HOUSE BILL 65

55th legislature - STATE OF NEW MEXICO - first session, 2021

INTRODUCED BY

William "Bill" R. Rehm

 

 

 

 

 

AN ACT

RELATING TO PUBLIC RETIREMENT; INCREASING CERTAIN EMPLOYEE CONTRIBUTION RATES; ADJUSTING THE CALCULATION TO DETERMINE MAXIMUM PENSION BENEFITS; CHANGING COST-OF-LIVING ADJUSTMENT PROVISIONS.

 

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

     SECTION 1. Section 10-11-26.3 NMSA 1978 (being Laws 1994, Chapter 128, Section 4, as amended) is amended to read:

     "10-11-26.3. STATE GENERAL MEMBER COVERAGE PLAN 3--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under state general member coverage plan 3:

          A. for a member with age and service requirements provided under Paragraph (1) or (3) of Subsection A of Section 10-11-26.2 NMSA 1978, the amount of pension under form of payment A is equal to three percent of final average salary multiplied by service credit [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by three percent; and

          B. for a member with age and service requirements provided under Paragraph (2) of Subsection A of Section 10-11-26.2 NMSA 1978, the amount of pension under form of payment A is equal to two and one-half percent of the final average salary multiplied by service credit [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two and one-half percent."

     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-five thousand dollars ($25,000) shall contribute:

          A. beginning July 1, 2020 and continuing through June 30, 2021, nine and forty-two hundredths percent of salary;

          B. beginning July 1, 2021 and continuing through June 30, 2022, nine and ninety-two hundredths percent of salary;

          C. beginning July 1, 2022 and continuing through June 30, 2023, ten and forty-two hundredths percent of salary; [and]

          D. beginning July 1, 2023 and [thereafter, ten and ninety-two hundredths percent of salary] continuing through June 30, 2024, ten and ninety-two hundredths percent of salary;

          E. beginning July 1, 2024 and continuing through June 30, 2025, twelve and forty-two hundredths percent of salary;

          F. beginning July 1, 2025 and continuing through June 30, 2026, thirteen and ninety-two hundredths percent of salary;

          G. beginning July 1, 2026 and continuing through June 30, 2027, fifteen and forty-two hundredths percent of salary;

          H. beginning July 1, 2027 and continuing through June 30, 2028, sixteen and ninety-two hundredths percent of salary;

          I. beginning July 1, 2028 and continuing through June 30, 2029, eighteen and forty-two hundredths percent of salary; and

          J. beginning July 1, 2029 and thereafter, nineteen and forty-two hundredths percent of salary."

     SECTION 3. Section 10-11-29 NMSA 1978 (being Laws 1987, Chapter 253, Section 29, as amended) is amended to read:

     "10-11-29. STATE POLICE MEMBER, CORRECTIONAL OFFICER MEMBER AND PROBATION AND PAROLE OFFICER MEMBER COVERAGE PLAN 1--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under state police member, correctional officer member and probation and parole officer member coverage plan 1, the amount of pension under form of payment A is equal to three percent of final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by three percent."          

     SECTION 4. Section 10-11-38.3 NMSA 1978 (being Laws 1994, Chapter 128, Section 11, as amended) is amended to read:

     "10-11-38.3. JUVENILE CORRECTIONAL OFFICER MEMBER COVERAGE PLAN 2--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under juvenile correctional officer member coverage plan 2, the amount of pension under form of payment A is equal to three percent of final average salary multiplied by service credit [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by three percent."

