SENATE BILL

56th legislature - STATE OF NEW MEXICO - second session, 2024

INTRODUCED BY

Michael Padilla

 

 

 

 

 

AN ACT

RELATING TO PUBLIC EMPLOYEE RETIREMENT; REPEALING AND REENACTING A NEW SECTION 10-11-118 NMSA 1978 (BEING LAWS 2020, CHAPTER 11, SECTION 61) RELATING TO COST-OF-LIVING ADJUSTMENT PROVISIONS FOR QUALIFIED PENSION RECIPIENTS; PROVIDING COST-OF-LIVING ADJUSTMENTS THAT ARE EQUAL TO SOCIAL SECURITY AND SUPPLEMENTAL SECURITY INCOME COST-OF-LIVING ADJUSTMENTS; MAKING AN APPROPRIATION.

 

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

     SECTION 1. Section 10-11-118 NMSA 1978 (being Laws 2020, Chapter 11, Section 61) is repealed and a new Section 10-11-118 NMSA 1978 is enacted to read: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.--

          A. 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 member's latest retirement prior to July 1 of the year in which the pension is being adjusted;

                (2) a normal retired member who has attained the age of sixty-five 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) a disability retired member who 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;

                (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 for at least two full calendar years from the effective date of the member's latest retirement prior to July 1 of the year in which the pension is being adjusted.

          B. Beginning January 1, 2025, and no later than each January 1 thereafter, the retirement board shall certify to the association the social security and supplemental security income cost-of-living adjustment determined by the federal social security administration for that calendar year.

          C. Beginning July 1, 2025, and each July 1 thereafter, the cost-of-living adjustment to a qualified pension recipient payable pursuant to the Public Employees Retirement Act shall be in an amount equal to the amount certified by the retirement board pursuant to Subsection B of this section, and the amount of increase shall be determined by multiplying the amount of pension, inclusive of all prior adjustments, by the social security and supplemental security income cost-of-living adjustment determined by the federal social security administration for that calendar year.

          D. 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."

     SECTION 2. APPROPRIATION.--Fifty million dollars ($50,000,000) is appropriated from the general fund to the public employees retirement association for expenditure in fiscal year 2025 and subsequent fiscal years to provide adequate funding for cost-of-living adjustments to qualified pension recipients. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is December 1, 2024.

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