalties or taxes withheld pursuant to state or federal law."

SECTION 8. 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, other than a pension investment plan participant, 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. "pension investment plan" means the pension investment plan administered by the association pursuant to the provisions of the Public Employees Retirement Act;

Q. "pension investment plan account" means the balance accumulated in a pension investment plan account, which account is credited with the member's monthly pension benefit, along with any investment earnings on the balance in the account, less the annual account service fees paid to the association and less penalties or taxes withheld pursuant to state or federal law;

R. "pension investment plan participant" means:

(1) a retired member who is subsequently employed by an affiliated public employer and who agrees to invest the retiree's pension benefit in the fund; or

(2) a retired member who was, for at least twelve consecutive months, subsequent to retirement, employed by an affiliated public employer; and

(3) has funds in a pension investment plan account and is eligible for payments pursuant to the provisions of the Public Employees Retirement Act;

[P.] S. "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.] T. "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.] U. "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.] V. "retired member" means a person who has met all requirements for retirement and who is receiving a pension from the fund;

[T.] W. "retirement board" means the retirement board provided for in the Public Employees Retirement Act;

[U.] X. "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.] Y. "state system" means the retirement programs provided for in the Public Employees Retirement Act, the Magistrate Retirement Act and the Judicial Retirement Act;

[W.] Z. "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.] AA. "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 9. Section 10-11-4 NMSA 1978 (being Laws 1987, Chapter 253, Section 4, as amended) is amended to read:

"10-11-4. SERVICE CREDIT--CREDIT NOT ACQUIRED-- REQUIREMENTS FOR--FORFEITURE--REINSTATEMENT.--

A. Personal service rendered an affiliated public employer by a member shall be credited to the member's service credit account in accordance with retirement board rules and regulations. Service shall be credited to the nearest month. In no case shall any member be credited with a year of service for less than twelve months of service in any calendar year or more than a month of service for all service in any calendar month or more than a year of service for all service in any calendar year. In no case shall any member be allowed to purchase service credit unless the purchase is authorized in the Public Employees Retirement Act.

B. Personal service rendered an affiliated public employer prior to August 1, 1947 shall be credited to a member if the member acquires one year of service credit for personal service rendered an affiliated public employer.

C. Personal service rendered an affiliated public employer after July 31, 1947 but prior to the date the public employer became an affiliated public employer is prior service and shall be credited to a member if:

(1) the member acquires five years of service credit for personal service rendered an affiliated public employer; and

(2) the member pays the association the amount determined in accordance with Subsection D of this section.

D. Personal service rendered by a retired member who is a pension investment plan participant and is a contributing employee of an affiliated public employer shall not be considered service credit for any purpose, and the participant shall not accrue service credit for the employment.

[D.] E. The purchase cost for each month of service credit purchased under the provisions of this section is equal to the member's final average salary multiplied by the sum of the member contribution rate and employer contribution rate determined in accordance with the coverage plan applicable to the member at the time of the written election to purchase. Full payment shall be made in a single lump-sum amount in accordance with the procedures established by the retirement board. The portion of the purchase cost derived from the employer contribution rate shall be credited to the [employer] employer's accumulation fund and shall not be refunded to the member in the event of cessation of membership. In no case shall any member be credited with a month of service for less than the purchase cost as defined in this section.

[E.] F. Service credit shall be forfeited if a member terminates employment with an affiliated public employer and withdraws the member's accumulated member contributions.

[F.] G. A member or former member who is a member of another state system or the educational retirement system and who has forfeited service credit by withdrawal of member contributions may reinstate the forfeited service credit by repaying the amount withdrawn plus compound interest from the date of withdrawal to the date of repayment at the rate set by the retirement board. Withdrawn member contributions may be repaid in increments of one year in accordance with the procedures established by the retirement board. Full payment of each one-year increment shall be made in a single lump-sum amount in accordance with procedures established by the retirement board."

