HOUSE BILL 338
54th legislature - STATE OF NEW MEXICO - first session, 2019
INTRODUCED BY
Tomás E. Salazar
AN ACT
RELATING TO PUBLIC PENSIONS; ADDRESSING THE ACTUARIAL SOLVENCY OF THE PUBLIC EMPLOYEES RETIREMENT ACT FUND; DEFINING "FUNDED RATIO" AND "COVERAGE PLAN FUNDED RATIO"; RAISING CERTAIN EMPLOYEE AND EMPLOYER COVERAGE PLAN CONTRIBUTIONS TO THE FUND FOR FISCAL YEARS 2020, 2021 AND 2022; BEGINNING JULY 1, 2022, ALTERING COVERAGE PLAN CONTRIBUTIONS DEPENDING ON COVERAGE PLAN FUNDED RATIOS; BEGINNING IN DECEMBER 2021, REQUIRING THE PUBLIC EMPLOYEES RETIREMENT BOARD TO ANNUALLY CERTIFY THE FUNDED RATIO OF COVERAGE PLANS; REPEALING AND REENACTING THE PUBLIC EMPLOYEES RETIREMENT ACT COST-OF-LIVING ADJUSTMENT PROVISIONS; SUSPENDING COST-OF-LIVING ADJUSTMENTS FOR FISCAL YEARS 2020, 2021 AND 2022; BEGINNING JULY 1, 2022, PROVIDING NEW ELIGIBILITY REQUIREMENTS FOR COST-OF-LIVING ADJUSTMENTS TO PUBLIC EMPLOYEES RETIREMENT ACT PENSIONS OF NORMAL RETIRED GENERAL COVERAGE PLAN MEMBERS, NORMAL RETIRED LEGISLATOR MEMBERS AND NORMAL PUBLIC SAFETY COVERAGE PLAN MEMBERS; MAINTAINING CURRENT COST-OF-LIVING ADJUSTMENT ELIGIBILITY REQUIREMENTS FOR CERTAIN RETIREES; BEGINNING JULY 1, 2022, USING A FORMULA BASED ON THE FUNDED RATIO AND THE CONSUMER PRICE INDEX TO SET ANNUAL COST-OF-LIVING ADJUSTMENTS, BUT ALLOWING NO REDUCTION IN BENEFITS; CREATING CAPS ON ANNUAL COST-OF-LIVING ADJUSTMENTS; ALLOWING DECLINATION OF COST-OF-LIVING ADJUSTMENTS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 10-11-2 NMSA 1978 (being Laws 1987, Chapter 253, Section 2, as amended) is amended to read:
"10-11-2. DEFINITIONS.--As used in the Public Employees Retirement Act:
A. "accumulated member contributions" means the amounts deducted from the salary of a member and credited to the member's individual account, together with interest, if any, credited to that account;
B. "affiliated public employer" means the state and any public employer affiliated with the association as provided in the Public Employees Retirement Act, but does not include an employer pursuant to the Magistrate Retirement Act, the Judicial Retirement Act or the Educational Retirement Act;
C. "association" means the public employees retirement association established under the Public Employees Retirement Act;
D. "coverage plan funded ratio" means the ratio of the actuarial value of the assets of a coverage plan to the actuarial accrued liability of the association for payments from that coverage plan, as determined by the association's actuaries;
[D.] E. "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.] F. "disability retirement pension" means the pension paid pursuant to the disability retirement provisions of the Public Employees Retirement Act;
[F.] G. "educational retirement system" means that retirement system provided for in the Educational Retirement Act;
[G.] H. "employee" means any employee of an affiliated public employer;
[H.] I. "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.] J. "final average salary" means the final average salary calculated in accordance with the provisions of the applicable coverage plan;
[J.] K. "form of payment" means the applicable form of payment of a pension provided for in Section 10-11-117 NMSA 1978;
[K.] L. "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.] M. "fund" means the funds included under the Public Employees Retirement Act;
N. "funded ratio" means the ratio of the actuarial value of the assets of the fund to the actuarial accrued liability of the association for payments from the fund, as determined by the association's actuaries;
[M.] O. "member" means a currently employed, contributing employee of an affiliated public employer, or a person who has been but is not currently employed by an affiliated public employer, who has not retired and who has not received a refund of member contributions; "member" also includes the following:
(1) "adult correctional officer member" means a member who is employed as an adult correctional officer or an adult correctional officer specialist by a state correctional facility of the corrections department or its successor agency;
(2) "juvenile correctional officer member" means a member who is employed as a juvenile correctional officer 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 a member who is an officer of the New Mexico state police and who has taken the oath prescribed for such officers, except that a state police member shall not include a member who is an officer of the New Mexico state police division and who was certified and commissioned as of June 30, 2015 in the former motor transportation division or the former special investigations division of the department of public safety;
[N.] P. "membership" means membership in the association;
[O.] Q. "pension" means a series of monthly payments to a retired member or survivor beneficiary as provided in the Public Employees Retirement Act;
[P.] R. "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] S. "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.] T. "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.] U. "retired member" means a person who has met all requirements for retirement and who is receiving a pension from the fund;
[T.] V. "retirement board" means the retirement board provided for in the Public Employees Retirement Act;
[U.] W. "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.] X. "state system" means the retirement programs provided for in the Public Employees Retirement Act, the Magistrate Retirement Act and the Judicial Retirement Act;
[W.] Y. "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.] Z. "survivor beneficiary" means a person who receives a pension or who has been designated to be paid a pension as a result of the death of a member or retired member."
