0001| HOUSE BILL 390
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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| JUDY VANDERSTAR RUSSELL
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0008|
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0009|
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0010| AN ACT
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0011| RELATING TO EDUCATIONAL RETIREMENT; CHANGING PROVISIONS
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0012| REGARDING PURCHASE OF SERVICE CREDIT FOR TIME SERVED IN THE
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0013| MILITARY OR PUBLIC HEALTH SERVICE.
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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 22-11-34 NMSA 1978 (being Laws 1967,
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0017| Chapter 16, Section 157, as amended) is amended to read:
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0018| "22-11-34. ALLOWED SERVICE CREDIT.--
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0019| A. A member shall be certified to have acquired
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0020| allowed service credit for those periods of time when he was:
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0021| (1) employed prior to the effective date of
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0022| the Educational Retirement Act in [any] a federal
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0023| educational program within New Mexico, including United States
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0024| Indian schools and civilian conservation corps camps. This
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0025| service credit shall be allowed without contribution;
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0001| (2) engaged in military service that
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0002| interrupted his employment in New Mexico if he returned to his
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0003| employment within eighteen months following honorable
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0004| discharge. This service credit shall be allowed without
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0005| contribution;
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0006| (3) engaged in United States military service
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0007| or the commissioned corps of the public health service from
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0008| which he was honorably discharged if he contributes to the
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0009| fund a sum equal to [ten and one-half percent of his average
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annual salary for that period of time for which he has
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acquired earned service credit under the Educational
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Retirement Act for each year of service credit he desires to
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purchase. Average annual salary shall be determined in
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accordance with rules promulgated by the board but shall
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always be based upon actual salaries earned by the member
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where the actual salaries can be ascertained] the actuarial
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0017| value of the service purchased as defined by the board. The
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0018| employer's contributions for service credit shall not be paid
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0019| by the employer [The purchase of service credit provided in
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this section shall be carried out by the member within three
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years after the date of the member's employment following
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service]; or
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0023| (4) employed:
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0024| (a) in [any] a public school or
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0025| public institution of higher learning in another state,
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0001| territory or possession of the United States;
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0002| (b) in [any] a United States
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0003| military dependents' school operated by a branch of the armed
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0004| forces of the United States;
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0005| (c) as provided in Paragraph (1) of
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0006| this subsection after the effective date of the Educational
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0007| Retirement Act; or
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0008| (d) in [any] a private school or
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0009| institution of higher learning in New Mexico whose education
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0010| program is accredited or approved by the [state] board at
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0011| the time of employment.
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0012| B. The member or employer under Paragraph (4) of
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0013| Subsection A of this section shall contribute to the fund for
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0014| each year of allowed service credit desired an amount equal to
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0015| twelve percent of the member's annual salary at the time
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0016| payment is made if the member is employed or twelve percent
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0017| times the member's annual salary during the member's last year
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0018| of employment if the member is not employed at the time of
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0019| payment. Contributions paid for the member who is not
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0020| employed shall bear interest at the average rate earned by the
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0021| fund during the five-fiscal-year period immediately preceding
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0022| the date of payment. Such interest shall run from the date
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0023| the member last terminated employment to the date of payment.
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0024| Effective July 1, 2001, the member or employer under Paragraph
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0025| (4) of Subsection A of this section shall contribute to the
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0001| fund for each year of allowed service credit desired an amount
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0002| equal to the actuarial value of the service purchased as
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0003| defined by the board. Payment pursuant to Paragraph (4) of
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0004| Subsection A of this section may be made in installments, at
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0005| the discretion of the board, over a period [of] not to
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0006| exceed one year and, if the sum paid does not equal the amount
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0007| required for any full year of allowed service credit, the
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0008| member shall acquire allowed service credit for that period of
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0009| time [which] that is proportionate to the payment made.
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0010| Half credit may be allowed without contribution for not more
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0011| than ten years of the educational service described by
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0012| Subparagraph (a) of Paragraph (4) of Subsection A of this
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0013| section if that service was prior to June 13, 1953 and if the
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0014| member was employed in New Mexico prior to June 13, 1953 in
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0015| [any] a position covered by the Educational Retirement Act
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0016| or [any] a law repealed thereby.
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0017| C. No member shall be certified to have acquired
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0018| allowed service credit:
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0019| (1) under any single paragraph or the
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0020| combination of only Paragraphs (1) and (4) or only Paragraphs
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0021| (2) and (3) of Subsection A of this section in excess of five
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0022| years; or
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0023| (2) in excess of ten years for any other
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0024| combination of Paragraphs (1) through (4) of Subsection A of
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0025| this section.
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0001| D. The provisions of this section are made
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0002| applicable to the services described prior to as well as after
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0003| the effective date of the Educational Retirement Act."
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