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

"10-11-5. CREDITED SERVICE--MUNICIPAL ELECTION TO MAKE EMPLOYEE CONTRIBUTIONS.--A municipal affiliated public employer may elect by resolution of its governing body or by execution of a collective bargaining agreement and in the manner prescribed by the retirement board to be responsible for making contributions of up to seventy-five percent of its employees' member contributions as follows:

A. the resolution or collective bargaining agreement shall be irrevocable; [however] except that:

(1) if the resolution is passed or the collective bargaining agreement is executed on or before June 30, 2013, the percentage of the employee contributions that the municipal affiliated public employer elects to be responsible for making shall apply to the statutory employee contribution rate in effect on June 30, 2013 and shall not apply to any increase in the statutory employee contribution rate that may occur after that date; and

(2) if the resolution is passed or the collective bargaining agreement is executed on or after July 1, 2013, the percentage of the employee contributions that the municipal affiliated public employer elects to be responsible for making shall apply to the statutory employee contribution rate in effect on the date that the resolution is passed or the collective bargaining agreement is executed and shall not apply to any increases in the statutory employee contribution rate that may occur after that date; provided, however, that, if the statutory employee contribution rate is decreased after the date that the resolution is passed or the collective bargaining agreement is executed, the percentage of the employee contributions that the municipal public affiliated employer is responsible for making shall apply to the decreased statutory

employee contribution rate;

B. a municipal affiliated public employer may by subsequent resolution or collective bargaining agreement:

(1) elect to increase the percentage of employee member contributions for which it will be responsible; (2) elect to be responsible for a percentage

of any increase to the statutory employee contribution rate in

effect after the passing of an earlier resolution or the

execution of an earlier collective bargaining agreement; or

[(2)] (3) at the time a new coverage plan is adopted, elect to be responsible under the new coverage plan for making a different percentage of employee member contributions than that which it elected under a previous coverage plan;

[B.] C. the resolution or executed collective bargaining agreement shall apply to all employees or else to specified employee divisions of the municipal affiliated public employer and shall be effective the first pay period of the month following the filing of the resolution with the retirement board;

[C.] D. except as provided in Subsection E of this section, the portion of the employee contributions made by the municipal affiliated public employer on behalf of a member shall be credited to the member's individual accumulated member contribution account in the member contribution fund. The member shall be responsible for the difference between the contributions the member would be required to make if the municipal affiliated public employer had not made the election provided for in this section and the amount contributed by the municipal affiliated public employer [under] pursuant to the provisions of this section;

E. the portion of the employee contributions made by the municipal affiliated public employer on behalf of a retired member who is an employed pension investment plan participant shall be credited to the fund and shall not be credited to the retired member's individual accumulated member contribution account. The pension investment plan participant shall be responsible for the difference between the contributions the pension investment plan participant would be required to make if the municipal affiliated public employer had not made the election provided for in this section and the amount contributed by the municipal affiliated public employer pursuant to the provisions of this section;

[D.] F. pensions payable to members whose municipal affiliated public employer makes the election provided for in this section shall be the same as if the member had made the entire member contribution; and

[E.] G. any municipal affiliated public employer increasing the percentage of the employee member contributions it elects to make pursuant to this section shall submit a resolution or executed collective bargaining agreement to the association by July 1 of the fiscal year in which the increase will take place indicating the percentage of the employee member contributions that will be made by the municipal affiliated public employer."

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

"10-11-8. NORMAL RETIREMENT--RETURN TO EMPLOYMENT--PENSION INVESTMENT PLAN PARTICIPANTS--BENEFITS CONTINUED--[EMPLOYER] CONTRIBUTIONS.--

A. A member may retire upon fulfilling the following requirements prior to the selected date of retirement:

(1) a written application for normal retirement, in the form prescribed by the association, is filed with the association;

(2) employment is terminated with all employers covered by any state system or the educational retirement system;

(3) the member selects an effective date of retirement that is the first day of a calendar month; and

(4) the member meets the age and service credit requirement for normal retirement specified in the coverage plan applicable to the member.

B. The amount of normal retirement pension is determined in accordance with the coverage plan applicable to the member.

C. Except as provided in Subsection D of this section, on or after July 1, 2010, a retired member may be subsequently employed by an affiliated public employer only pursuant to the following provisions:

(1) the retired member has not been employed as an employee of an affiliated public employer or retained as an independent contractor by the affiliated public employer from which the retired member retired for at least twelve consecutive months from the date of retirement to the commencement of employment or reemployment with an affiliated public employer;

(2) the retired member's pension shall be suspended upon commencement of the employment;

(3) except as provided in Subsection F of this section, the previously retired member shall not become a member and thus the previously retired member shall accrue no service credit and the previously retired member and that person's affiliated public employer shall make no contributions under any coverage plan pursuant to the Public Employees Retirement Act; and

(4) upon termination of the subsequent employment, the previously retired member's pension shall resume in accordance with the provisions of Subsection A of this section.