SECTION 2. Section 10-11-26.5 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 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 a member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute [eight and ninety-two hundredths percent of salary]:
A. beginning July 1, 2019 and continuing through June 30, 2022, ten and forty-two hundredths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, ten and forty-two hundredths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, ten and twenty-seven hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, ten and seven-hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, nine and sixty-seven hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, nine and forty-two hundredths percent of salary; and
(6) equal to or greater than one hundred percent, eight and ninety-two hundredths percent of salary."
SECTION 3. 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 and ninety-nine hundredths percent] the following percentages 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, from July 1, 2013 through June 30, 2014, the state contribution rate shall be sixteen and fifty-nine hundredths percent of the salary of each member]:
A. beginning July 1, 2019 and continuing through June 30, 2022, eighteen and ninety-nine hundredths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, eighteen and seventy-four hundredths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, eighteen and forty-nine hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, eighteen and twenty-four hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, seventeen and ninety-nine hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, seventeen and forty-nine hundredths percent of salary; and
(6) equal to or greater than one hundred percent, sixteen and ninety-nine hundredths percent of salary."
SECTION 4. Section 10-11-31 NMSA 1978 (being Laws 1987, Chapter 253, Section 31, as amended) is amended to read:
"10-11-31. STATE POLICE MEMBER AND ADULT CORRECTIONAL OFFICER MEMBER COVERAGE PLAN 1--MEMBER CONTRIBUTION RATE.--A member under state police member and adult correctional officer member coverage plan 1 shall contribute seven and six-tenths percent of salary, except that a member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute nine and one-tenth percent of salary; provided that the member shall contribute the following percentage of salary, beginning July 1, 2022 and then beginning each July 1 thereafter if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
A. less than or equal to eighty percent, ten and six-tenths percent of salary;
B. greater than eighty percent but less than eighty-five percent, ten and forty-five hundredths percent of salary;
C. equal to or greater than eighty-five percent but less than ninety percent, ten and twenty-five hundredths percent of salary;
D. equal to or greater than ninety percent but less than ninety-five percent, nine and eighty-five hundredths percent of salary;
E. equal to or greater than ninety-five percent but less than one hundred percent, nine and six-tenths percent of salary; and
F. equal to or greater than one hundred percent, nine and one-tenth percent of salary."
SECTION 5. 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 and one-half percent of the salary of each member under state police member and adult correctional officer member coverage plan 1 [except that, from July 1, 2013 through June 30, 2014, the state contribution rate shall be twenty-five and one-tenth percent of the salary of each member]; provided that the state shall contribute the following percentage of salary, beginning July 1, 2022 and then beginning each July 1 thereafter if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
A. less than or equal to eighty percent, twenty-seven and twenty-five hundredths percent of salary;
B. greater than eighty percent but less than eighty-five percent, twenty-seven percent of salary;
C. equal to or greater than eighty-five percent but less than ninety percent, twenty-six and seventy-five hundredths percent of salary;
D. equal to or greater than ninety percent but less than ninety-five percent, twenty-six and one-half percent of salary;
E. equal to or greater than ninety-five percent but less than one hundred percent, twenty-six percent of salary; and
F. equal to or greater than one hundred percent, twenty-five and one-half percent of salary."
SECTION 6. Section 10-11-38.5 NMSA 1978 (being Laws 1994, Chapter 128, Section 13, as amended) is amended to read:
"10-11-38.5. JUVENILE CORRECTIONAL OFFICER MEMBER COVERAGE PLAN 2--MEMBER CONTRIBUTION RATE.--A member under juvenile correctional officer 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 juvenile correctional officer member coverage plan 2 becomes applicable to the member, except that a member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute [six and twenty-eight hundredths percent of salary]:
A. beginning July 1, 2019 and continuing through June 30, 2022, seven and seventy-eight hundredths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, seven and seventy-eight hundredths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, seven and sixty-three hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, seven and forty-three hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, seven and three-hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, six and seventy-eight hundredths percent of salary; and
(6) equal to or greater than one hundred percent, six and twenty-eight hundredths percent of salary."