     SECTION 5. 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-five thousand dollars ($25,000) shall contribute:

          A. beginning July 1, 2020 and continuing through June 30, 2021, six and seventy-eight hundredths percent of salary;

          B. beginning July 1, 2021 and continuing through June 30, 2022, seven and twenty-eight hundredths percent of salary;

          C. beginning July 1, 2022 and continuing through June 30, 2023, seven and seventy-eight hundredths percent of salary; [and]

          D. beginning July 1, 2023 and [thereafter, eight and twenty-eight hundredths percent of salary] continuing through June 30, 2024, eight and twenty-eight hundredths percent of salary;

          E. beginning July 1, 2024 and continuing through June 30, 2025, nine and seventy-eight hundredths percent of salary;

          F. beginning July 1, 2025 and continuing through June 30, 2026, eleven and twenty-eight hundredths percent of salary;

          G. beginning July 1, 2026 and continuing through June 30, 2027, twelve and seventy-eight hundredths percent of salary;

          H. beginning July 1, 2027 and continuing through June 30, 2028, fourteen and twenty-eight hundredths percent of salary;

          I. beginning July 1, 2028 and continuing through June 30, 2029, fifteen and seventy-eight hundredths percent of salary; and

          J. beginning July 1, 2029 and thereafter, sixteen and seventy-eight hundredths percent of salary."

     SECTION 6. Section 10-11-46 NMSA 1978 (being Laws 1987, Chapter 253, Section 46, as amended) is amended to read:

     "10-11-46. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 1--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal general member coverage plan 1, the amount of pension under form of payment A is equal to two percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two percent."

     SECTION 7. 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-five thousand dollars ($25,000) shall contribute:

          A. prior to July 1, 2022, eight and one-half percent of salary;

          B. beginning July 1, 2022 and continuing through June 30, 2023, nine percent of salary;

          C. beginning July 1, 2023 and continuing through June 30, 2024, nine and one-half percent of salary;

          D. beginning July 1, 2024 and continuing through June 30, 2025, ten percent of salary; [and]

          E. beginning July 1, 2025 and [thereafter, ten and one-half percent of salary] continuing through June 30, 2026, ten and one-half percent of salary;

          F. beginning July 1, 2026 and continuing through June 30, 2027, twelve percent of salary;

          G. beginning July 1, 2027 and continuing through June 30, 2028, thirteen and one-half percent of salary;

          H. beginning July 1, 2028 and continuing through June 30, 2029, fifteen percent of salary;

          I. beginning July 1, 2029 and continuing through June 30, 2030, seventeen and one-half percent of salary; and

          J. beginning July 1, 2030 and thereafter, eighteen and one-half percent of salary."

     SECTION 8. Section 10-11-52 NMSA 1978 (being Laws 1987, Chapter 253, Section 52, as amended) is amended to read:

     "10-11-52. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 2--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal general member coverage plan 2:

          A. for a member with age and service requirements provided in Subsection A of Section 10-11-51 NMSA 1978, the amount of pension under form of payment A is equal to two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two and one-half percent; and

          B. for a member with age and service requirements provided in Subsection B of Section 10-11-51 NMSA 1978, the amount of pension under form of payment A is equal to two percent of the final average salary multiplied by service credit [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two percent."

     SECTION 9. 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-five thousand dollars ($25,000) shall contribute:

          A. prior to July 1, 2022, ten and sixty-five hundredths percent of salary;

          B. beginning July 1, 2022 and continuing through June 30, 2023, eleven and fifteen-hundredths percent of salary;

          C. beginning July 1, 2023 and continuing through June 30, 2024, eleven and sixty-five hundredths percent of salary;

          D. beginning July 1, 2024 and continuing through June 30, 2025, twelve and fifteen-hundredths percent of salary; [and]

          E. beginning July 1, 2025 and [thereafter, twelve and sixty-five hundredths percent of salary] continuing through June 30, 2026, twelve and sixty-five hundredths percent of salary;

          F. beginning July 1, 2026 and continuing through June 30, 2027, fourteen and fifteen-hundredths percent of salary;

          G. beginning July 1, 2027 and continuing through June 30, 2028, fifteen and sixty-five hundredths percent of salary;

          H. beginning July 1, 2028 and continuing through June 30, 2029, seventeen and fifteen-hundredths percent of salary;

          I. beginning July 1, 2029 and continuing through June 30, 2030, eighteen and sixty-five hundredths percent of salary;

          J. beginning July 1, 2030 and continuing through June 30, 2031, nineteen and sixty-five hundredths percent of salary; and

          K. beginning July 1, 2031 and thereafter, twenty and sixty-five hundredths percent of salary."

     SECTION 10. Section 10-11-55.3 NMSA 1978 (being Laws 1993, Chapter 58, Section 3, as amended) is amended to read:

     "10-11-55.3. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 3--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal general member coverage plan 3:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-55.2 NMSA 1978, the amount of pension under form of payment A is equal to three percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by three percent; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-55.2 NMSA 1978, the amount of pension under form of payment A is equal to two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two and one-half percent."