D. The provisions of Subsection C of this section do not apply to:

(1) a retired member employed by the legislature for legislative session work;

(2) a retired member employed temporarily as a precinct board member for a municipal election or an election covered by the Election Code;

(3) a retired member who is a pension investment plan participant and is employed by an affiliated public employer; provided that:

(a) within thirty days of beginning pension plan investment participation, the participant files an irrevocable exemption from membership with the association and an agreement authorizing the association to: 1) deduct member contributions from the participant's salary earned from the subsequent employment with an affiliated public employer in an amount specified pursuant to the Public Employees Retirement Act at the rate applicable to the coverage plan for the position in which the participant is employed; and 2) deposit the participant's pension benefit payment directly to the fund and credit the participant's pension investment plan account with the amount of the payment; and

(b) the irrevocable exemption shall remain in force for the duration of the participant's subsequent employment with the affiliated public employer;

[(3)] (4) a retired member who is elected to serve a term as an elected official; provided that:

(a) the retired member files an irrevocable exemption from membership with the association within thirty days of taking office; and

(b) the irrevocable exemption shall be for the elected official's term of office.

E. A retired member who returns to employment during retirement pursuant to Subsection D of this section is entitled to receive retirement benefits but is not entitled to accrue service credit or to acquire or purchase service credit in the future for the period of the previously retired member's reemployment with an affiliated public employer.

F. At any time during a previously retired member's subsequent employment pursuant to Subsection C of this section, the previously retired member may elect to become a member and the following conditions shall apply:

(1) the previously retired member and the subsequent affiliated public employer shall make the required employee and employer contributions, and the previously retired member shall accrue service credit for the period of subsequent employment; and

(2) when the previously retired member terminates the subsequent employment with an affiliated public employer, the previously retired member shall retire according to the provisions of the Public Employees Retirement Act, subject to the following conditions:

(a) payment of the pension shall resume in accordance with the provisions of Subsection A of this section;

(b) unless the previously retired member accrued at least three years of service credit on account of the subsequent employment, the recalculation of pension shall: 1) employ the form of payment selected by the previously retired member at the time of the first retirement; and 2) use the provisions of the coverage plan applicable to the member on the date of the first retirement; and

G. A previously retired member who returned to work with an affiliated public employer prior to July 1, 2010 shall be subject to the provisions of this section in effect on the date the previously retired member returned to work; provided that, on and after July 1, 2010, the previously retired member shall pay the employee contribution in an amount specified in the Public Employees Retirement Act for the position in which the previously retired member is employed.

H. The pension of a member who has three or more years of service credit under each of two or more coverage plans shall be determined in accordance with the coverage plan that produces the highest pension. The pension of a member who has service credit under two or more coverage plans but who has three or more years of service credit under only one of those coverage plans shall be determined in accordance with the coverage plan in which the member has three or more years of service credit. If the service credit is acquired under two different coverage plans applied to the same affiliated public employer as a consequence of an election by the members, adoption by the affiliated public employer or a change in the law that results in the application of a coverage plan with a greater pension, the greater pension shall be paid a member retiring from the affiliated public employer under which the change in coverage plan took place regardless of the amount of service credit under the coverage plan producing the greater pension; provided that the member has three or more years of continuous employment with that affiliated public employer immediately preceding or immediately preceding and immediately following the date the coverage plan changed. The provisions of each coverage plan for the purpose of this subsection shall be those in effect at the time the member ceased to be covered by the coverage plan. "Service credit", for the purposes of this subsection, shall be only personal service rendered an affiliated public employer and credited to the member under the provisions of Subsection A of Section 10-11-4 NMSA 1978. Service credited under any other provision of the Public Employees Retirement Act shall not be used to satisfy the three-year service credit requirement of this subsection."

SECTION 12. 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 member under state general member coverage plan 3 shall contribute [seven and forty-two] ten 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] 2013 through June 30, [2011] 2014, the member contribution rate shall be eight and ninety-two hundredths percent of salary;

B. from July 1, [2011] 2014 through June 30, [2012] 2015, the member contribution rate shall be [ten and sixty-seven] nine and forty-two hundredths percent of salary; and C. from July 1, [2012] 2015 through June 30, [2013] 2016, the member contribution rate shall be [eight] nine and ninety-two hundredths percent of salary."