SECTION 7. Section 10-11-38.6 NMSA 1978 (being Laws 1994, Chapter 128, Section 14, as amended) is amended to read:
"10-11-38.6. JUVENILE CORRECTIONAL OFFICER MEMBER COVERAGE PLAN 2--STATE CONTRIBUTION RATE.--The state shall contribute [twenty-six and twelve-hundredths percent] the following percentages of the salary of each member covered by juvenile correctional officer member coverage plan 2 starting with the first pay period that ends within the calendar month in which juvenile correctional officer member coverage plan 2 becomes applicable to the member [except that, from July 1, 2013 through June 30, 2014, the state contribution rate shall be twenty-five and seventy-two hundredths percent of the salary of each member]:
A. beginning July 1, 2019 and continuing through June 30, 2022, twenty-eight and twelve-hundredths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, twenty-seven and eighty-seven hundredths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, twenty-seven and sixty-two hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, twenty-seven and thirty-seven hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, twenty-seven and twelve- hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, twenty-six and sixty-two hundredths percent of salary; and
(6) equal to or greater than one hundred percent, twenty-six and twelve-hundredths percent of salary."
SECTION 8. Section 10-11-43.3 NMSA 1978 (being Laws 2003, Chapter 85, Section 9, as amended) is amended to read:
"10-11-43.3. STATE LEGISLATOR MEMBER COVERAGE PLAN 2--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under state legislator member coverage plan 2, the annual amount of pension under form of payment A is equal in any calendar year to eleven percent of the per diem rate in effect, pursuant to Section 2-1-8 NMSA 1978, on the first day of the calendar year that the legislator or lieutenant governor retires multiplied by sixty and further multiplied by credited service as a legislator or lieutenant governor. A pension paid under state legislator member coverage plan 2 shall be adjusted pursuant to Section 10-11-118 NMSA 1978 [for a legislator or lieutenant governor 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]."
SECTION 9. Section 10-11-48 NMSA 1978 (being Laws 1987, Chapter 253, Section 48, as amended) 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 percent of salary starting with the first full pay period in the calendar month in which municipal general member coverage plan 1 becomes applicable to the member, except that a member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute [eight and one-half percent of salary]:
A. beginning July 1, 2019 and continuing through June 30, 2022, ten percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, ten percent of salary;
(2) greater than eighty percent but less than eighty-five percent, nine and eighty-five hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, nine and sixty-five hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, nine and twenty-five hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, nine percent of salary; and
(6) equal to or greater than one hundred percent, eight and one-half percent of salary."
SECTION 10. Section 10-11-49 NMSA 1978 (being Laws 1987, Chapter 253, Section 49, as amended) 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 and four-tenths percent] the following percentages of the salary of each member it employs and who is covered under municipal general member coverage plan 1 [except that, from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be seven percent of the salary of each member]:
A. beginning July 1, 2019 and continuing through June 30, 2022, nine and four-tenths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, nine and fifteen-hundredths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, eight and nine-tenths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, eight and sixty-five hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, eight and four-tenths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, seven and nine-tenths percent of salary; and
(6) equal to or greater than one hundred percent, seven and four-tenths percent of salary."
SECTION 11. Section 10-11-54 NMSA 1978 (being Laws 1987, Chapter 253, Section 54, as amended) 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-hundredths percent of salary starting with the first full pay period in the calendar month in which municipal general member coverage plan 2 becomes applicable to the member, except that a member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute [ten and sixty-five hundredths percent of salary]:
A. beginning July 1, 2019 and continuing through June 30, 2022, twelve and fifteen-hundredths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, twelve and fifteen-hundredths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, twelve percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, eleven and eight-tenths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, eleven and four-tenths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, eleven and fifteen-hundredths percent of salary; and
(6) equal to or greater than one hundred percent, ten and sixty-five hundredths percent of salary."
SECTION 12. Section 10-11-55 NMSA 1978 (being Laws 1987, Chapter 253, Section 55, as amended) 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 and fifty-five hundredths percent] the following percentages of the salary of each member it employs and who is covered under municipal general member coverage plan 2 [except that, from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be nine and fifteen-hundredths percent of the salary of each member]:
A. beginning July 1, 2019 and continuing through June 30, 2022, eleven and fifty-five hundredths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, eleven and three-tenths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, eleven and five-hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, ten and eight-tenths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, ten and fifty-five hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, ten and five-hundredths percent of salary; and
(6) equal to or greater than one hundred percent, nine and fifty-five hundredths percent of salary."