     SECTION 11. 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-five thousand dollars ($25,000) shall contribute:

          A. prior to July 1, 2022, fourteen and sixty-five hundredths percent of salary;

          B. beginning July 1, 2022 and continuing through June 30, 2023, fifteen and fifteen-hundredths percent of salary;

          C. beginning July 1, 2023 and continuing through June 30, 2024, fifteen and sixty-five hundredths percent of salary;

          D. beginning July 1, 2024 and continuing through June 30, 2025, sixteen and fifteen-hundredths percent of salary; [and]

          E. beginning July 1, 2025 and [thereafter, sixteen and sixty-five hundredths percent of salary] continuing through June 30, 2026, sixteen and sixty-five hundredths percent of salary;

          F. beginning July 1, 2026 and continuing through June 30, 2027, eighteen and fifteen-hundredths percent of salary;

          G. beginning July 1, 2027 and continuing through June 30, 2028, nineteen and sixty-five hundredths percent of salary;

          H. beginning July 1, 2028 and continuing through June 30, 2029, twenty-one and fifteen-hundredths percent of salary;

          I. beginning July 1, 2029 and continuing through June 30, 2030, twenty-two and sixty-five hundredths percent of salary;

          J. beginning July 1, 2030 and continuing through June 30, 2031, twenty-three and sixty-five hundredths percent of salary; and

          K. beginning July 1, 2031 and thereafter, twenty-four and sixty-five hundredths percent of salary."

     SECTION 12. Section 10-11-55.9 NMSA 1978 (being Laws 1998, Chapter 106, Section 3, as amended) is amended to read:

     "10-11-55.9. MUNICIPAL GENERAL MEMBER COVERAGE PLAN 4--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal general member coverage plan 4:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-55.8 NMSA 1978, the amount of pension under form of payment A is equal to three percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by three percent; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-55.8 NMSA 1978, the amount of pension under form of payment A is equal to two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two and one-half percent."

     SECTION 13. 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-five thousand dollars ($25,000) shall contribute:

          A. prior to July 1, 2022, seventeen and [fifteen hundredths] fifteen-hundredths percent of salary;

          B. beginning July 1, 2022 and continuing through June 30, 2023, seventeen and sixty-five hundredths percent of salary;

          C. beginning July 1, 2023 and continuing through June 30, 2024, eighteen and [fifteen hundredths] fifteen-hundredths percent of salary;

          D. beginning July 1, 2024 and continuing through June 30, 2025, eighteen and sixty-five hundredths percent of salary; [and]

          E. beginning July 1, 2025 and [thereafter, nineteen and fifteen hundredths percent of salary] continuing through June 30, 2026, nineteen and fifteen-hundredths percent of salary;

          F. beginning July 1, 2026 and continuing through June 30, 2027, twenty and sixty-five hundredths percent of salary;

          G. beginning July 1, 2027 and continuing through June 30, 2028, twenty-two and fifteen-hundredths percent of salary;

          H. beginning July 1, 2028 and continuing through June 30, 2029, twenty-three and sixty-five hundredths percent of salary;

          I. beginning July 1, 2029 and continuing through June 30, 2030, twenty-five and fifteen-hundredths percent of salary;

          J. beginning July 1, 2030 and continuing through June 30, 2031, twenty-six and fifteen-hundredths percent of salary; and

          K. beginning July 1, 2031 and thereafter, twenty-seven and fifteen-hundredths percent of salary."

     SECTION 14. Section 10-11-58 NMSA 1978 (being Laws 1987, Chapter 253, Section 58, as amended) is amended to read:

     "10-11-58. MUNICIPAL POLICE MEMBER COVERAGE PLAN 1--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal police member coverage plan 1, the amount of pension under form of payment A is equal to two percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two percent."

