0001| AN ACT | 0002| RELATING TO EDUCATIONAL RETIREMENT; AMENDING SECTION 22-11-34 NMSA | 0003| 1978 (BEING LAWS 1967, CHAPTER 16, SECTION 157, AS AMENDED) TO PROVIDE | 0004| THAT THE PURCHASE COST OF SERVICE-CREDIT SHALL BE BASED UPON THE | 0005| ACTUARIAL VALUE OF THE SERVICE PURCHASED. | 0006| | 0007| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0008| Section 1. Section 22-11-34 NMSA 1978 (being Laws 1967, Chapter 16, Section 157, as | 0009| amended) is amended to read: | 0010| "22-11-34. ALLOWED SERVICE-CREDIT.-- | 0011| A. A member shall be certified to have acquired allowed service-credit for those | 0012| periods of time when he was: | 0013| (1) employed prior to the effective date of the Educational Retirement Act | 0014| in any federal educational program within New Mexico, including United States Indian schools | 0015| and civilian conservation corps camps. This service-credit shall be allowed without contribution; | 0016| (2) engaged in military service that interrupted his employment in New | 0017| Mexico, if he returned to his employment within eighteen months following honorable discharge. | 0018| This service-credit shall be allowed without contribution; | 0019| (3) engaged in United States military service or the commissioned corps | 0020| of the public health service from which he was honorably discharged if he contributes to the fund | 0021| a sum equal to ten and one-half percent of his average annual salary for that period of time for | 0022| which he has acquired earned service-credit under the Educational Retirement Act for each year | 0023| of service-credit he desires to purchase. Average annual salary shall be determined in accordance | 0024| with rules promulgated by the board, but shall always be based upon actual salaries earned by the | 0025| member where the actual salaries can be ascertained by the board. The employer's contributions | 0001| for service-credit shall not be paid by the employer. The purchase of service-credit provided in | 0002| this section shall be carried out by the member within three years after the date of the member's | 0003| employment following service; or | 0004| (4) employed: | 0005| (a) in any public school or public institution of higher learning in | 0006| another state, territory or possession of the United States; | 0007| (b) in any United States military dependents' school operated by a | 0008| branch of the armed forces of the United States; | 0009| (c) as provided in Paragraph (1) of this subsection after the | 0010| effective date of the Educational Retirement Act; or | 0011| (d) in any private school or institution of higher learning in New | 0012| Mexico whose education program is accredited or approved by the state board at the time of | 0013| employment. | 0014| B. The member or employer under Paragraph (4) of Subsection A of this section | 0015| shall contribute to the fund for each year of allowed service-credit desired an amount equal to | 0016| twelve percent of the member's annual salary at the time payment is made if the member is | 0017| employed or twelve percent times the member's annual salary during the member's last year of | 0018| employment if the member is not employed at the time of payment. Contributions paid for the | 0019| member who is not employed shall bear interest at the average rate earned by the fund during the | 0020| five-fiscal-year period immediately preceding the date of payment. Such interest shall run from | 0021| the date the member last terminated employment to the date of payment. Effective July 1, 2001, | 0022| the member or employer under Paragraph (4) of Subsection A of this section shall contribute to | 0023| the fund for each year of allowed service-credit desired an amount equal to the actuarial value of | 0024| the service purchased as defined by the board. Payment pursuant to Paragraph (4) of Subsection | 0025| A of this section may be made in installments, at the discretion of the board, over a period of not | 0001| to exceed one year, and, if the sum paid does not equal the amount required for any full year of | 0002| allowed service-credit, the member shall acquire allowed service-credit for that period of time | 0003| which is proportionate to the payment made. Half credit may be allowed without contribution for | 0004| not more than ten years of the educational service described by Subparagraph (a) of Paragraph (4) | 0005| of Subsection A of this section if that service was prior to June 13, 1953 and if the member was | 0006| employed in New Mexico prior to June 13, 1953 in any position covered by the Educational | 0007| Retirement Act or any law repealed thereby. | 0008| C. No member shall be certified to have acquired allowed service-credit: | 0009| (1) under any single paragraph or the combination of only Paragraphs (1) | 0010| and (4) or only Paragraphs (2) and (3) of Subsection A of this section in excess of five years; or | 0011| (2) in excess of ten years for any other combination of Paragraphs (1) | 0012| through (4) of Subsection A of this section. | 0013| D. The provisions of this section are made applicable to the services | 0014| described prior to as well as after the effective date of the Educational Retirement Act." | 0015| |