0001| SENATE BILL 279 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| BEN D. ALTAMIRANO | 0005| | 0006| | 0007| | 0008| FOR THE LEGISLATIVE EDUCATION STUDY COMMITTEE | 0009| | 0010| AN ACT | 0011| RELATING TO EDUCATIONAL RETIREMENT; INCREASING THE | 0012| CONTRIBUTIONS MADE BY THE LOCAL ADMINISTRATIVE UNITS; RAISING | 0013| THE AMOUNT OF RETIREMENT BENEFITS FOR CERTAIN MEMBERS; | 0014| CHANGING THE ADJUSTMENT FACTOR USED TO ADJUST THE ANNUITY; | 0015| MAKING AN APPROPRIATION. | 0016| | 0017| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0018| Section 1. Section 22-11-21 NMSA 1978 (being Laws 1967, | 0019| Chapter 16, Section 144, as amended) is amended to read: | 0020| "22-11-21. CONTRIBUTIONS--MEMBERS--LOCAL ADMINISTRATIVE | 0021| UNITS.-- | 0022| A. Each member shall make contributions to the | 0023| fund in the amount of seven and six-tenths percent of his | 0024| annual salary. | 0025| B. Until June 30, 1993, each local administrative | - 1 - 0001| unit shall make a yearly contribution to the fund of a sum | 0002| equal to seven and six-tenths percent of the annual salary of | 0003| each member employed by the local administrative unit. | 0004| C. ~~[Beginning July 1, 1993 and thereafter]~~ From | 0005| July 1, 1993 through June 30, 1998, each local administrative | 0006| unit shall make a yearly contribution to the fund of a sum | 0007| equal to eight and sixty-five hundredths percent of the annual | 0008| salary of each member employed by the local administrative | 0009| unit. | 0010| D. Beginning July 1, 1998, each local | 0011| administrative unit shall make a yearly contribution to the | 0012| fund of a sum equal to nine and seventy-five hundredths | 0013| percent of the annual salary of each member employed by the | 0014| local administrative unit." | 0015| Section 2. Section 22-11-30 NMSA 1978 (being Laws 1967, | 0016| Chapter 16, Section 153, as amended) is amended to read: | 0017| "22-11-30. RETIREMENT BENEFITS.-- | 0018| A. Retirement benefits for a member retired | 0019| pursuant to the Educational Retirement Act on or before June | 0020| 30, 1967 shall be paid monthly and shall be one-twelfth of a | 0021| sum equal to one and one-half percent of the first four | 0022| thousand dollars ($4,000) of the member's average annual | 0023| salary and one percent of the remainder of the member's | 0024| average annual salary multiplied by the number of years of the | 0025| member's total service credit. | - 2 - 0001| B. Retirement benefits for a member retired | 0002| pursuant to the Educational Retirement Act on or after July 1, | 0003| 1967 but on or before June 30, 1971 shall be paid monthly and | 0004| shall be one-twelfth of a sum equal to one and one-half | 0005| percent of the first six thousand six hundred dollars ($6,600) | 0006| of the member's average annual salary and one percent of the | 0007| remainder of the member's average annual salary multiplied by | 0008| the number of years of the member's total service credit. | 0009| C. Retirement benefits for a member retired | 0010| pursuant to the Educational Retirement Act on or after July 1, | 0011| 1971 but on or before June 30, 1974 shall be paid monthly and | 0012| shall be one-twelfth of a sum equal to one and one-half | 0013| percent of the member's average annual salary multiplied by | 0014| the number of years of the member's total service credit. | 0015| D. Retirement benefits for a member retired | 0016| pursuant to the Educational Retirement Act on or before June | 0017| 30, 1974 but returning to employment on or after July 1, 1974 | 0018| for a cumulation of one or more years shall be computed | 0019| pursuant to Subsection E of this section. Retirement benefits | 0020| for a member retired pursuant to the Educational Retirement | 0021| Act on or before June 30, 1974 but returning to employment on | 0022| or after July 1, 1974 for a cumulation of less than one year | 0023| shall be computed pursuant to Subsection A of this section if | 0024| his date of last retirement was