0001| HOUSE BILL 1210
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0002| 43rd legislature - STATE OF NEW MEXICO - first session, 1997
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0003| INTRODUCED BY
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0004| DAVID M. PARSONS
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0007|
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0009|
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0010|
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0011| AN ACT
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0012| AMENDING THE PUBLIC EMPLOYEES RETIREMENT ACT; ALLOWING PURCHASE
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0013| OF SERVICE CREDIT FOR CERTAIN PERIODS OF PROBATIONARY
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0014| EMPLOYMENT.
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0015|
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0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017| Section 1. Section 10-11-4 NMSA 1978 (being Laws 1987,
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0018| Chapter 253, Section 4, as amended) is amended to read:
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0019| "10-11-4. SERVICE CREDIT--REQUIREMENTS FOR--FORFEITURE--
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0020| REINSTATEMENT.--
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0021| A. Personal service rendered an affiliated public
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0022| employer by a member shall be credited to the member's service
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0023| credit account in accordance with retirement board rules and
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0024| regulations. Service shall be credited to the nearest month.
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0025| In no case shall any member be credited with a year of service
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0001| for less than twelve months of service in any calendar year or
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0002| more than a month of service for all service in any calendar
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0003| month or more than a year of service for all service in any
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0004| calendar year.
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0005| B. Personal service rendered an affiliated public
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0006| employer prior to August 1, 1947 shall be credited to a member
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0007| if the member acquires one year of service credit for personal
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0008| service rendered an affiliated public employer.
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0009| C. Personal service rendered an affiliated public
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0010| employer after July 31, 1947 but prior to the date the public
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0011| employer became an affiliated public employer is prior service
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0012| and shall be credited to a member if:
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0013| (1) the member acquires five years of service
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0014| credit for personal service rendered an affiliated public
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0015| employer; and
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0016| (2) the member pays the association the amount
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0017| determined in accordance with Subsection [D] E of this
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0018| section.
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0019| D. Personal service rendered a municipal
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0020| affiliated public employer that was not credited to the
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0021| member's service credit account because the service was
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0022| rendered during a probationary employment period is prior
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0023| service and shall be credited to the member if:
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0024| (1) the member acquires five years of service
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0025| credit for personal service rendered an affiliated public
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0001| employer; and
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0002| (2) the member pays the association the amount
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0003| determined in accordance with Subsection E of this section.
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0004| [D.] E. The purchase cost for each month of
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0005| service credit purchased under the provisions of this section
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0006| is equal to the member's final average salary multiplied by the
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0007| sum of the member contribution rate and employer contribution
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0008| rate determined in accordance with the coverage plan applicable
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0009| to the member at the time of the written election to purchase.
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0010| Full payment shall be made in a single lump-sum amount in
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0011| accordance with the procedures established by the retirement
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0012| board. The portion of the purchase cost derived from the
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0013| employer contribution rate shall be credited to the
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0014| [employer] employers accumulation fund and shall not be
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0015| refunded to the member in the event of cessation of membership.
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0016| In no case shall any member be credited with a month of service
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0017| for less than the purchase cost as defined in this section.
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0018| [E.] F. Service credit shall be forfeited if a
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0019| member terminates employment with an affiliated public employer
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0020| and withdraws the member's accumulated member contributions.
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0021| [F.] G. A member or former member who is a
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0022| member of another state system or the educational retirement
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0023| system and who has forfeited service credit by withdrawal of
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0024| member contributions may reinstate the forfeited service credit
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0025| by repaying the amount withdrawn plus compound interest from
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0001| the date of withdrawal to the date of repayment at the rate set
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0002| by the retirement board. Withdrawn member contributions may
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0003| be repaid in increments of one year in accordance with the
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0004| procedures established by the retirement board. Full payment
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0005| of each one-year increment shall be made in a single lump-sum
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0006| amount in accordance with procedures established by the
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0007| retirement board."
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