SECTION 13. Section 10-11-55.5 NMSA 1978 (being Laws 1993, Chapter 58, Section 5, as amended) 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-hundredths percent of salary starting with the first full pay period in the calendar month in which municipal general member coverage plan 3 becomes applicable to the member, except that a member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute [fourteen and sixty-five hundredths percent of salary]:
A. beginning July 1, 2019 and continuing through June 30, 2022, sixteen and fifteen-hundredths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, sixteen and fifteen-hundredths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, sixteen percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, fifteen and eight-tenths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, fifteen and four-tenths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, fifteen and fifteen-hundredths percent of salary; and
(6) equal to or greater than one hundred percent, fourteen and sixty-five hundredths percent of salary."
SECTION 14. Section 10-11-55.6 NMSA 1978 (being Laws 1993, Chapter 58, Section 6, as amended) 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 and fifty-five hundredths percent] the following percentages of the salary of each member it employs and who is covered under municipal general member coverage plan 3 [except that, from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be nine and fifteen-hundredths percent of the salary of each member]:
A. beginning July 1, 2019 and continuing through June 30, 2022, eleven and fifty-five hundredths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, eleven and three-tenths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, eleven and five-hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, ten and eight-tenths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, ten and fifty-five hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, ten and five-hundredths percent of salary; and
(6) equal to or greater than one hundred percent, nine and fifty-five hundredths percent of salary."
SECTION 15. Section 10-11-55.11 NMSA 1978 (being Laws 1998, Chapter 106, Section 5, as amended) 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 percent of salary starting with the first full pay period in the calendar month in which municipal general member coverage plan 4 becomes applicable to the member, except that a member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute [seventeen and fifteen-hundredths percent of salary]:
A. beginning July 1, 2019 and continuing through June 30, 2022, eighteen and sixty-five hundredths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, eighteen and sixty-five hundredths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, eighteen and one-half percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, eighteen and three-tenths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, seventeen and nine-tenths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, seventeen and sixty-five hundredths percent of salary; and
(6) equal to or greater than one hundred percent, seventeen and fifteen-hundredths percent of salary."
SECTION 16. Section 10-11-55.12 NMSA 1978 (being Laws 1998, Chapter 106, Section 6, as amended) 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 [twelve and five-hundredths percent] the following percentages of the salary of each member it employs and who is covered under municipal general member coverage plan 4 [except that, from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be eleven and sixty-five hundredths percent of the salary of each member]:
A. beginning July 1, 2019 and continuing through June 30, 2022, fourteen and five-hundredths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, thirteen and eight-tenths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, thirteen and fifty-five hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, thirteen and three-tenths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, thirteen and five-hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, twelve and fifty-five hundredths percent of salary; and
(6) equal to or greater than one hundred percent, twelve and five-hundredths percent of salary."
SECTION 17. Section 10-11-60 NMSA 1978 (being Laws 1987, Chapter 253, Section 60, as amended) 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 percent of salary starting with the first full pay period in the calendar month in which municipal police member coverage plan 1 becomes applicable to the member, except that a member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute [eight and one-half percent of salary]:
A. beginning July 1, 2019 and continuing through June 30, 2022, ten percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, ten percent of salary;
(2) greater than eighty percent but less than eighty-five percent, nine and eighty-five hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, nine and sixty-five hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, nine and twenty-five hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, nine percent of salary; and
(6) equal to or greater than one hundred percent, eight and one-half percent of salary."
SECTION 18. Section 10-11-61 NMSA 1978 (being Laws 1987, Chapter 253, Section 61, as amended) 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 and four-tenths percent] the following percentages of the salary of each member it employs and who is covered under municipal police member coverage plan 1 [except that, from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be ten percent of the salary of each member]:
A. beginning July 1, 2019 and continuing through June 30, 2022, twelve and four-tenths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, twelve and fifteen-hundredths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, eleven and nine-tenths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, eleven and sixty-five hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, eleven and four-tenths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, ten and nine-tenths percent of salary; and
(6) equal to or greater than one hundred percent, ten and four-tenths percent of salary."
SECTION 19. Section 10-11-66 NMSA 1978 (being Laws 1987, Chapter 253, Section 66, as amended) 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 percent of salary with the first full pay period in the calendar month in which municipal police member coverage plan 2 becomes applicable to the member, except that a member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute [eight and one-half percent of salary]:
A. beginning July 1, 2019 and continuing through June 30, 2022, ten percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, ten percent of salary;
(2) greater than eighty percent but less than eighty-five percent, nine and eighty-five hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, nine and sixty-five hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, nine and twenty-five hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, nine percent of salary; and
(6) equal to or greater than one hundred percent, eight and one-half percent of salary."