SECTION 13. Section 10-11-26.6 NMSA 1978 (being Laws 1994, Chapter 128, Section 7, as amended) is amended to read:

"10-11-26.6. STATE GENERAL MEMBER COVERAGE PLAN 3--STATE CONTRIBUTION RATE.--The state shall contribute [sixteen] nineteen and fifty-nine hundredths percent of the salary of each member covered by state general member coverage plan 3 starting with the first 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] 2013 through June 30, [2011] 2014, the state contribution rate shall be [fifteen] eighteen and nine-hundredths percent of the salary of each member;

B. from July 1, [2011] 2014 through June 30, [2012] 2015, the state contribution rate shall be [thirteen and thirty-four] eighteen and fifty-nine hundredths percent of the salary of each member; and

C. from July 1, [2012] 2015 through June 30, [2013] 2016, the state contribution rate shall be [fifteen] nineteen and nine-hundredths percent of the salary of each member."

SECTION 14. 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 member under state police member and adult correctional officer member coverage plan 1 shall contribute [seven and six-tenths] ten 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] 2013 through June 30, [2011] 2014, the member contribution rate shall be nine and one-tenth percent of salary;

B. from July 1, [2011] 2014 through June 30, [2012] 2015, the member contribution rate shall be [ten and eighty-five hundredths] nine and six-tenths percent of salary; and C. from July 1, [2012] 2015 through June 30, [2013] 2016, the member contribution rate shall be [nine] ten and one-tenth percent of salary."

SECTION 15. Section 10-11-32 NMSA 1978 (being Laws 1987, Chapter 253, Section 32, as amended) is amended to read:

"10-11-32. STATE POLICE MEMBER AND ADULT CORRECTIONAL OFFICER MEMBER COVERAGE PLAN 1--STATE CONTRIBUTION RATE.--The state shall contribute [twenty-five] twenty-eight and one-tenth percent of the salary of each member under state police member and adult correctional officer member coverage plan 1, except that [for members whose annual salary is greater than twenty thousand dollars ($20,000)]:

A. from July 1, [2009] 2013 through June 30, [2011] 2014, the state contribution rate shall be [twenty-three] twenty-six and six-tenths percent of the salary of each member;

B. from July 1, [2011] 2014 through June 30, [2012] 2015, the state contribution rate shall be [twenty-one and eighty-five hundredths] twenty-seven and one-tenth percent of the salary of each member; and

C. from July 1, [2012] 2015 through June 30, [2013] 2016, the state contribution rate shall be [twenty-three] twenty-seven and six-tenths percent of the salary of each member."

SECTION 16. 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 member under state hazardous duty member coverage plan 2 shall contribute [four] seven and [seventy-eight] 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] 2013 through June 30, [2011] 2014, the member contribution rate shall be six and twenty-eight hundredths percent of salary;

B. from July 1, [2011] 2014 through June 30, [2012] 2015, the member contribution rate shall be [eight and three-hundredths] six and seventy-eight hundredths percent of salary; and

C. from July 1, [2012] 2015 through June 30, [2013] 2016, the member contribution rate shall be [six] seven and twenty-eight hundredths percent of salary."

SECTION 17. Section 10-11-38.6 NMSA 1978 (being Laws 1994, Chapter 128, Section 14, as amended) is amended to read:

"10-11-38.6. STATE HAZARDOUS DUTY MEMBER COVERAGE PLAN

2--STATE CONTRIBUTION RATE.--The state shall contribute [twenty-five] twenty-eight and seventy-two hundredths percent of the salary of each member covered by state hazardous duty member coverage plan 2 starting with the first 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] 2013 through June 30, [2011] 2014, the state contribution rate shall be [twenty-four] twenty-seven and twenty-two hundredths percent of the salary of each member;

B. from July 1, [2011] 2014 through June 30, [2012] 2015, the state contribution rate shall be [twenty-two and forty-seven] twenty-seven and seventy-two hundredths percent of the salary of each member; and

C. from July 1, [2012] 2015 through June 30, [2013] 2016, the state contribution rate shall be [twenty-four] twenty-eight and twenty-two hundredths percent of the salary of each member."

SECTION 18. 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] ten percent of salary, except that:

A. from July 1, 2013 through June 30, 2014, the member contribution rate shall be eight and one-half percent of the member's salary;

B. from July 1, 2014 through June 30, 2015, the member contribution rate shall be nine percent of the member's salary; and

C. from July 1, 2015 through June 30, 2016, the member contribution rate shall be nine and one-half percent of salary."

SECTION 19. Section 10-11-49 NMSA 1978 (being Laws 1987, Chapter 253, Section 49) is amended to read:

"10-11-49. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 1--AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--An affiliated public employer shall contribute [seven] ten percent of the salary of each member [which] whom it employs and who is covered under municipal general member coverage plan 1, except that:

A. from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be eight and one-half percent of the salary of each member;

B. from July 1, 2014 through June 30, 2015, the affiliated public employer contribution rate shall be nine percent of the salary of each member; and

C. from July 1, 2015 through June 30, 2016, the affiliated public employer contribution rate shall be nine and one-half percent of the salary of each member."

