0001| HOUSE BILL 134
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0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003| INTRODUCED BY
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0004| PAULINE K. GUBBELS
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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 EMPLOYEE BENEFITS; CHANGING THE
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0012| CONTRIBUTIONS FROM PUBLIC FUNDS.
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0013|
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0014| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0015| Section 1. Section 10-7-4 NMSA 1978 (being Laws 1941,
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0016| Chapter 188, Section 1, as amended) is amended to read:
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0017| "10-7-4. GROUP INSURANCE--CAFETERIA PLAN--CONTRIBUTIONS
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0018| FROM PUBLIC FUNDS.--
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0019| A. All state departments and institutions and all
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0020| political subdivisions of the state, excluding municipalities
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0021| and counties, shall cooperate in providing group term life,
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0022| medical or disability income insurance for the benefit of
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0023| eligible employees or salaried officers of the respective
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0024| departments, institutions and subdivisions.
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0025| B. The group insurance contributions of the state
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0001| or any of its departments or institutions, including
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0002| institutions of higher education and the public schools, shall
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0003| be made as follows:
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0004| (l) seventy-five percent of the cost of the
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0005| insurance of an employee whose annual salary is less than
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0006| [fifteen thousand dollars ($15,000)] twenty thousand
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0007| dollars ($20,000);
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0008| (2) seventy percent of the cost of the
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0009| insurance of an employee whose annual salary is [fifteen
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thousand dollars ($15,000)] twenty thousand dollars
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0011| ($20,000) or more but less than [twenty thousand dollars
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($20,000)] twenty-five thousand dollars ($25,000);
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0013| (3) sixty-five percent of the cost of the
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0014| insurance of an employee whose annual salary is [twenty
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thousand dollars ($20,000)] twenty-five thousand dollars
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0016| ($25,000) or more but less than [twenty-five thousand
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dollars ($25,000)] thirty thousand dollars ($30,000); or
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0018| (4) sixty percent of the cost of the
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0019| insurance of an employee whose annual salary is [twenty-five
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thousand dollars ($25,000)] thirty thousand dollars
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0021| ($30,000) or more.
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0022| As used in this subsection, "cost of the insurance" means
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0023| the premium required to be paid to provide coverages. Any
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0024| contributions of the political subdivisions of the state,
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0025| except the public schools, shall not exceed sixty percent of
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0001| the cost of the insurance.
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0002| C. When a public employee elects to participate in
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0003| a cafeteria plan as authorized by the Cafeteria Plan Act and
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0004| enters into a salary reduction agreement with the governmental
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0005| employer, the provision of Subsection B of this section with
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0006| respect to the maximum contributions that can be made by the
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0007| employer are not violated and will still apply. The employer
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0008| percentage or dollar contributions as provided in Subsection B
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0009| of this section shall be determined by the employee's gross
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0010| salary prior to any salary reduction agreement.
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0011| D. Any group medical insurance plan offered
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0012| pursuant to this section shall include effective
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0013| cost-containment measures to control the growth of health care
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0014| costs. The responsible public body that administers a plan
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0015| offered pursuant to this section shall report annually by
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0016| September 1 to appropriate interim legislative committees on
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0017| the effectiveness of the cost-containment measures required by
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0018| this subsection."
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0019| Section 2. EFFECTIVE DATE.--The effective date of the
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0020| provisions of this act is the beginning of the first pay
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0021| period after July 1, 1998.
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0022|
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