FORTY-THIRD LEGISLATURE
                        SECOND SESSION, 1998
  
  
                                                February 16, 1998
  
  
  Mr. Speaker:
  
       Your EDUCATION COMMITTEE, to whom has been referred
  
                        SENATE BILL 22
                               
  has had it under consideration and reports same with
  recommendation that it DO PASS, amended as follows:
  
       1.  On page 2, between lines 19 and 20, insert:
  
            "Section 2.  A new section of the Educational
  Retirement Act is enacted to read:
  
       "[<u>NEW MATERIAL</u>] CORRECTION OF ERRORS AND OMISSIONS--
  ESTOPPEL.--
  
            A.  If an error or omission in an application for
  retirement or its supporting documents results in an
  overpayment to a member or the beneficiary of a member, the
  board shall correct the error or omission and adjust all
  future payments accordingly.  The board shall recover all
  overpayments that are made.
  
            B.  A member or the beneficiary of a member who is
  paid more than the amount he is owed because he provided
  fraudulent information on his application for retirement shall
  be liable for the repayment of that amount to the fund,
  interest on that amount at the rate set by the board and costs
  of collection, including attorney fees.  Recovery of
  overpayments shall extend back to the date of the first
  payment that was made based on fraudulent information.
  
            C.  The board shall not be estopped from acting in
  accordance with applicable statutes because of statements of
  fact or law made by the board or its employees."
  
            Section 3.  Section 22-11-34 NMSA 1978 (being Laws
  1967, Chapter 16, Section 157, as amended) is amended to read:
  
         "22-11-34.  ALLOWED SERVICE CREDIT.--
  
            A.  A member shall be certified to have acquired allowed
  service credit <u>pursuant to the Internal Revenue Code of 1986</u> for
  those periods of time when he was:
  
                 (1)  employed prior to the effective date of the
  Educational Retirement Act in <s>[any]</s> <u>a</u> federal educational
  program within New Mexico, including United States Indian schools
  and civilian conservation corps camps.  This service credit shall
  be allowed without contribution;
  
                 (2)  engaged in military service that interrupted
  his employment in New Mexico if he returned to his employment
  within eighteen months following honorable discharge.  This
  service credit shall be allowed without contribution;
  
                 (3)  engaged in United States military service or
  the commissioned corps of the public health service from which he
  was honorably discharged if he contributes to the fund a sum equal
  to ten and one-half percent of his average annual salary for that
  period of time for which he has acquired earned service credit
  <s>[under]</s> <u>pursuant to</u> the Educational Retirement Act <u>and
  subject to the federal Uniformed Services Employment and
  Reemployment Rights Act of 1994</u> for each year of service credit
  he desires to purchase.  Average annual salary shall be determined
  in accordance with rules promulgated by the board but shall always
  be based <s>[upon]</s> <u>on</u> actual salaries earned by the member where
  the actual salaries can be ascertained by the board.  The
  employer's contributions for service credit shall not be paid by
  the employer.  The purchase of service credit provided in this
  section shall be carried out by the member within three years
  after the date of the member's employment following service; or
  
                 (4)  employed:
  
                      (a)  in <s>[any]</s> <u>a</u> public school or public
  institution of higher learning in another state, territory or
  possession of the United States;
  
                      (b)  in <s>[any]</s> <u>a</u> United States military
  dependents' school operated by a branch of the armed forces of the
  United States;
   
                      (c)  as provided in Paragraph (1) of this
  subsection after the effective date of the Educational Retirement
  Act; or
  
                      (d)  in <s>[any]</s> <u>a</u> private school or
  institution of higher learning in New Mexico whose education
  program is accredited or approved by the state board at the time
  of employment.
  
            B.  The member or employer under Paragraph (4) of
  Subsection A of this section shall contribute to the fund for each
  year of allowed service credit desired an amount equal to twelve
  percent of the member's annual salary at the time payment is made
  if the member is employed or twelve percent times the member's
  annual salary during the member's last year of employment if the
  member is not employed at the time of payment.  Contributions paid
  for the member who is not employed shall bear interest at the
  average rate earned by the fund during the five-fiscal-year period
  immediately preceding the date of payment.  Such interest shall
  run from the date the member last terminated employment to the
  date of payment.  Effective July 1, 2001, the member or employer
  under Paragraph (4) of Subsection A of this section shall
  contribute to the fund for each year of allowed service credit
  desired an amount equal to the actuarial value of the service
  purchased as defined by the board.  Payment pursuant to Paragraph
  (4) of Subsection A of this section may be made in installments,
  at the discretion of the board, over a period <s>[of]</s> not to exceed
  one year and, if the sum paid does not equal the amount required
  for any full year of allowed service credit, the member shall
  acquire allowed service credit for that period of time <s>[which]</s>
  <u>that</u> is proportionate to the payment made.  Half credit may be
  allowed without contribution for not more than ten years of the
  educational service described by Subparagraph (a) of Paragraph (4)
  of Subsection A of this section if that service was prior to June
  13, 1953 and if the member was employed in New Mexico prior to
  June 13, 1953 in <s>[any]</s> <u>a</u> position covered by the Educational
  Retirement Act or <s>[any]</s> <u>a</u> law repealed thereby.
  
            C.  No member shall be certified to have acquired
  allowed service credit:
  
                 (1)  under any single paragraph or the combination
  of only Paragraphs (1) and (4) or only Paragraphs (2) and (3) of
  Subsection A of this section in excess of five years; or
  
                 (2)  in excess of ten years for any other
  combination of Paragraphs (1) through (4) of Subsection A of this
  section.
  
            D.  The provisions of this section are made applicable
  to the services described prior to as well as after the effective
  date of the Educational Retirement Act."".
  
                                Respectfully submitted,
  
  
  
                                                              <u>                                
                                </u>
                                                              Rick Miera, Chairman
  
  
  Adopted <u>                       </u>  Not Adopted <u>                         </u>
            (Chief Clerk)                      (Chief Clerk)
  
                       Date <u>               </u>
  
  The roll call vote was<u> 8 </u> For<u> 0 </u> Against
  Yes:      8
            Excused:  Nicely, Trujillo-Knauer, Vigil, Weeks, S.M. Williams
            Absent:   None
  
  
  .123170.1
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