SECTION 20. 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] twelve and 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, except that:

A. from July 1, 2013 through June 30, 2014, the member contribution rate shall be ten and sixty-five hundredths percent of the member's salary;

B. from July 1, 2014 through June 30, 2015, the member contribution rate shall be eleven and fifteen-hundredths percent of the member's salary; and

C. from July 1, 2015 through June 30, 2016, the member contribution rate shall be eleven and sixty-five hundredths percent of salary."

SECTION 21. Section 10-11-55 NMSA 1978 (being Laws 1987, Chapter 253, Section 55) is amended to read:

"10-11-55. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 2--AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--An affiliated public employer shall contribute [nine] twelve and [fifteen one-hundredths] fifteen-hundredths percent of the salary of each member [which] whom it employs and who is covered under municipal general member coverage plan 2, except that:

A. from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be ten and sixty-five hundredths percent of the salary of each member;

B. from July 1, 2014 through June 30, 2015, the affiliated public employer contribution rate shall be eleven and fifteen-hundredths percent of the salary of each member; and

C. from July 1, 2015 through June 30, 2016, the affiliated public employer contribution rate shall be eleven and sixty-five hundredths percent of the salary of each member."

SECTION 22. 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] sixteen and 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, except that:

A. from July 1, 2013 through June 30, 2014, the member contribution rate shall be fourteen and sixty-five hundredths percent of the member's salary;

B. from July 1, 2014 through June 30, 2015, the member contribution rate shall be fifteen and fifteen- hundredths percent of the member's salary; and

C. from July 1, 2015 through June 30, 2016, the member contribution rate shall be fifteen and sixty-five hundredths percent of salary."

SECTION 23. Section 10-11-55.6 NMSA 1978 (being Laws 1993, Chapter 58, Section 6) is amended to read:

"10-11-55.6. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 3--AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--An affiliated public employer shall contribute [nine] twelve and [fifteen one-hundredths] fifteen-hundredths percent of the salary of each member it employs and who is covered under municipal general member coverage plan 3, except that:

A. from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be ten and sixty-five hundredths percent of the salary of each member;

B. from July 1, 2014 through June 30, 2015, the affiliated public employer contribution rate shall be eleven and fifteen-hundredths percent of the salary of each member; and

C. from July 1, 2015 through June 30, 2016, the affiliated public employer contribution rate shall be eleven and sixty-five hundredths percent of the salary of each member."

SECTION 24. 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 hundredths] eighteen 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, except that:

A. from July 1, 2013 through June 30, 2014, the member contribution rate shall be seventeen and fifteen-hundredths percent of the member's salary;

B. from July 1, 2014 through June 30, 2015, the member contribution rate shall be seventeen and sixty-five hundredths percent of the member's salary; and

C. from July 1, 2015 through June 30, 2016, the member contribution rate shall be eighteen and fifteen- hundredths percent of salary."

SECTION 25. Section 10-11-55.12 NMSA 1978 (being Laws 1998, Chapter 106, Section 6) is amended to read:

"10-11-55.12. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 4--AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--An affiliated public employer shall contribute [eleven] fourteen and sixty-five hundredths percent of the salary of each member it employs and who is covered under municipal general member coverage plan 4, except that:

A. from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be thirteen and fifteen-hundredths percent of the salary of each member;

B. from July 1, 2014 through June 30, 2015, the affiliated public employer contribution rate shall be thirteen and sixty-five hundredths percent of the salary of each member; and

C. from July 1, 2015 through June 30, 2016, the affiliated public employer contribution rate shall be fourteen and fifteen-hundredths percent of the salary of each member."

SECTION 26. 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] ten percent of salary, except that:

A. from July 1, 2013 through June 30, 2014, the member contribution rate shall be eight and one-half percent of the member's salary;

B. from July 1, 2014 through June 30, 2015, the member contribution rate shall be nine percent of the member's salary; and

C. from July 1, 2015 through June 30, 2016, the member contribution rate shall be nine and one-half percent of salary."

SECTION 27. Section 10-11-61 NMSA 1978 (being Laws 1987, Chapter 253, Section 61) is amended to read:

"10-11-61. MUNICIPAL POLICE MEMBER COVERAGE PLAN 1--AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--The affiliated public employer shall contribute [ten] thirteen percent of the salary of each member [which] whom it employs and who is covered under municipal police member coverage plan 1, except that:

A. from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be eleven and one-half percent of the salary of each member;

B. from July 1, 2014 through June 30, 2015, the affiliated public employer contribution rate shall be twelve percent of the salary of each member; and

C. from July 1, 2015 through June 30, 2016, the affiliated public employer contribution rate shall be twelve and one-half percent of the salary of each member."