     SECTION 15. 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-five thousand dollars ($25,000) shall contribute:

          A. prior to July 1, 2022, eight and one-half percent of salary;

          B. beginning July 1, 2022 and continuing through June 30, 2023, nine percent of salary;

          C. beginning July 1, 2023 and continuing through June 30, 2024, nine and one-half percent of salary;

          D. beginning July 1, 2024 and continuing through June 30, 2025, ten percent of salary; [and]

          E. beginning July 1, 2025 and [thereafter, ten and one-half percent of salary] continuing through June 30, 2026, ten and one-half percent of salary;

          F. beginning July 1, 2026 and continuing through June 30, 2027, eleven and one-half percent of salary;

          G. beginning July 1, 2027 and continuing through June 30, 2028, twelve and one-half percent of salary;

          H. beginning July 1, 2028 and continuing through June 30, 2029, thirteen and one-half percent of salary; and

          I. beginning July 1, 2029 and thereafter, fourteen and one-half percent of salary."

     SECTION 16. Section 10-11-64 NMSA 1978 (being Laws 1987, Chapter 253, Section 64, as amended) is amended to read:

     "10-11-64. MUNICIPAL POLICE MEMBER COVERAGE PLAN 2--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal police member coverage plan 2:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-63 NMSA 1978, the amount of pension under form of payment A is equal to two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two and one-half percent; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-63 NMSA 1978, the amount of pension under form of payment A is equal to two percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two percent."

     SECTION 17. 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-five thousand dollars ($25,000) shall contribute:

          A. prior to July 1, 2022, eight and one-half percent of salary;

          B. beginning July 1, 2022 and continuing through June 30, 2023, nine percent of salary;

          C. beginning July 1, 2023 and continuing through June 30, 2024, nine and one-half percent of salary;

          D. beginning July 1, 2024 and continuing through June 30, 2025, ten percent of salary; [and]

          E. beginning July 1, 2025 and [thereafter, ten and one-half percent of salary] continuing through June 30, 2026, ten and one-half percent of salary;

          F. beginning July 1, 2026 and continuing through June 30, 2027, eleven and one-half percent of salary;

          G. beginning July 1, 2027 and continuing through June 30, 2028, twelve and one-half percent of salary;

          H. beginning July 1, 2028 and continuing through June 30, 2029, thirteen and one-half percent of salary; and

          I. beginning July 1, 2029 and thereafter, fourteen and one-half percent of salary."

     SECTION 18. Section 10-11-70 NMSA 1978 (being Laws 1987, Chapter 253, Section 70, as amended) is amended to read:

     "10-11-70. MUNICIPAL POLICE MEMBER COVERAGE PLAN 3--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal police member coverage plan 3:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-69 NMSA 1978, the amount of pension under form of payment A is equal to two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two and one-half percent; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-69 NMSA 1978, the amount of pension under form of payment A is equal to two percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two percent."

     SECTION 19. 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-five thousand dollars ($25,000) shall contribute:

          A. prior to July 1, 2022, eight and one-half percent of salary;

          B. beginning July 1, 2022 and continuing through June 30, 2023, nine percent of salary;

          C. beginning July 1, 2023 and continuing through June 30, 2024, nine and one-half percent of salary;

          D. beginning July 1, 2024 and continuing through June 30, 2025, ten percent of salary; [and]

          E. beginning July 1, 2025 and [thereafter, ten and one-half percent of salary] continuing through June 30, 2026, ten and one-half percent of salary;

          F. beginning July 1, 2026 and continuing through June 30, 2027, eleven and one-half percent of salary;

          G. beginning July 1, 2027 and continuing through June 30, 2028, twelve and one-half percent of salary;

          H. beginning July 1, 2028 and continuing through June 30, 2029, thirteen and one-half percent of salary; and

          I. beginning July 1, 2029 and thereafter, fourteen and one-half percent of salary."

     SECTION 20. Section 10-11-76 NMSA 1978 (being Laws 1987, Chapter 253, Section 76, as amended) is amended to read:

     "10-11-76. MUNICIPAL POLICE MEMBER COVERAGE PLAN 4--AMOUNT OF PENSION--FORM OF [PENSION] PAYMENT A.--Under municipal police member coverage plan 4:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-75 NMSA 1978, the amount of pension under form of payment A is equal to three percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by three percent; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-75 NMSA 1978, the amount of pension under form of payment A is equal to two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two and one-half percent."

