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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