SECTION 28. 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] ten percent of salary, except that:

A. from July 1, 2013 through June 30, 2014, the member contribution rate shall be eight and one-half percent of the member's salary;

B. from July 1, 2014 through June 30, 2015, the member contribution rate shall be nine percent of the member's salary; and

C. from July 1, 2015 through June 30, 2016, the member contribution rate shall be nine and one-half percent of salary."

SECTION 29. Section 10-11-67 NMSA 1978 (being Laws 1987, Chapter 253, Section 67) is amended to read:

"10-11-67. MUNICIPAL POLICE MEMBER COVERAGE PLAN 2--AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--The affiliated public employer shall contribute [fifteen] eighteen percent of the salary of each member [which] whom it employs and who is covered under municipal police member coverage plan 2, except that:

A. from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be sixteen and one-half percent of the salary of each member;

B. from July 1, 2014 through June 30, 2015, the affiliated public employer contribution rate shall be seventeen percent of the salary of each member; and

C. from July 1, 2015 through June 30, 2016, the affiliated public employer contribution rate shall be seventeen and one-half percent of the salary of each member."

SECTION 30. 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] ten percent of salary, except that:

A. from July 1, 2013 through June 30, 2014, the member contribution rate shall be eight and one-half percent of the member's salary;

B. from July 1, 2014 through June 30, 2015, the member contribution rate shall be nine percent of the member's salary; and

C. from July 1, 2015 through June 30, 2016, the member contribution rate shall be nine and one-half percent of salary."

SECTION 31. Section 10-11-73 NMSA 1978 (being Laws 1987, Chapter 253, Section 73) is amended to read:

"10-11-73. MUNICIPAL POLICE MEMBER COVERAGE PLAN 3--AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--The affiliated public employer shall contribute [eighteen] twenty-one and one-half percent of the salary of each member [which] whom it employs and who is covered under [coverage] municipal police member coverage plan 3, except that:

A. from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be twenty percent of the salary of each member;

B. from July 1, 2014 through June 30, 2015, the affiliated public employer contribution rate shall be twenty and one-half percent of the salary of each member; and

C. from July 1, 2015 through June 30, 2016, the affiliated public employer contribution rate shall be twenty-one percent of the salary of each member."

SECTION 32. 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] fifteen and thirty-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, except that:

A. from July 1, 2013 through June 30, 2014, the member contribution rate shall be thirteen and eighty-five hundredths percent of the member's salary;

B. from July 1, 2014 through June 30, 2015, the member contribution rate shall be fourteen and thirty-five hundredths percent of the member's salary; and

C. from July 1, 2015 through June 30, 2016, the member contribution rate shall be fourteen and eighty-five hundredths percent of salary."

SECTION 33. Section 10-11-79 NMSA 1978 (being Laws 1987, Chapter 253, Section 79) is amended to read:

"10-11-79. MUNICIPAL POLICE MEMBER COVERAGE PLAN 4--AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--The affiliated public employer shall contribute [eighteen] twenty-one and one-half percent of the salary of each member [which] whom it employs and who is covered under municipal police member coverage plan 4, except that:

A. from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be twenty percent of the salary of each member;

B. from July 1, 2014 through June 30, 2015, the affiliated public employer contribution rate shall be twenty and one-half percent of the salary of each member; and

C. from July 1, 2015 through June 30, 2016, the affiliated public employer contribution rate shall be twenty-one percent of the salary of each member."

SECTION 34. 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] nineteen 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, except that:

A. from July 1, 2013 through June 30, 2014, the member contribution rate shall be seventeen and eight-tenths percent of the member's salary;

B. from July 1, 2014 through June 30, 2015, the member contribution rate shall be eighteen and three-tenths percent of the member's salary; and

C. from July 1, 2015 through June 30, 2016, the member contribution rate shall be eighteen and eight-tenths percent of salary."