     SECTION 21. 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-five thousand dollars ($25,000) shall contribute:

          A. prior to July 1, 2022, thirteen and eighty-five hundredths percent of salary;

          B. beginning July 1, 2022 and continuing through June 30, 2023, fourteen and thirty-five hundredths percent of salary;

          C. beginning July 1, 2023 and continuing through June 30, 2024, fourteen and eighty-five hundredths percent of salary;

          D. beginning July 1, 2024 and continuing through June 30, 2025, fifteen and thirty-five hundredths percent of salary; [and]

          E. beginning July 1, 2025 and [thereafter, fifteen and eighty-five hundredths percent of salary] continuing through June 30, 2026, fifteen and eighty-five hundredths percent of salary;

          F. beginning July 1, 2026 and continuing through June 30, 2027, sixteen and eighty-five hundredths percent of salary;

          G. beginning July 1, 2027 and continuing through June 30, 2028, seventeen and eighty-five hundredths percent of salary;

          H. beginning July 1, 2028 and continuing through June 30, 2029, eighteen and eighty-five hundredths percent of salary; and

          I. beginning July 1, 2029 and thereafter, nineteen and eighty-five hundredths percent of salary."

     SECTION 22. Section 10-11-82 NMSA 1978 (being Laws 1987, Chapter 253, Section 82, as amended) is amended to read:

     "10-11-82. MUNICIPAL POLICE MEMBER COVERAGE PLAN 5--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal police member coverage plan 5:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-81 NMSA 1978, the amount of pension under form of payment A is equal to three and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by three and one-half percent; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-81 NMSA 1978, the amount of pension under form of payment A is equal to three percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by three percent."

     SECTION 23. 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-five thousand dollars ($25,000) shall contribute:

          A. prior to July 1, 2022, seventeen and eight-tenths percent of salary;

          B. beginning July 1, 2022 and continuing through June 30, 2023, eighteen and three-tenths percent of salary;

          C. beginning July 1, 2023 and continuing through June 30, 2024, eighteen and eight-tenths percent of salary;

          D. beginning July 1, 2024 and continuing through June 30, 2025, nineteen and three-tenths percent of salary; [and]

          E. beginning July 1, 2025 and [thereafter, nineteen and eight-tenths percent of salary] continuing through June 30, 2026, nineteen and eight-tenths percent of salary;

          F. beginning July 1, 2026 and continuing through June 30, 2027, twenty and eight-tenths percent of salary;

          G. beginning July 1, 2027 and continuing through June 30, 2028, twenty-one and eight-tenths percent of salary;

          H. beginning July 1, 2028 and continuing through June 30, 2029, twenty-two and eight-tenths percent of salary; and

          I. beginning July 1, 2029 and thereafter, twenty-three and eight-tenths percent of salary."

     SECTION 24. Section 10-11-88 NMSA 1978 (being Laws 1987, Chapter 253, Section 88, as amended) is amended to read:

     "10-11-88. MUNICIPAL FIRE MEMBER COVERAGE PLAN 1--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal fire member coverage plan 1, the amount of pension under form of payment A is equal to two percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two percent."

