SENATE BILL 304

51st legislature - STATE OF NEW MEXICO - second session, 2014

INTRODUCED BY

Stuart Ingle and Luciano "Lucky" Varela

AN ACT

RELATING TO PENSION FUNDS; PROVIDING THAT, CONTINGENT UPON THE ENACTMENT OF JUDICIAL OR MAGISTRATE PENSION FUND SOLVENCY REFORMS, A PORTION OF THE MONTHLY DISTRIBUTION FOR THE LEGISLATIVE RETIREMENT FUND, IF THE DISTRIBUTION AMOUNT DOES NOT EXCEED TWO HUNDRED THOUSAND DOLLARS ($200,000), SHALL BE DISTRIBUTED TO THE MAGISTRATE RETIREMENT FUND AND THE JUDICIAL RETIREMENT FUND IN THE AMOUNTS OF EIGHTY THOUSAND DOLLARS ($80,000) TO THE MAGISTRATE RETIREMENT FUND AND TWENTY THOUSAND DOLLARS ($20,000) TO THE JUDICIAL RETIREMENT FUND MONTHLY FOR THIRTY-SIX CONSECUTIVE MONTHS; MAKING AN APPROPRIATION.

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

     SECTION 1. Section 7-1-6.43 NMSA 1978 (being Laws 2003, Chapter 86, Section 1) is amended to read:

     "7-1-6.43. DISTRIBUTION TO LEGISLATIVE RETIREMENT FUND.--

          A. Except as otherwise provided by law, a distribution pursuant to Section 7-1-6.1 NMSA 1978 shall be made to the legislative retirement fund in an amount equal to two hundred thousand dollars ($200,000) or, if larger, one-twelfth of the amount necessary to pay out the retirement benefits due under state legislator member coverage plan 2 and Paragraph (2) of Subsection C of Section [10-11-42] 10-11-41 NMSA 1978 for the calendar year.

          B. In December 2003 and in each December thereafter, the public employees retirement association, with the assistance of the legislative council service, shall determine the amount of those retirement benefits for the succeeding calendar year. If the monthly average exceeds two hundred thousand dollars ($200,000), the association shall notify immediately the department of the average amount. That average amount shall be the amount distributed pursuant to Subsection A of this section as of the end of each month of the twelve consecutive months beginning with the December in which the determination was made."

     SECTION 2. A new section of the Tax Administration Act, Section 7-1-6.61 NMSA 1978, is enacted to read:

     "7-1-6.61. [NEW MATERIAL] TEMPORARY DISTRIBUTION TO MAGISTRATE RETIREMENT FUND.--Beginning July 1, 2014 and continuing for thirty-six consecutive but not necessarily continuous months, if the distribution amount determined pursuant to Section 7-1-6.43 NMSA 1978 is not greater than two hundred thousand dollars ($200,000), then eighty thousand dollars ($80,000) of the determined distribution amount shall instead be distributed to the magistrate retirement fund."

     SECTION 3. A new section of the Tax Administration Act, Section 7-1-6.62 NMSA 1978, is enacted to read:

     "7-1-6.62. [NEW MATERIAL] TEMPORARY DISTRIBUTION TO JUDICIAL RETIREMENT FUND.--Beginning July 1, 2014 and continuing for thirty-six consecutive but not necessarily continuous months, if the distribution amount determined pursuant to Section 7-1-6.43 NMSA 1978 is not greater than two hundred thousand dollars ($200,000), then twenty thousand dollars ($20,000) of the determined distribution amount shall be distributed to the judicial retirement fund."

     SECTION 4. EFFECTIVE DATE--CONTINGENCY.--

          A. The effective date of the provisions of Section 1 of this act is July 1, 2014.

          B. The effective date of the provisions of Section 2 of this act is July 1, 2014, contingent upon the enactment into law of House Bill 216 or a similar magistrate retirement fund solvency bill of the second session of the fifty-first legislature. If no such bill is enacted into law, the provisions of Section 2 of this act shall not become effective.

           C. The effective date of the provisions of Section 3 of this act is July 1, 2014, contingent upon the enactment into law of House Bill 33 or a similar judicial retirement fund solvency bill of the second session of the fifty-first legislature. If no such bill is enacted into law, Section 3 of this act shall not become effective.

- 4 -