SECTION 20. Section 10-11-67 NMSA 1978 (being Laws 1987, Chapter 253, Section 67, as amended) 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 and four-tenths percent] the following percentages of the salary of each member it employs and who is covered under municipal police member coverage plan 2 [except that, from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be fifteen percent of the salary of each member]:
A. beginning July 1, 2019 and continuing through June 30, 2022, seventeen and four-tenths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, seventeen and fifteen-hundredths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, sixteen and nine-tenths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, sixteen and sixty-five hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, sixteen and four-tenths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, fifteen and nine-tenths percent of salary; and
(6) equal to or greater than one hundred percent, fifteen and four-tenths percent of salary."
SECTION 21. Section 10-11-72 NMSA 1978 (being Laws 1987, Chapter 253, Section 72, as amended) 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 percent of salary with the first full pay period in the calendar month in which municipal police member coverage plan 3 becomes applicable to the member, except that a member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute [eight and one-half percent of salary]:
A. beginning July 1, 2019 and continuing through June 30, 2022, ten percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, ten percent of salary;
(2) greater than eighty percent but less than eighty-five percent, nine and eighty-five hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, nine and sixty-five hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, nine and twenty-five hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, nine percent of salary; and
(6) equal to or greater than one hundred percent, eight and one-half percent of salary."
SECTION 22. Section 10-11-73 NMSA 1978 (being Laws 1987, Chapter 253, Section 73, as amended) 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 and nine-tenths percent] the following percentages of the salary of each member it employs and who is covered under municipal police member coverage plan 3 [except that, from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be eighteen and one-half percent of the salary of each member]:
A. beginning July 1, 2019 and continuing through June 30, 2022, twenty and nine-tenths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, twenty and sixty-five hundredths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, twenty and four-tenths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, twenty and fifteen-hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, nineteen and nine-tenths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, nineteen and four-tenths percent of salary; and
(6) equal to or greater than one hundred percent, eighteen and nine-tenths percent of salary."
SECTION 23. Section 10-11-78 NMSA 1978 (being Laws 1987, Chapter 253, Section 78, as amended) 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 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 member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute [thirteen and eighty-five hundredths percent of salary]:
A. beginning July 1, 2019 and continuing through June 30, 2022, fifteen and thirty-five hundredths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, fifteen and thirty-five hundredths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, fifteen and two-tenths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, fifteen percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, fourteen and six-tenths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, fourteen and thirty-five hundredths percent of salary; and
(6) equal to or greater than one hundred percent, thirteen and eighty-five hundredths percent of salary."
SECTION 24. Section 10-11-79 NMSA 1978 (being Laws 1987, Chapter 253, Section 79, as amended) 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 and nine-tenths percent] the following percentages of the salary of each member it employs and who is covered under municipal police member coverage plan 4 [except that, from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be eighteen and one-half percent of the salary of each member]:
A. beginning July 1, 2019 and continuing through June 30, 2022, twenty and nine-tenths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, twenty and sixty-five hundredths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, twenty and four-tenths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, twenty and fifteen-hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, nineteen and nine-tenths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, nineteen and four-tenths percent of salary; and
(6) equal to or greater than one hundred percent, eighteen and nine-tenths percent of salary."
SECTION 25. Section 10-11-84 NMSA 1978 (being Laws 1987, Chapter 253, Section 84, as amended) 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 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 member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute [seventeen and eight-tenths percent of salary]:
A. beginning July 1, 2019 and continuing through June 30, 2022, nineteen and three-tenths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, nineteen and three-tenths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, nineteen and fifteen-hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, eighteen and ninety-five hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, eighteen and fifty-five hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, eighteen and three-tenths percent of salary; and
(6) equal to or greater than one hundred percent, seventeen and eight-tenths percent of salary."
SECTION 26. Section 10-11-85 NMSA 1978 (being Laws 1987, Chapter 253, Section 85, as amended) 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 and nine-tenths percent] the following percentages of the salary of each member it employs and who is covered under municipal police member coverage plan 5 [except that, from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be eighteen and one-half percent of the salary of each member]:
A. beginning July 1, 2019 and continuing through June 30, 2022, twenty and nine-tenths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, twenty and sixty-five hundredths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, twenty and four-tenths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, twenty and fifteen-hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, nineteen and nine-tenths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, nineteen and four-tenths percent of salary; and
(6) equal to or greater than one hundred percent, eighteen and nine-tenths percent of salary."
SECTION 27. 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 percent of salary with the first full pay period in the calendar month in which municipal fire member coverage plan 1 becomes applicable to the member, except that a member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute [nine and one-half percent of salary]:
A. beginning July 1, 2019 and continuing through June 30, 2022, eleven percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, eleven percent of salary;
(2) greater than eighty percent but less than eighty-five percent, ten and eighty-five hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, ten and sixty-five hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, ten and twenty-five hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, ten percent of salary; and
(6) equal to or greater than one hundred percent, nine and one-half percent of salary."