     SECTION 25. 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-five thousand dollars ($25,000) shall contribute:

          A. prior to July 1, 2022, nine and one-half percent of salary;

          B. beginning July 1, 2022 and continuing through June 30, 2023, ten percent of salary;

          C. beginning July 1, 2023 and continuing through June 30, 2024, ten and one-half percent of salary;

          D. beginning July 1, 2024 and continuing through June 30, 2025, eleven percent of salary; [and]

          E. beginning July 1, 2025 and [thereafter, eleven and one-half percent of salary] continuing through June 30, 2026, eleven and one-half percent of salary;

          F. beginning July 1, 2026 and continuing through June 30, 2027, thirteen percent of salary;

          G. beginning July 1, 2027 and continuing through June 30, 2028, fourteen and one-half percent of salary;

          H. beginning July 1, 2028 and continuing through June 30, 2029, sixteen percent of salary;

          I. beginning July 1, 2029 and continuing through June 30, 2030, seventeen and one-half percent of salary;

          J. beginning July 1, 2030 and continuing through June 30, 2031, nineteen percent of salary;

          K. beginning July 1, 2031 and continuing through June 30, 2032, twenty and one-half percent of salary; and

          L. beginning July 1, 2032 and thereafter, twenty-one and one-half percent of salary."

     SECTION 26. Section 10-11-94 NMSA 1978 (being Laws 1987, Chapter 253, Section 94, as amended) is amended to read:

     "10-11-94. MUNICIPAL FIRE MEMBER COVERAGE PLAN 2--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal fire member contribution plan 2:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-93 NMSA 1978, the amount of pension under form of payment A is equal to two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two and one-half percent; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-93 NMSA 1978, the amount of pension under form of payment A is equal to two percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two percent."

     SECTION 27. 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-five thousand dollars ($25,000) shall contribute:

          A. prior to July 1, 2022, nine and one-half percent of salary;

          B. beginning July 1, 2022 and continuing through June 30, 2023, ten percent of salary;

          C. beginning July 1, 2023 and continuing through June 30, 2024, ten and one-half percent of salary;

          D. beginning July 1, 2024 and continuing through June 30, 2025, eleven percent of salary; [and]

          E. beginning July 1, 2025 and [thereafter, eleven and one-half percent of salary] continuing through June 30, 2026, eleven and one-half percent of salary;

          F. beginning July 1, 2026 and continuing through June 30, 2027, thirteen percent of salary;

          G. beginning July 1, 2027 and continuing through June 30, 2028, fourteen and one-half percent of salary;

          H. beginning July 1, 2028 and continuing through June 30, 2029, sixteen percent of salary;

          I. beginning July 1, 2029 and continuing through June 30, 2030, seventeen and one-half percent of salary;

          J. beginning July 1, 2030 and continuing through June 30, 2031, nineteen percent of salary;

          K. beginning July 1, 2031 and continuing through June 30, 2032, twenty and one-half percent of salary; and

          L. beginning July 1, 2032 and thereafter, twenty-one and one-half percent of salary."

     SECTION 28. Section 10-11-100 NMSA 1978 (being Laws 1987, Chapter 253, Section 100, as amended) is amended to read:

     "10-11-100. MUNICIPAL FIRE MEMBER COVERAGE PLAN 3--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal fire member coverage plan 3:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-99 NMSA 1978, the amount of pension under form of payment A is equal to two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two and one-half percent; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-99 NMSA 1978, the amount of pension under form of payment A is equal to two percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two percent."

     SECTION 29. 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-five thousand dollars ($25,000) shall contribute:

          A. prior to July 1, 2022, nine and one-half percent of salary;

          B. beginning July 1, 2022 and continuing through June 30, 2023, ten percent of salary;

          C. beginning July 1, 2023 and continuing through June 30, 2024, ten and one-half percent of salary;

          D. beginning July 1, 2024 and continuing through June 30, 2025, eleven percent of salary; [and]

          E. beginning July 1, 2025 and [thereafter, eleven and one-half percent of salary] continuing through June 30, 2026, eleven and one-half percent of salary;

