0001| SENATE BILL 22
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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| Cynthia Nava
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0005|
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0006|
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0007|
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0008| FOR THE LEGISLATIVE EDUCATION STUDY COMMITTEE
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0009|
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0010| AN ACT
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0011| RELATING TO EDUCATIONAL RETIREMENT; ALLOWING FOR THE PICK UP
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0012| AND ROLLOVER OF CERTAIN CONTRIBUTIONS.
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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. A new section of the Educational Retirement
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0016| Act is enacted to read:
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0017| "[NEW MATERIAL] PICK UP--ROLLOVER.--
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0018| A. Commencing on July 1, 1998, each local
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0019| administrative unit may, solely for the purpose of compliance
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0020| with Section 414(h) of the Internal Revenue Code, pick up, for
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0021| the purposes specified in that section, member contributions
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0022| permitted by Paragraph 4 of Subsection A of Section 22-11-34
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0023| NMSA 1978. Member contributions picked up under the
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0024| provisions of this subsection shall be treated as local
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0025| administrative unit contributions for purposes of determining
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0001| income tax obligations under the Internal Revenue Code;
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0002| however, such picked-up member contributions shall be included
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0003| in the determination of the member's gross annual salary for
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0004| all other purposes under federal and state laws. Member
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0005| contributions picked up under this section shall continue to
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0006| be designated member contributions for all purposes of the
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0007| Educational Retirement Act and shall be considered as part of
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0008| the member's annual salary for purposes of determining the
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0009| amount of the member's contribution. The provisions of this
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0010| section are voluntary, and the member shall have no option
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0011| concerning the pick up to receive the contributed amounts
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0012| directly instead of having them paid by the local
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0013| administrative unit to the fund.
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0014| B. Commencing July 1, 1998, the educational
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0015| retirement board may accept rollover contributions from other
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0016| retirement funds solely for and subject to the restrictions
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0017| set forth in Subsection B of Section 22-11-34 NMSA 1978 and
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0018| applicable restrictions set forth in the Internal Revenue Code
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0019| for pension plan qualification."
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0020|
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