SECTION 28. 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 and four-tenths percent] the following percentages of the salary of each member it employs and covers under municipal fire member coverage plan 1 [except that, from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be eleven percent of the salary of each member]:
A. beginning July 1, 2019 and continuing through June 30, 2022, thirteen and four-tenths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, thirteen and fifteen-hundredths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, twelve and nine-tenths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, twelve and sixty-five hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, twelve and four-tenths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, eleven and nine-tenths percent of salary; and
(6) equal to or greater than one hundred percent, eleven and four-tenths percent of salary."
SECTION 29. 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 percent of salary with the first full pay period in the calendar month in which municipal fire member coverage plan 2 becomes applicable to the member, except that a member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute [nine and one-half percent of salary]:
A. beginning July 1, 2019 and continuing through June 30, 2022, eleven percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, eleven percent of salary;
(2) greater than eighty percent but less than eighty-five percent, ten and eighty-five hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, ten and sixty-five hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, ten and twenty-five hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, ten percent of salary; and
(6) equal to or greater than one hundred percent, nine and one-half percent of salary."
SECTION 30. 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 and nine-tenths percent] the following percentages of the salary of each member it employs and covers under municipal fire member coverage plan 2 [except that, from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be seventeen and one-half percent of the salary of each member]:
A. beginning July 1, 2019 and continuing through June 30, 2022, nineteen and nine-tenths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, nineteen and sixty-five hundredths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, nineteen and four-tenths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, nineteen and fifteen-hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, eighteen and nine-tenths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, eighteen and four-tenths percent of salary; and
(6) equal to or greater than one hundred percent, seventeen and nine-tenths percent of salary."
SECTION 31. 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 percent of salary with the first full pay period in the calendar month in which municipal fire member coverage plan 3 becomes applicable to the member, except that a member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute [nine and one-half percent of salary]:
A. beginning July 1, 2019 and continuing through June 30, 2022, eleven percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, eleven percent of salary;
(2) greater than eighty percent but less than eighty-five percent, ten and eighty-five hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, ten and sixty-five hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, ten and twenty-five hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, ten percent of salary; and
(6) equal to or greater than one hundred percent, nine and one-half percent of salary."
SECTION 32. 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 and sixty-five hundredths percent] the following percentages of the salary of each member it employs and covers under municipal fire member coverage plan 3 [except that, from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be twenty-one and twenty-five hundredths percent of the salary of each member]:
A. beginning July 1, 2019 and continuing through June 30, 2022, twenty-three and sixty-five hundredths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, twenty-three and four-tenths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, twenty-three and fifteen-hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, twenty-two and nine-tenths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, twenty-two and sixty-five hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, twenty-two and fifteen-hundredths percent of salary; and
(6) equal to or greater than one hundred percent, twenty-one and sixty-five hundredths percent of salary."
SECTION 33. 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 percent of salary with the first full pay period in the calendar month in which municipal fire member coverage plan 4 becomes applicable to the member, except that a member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute [fourteen and three-tenths percent of salary]:
A. beginning July 1, 2019 and continuing through June 30, 2022, fifteen and eight-tenths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, fifteen and eight-tenths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, fifteen and sixty-five hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, fifteen and forty-five hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, fifteen and five-hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, fourteen and eight-tenths percent of salary; and
(6) equal to or greater than one hundred percent, fourteen and three-tenths percent of salary."
SECTION 34. 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 and sixty-five hundredths percent] the following percentages of the salary of each member it employs and covers under municipal fire member coverage plan 4 [except that, from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be twenty-one and twenty-five hundredths percent of the salary of each member]:
A. beginning July 1, 2019 and continuing through June 30, 2022, twenty-three and sixty-five hundredths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, twenty-three and four-tenths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, twenty-three and fifteen-hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, twenty-two and nine-tenths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, twenty-two and sixty-five hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, twenty-two and fifteen-hundredths percent of salary; and
(6) equal to or greater than one hundred percent, twenty-one and sixty-five hundredths percent of salary."
SECTION 35. 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 percent of salary with the first full pay period in the calendar month in which municipal fire member coverage plan 5 becomes applicable to the member, except that a member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute [seventeen and seven-tenths percent of salary]:
A. beginning July 1, 2019 and continuing through June 30, 2022, nineteen and two-tenths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, nineteen and two-tenths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, nineteen and five-hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, eighteen and eighty-five hundredths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, eighteen and forty-five hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, eighteen and two-tenths percent of salary; and
(6) equal to or greater than one hundred percent, seventeen and seven-tenths percent of salary."
SECTION 36. 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 and sixty-five hundredths percent] the following percentages of the salary of each member it employs and covers under municipal fire member coverage plan 5 [except that, from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be twenty-one and twenty-five hundredths percent of the salary of each member]:
A. beginning July 1, 2019 and continuing through June 30, 2022, twenty-three and sixty-five hundredths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, twenty-three and four-tenths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, twenty-three and fifteen-hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, twenty-two and nine-tenths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, twenty-two and sixty-five hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, twenty-two and fifteen-hundredths percent of salary; and
(6) equal to or greater than one hundred percent, twenty-one and sixty-five hundredths percent of salary."