on or before June 30, 1967 or | 0025| pursuant to Subsection B of this section if his date of last | - 3 - 0001| retirement was on or after July 1, 1967 but not later than | 0002| June 30, 1971 or pursuant to Subsection C of this section if | 0003| his date of last retirement was on or after July 1, 1971 but | 0004| not later than June 30, 1974. | 0005| E. Retirement benefits for a member age sixty or | 0006| over, retired pursuant to the Educational Retirement Act on or | 0007| after July 1, 1974 but not later than June 30, 1987, shall be | 0008| paid monthly and shall be one-twelfth of a sum equal to: | 0009| (1) one and one-half percent of the member's | 0010| average annual salary multiplied by the number of years of | 0011| service credit for: | 0012| (a) prior employment; and | 0013| (b) allowed service credit for service | 0014| performed prior to July 1, 1957, except United States military | 0015| service credit purchased pursuant to Paragraph (3) of | 0016| Subsection A of Section 22-11-34 NMSA 1978; plus | 0017| (2) two percent of the member's average | 0018| annual salary multiplied by the number of years of service | 0019| credit for: | 0020| (a) contributory employment; | 0021| (b) allowed service credit for service | 0022| performed after July 1, 1957; and | 0023| (c) United States military service | 0024| credit for service performed prior to July 1, 1957 and | 0025| purchased pursuant to Paragraph (3) of Subsection A of Section | - 4 - 0001| 22-11-34 NMSA 1978. | 0002| F. Retirement benefits for a member age sixty or | 0003| over, retired pursuant to the Educational Retirement Act on or | 0004| after July 1, 1987 but not later than June 30, 1991, shall be | 0005| paid monthly and shall be one-twelfth of a sum equal to two | 0006| and fifteen hundredths percent of the member's average annual | 0007| salary multiplied by the number of years of the member's total | 0008| service credit; provided that this subsection shall not apply | 0009| to any member who was retired in any of the four quarters | 0010| ending on June 30, 1987 without having accumulated not less | 0011| than 1.0 years earned service after June 30, 1987. | 0012| G. Retirement benefits for a member age sixty or | 0013| over, retired pursuant to the Educational Retirement Act on or | 0014| after July 1, 1991 but not later than June 30, 1998, shall | 0015| be paid monthly and shall be one-twelfth of a sum equal to two | 0016| and thirty-five hundredths percent of the member's average | 0017| annual salary multiplied by the number of years of the | 0018| member's total service credit; provided that this subsection | 0019| shall not apply to any member who was retired in any of the | 0020| four consecutive quarters ending on June 30, 1991 without | 0021| having accumulated at least one year earned service beginning | 0022| on or after July 1, 1991. | 0023| H. Retirement benefits for a member age sixty or | 0024| over, retired pursuant to the Educational Retirement Act on or | 0025| after July 1, 1998, shall be paid monthly and shall be one- | - 5 - 0001| twelfth of a sum equal to two and four hundred twenty-five | 0002| thousandths percent of the member's average annual salary | 0003| multiplied by the number of years of the member's total | 0004| service credit; provided that this subsection shall not apply | 0005| to any member who was retired in any of the four consecutive | 0006| quarters ending on June 30, 1998 without having accumulated at | 0007| least one year earned service beginning on or after July 1, | 0008| 1998. | 0009| ~~[H.]~~ I. A member's average annual salary, | 0010| pursuant to this section, shall be computed on the basis of | 0011| the last five years for which contribution was made or upon | 0012| the basis of any consecutive five years for which contribution | 0013| was made by the member, whichever is higher. Members shall | 0014| begin receiving retirement benefits by age seventy and six | 0015| months, or upon termination of employment, whichever occurs | 0016| later." | 0017| Section 3. Section 22-11-31 NMSA 1978 (being Laws 1979, | 0018| Chapter 333, Section 2, as amended) is amended to read: | 0019| "22-11-31. COST OF LIVING ADJUSTMENT--ADDITIONAL | 0020| CONTRIBUTIONS.