          F. beginning July 1, 2026 and continuing through June 30, 2027, thirteen percent of salary;

          G. beginning July 1, 2027 and continuing through June 30, 2028, fourteen and one-half percent of salary;

          H. beginning July 1, 2028 and continuing through June 30, 2029, sixteen percent of salary;

          I. beginning July 1, 2029 and continuing through June 30, 2030, seventeen and one-half percent of salary;

          J. beginning July 1, 2030 and continuing through June 30, 2031, nineteen percent of salary;

          K. beginning July 1, 2031 and continuing through June 30, 2032, twenty and one-half percent of salary; and

          L. beginning July 1, 2032 and thereafter, twenty-one and one-half percent of salary."

     SECTION 30. Section 10-11-106 NMSA 1978 (being Laws 1987, Chapter 253, Section 106, as amended) is amended to read:

     "10-11-106. MUNICIPAL FIRE MEMBER COVERAGE PLAN 4--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal fire member coverage plan 4:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-105 NMSA 1978, the amount of pension under form of payment A is equal to three percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by three percent; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-105 NMSA 1978, the amount of pension under form of payment A is equal to two and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by two and one-half percent."

     SECTION 31. 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-five thousand dollars ($25,000) shall contribute:

          A. prior to July 1, 2022, fourteen and three-tenths percent of salary;

          B. beginning July 1, 2022 and continuing through June 30, 2023, fourteen and eight-tenths percent of salary;

          C. beginning July 1, 2023 and continuing through June 30, 2024, fifteen and three-tenths percent of salary;

          D. beginning July 1, 2024 and continuing through June 30, 2025, fifteen and eight-tenths percent of salary; [and]

          E. beginning July 1, 2025 and [thereafter, sixteen and three-tenths percent of salary] continuing through June 30, 2026, sixteen and three-tenths percent of salary;

          F. beginning July 1, 2026 and continuing through June 30, 2027, seventeen and eight-tenths percent of salary;

          G. beginning July 1, 2027 and continuing through June 30, 2028, nineteen and three-tenths percent of salary;

          H. beginning July 1, 2028 and continuing through June 30, 2029, twenty and eight-tenths percent of salary;

          I. beginning July 1, 2029 and continuing through June 30, 2030, twenty-two and three-tenths percent of salary;          J. beginning July 1, 2030 and continuing through June 30, 2031, twenty-three and eight-tenths percent of salary;

          K. beginning July 1, 2031 and continuing through June 30, 2032, twenty-four and eight-tenths percent of salary; and

          L. beginning July 1, 2032 and thereafter, twenty-six and three-tenths percent of salary."

     SECTION 32. Section 10-11-112 NMSA 1978 (being Laws 1987, Chapter 253, Section 112, as amended) is amended to read:

     "10-11-112. MUNICIPAL FIRE MEMBER COVERAGE PLAN 5--AMOUNT OF PENSION--FORM OF PAYMENT A.--Under municipal fire member coverage plan 5:

          A. for a member with age and service requirements provided under Subsection A of Section 10-11-111 NMSA 1978,

the amount of pension under form of payment A is equal to three and one-half percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by three and one-half percent; and

          B. for a member with age and service requirements provided under Subsection B of Section 10-11-111 NMSA 1978, the amount of pension under form of payment A is equal to three percent of the final average salary multiplied by credited service [The amount shall not exceed ninety percent of the final average salary]; provided that the final average salary shall be multiplied by one and one-half percent for that portion of service credit that would increase the amount of pension in excess of ninety percent of the final average salary if the final average salary was otherwise multiplied by three percent."

     SECTION 33. 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-five thousand dollars ($25,000) shall contribute:

          A. prior to July 1, 2022, seventeen and seven-tenths percent of salary;

          B. beginning July 1, 2022 and continuing through June 30, 2023, eighteen and two-tenths percent of salary;

          C. beginning July 1, 2023 and continuing through June 30, 2024, eighteen and seven-tenths percent of salary;

          D. beginning July 1, 2024 and continuing through June 30, 2025, nineteen and two-tenths percent of salary; [and]

          E. beginning July 1, 2025 and [thereafter, nineteen and seven-tenths percent of salary] continuing through June 30, 2026, nineteen and seven-tenths percent of salary;