SECTION 37. Section 10-11-115.5 NMSA 1978 (being Laws 2003, Chapter 268, Section 6, as amended) 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 percent of salary with the first full pay period in the calendar month in which municipal detention officer member coverage plan 1 becomes applicable to the member, except that a member whose annual salary is greater than twenty thousand dollars ($20,000) shall contribute [eighteen and fifteen-hundredths percent of salary]:
A. beginning July 1, 2019 and continuing through June 30, 2022, nineteen and sixty-five hundredths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, nineteen and sixty-five hundredths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, nineteen and one-half percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, nineteen and three-tenths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, eighteen and nine-tenths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, eighteen and sixty-five hundredths percent of salary; and
(6) equal to or greater than one hundred percent, eighteen and fifteen-hundredths percent of salary."
SECTION 38. Section 10-11-115.6 NMSA 1978 (being Laws 2003, Chapter 268, Section 7, as amended) is amended to read:
"10-11-115.6. MUNICIPAL DETENTION OFFICER MEMBER COVERAGE PLAN 1--EMPLOYER CONTRIBUTION RATE.--The affiliated public employer shall contribute [seventeen and five-hundredths percent] the following percentages 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, from July 1, 2013 through June 30, 2014, the affiliated public employer contribution rate shall be sixteen and sixty-five hundredths percent of the salary of each member]:
A. beginning July 1, 2019 and continuing through June 30, 2022, nineteen and five-hundredths percent of salary; and
B. beginning July 1, 2022 and each July 1 thereafter, if the retirement board has certified to the association by the immediately preceding December 1 that the coverage plan funded ratio is:
(1) less than or equal to eighty percent, eighteen and eight-tenths percent of salary;
(2) greater than eighty percent but less than eighty-five percent, eighteen and fifty-five hundredths percent of salary;
(3) equal to or greater than eighty-five percent but less than ninety percent, eighteen and three-tenths percent of salary;
(4) equal to or greater than ninety percent but less than ninety-five percent, eighteen and five-hundredths percent of salary;
(5) equal to or greater than ninety-five percent but less than one hundred percent, seventeen and fifty-five hundredths percent of salary; and
(6) equal to or greater than one hundred percent, seventeen and five-hundredths percent of salary."
SECTION 39. Section 10-11-118 NMSA 1978 (being Laws 1987, Chapter 253, Section 118, as amended) is repealed and a new Section 10-11-118 NMSA 1978 is enacted to read:
"10-11-118. [NEW MATERIAL] COST-OF-LIVING ADJUSTMENTS--QUALIFIED PENSION RECIPIENT--DECLINING INCREASE.--
A. As used in this section:
(1) "consumer price index" means the consumer price index for urban wage earners and clerical workers published by the bureau of labor statistics of the United States department of labor;
(2) "preceding calendar year" means the full calendar year preceding the July 1 on which pensions are being adjusted; and
(3) "second preceding calendar year" means the full calendar year immediately prior to the preceding calendar year.
B. A qualified pension recipient is eligible for a cost-of-living pension adjustment. A qualified pension recipient is:
(1) a normal retired member who:
(a) retires on or before June 30, 2014 and 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;
(b) retires between July 1, 2014 and June 30, 2015 and has been retired for at least three full calendar years from the effective date of the latest retirement prior to July 1 of the year in which the pension is being adjusted;
(c) retires between July 1, 2015 and June 30, 2016 and has been retired for at least four 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; or
(d) retires between July 1, 2016 and June 30, 2019 and has been retired for at least seven 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) on or after July 1, 2019:
(a) a normal retired state general member under any coverage plan, except a peace officer under state general plan 3, a normal retired legislator member under any coverage plan or a normal retired municipal general member under any coverage plan and who has reached at least sixty-five years of age and has been retired for one full calendar year from the effective date of the member's latest retirement; or
(b) a normal retired peace officer under state general plan 3, a normal retired state police member or adult correctional officer member under any coverage plan, a normal retired juvenile correctional officer member under coverage plan 2, a normal retired municipal police member under any coverage plan, a normal retired municipal fire member under any coverage plan or a normal retired municipal detention officer under coverage plan 1 and who has reached at least sixty years of age and has been retired for one full calendar year from the effective date of the member's latest retirement;
(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.
C. Beginning July 1, 2019 and continuing through June 30, 2022, there shall not be a cost-of-living adjustment applied to a pension payable pursuant to the Public Employees Retirement Act.
