0001|                      HOUSE JOINT RESOLUTION 11
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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|                             GARY K. KING
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0005|     
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0006|                                   
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0007|     
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0008|     
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0009|     
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0010|                          A JOINT RESOLUTION
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0011|     PROPOSING AN AMENDMENT TO THE CONSTITUTION OF NEW MEXICO TO
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0012|     PROHIBIT THE EXPENDITURE OR ENCUMBRANCE OF TRUST FUNDS CREATED
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0013|     FOR PUBLIC EMPLOYEE RETIREMENT FOR ANY PURPOSE EXCEPT FOR THE
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0014|     SOLE AND EXCLUSIVE BENEFIT OF THE TRUST BENEFICIARIES;
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0015|     PROVIDING FOR THE ADMINISTRATION OF THE TRUST FUNDS; AFFIRMING
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0016|     CERTAIN PROPERTY RIGHTS.
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0017|     
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0018|     BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0019|          Section 1.  It is proposed to amend Article 20 of the
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0020|     constitution of New Mexico by adding a new Section 22 to read:
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0021|               "A.  All funds, assets, proceeds, income,
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0022|     contributions, gifts and payments from any source whatsoever
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0023|     paid into or held by a public employees retirement system or
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0024|     an educational retirement system created by the laws of this
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0025|     state shall be held by each respective system in a trust fund
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0001|     to be administered and invested by each respective system for
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0002|     the sole and exclusive benefit of the members, retirees and
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0003|     other beneficiaries of that system.  Expenditures from a
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0004|     system trust fund shall only be made for the benefit of the
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0005|     trust beneficiaries and for expenses of administering the
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0006|     system.  A system trust fund shall never be used, diverted,
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0007|     loaned, assigned, pledged, invested, encumbered or
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0008|     appropriated for any other purpose.  To the extent consistent
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0009|     with the provisions of this section, each trust fund shall be
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0010|     invested and the systems administered as provided by law.
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0011|               B.  The retirement board of the public employees
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0012|     retirement system and the board of the educational retirement
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0013|     system shall be the trustees for their respective systems and
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0014|     have the sole and exclusive fiduciary duty and responsibility
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0015|     for administration and investment of the trust fund held by
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0016|     their respective systems.  The retirement board of the public
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0017|     employees retirement system shall consist of no fewer than
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0018|     seven members who shall be elected by the members or retirees
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0019|     of that system, in a manner provided by law, and up to two ex-
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0020|     officio members who may be provided by law.  The board of the
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0021|     educational retirement system shall be selected in a manner
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0022|     provided by law.
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0023|               C.  The board of each system shall employ a
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0024|     director and such other professional, technical, clerical and
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0025|     other personnel as are required for the operation of its
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0001|     system.  The board of each system shall fix the compensation
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0002|     for its employee services.  In addition to any other
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0003|     contractors deemed necessary to administer its system, the
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0004|     board of each system shall contract with an independent
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0005|     actuary.  Each board shall have the sole and exclusive power
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0006|     and authority to adopt actuarial assumptions for their system
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0007|     based upon the recommendations made by the independent actuary
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0008|     with whom it contracts.  The legislature shall not enact any
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0009|     law that increases the benefits paid by either system in any
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0010|     manner or changes the funding formula for any retirement plan
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0011|     unless adequate sources of funding are provided in accordance
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0012|     with a prior certification of the cost by the board of the
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0013|     affected system based on accepted actuarial standards.
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0014|               D.  Upon meeting the minimum service requirements
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0015|     of an applicable retirement plan created by law for employees
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0016|     of the state or any of its political subdivisions or
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0017|     institutions, a member of a plan shall acquire a vested
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0018|     property right with due process protections under the
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0019|     applicable provisions of the New Mexico and United States
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0020|     constitutions.
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0021|               E.  Nothing in this section shall be construed to
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0022|     prohibit modifications to retirement benefits that enhance or
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0023|     preserve the actuarial soundness of an affected trust fund or
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0024|     individual retirement plan."
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0025|          Section 2.  The amendment proposed by this resolution
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0001|     shall be submitted to the people for their approval or
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0002|     rejection at the next general election or at any special
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0003|     election prior to that date which may be called for that
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0004|     purpose.
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0005|                              
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