          F. beginning July 1, 2026 and continuing through June 30, 2027, twenty-one and two-tenths percent of salary;

          G. beginning July 1, 2027 and continuing through June 30, 2028, twenty-two and seven-tenths percent of salary;

          H. beginning July 1, 2028 and continuing through June 30, 2029, twenty-four and two-tenths percent of salary;

          I. beginning July 1, 2029 and continuing through June 30, 2030, twenty-five and seven-tenths percent of salary;

          J. beginning July 1, 2030 and continuing through June 30, 2031, twenty-seven and two-tenths percent of salary;

          K. beginning July 1, 2031 and continuing through June 30, 2032, twenty-eight and seven-tenths percent of salary; and

          L. beginning July 1, 2032 and thereafter, twenty-nine and seven-tenths percent of salary."

     SECTION 34. Section 10-11-118 NMSA 1978 (being Laws 2020, Chapter 11, Section 61) is amended to read:

     "10-11-118. COST-OF-LIVING ADJUSTMENTS--QUALIFIED PENSION RECIPIENT--DECLINING INCREASE.--

          A. As used in this section,

                [(1) "cost-of-living adjustment hurdle rate" means the investment rate of return required to fund a cost-of-living adjustment in excess of one-half percent, as determined by the association's actuaries;

                (2) "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;

                (3)] "preceding calendar year" means the full calendar year preceding the July 1 on which pensions are being adjusted [and

                (4) "smoothed investment rate of return" means a calculation made by spreading the difference between the expected actuarial value in investment income and the actual market value investment income over a smoothing period, as determined by the association's actuaries].

          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 has been retired for at least two full calendar years from the effective date of the latest retirement prior to July 1 of the year in which the pension is being adjusted;

                (2)] (1) a normal retired member who has attained the age of [sixty-five] sixty years and has been retired for at least one full calendar year from the effective date of the member's latest retirement prior to July 1 of the year in which the pension is being adjusted;

                [(3)] (2) 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)] (3) a survivor beneficiary who has received a survivor pension for at least two full calendar years; or

                [(5)] (4) 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. Except as provided in Subsections [F, G and H] E, F and G of this section, during fiscal years 2021, 2022 and 2023, a qualified pension recipient shall receive an annual, non-compounding, additional payment. The amount of the payment shall be determined by multiplying the amount of annual pension payments, inclusive of all cost-of-living adjustments prior to fiscal year 2021, by two percent.

          [D. Beginning May 1, 2023 and no later than each May 1 thereafter, the retirement board shall certify to the association the:

                (1) funded ratio as of June 30 of the preceding calendar year; and

                (2) smoothed investment rate of return as of June 30 of the preceding calendar year.

          E.] D. Except as provided in Subsections [F, G and H] E, F and G of this section, beginning July 1, 2023 and each July 1 thereafter, [immediately following the retirement board's certification of the funded ratio and smoothed investment rate of return] the cost-of-living adjustment to a qualified pension recipient payable pursuant to the Public Employees Retirement Act shall be [determined as an amount equal to the smoothed investment rate of return on the actuarial value of assets on June 30 of the preceding calendar year less the cost-of-living adjustment hurdle rate, as determined by the association's actuaries, multiplied by the funded ratio on June 30 of the preceding calendar year or five-tenths percent, whichever is greater, and subject to the following conditions:

                (1) if the funded ratio of the fund is less than one hundred percent on June 30 of the preceding calendar year, the amount of the adjustment made pursuant to this subsection shall not exceed three percent;

                (2) if the funded ratio of the fund is equal to or greater than one hundred percent on June 30 of the preceding calendar year, the adjustment made pursuant to this subsection shall not exceed five percent;

                (3) notwithstanding the provisions of this subsection, a qualified pension recipient shall receive a minimum annual cost-of-living adjustment of five-tenths percent; and

                (4) the] increased by two percent each July 1. The amount of increase shall be determined by multiplying the amount of pension, inclusive of all prior adjustments, by [the cost-of-living adjustment as determined by this subsection] two percent.

          [F.] E. 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-five thousand dollars ($25,000), 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.] F. 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-five thousand dollars ($25,000), 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.] G. For a normal retired member who has attained the age of seventy-five years prior to July 1, 2020, 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.

          [I.] 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."

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