D. Beginning May 1, 2022 and no later than each May 1 thereafter, the retirement board shall certify to the association the funded ratio as of June 30 of the preceding calendar year.
E. Except as provided in Subsections F and G of this section, on each July 1 immediately following the retirement board's certification of the funded ratio, the cost-of-living adjustment, if any, to a pension payable pursuant to the Public Employees Retirement Act shall be determined as follows:
(1) if the funded ratio is less than or equal to eighty percent and the percentage increase of the consumer price index between the second preceding calendar year and the preceding calendar year is less than or equal to two percent, the qualified pension recipient's monthly pension benefit shall be increased in an amount determined by multiplying the amount of pension inclusive of all prior adjustments by fifty percent of the consumer price index increase, but in no case shall an adjustment be less than zero or shall there be a reduction in the pension benefit;
(2) if the funded ratio is less than or equal to eighty percent and the percentage increase of the consumer price index between the second preceding calendar year and the preceding calendar year is greater than two percent, the qualified pension recipient's monthly pension benefit shall be increased in an amount determined by multiplying the amount of pension inclusive of all prior adjustments by seventy-five percent of the consumer price index increase, provided that the adjustment shall not exceed one and one-half percent. In no case shall an adjustment be less than zero or shall there be a reduction in the pension benefit;
(3) if the funded ratio is greater than eighty percent but less than ninety percent and the percentage increase of the consumer price index between the second preceding calendar year and the preceding calendar year is less than or equal to two percent, the qualified pension recipient's monthly pension benefit shall be increased in an amount determined by multiplying the amount of pension inclusive of all prior adjustments by seventy-five percent of the consumer price index increase, but in no case shall an adjustment be less than zero or shall there be a reduction in the pension benefit;
(4) if the funded ratio is greater than eighty percent but less than ninety percent and the percentage increase of the consumer price index between the second preceding calendar year and the preceding calendar year is greater than two percent, the qualified pension recipient's monthly pension benefit shall be increased in an amount determined by multiplying the amount of pension inclusive of all prior adjustments by eighty percent of the consumer price index increase, provided that the adjustment shall not exceed one and eighty-hundredths percent. In no case shall an adjustment be less than zero or shall there be a reduction in the pension benefit;
(5) if the funded ratio is equal to or greater than ninety percent but less than one hundred percent and the percentage increase of the consumer price index between the second preceding calendar year and the preceding calendar year is less than or equal to two percent, the qualified pension recipient's monthly pension benefit shall be increased in an amount determined by multiplying the amount of pension inclusive of all prior adjustments by one hundred percent of the consumer price index increase, but in no case shall an adjustment be less than zero or shall there be a reduction in the pension benefit;
(6) if the funded ratio is equal to or greater than ninety percent but less than one hundred percent and the percentage increase of the consumer price index between the second preceding calendar year and the preceding calendar year is greater than two percent, the qualified pension recipient's monthly pension benefit shall be increased in an amount determined by multiplying the amount of pension inclusive of all prior adjustments by ninety-five percent of the consumer price index increase, provided that the adjustment shall not exceed two and one-half percent. In no case shall an adjustment be less than zero or shall there be a reduction in the pension benefit;
(7) if the funded ratio is equal to or greater than one hundred percent and the percentage increase of the consumer price index between the second preceding calendar year and the preceding calendar year is less than or equal to two percent, the qualified pension recipient's monthly pension benefit shall be increased in an amount determined by multiplying the amount of pension inclusive of all prior adjustments by one hundred percent of the consumer price index increase, but in no case shall an adjustment be less than zero or shall there be a reduction in the pension benefit; and
(8) if the funded ratio is equal to or greater than one hundred percent and the percentage increase of the consumer price index between the second preceding calendar year and the preceding calendar year is greater than two percent, the qualified pension recipient's monthly pension benefit shall be increased in an amount determined by multiplying the amount of pension inclusive of all prior adjustments by ninety-five percent of the consumer price index increase, provided that the adjustment shall not exceed three percent. In no case shall an adjustment be less than zero or shall there be a reduction in the pension benefit.
F. For a normal retired member who worked for at least twenty-five years under one or more applicable coverage plans and whose annual pension benefit, after all previous annual cost-of-living adjustments, is equal to an amount not greater than twenty thousand dollars ($20,000), the pension benefit shall be increased by two and one-half percent each July 1. The amount of the increase shall be determined by multiplying the amount of pension, inclusive of all prior adjustments, by two and one-half percent.
G. For a disability retired member whose annual pension benefit, after all previous annual cost-of-living adjustments, is equal to an amount not greater than twenty thousand dollars ($20,000), the pension benefit shall be increased by two and one-half percent each July 1. The amount of the increase shall be determined by multiplying the amount of pension, inclusive of all prior adjustments, by two and one-half percent.
H. 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."