-- | 0021| A. For the purposes of this section: | 0022| (1) "adjustment factor" means a | 0023| multiplicative factor computed to provide an annuity | 0024| adjustment pursuant to the provisions of Subsection B of this | 0025| section; | - 6 - 0001| (2) "annuity" means any benefit payable under | 0002| the Educational Retirement Act or the Retirement Reciprocity | 0003| Act as a retirement benefit, disability benefit or survivor | 0004| benefit; | 0005| (3) "calendar year" means the full twelve | 0006| months beginning January 1 and ending December 31; | 0007| (4) "consumer price index" means the average | 0008| of the monthly consumer price indexes for a calendar year for | 0009| the entire United States for all items as published by the | 0010| United States department of labor; | 0011| (5) "next preceding calendar year" means the | 0012| full calendar year immediately prior to the preceding calendar | 0013| year; and | 0014| (6) "preceding calendar year" means the full | 0015| calendar year preceding the July 1 on which a benefit is to be | 0016| adjusted. | 0017| B. On or after July 1, 1984, each annuity shall be | 0018| adjusted annually and cumulatively commencing on July 1 of the | 0019| year in which a member attains the age of sixty-five or on | 0020| July 1 following the year a member retires, whichever is | 0021| later. The annuity shall be adjusted by applying an | 0022| adjustment factor that results in either an adjustment equal | 0023| to one-half of the percentage increase or decrease of the | 0024| consumer price index between the next preceding calendar year | 0025| and the preceding calendar year, except that the adjustment | - 7 - 0001| shall not exceed four percent, in absolute value, nor be less | 0002| than two percent, in absolute value. In the event that the | 0003| percentage increase or decrease of the consumer price index is | 0004| less than two percent, in absolute value, the adjustment | 0005| factor shall be the same as the percentage increase or | 0006| decrease of the consumer price index. No negative adjustment | 0007| in the retirement benefit shall reduce the member's benefit | 0008| below that which he received upon the date of his retirement. | 0009| C. A retired member whose benefit is subject to | 0010| adjustment under the provisions of the Educational Retirement | 0011| Act in effect prior to July 1, 1984 shall have his annuity | 0012| readjusted annually and cumulatively under the provisions of | 0013| that act in effect prior to July 1, 1984 until July 1 of the | 0014| year in which he attains the age of sixty-five, when he shall | 0015| have his annuity readjusted annually and cumulatively under | 0016| the provisions of this section. A member who retires after | 0017| attaining the age of sixty-five shall have his annuity | 0018| adjusted annually and cumulatively commencing on July 1 of the | 0019| year following his retirement. | 0020| D. A retired member who returns to work shall be | 0021| subject to the provisions of this section as they exist at the | 0022| time of his final retirement. | 0023| E. Benefits of a member who is on a disability | 0024| status in accordance with Section 22-11-35 NMSA 1978 or a | 0025| member whom the board certifies was disabled at regular | - 8 - 0001| retirement shall be adjusted in accordance with Subsections B | 0002| and C of this section, except that the benefits shall be | 0003| adjusted annually and cumulatively commencing on July 1 of the | 0004| third full year following the year in which the member was | 0005| approved by the board for disability or retirement. | 0006| F. The board shall adjust the benefits of each | 0007| person receiving an annuity as of June 30, ~~[1991]~~ 1998. | 0008| The adjustment shall be made on July 1, ~~[1991]~~ 1998 on the | 0009| basis of an increase of two dollars ($2.00) per month for each | 0010| year since the member's last retirement plus an increase of | 0011| one dollar ($1.00) per month for each year of credited service | 0012| at the time of retirement." | 0013| Section 4. APPROPRIATION.