0001| SENATE BILL 166
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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| CISCO MCSORLEY
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0006|
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0007|
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO RETIREMENT; PROVIDING FOR THE PURCHASE OF SERVICE
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0012| CREDIT UNDER THE EDUCATIONAL RETIREMENT ACT AND THE PUBLIC
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0013| EMPLOYEES RETIREMENT ACT FOR TIME SERVED IN THE PEACE CORPS;
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0014| AMENDING SECTIONS OF THE NMSA 1978.
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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 10-11-7 NMSA 1978 (being Laws 1987,
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0018| Chapter 253, Section 7, as amended) is amended to read:
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0019| "10-11-7. CREDITED SERVICE--PURCHASE OF SERVICE.--
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0020| A. A member who entered an armed service of the
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0021| United States may purchase credited service for periods of
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0022| active duty, subject to the following conditions:
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0023| (1) the member pays the association the
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0024| purchase cost determined according to Subsection [D] E of
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0025| this section;
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0001| (2) the member has five or more years of
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0002| credited service acquired as a result of personal service
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0003| rendered in the employ of an affiliated public employer;
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0004| (3) the aggregate amount of credited service
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0005| purchased under this subsection does not exceed five years
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0006| reduced by any period of credited service acquired for military
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0007| service under any other provision of the Public Employees
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0008| Retirement Act; and
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0009| (4) credited service may not be purchased for
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0010| periods of active duty that are used to obtain or increase a
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0011| benefit from another retirement program.
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0012| B. A member who was employed by a utility company,
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0013| library, museum, transit company or by a nonprofit organization
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0014| administering federally funded public service programs, which
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0015| utility company, library, museum, transit company or nonprofit
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0016| organization administering federally funded public service
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0017| programs or federally funded public service programs
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0018| administered by a nonprofit organization are subsequently taken
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0019| over by an affiliated public employer, or a member who was
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0020| employed by an entity created pursuant to a joint powers
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0021| agreement between two or more affiliated public employers for
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0022| the purpose of administering or providing drug or alcohol
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0023| addiction treatment services irrespective of whether the entity
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0024| is subsequently taken over by an affiliated public employer,
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0025| may purchase credited service for the period of employment
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0001| subject to the following conditions:
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0002| (1) the member pays the association the
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0003| purchase cost determined according to Subsection [D] E of
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0004| this section;
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0005| (2) the member has five or more years of
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0006| credited service acquired as a result of personal service
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0007| rendered in the employ of an affiliated public employer; and
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0008| (3) the aggregate amount of credited service
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0009| purchased under this subsection does not exceed five years.
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0010| C. A member who was appointed to participate in a
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0011| cooperative work study training program established jointly by
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0012| the state highway and transportation department and the
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0013| university of New Mexico or New Mexico state university may
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0014| purchase credited service for the period of participation
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0015| subject to the following conditions:
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0016| (1) the member pays the association the
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0017| purchase cost determined according to Subsection [D] E of
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0018| this section;
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0019| (2) the member has five or more years of
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0020| credited service acquired as a result of personal service
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0021| rendered in the employ of an affiliated public employer; and
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0022| (3) the aggregate amount of credited service
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0023| purchased under this subsection does not exceed five years.
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0024| D. A member who served in the peace corps may
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0025| purchase credited service for periods of service, subject to
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0001| the following conditions:
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0002| (1) the member pays the association for each
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0003| year of allowed service credit desired an amount equal to the
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0004| actuarial value of the service purchased as defined by the
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0005| retirement board;
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0006| (2) the member has five or more years of
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0007| credited service acquired as a result of personal service
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0008| rendered in the employ of an affiliated public employer; and
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0009| (3) the aggregate amount of credited service
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0010| purchased under this subsection does not exceed four years.
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0011| [D.] E. Except for service to be used under a
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0012| state legislator coverage plan, the purchase cost for each
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0013| month of credited service purchased under the provisions of
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0014| this section is equal to the member's final average salary
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0015| multiplied by the sum of the member contribution rate and
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0016| employer contribution rate, determined in accordance with the
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0017| coverage plan applicable to the member at the time of the
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0018| written election to purchase. The purchase cost for each year
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0019| of credited service to be used under a state legislator
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0020| coverage plan is equal to the sum of the member contribution
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0021| and an employer contribution of ten times the annual amount of
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0022| pension per year of credited service under the state legislator
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0023| coverage plan applicable to the member. Full payment shall be
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0024| made in a single lump sum within sixty days of the date the
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0025| member is informed of the amount of the payment. The portion
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0001| of the purchase cost derived from the employer contribution
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0002| rate shall be credited to the employer accumulation fund and
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0003| shall not be paid out of the association in the event of
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0004| cessation of membership. In no case shall any member be
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0005| credited with a month of service for less than the purchase
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0006| cost as defined in this section.
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0007| [E.] F. A member shall be refunded, upon
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0008| written request filed with the association, the portion of the
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0009| purchase cost of credited service purchased under this section
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0010| that the association determines to have been unnecessary to
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0011| provide the member with the maximum pension applicable to the
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0012| member. The association shall not pay interest on the portion
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0013| of the purchase cost refunded to the member.
