0001| SENATE BILL 514
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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| MICHAEL S. SANCHEZ
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0005|
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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 PUBLIC EMPLOYEES RETIREMENT; AUTHORIZING THE
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0012| PURCHASE OF CREDITED SERVICE FOR CIVILIAN PRISONERS OF WAR;
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0013| AMENDING A SECTION OF THE NMSA 1978.
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0014|
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0015| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0016| Section 1. Section 10-11-7 NMSA 1978 (being Laws 1987,
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0017| Chapter 253, Section 7, as amended) is amended to read:
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0018| "10-11-7. CREDITED SERVICE--PURCHASE OF SERVICE.--
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0019| A. A member who entered an armed service of the
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0020| United States, or who was a civilian prisoner of war captured
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0021| while in service to the United States as an employee of the
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0022| federal government or as an employee of a contractor with the
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0023| federal government, may purchase credited service for periods
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0024| of active duty in the armed service or for the period of
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0025| internment as a civilian prisoner of war, subject to the
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0001| 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 of this
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0004| 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;
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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| reduced by any period of credited service acquired for military
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0011| service under any other provision of the Public Employees
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0012| Retirement Act; and
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0013| (4) credited service may not be purchased for
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0014| periods of active duty or internment as a civilian prisoner of
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0015| war that are used to obtain or increase a benefit from another
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0016| retirement program.
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0017| B. A member who was employed by a utility company,
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0018| library, museum, transit company or by a nonprofit organization
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0019| administering federally funded public service programs, which
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0020| utility company, library, museum, transit company or nonprofit
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0021| organization administering federally funded public service
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0022| programs or federally funded public service programs
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0023| administered by a nonprofit organization are subsequently taken
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0024| over by an affiliated public employer, or a member who was
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0025| employed by an entity created pursuant to a joint powers
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0001| agreement between two or more affiliated public employers for
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0002| the purpose of administering or providing drug or alcohol
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0003| addiction treatment services irrespective of whether the entity
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0004| is subsequently taken over by an affiliated public employer,
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0005| may purchase credited service for the period of employment
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0006| subject to the following conditions:
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0007| (1) the member pays the association the
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0008| purchase cost determined according to Subsection D of this
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0009| section;
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0010| (2) the member has five or more years of
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0011| credited service acquired as a result of personal service
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0012| rendered in the employ of an affiliated public employer; and
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0013| (3) the aggregate amount of credited service
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0014| purchased under this subsection does not exceed five years.
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0015| C. A member who was appointed to participate in a
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0016| cooperative work study training program established jointly by
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0017| the state highway and transportation department and the
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0018| university of New Mexico or New Mexico state university may
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0019| purchase credited service for the period of participation
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0020| subject to the following conditions:
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0021| (1) the member pays the association the
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0022| purchase cost determined according to Subsection D of this
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0023| section;
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0024| (2) the member has five or more years of
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0025| credited service acquired as a result of personal service
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0001| rendered in the employ of an affiliated public employer; and
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0002| (3) the aggregate amount of credited service
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0003| purchased under this subsection does not exceed five years.
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0004| D. Except for service to be used under a state
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0005| legislator coverage plan, the purchase cost for each month of
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0006| credited service purchased under the provisions of this section
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0007| is equal to the member's final average salary multiplied by the
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0008| sum of the member contribution rate and employer contribution
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0009| rate, determined in accordance with the coverage plan
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0010| applicable to the member at the time of the written election to
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0011| purchase. The purchase cost for each year of credited service
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0012| to be used under a state legislator coverage plan is equal to
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0013| the sum of the member contribution and an employer contribution
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0014| of ten times the annual amount of pension per year of credited
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0015| service under the state legislator coverage plan applicable to
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0016| the member. Full payment shall be made in a single lump sum
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0017| within sixty days of the date the member is informed of the
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0018| amount of the payment. The portion of the purchase cost
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0019| derived from the employer contribution rate shall be credited
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0020| to the employer accumulation fund and shall not be paid out of
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0021| the association in the event of cessation of membership. In no
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0022| case shall any member be credited with a month of service for
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0023| less than the purchase cost as defined in this section.
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0024| E. A member shall be refunded, upon written request
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0025| filed with the association, the portion of the purchase cost of
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0001| credited service purchased under this section that the
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0002| association determines to have been unnecessary to provide the
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0003| member with the maximum pension applicable to the member. The
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0004| association shall not pay interest on the portion of the
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0005| purchase cost refunded to the member.
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0006| F. A member of the magistrate retirement system who
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0007| during his service as a magistrate was eligible to become a
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0008| member of the public employees retirement system and elected
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0009| not to become a member of that system may [upon the effective
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date of this subsection] purchase service credit under the
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0011| public employees retirement system for the period for which the
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0012| magistrate elected not to become a public employees retirement
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0013| system member, by paying the amount of the increase in the
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0014| actuarial present value of the magistrate pension as a
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0015| consequence of the purchase as determined by the association.
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0016| Full payment shall be made in a single lump-sum amount in
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0017| accordance with procedures established by the board. Except as
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0018| provided in Subsection E of this section, seventy-five percent
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0019| of the purchase cost shall be considered to be employer
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0020| contributions and shall not be refunded to the member in the
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0021| event of cessation of membership."
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0022|
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