HOUSE JOINT MEMORIAL 16

54th legislature - STATE OF NEW MEXICO - first session, 2019

INTRODUCED BY

D. Wonda Johnson

A JOINT MEMORIAL

REQUESTING THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION TO CONVENE A TASK FORCE TO STUDY REPRESENTATION ON THE PUBLIC EMPLOYEES RETIREMENT ASSOCIATION RETIREMENT BOARD.

     WHEREAS, the public employees retirement association is a cost-sharing, multiple-employer, defined-benefit pension plan that covers approximately fifty-six thousand nine hundred active members and forty-one thousand two hundred retirees; and

     WHEREAS, the public employees retirement association is governed by a twelve-member board of trustees, or retirement board, that is composed of:

          A. four active members under a state coverage plan elected by state members;

          B. three active members under a municipal coverage plan elected by municipal members;

          C. one active municipal member employed by a county elected by municipal members;

          D. two retired members elected by public employees

retirement association retirees;

          E. the secretary of state, an ex-officio member; and

          F. the state treasurer, an ex-officio member; and

     WHEREAS, the composition of the retirement board has changed numerous times since the public employees retirement association was established on March 20, 1947; and

     WHEREAS, over time, as the retirement plan has matured, the number of active members has declined and the number of retirees has increased; and

     WHEREAS, this shift is not reflected in the representation of retirement board members and the employee groups they represent; and

     WHEREAS, specifically, there are two board members to represent more than forty-one thousand retirees while eight board members represent approximately fifty-seven thousand general members, including state police officers and correctional officers; and

     WHEREAS, this imbalance of representation is unfair and is a disadvantage to the weight given to retiree issues; and

     WHEREAS, during the 2019 legislative session, the public employees retirement association is proposing suspensions of the cost-of-living adjustment for retirees and an extension of when members will first be eligible for the receipt of a cost-of-living adjustment; and

     WHEREAS, legislation is also proposed tying the cost-of-living adjustment to the public employees retirement association's funding status and a percentage of the consumer price index; and

     WHEREAS, other options to enhance the public employees retirement association's solvency have not been explored, and meaningful input from public employee retirement association members and retirees has not been solicited; and

     WHEREAS, the retired public employees of New Mexico is an independent group formed in 1962 to give a voice to all retired public employees; and

     WHEREAS, the retired public employees of New Mexico desires to open a dialogue with representatives of the public employees retirement association, union representatives and other relevant stakeholders to discuss issues that affect retirees; and

     WHEREAS, the retired public employees of New Mexico is requesting open communication, transparency and cooperation with the retirement board members and executive staff regarding proposed changes to the retirement plan that affect retirees;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the public employees retirement association be requested to convene and administratively support a task force to study representation on the public employees retirement association retirement board; and

     BE IT FURTHER RESOLVED that the task force be composed of representatives of the following:

          A. the public employees retirement association retirement board and executive staff;

          B. retired public employees of New Mexico;

          C. the American federation of state, county and municipal employees, council eighteen;

          D. the Albuquerque police officers association;

          E. the New Mexico state police association; and

          F. the New Mexico professional firefighters association; and

     BE IT FURTHER RESOLVED that the task force be requested to create a process to implement listening sessions statewide to gather input from retirees and other key stakeholders; and

     BE IT FURTHER RESOLVED that the public employees retirement association be requested to provide a report of the task force's findings and recommendations to the appropriate legislative interim committee by October 1, 2019; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the executive director of the public employees retirement association, the president of retired public employees of New Mexico and representatives of the American federation of state, county and municipal employees, council eighteen; the Albuquerque police officers association; the New Mexico state police association; and the New Mexico professional firefighters association.

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