-- | 0014| A. Fourteen million five hundred seventeen | 0015| thousand dollars ($14,517,000) is appropriated from the | 0016| general fund to the educational retirement fund for | 0017| expenditure in fiscal year 1999 for the purpose of funding the | 0018| retirement benefits increase and the cost-of-living adjustment | 0019| for retirees as follows: | 0020| (1) to the boards of regents of the | 0021| following: | 0022| (a) university of New Mexico, one | 0023| million five hundred fifty-seven thousand dollars | 0024| ($1,557,000); | 0025| (b) New Mexico state university, eight | - 9 - 0001| hundred fifty-five thousand dollars ($855,000); | 0002| (c) New Mexico highlands university, | 0003| one hundred twenty-five thousand dollars ($125,000); | 0004| (d) western New Mexico university, | 0005| eighty-two thousand dollars ($82,000); | 0006| (e) eastern New Mexico university, one | 0007| hundred fifty-three thousand dollars ($153,000); | 0008| (f) New Mexico institute of mining and | 0009| technology, one hundred forty-one thousand dollars ($141,000); | 0010| (g) university of New Mexico, Gallup, | 0011| forty-nine thousand dollars ($49,000); | 0012| (h) university of New Mexico, Los | 0013| Alamos, eleven thousand dollars ($11,000); | 0014| (i) university of New Mexico, Valencia, | 0015| twenty-three thousand dollars ($23,000); | 0016| (j) New Mexico state university, | 0017| Alamogordo, thirty-two thousand dollars ($32,000); | 0018| (k) New Mexico state university, | 0019| Carlsbad, eighteen thousand dollars ($18,000); | 0020| (l) New Mexico state university, Dona | 0021| Ana, fifty-nine thousand dollars ($59,000); | 0022| (m) New Mexico state university, | 0023| Grants, eleven thousand dollars ($11,000); | 0024| (n) eastern New Mexico university, | 0025| Roswell, fifty-one thousand dollars ($51,000); | - 10 - 0001| (o) northern New Mexico state school, | 0002| thirty-six thousand dollars ($36,000); | 0003| (p) New Mexico military institute, | 0004| eighty-one thousand dollars ($81,000); and | 0005| (q) New Mexico school for the deaf, | 0006| fifty thousand dollars ($50,000); | 0007| (2) to the community college board of Santa | 0008| Fe community college, fifty-four thousand dollars ($54,000); | 0009| (3) to the governing boards of: | 0010| (a) Albuquerque technical-vocational | 0011| institute, two hundred forty-six thousand dollars ($246,000); | 0012| (b) Luna vocational-technical institute, | 0013| twenty-four thousand dollars ($24,000); | 0014| (c) Mesa technical college, nine | 0015| thousand dollars ($9,000); | 0016| (d) New Mexico junior college, fifty | 0017| thousand dollars ($50,000); | 0018| (e) San Juan college, seventy-six | 0019| thousand dollars ($76,000); and | 0020| (f) Clovis community college, fifty-one | 0021| thousand dollars ($51,000); | 0022| (4) to the state department of public | 0023| education for: | 0024| (a) public school support, ten million | 0025| five hundred thirty thousand dollars ($10,530,000); | - 11 - 0001| (b) its employees, forty-two thousand | 0002| dollars (42,000); and | 0003| (c) the vocational rehabilitation | 0004| division, seven thousand dollars ($7,000); | 0005| (5) to the educational retirement board, two | 0006| thousand dollars ($2,000); | 0007| (6) to the corrections department, thirty- | 0008| seven thousand dollars ($37,000); | 0009| (7) to the department of health, twenty-two | 0010| thousand dollars ($22,000); | 0011| (8) to the children, youth and families | 0012| department, twenty-five thousand dollars ($25,000); and | 0013| (9) to the commission for the blind, eight | 0014| thousand dollars ($8,000). | 0015| B. Any unexpended or unencumbered balance | 0016| remaining at the end of fiscal year 1999 shall revert to the | 0017| general fund. | 0018| |