SECTION 35. Section 10-11-85 NMSA 1978 (being Laws 1987, Chapter 253, Section 85) is amended to read:

"10-11-85. MUNICIPAL POLICE MEMBER COVERAGE PLAN 5--AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--The affiliated public employer shall contribute [eighteen] twenty-one and one-half percent of the salary of each member [which] whom it employs and who is covered under municipal police member coverage plan 5, except that:

A. from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be twenty percent of the salary of each member;

B. from July 1, 2014 through June 30, 2015, the affiliated public employer contribution rate shall be twenty and one-half percent of the salary of each member; and

C. from July 1, 2015 through June 30, 2016, the affiliated public employer contribution rate shall be twenty-one percent of the salary of each member."

SECTION 36. 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] eleven percent of salary, except that:

A. from July 1, 2013 through June 30, 2014, the member contribution rate shall be nine and one-half percent of the member's salary;

B. from July 1, 2014 through June 30, 2015, the member contribution rate shall be ten percent of the member's salary; and

C. from July 1, 2015 through June 30, 2016, the member contribution rate shall be ten and one-half percent of salary."

SECTION 37. Section 10-11-91 NMSA 1978 (being Laws 1987, Chapter 253, Section 91, as amended) is amended to read:

"10-11-91. MUNICIPAL FIRE MEMBER COVERAGE PLAN 1--AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--The affiliated public employer shall contribute [eleven] fourteen percent of the salary of each member whom it employs and covers under municipal fire member coverage plan 1, except that:

A. from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be twelve and one-half percent of the salary of each member;

B. from July 1, 2014 through June 30, 2015, the affiliated public employer contribution rate shall be thirteen percent of the salary of each member; and

C. from July 1, 2015 through June 30, 2016, the affiliated public employer contribution rate shall be thirteen and one-half percent of the salary of each member."

SECTION 38. 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] eleven percent of salary, except that:

A. from July 1, 2013 through June 30, 2014, the member contribution rate shall be nine and one-half percent of the member's salary;

B. from July 1, 2014 through June 30, 2015, the member contribution rate shall be ten percent of the member's salary; and

C. from July 1, 2015 through June 30, 2016, the member contribution rate shall be ten and one-half percent of salary."

SECTION 39. Section 10-11-97 NMSA 1978 (being Laws 1987, Chapter 253, Section 97, as amended) is amended to read:

"10-11-97. MUNICIPAL FIRE MEMBER COVERAGE PLAN 2--AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--The affiliated public employer shall contribute [seventeen] twenty and one-half percent of the salary of each member whom it employs and covers under municipal fire member coverage plan 2, except that:

A. from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be nineteen percent of the salary of each member;

B. from July 1, 2014 through June 30, 2015, the affiliated public employer contribution rate shall be nineteen and one-half percent of the salary of each member; and

C. from July 1, 2015 through June 30, 2016, the affiliated public employer contribution rate shall be twenty percent of the salary of each member."

SECTION 40. 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] eleven percent of salary, except that:

A. from July 1, 2013 through June 30, 2014, the member contribution rate shall be nine and one-half percent of the member's salary;

B. from July 1, 2014 through June 30, 2015, the member contribution rate shall be ten percent of the member's salary; and

C. from July 1, 2015 through June 30, 2016, the member contribution rate shall be ten and one-half percent of salary."

SECTION 41. Section 10-11-103 NMSA 1978 (being Laws 1987, Chapter 253, Section 103, as amended) is amended to read:

"10-11-103. MUNICIPAL FIRE MEMBER COVERAGE PLAN 3--AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--The affiliated public employer shall contribute [twenty-one] twenty-four and twenty-five [one-hundredths] hundredths percent of the salary of each member whom it employs and covers under municipal fire member coverage plan 3, except that:

A. from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be twenty-two and seventy-five hundredths percent of the salary of each member;

B. from July 1, 2014 through June 30, 2015, the affiliated public employer contribution rate shall be twenty-three and twenty-five hundredths percent of the salary of each member; and

C. from July 1, 2015 through June 30, 2016, the affiliated public employer contribution rate shall be twenty-three and seventy-five hundredths percent of the salary of each member."

SECTION 42. 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] fifteen and eight-tenths percent of salary, except that:

A. from July 1, 2013 through June 30, 2014, the member contribution rate shall be fourteen and three-tenths percent of the member's salary;

B. from July 1, 2014 through June 30, 2015, the member contribution rate shall be fourteen and eight-tenths percent of the member's salary; and

C. from July 1, 2015 through June 30, 2016, the member contribution rate shall be fifteen and three-tenths percent of salary."