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0014| [F.] G. A member of the magistrate retirement
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0015| system who during his service as a magistrate was eligible to
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0016| become a member of the public employees retirement system and
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0017| elected not to become a member of that system may [upon the
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effective date of this subsection] purchase service credit
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0019| under the public employees retirement system for the period for
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0020| which the magistrate elected not to become a public employees
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0021| retirement system member, by paying the amount of the increase
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0022| in the actuarial present value of the magistrate pension as a
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0023| consequence of the purchase as determined by the association.
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0024| Full payment shall be made in a single lump-sum amount in
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0025| accordance with procedures established by the board. Except as
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0001| provided in Subsection [E] F of this section, seventy-five
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0002| percent of the purchase cost shall be considered to be employer
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0003| contributions and shall not be refunded to the member in the
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0004| event of cessation of membership."
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0005| Section 2. Section 22-11-34 NMSA 1978 (being Laws 1967,
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0006| Chapter 16, Section 157, as amended) is amended to read:
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0007| "22-11-34. ALLOWED SERVICE-CREDIT.--
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0008| A. A member shall be certified to have acquired
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0009| allowed service-credit for those periods of time when he was:
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0010| (1) employed prior to the effective date of
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0011| the Educational Retirement Act in any federal educational
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0012| program within New Mexico, including United States Indian
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0013| schools and civilian conservation corps camps. This service-
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0014| credit shall be allowed without contribution;
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0015| (2) engaged in military service that
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0016| interrupted his employment in New Mexico, if he returned to his
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0017| employment within eighteen months following honorable
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0018| discharge. This service-credit shall be allowed without
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0019| contribution;
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0020| (3) engaged in United States military service
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0021| or the commissioned corps of the public health service from
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0022| which he was honorably discharged if he contributes to the fund
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0023| a sum equal to ten and one-half percent of his average annual
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0024| salary for that period of time for which he has acquired earned
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0025| service-credit under the Educational Retirement Act for each
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0001| year of service-credit he desires to purchase. Average annual
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0002| salary shall be determined in accordance with rules promulgated
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0003| by the board, but shall always be based upon actual salaries
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0004| earned by the member where the actual salaries can be
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0005| ascertained by the board. The employer's contributions for
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0006| service-credit shall not be paid by the employer. The purchase
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0007| of service-credit provided in this [section] paragraph
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0008| shall be carried out by the member prior to July 1, 1992 or
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0009| within three years after the date of the member's employment
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0010| following service, whichever is later; [or]
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0011| (4) employed:
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0012| (a) in any public school or public
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0013| institution of higher learning in another state, territory or
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0014| possession of the United States;
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0015| (b) in any United States military
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0016| dependents' school operated by a branch of the armed forces of
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0017| the United States;
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0018| (c) as provided in Paragraph (1) of this
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0019| subsection after the effective date of the Educational
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0020| Retirement Act; or
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0021| (d) in any private school or institution
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0022| of higher learning in New Mexico whose education program is
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0023| accredited or approved by the state board at the time of
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0024| employment; or
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0025| (5) engaged in service in the peace corps if
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0001| he contributes to the fund for each year of allowed service-
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0002| credit desired an amount equal to the actuarial value of the
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0003| service purchased as defined by the board.
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0004| B. The member or employer under Paragraph (4) of
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0005| Subsection A of this section shall contribute to the fund for
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0006| each year of allowed service-credit desired an amount equal to
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0007| twelve percent of the member's annual salary at the time
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0008| payment is made if the member is employed or twelve percent
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0009| times the member's annual salary during the member's last year
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0010| of employment if the member is not employed at the time of
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0011| payment. Contributions paid for the member who is not employed
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0012| shall bear interest at the average rate earned by the fund
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0013| during the five-fiscal-year period immediately preceding the
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0014| date of payment. Such interest shall run from the date the
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0015| member last terminated employment to the date of payment.
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0016| Payment pursuant to Paragraph (4) of Subsection A of this
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0017| section may be made in installments, at the discretion of the
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0018| board, over a period of not to exceed one year, and, if the sum
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0019| paid does not equal the amount required for any full year of
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0020| allowed service-credit, the member shall acquire allowed
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0021| service-credit for that period of time which is proportionate
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0022| to the payment made. Half credit may be allowed without
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0023| contribution for not more than ten years of the educational
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0024| service described by Subparagraph (a) of Paragraph (4) of
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0025| Subsection A of this section if that service was prior to June
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0001| 13, 1953 and if the member was employed in New Mexico prior to
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0002| June 13, 1953 in any position covered by the Educational
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0003| Retirement Act or any law repealed thereby.
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0004| C. No member shall be certified to have acquired
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0005| allowed service-credit:
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0006| (1) under any single paragraph or the
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0007| combination of only Paragraphs (1) and (4) or only Paragraphs
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0008| (2) and (3) of Subsection A of this section in excess of five
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0009| years; or
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0010| (2) in excess of ten years for any other
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0011| combination of Paragraphs (1) through [(4)] (5) of
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0012| Subsection A of this section.
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0013| D. The provisions of this section are made
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0014| applicable to the services described prior to as well as after
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0015| the effective date of the Educational Retirement Act."
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0016|
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