SECTION 43. Section 10-11-109 NMSA 1978 (being Laws 1987, Chapter 253, Section 109, as amended) is amended to read:

"10-11-109. MUNICIPAL FIRE MEMBER COVERAGE PLAN 4--AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--The affiliated public employer shall contribute [twenty-one] twenty-four and twenty-five [one-hundredths] hundredths percent of the salary of each member whom it employs and covers under municipal fire member coverage plan 4, except that:

A. from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be twenty-two and seventy-five hundredths percent of the salary of each member;

B. from July 1, 2014 through June 30, 2015, the affiliated public employer contribution rate shall be twenty-three and twenty-five hundredths percent of the salary of each member; and

C. from July 1, 2015 through June 30, 2016, the affiliated public employer contribution rate shall be twenty-three and seventy-five hundredths percent of the salary of each member."

SECTION 44. 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] nineteen and two-tenths percent of salary, except that:

A. from July 1, 2013 through June 30, 2014, the member contribution rate shall be seventeen and seven-tenths percent of the member's salary;

B. from July 1, 2014 through June 30, 2015, the member contribution rate shall be eighteen and two-tenths percent of the member's salary; and

C. from July 1, 2015 through June 30, 2016, the member contribution rate shall be eighteen and seven-tenths percent of salary."

SECTION 45. Section 10-11-115 NMSA 1978 (being Laws 1987, Chapter 253, Section 115, as amended) is amended to read:

"10-11-115. MUNICIPAL FIRE MEMBER COVERAGE PLAN 5--AFFILIATED PUBLIC EMPLOYER CONTRIBUTION RATE.--The affiliated public employer shall contribute [twenty-one] twenty-four and twenty-five [one-hundredths] hundredths percent of the salary of each member whom it employs and covers under municipal fire member coverage plan 5, except that:

A. from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be twenty-two and seventy-five hundredths percent of the salary of each member;

B. from July 1, 2014 through June 30, 2015, the affiliated public employer contribution rate shall be twenty-three and twenty-five hundredths percent of the salary of each member; and

C. from July 1, 2015 through June 30, 2016, the affiliated public employer contribution rate shall be twenty-three and seventy-five hundredths percent of the salary of each member."

SECTION 46. 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 hundredths] nineteen 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, except that:

A. from July 1, 2013 through June 30, 2014, the member contribution rate shall be eighteen and fifteen-hundredths percent of the member's salary;

B. from July 1, 2014 through June 30, 2015, the member contribution rate shall be eighteen and sixty-five hundredths percent of the member's salary; and

C. from July 1, 2015 through June 30, 2016, the member contribution rate shall be nineteen and fifteen-hundredths percent of salary."

SECTION 47. Section 10-11-115.6 NMSA 1978 (being Laws 2003, Chapter 268, Section 7) is amended to read:

"10-11-115.6. MUNICIPAL DETENTION OFFICER MEMBER COVERAGE PLAN 1--EMPLOYER CONTRIBUTION RATE.--The affiliated public employer shall contribute [sixteen] nineteen and sixty-five hundredths percent of the salary of each member under municipal detention officer member coverage plan 1 starting with the first pay period that ends within the calendar month in which municipal detention officer member coverage plan 1 becomes applicable to the member, except that:

A. from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be eighteen and fifteen-hundredths percent of the salary of each member;

B. from July 1, 2014 through June 30, 2015, the affiliated public employer contribution rate shall be eighteen and sixty-five hundredths percent of the salary of each member; and

C. from July 1, 2015 through June 30, 2016, the affiliated public employer contribution rate shall be nineteen and fifteen-hundredths percent of the salary of each member."

SECTION 48. Section 10-11-123 NMSA 1978 (being Laws 1987, Chapter 253, Section 123) is amended to read:

"10-11-123. FUNDS OF ASSOCIATION.--

A. The accounting funds of the association are the "member contribution fund", "employers accumulation fund", "retirement reserve fund", [and] "income fund" and "pension investment plan accumulation fund". The maintenance of separate accounting funds shall not require the actual segregation of the assets of the association among the various funds.

B. The accounting funds provided for in Subsection A of this section are trust funds and shall be used only for the purposes provided in the Public Employees Retirement Act."

SECTION 49. Section 10-11-129 NMSA 1978 (being Laws 1987, Chapter 253, Section 129) is amended to read:

"10-11-129. DISTRIBUTION OF INCOME FUND.--The association shall at least annually distribute all or a portion of the balance in the income fund to the member contribution fund, the retirement reserve fund, [and] the employer accumulation fund and the pension investment plan accumulation fund. Distribution rates shall be determined by the retirement board and may vary by fund."

SECTION 50. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2013.

- 52 -