HOUSE BILL 220

44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

INTRODUCED BY

John A. Heaton

AN ACT

RELATING TO EDUCATIONAL RETIREMENT; INCREASING THE MULTIPLIER; CHANGING THE CONTRIBUTIONS MADE BY CERTAIN ADMINISTRATIVE UNITS; RAISING THE AMOUNT OF RETIREMENT BENEFITS FOR CERTAIN MEMBERS; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 22-11-21 NMSA 1978 (being Laws 1967, Chapter 16, Section 144, as amended) is amended to read:

"22-11-21. CONTRIBUTIONS--MEMBERS--LOCAL ADMINISTRATIVE

UNITS.--

A. Each member shall make contributions to the fund in the amount of seven and six-tenths percent of his annual salary.

B. Until June 30, 1993, each local administrative unit shall make a yearly contribution to the fund of a sum equal to seven and six-tenths percent of the annual salary of each member employed by the local administrative unit.

C. [~~Beginning July 1, 1993 and thereafter~~] From July 1, 1993 through June 30, 1999, each local administrative unit shall make a yearly contribution to the fund of a sum equal to eight and sixty-five hundredths percent of the annual salary of each member employed by the local administrative unit.

D. Beginning July 1, 1999, each local administrative unit shall make a yearly contribution to the fund of a sum equal to nine and four-tenths percent of the annual salary of each member employed by the local administrative unit."

Section 2. Section 22-11-30 NMSA 1978 (being Laws 1967, Chapter 16, Section 153, as amended) is amended to read:

"22-11-30. RETIREMENT BENEFITS.--

A. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or before June 30, 1967 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the first four thousand dollars ($4,000) of the member's average annual salary and one percent of the remainder of the member's average annual salary multiplied by the number of years of the member's total service credit.

B. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or after July 1, 1967 but on or before June 30, 1971 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the first six thousand six hundred dollars ($6,600) of the member's average annual salary and one percent of the remainder of the member's average annual salary multiplied by the number of years of the member's total service credit.

C. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or after July 1, 1971 but on or before June 30, 1974 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the member's average annual salary multiplied by the number of years of the member's total service credit.

D. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or before June 30, 1974 but returning to employment on or after July 1, 1974 for a cumulation of one or more years shall be computed pursuant to Subsection E of this section. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or before June 30, 1974 but returning to employment on or after July 1, 1974 for a cumulation of less than one year shall be computed pursuant to Subsection A of this section if his date of last retirement was on or before June 30, 1967 or pursuant to Subsection B of this section if his date of last retirement was on or after July 1, 1967 but not later than June 30, 1971 or pursuant to Subsection C of this section if his date of last retirement was on or after July 1, 1971 but not later than June 30, 1974.

E. Retirement benefits for a member age sixty or over, retired pursuant to the Educational Retirement Act on or after July 1, 1974 but not later than June 30, 1987, shall be paid monthly and shall be one-twelfth of a sum equal to:

(1) one and one-half percent of the member's average annual salary multiplied by the number of years of service credit for:

(a) prior employment; and

(b) allowed service credit for service performed prior to July 1, 1957, except United States military service credit purchased pursuant to Paragraph (3) of Subsection A of Section 22-11-34 NMSA 1978; plus

(2) two percent of the member's average annual salary multiplied by the number of years of service credit for:

(a) contributory employment;

(b) allowed service credit for service performed after July 1, 1957; and

(c) United States military service credit for service performed prior to July 1, 1957 and purchased pursuant to Paragraph (3) of Subsection A of Section 22-11-34 NMSA 1978.

F. Retirement benefits for a member age sixty or over, retired pursuant to the Educational Retirement Act on or after July 1, 1987 but not later than June 30, 1991, shall be paid monthly and shall be one-twelfth of a sum equal to two and fifteen hundredths percent of the member's average annual salary multiplied by the number of years of the member's total service credit; provided that this subsection shall not apply to any member who was retired in any of the four quarters ending on June 30, 1987 without having accumulated not less than 1.0 years earned service after June 30, 1987.

G. Retirement benefits for a member age sixty or over, retired pursuant to the Educational Retirement Act on or after July 1, 1991 but not later than June 30, 1999, shall be paid monthly and shall be one-twelfth of a sum equal to two and thirty-five hundredths percent of the member's average annual salary multiplied by the number of years of the member's total service credit; provided that this subsection shall not apply to any member who was retired in any of the four consecutive quarters ending on June 30, 1991 without having accumulated at least one year earned service beginning on or after July 1, 1991.

H. Retirement benefits for a member age sixty or over, retired pursuant to the Educational Retirement Act on or after July 1, 1999 shall be paid monthly and shall be one-twelfth of a sum equal to two and four hundred twenty-five thousandths percent of the member's average annually salary multiplied by the number of years of the member's total service credit; provided that this subsection shall not apply to any member who was retired in any of the four consecutive quarters ending on June 30, 1999 without having accumulated at least one year earned service beginning on or after July 1, 1999.

[H.] I. A member's average annual salary, pursuant to this section, shall be computed on the basis of the last five years for which contribution was made or upon the basis of any consecutive five years for which contribution was made by the member, whichever is higher. Members shall begin receiving retirement benefits by age seventy and six months, or upon termination of employment, whichever occurs later."

Section 3. APPROPRIATION.--

A. Ten million one hundred eighty-six thousand dollars ($10,186,000) is appropriated from the general fund to the educational retirement fund for expenditure in fiscal year 2000 for the purpose of funding the retirement benefits increase:

(1) to the board of regents of the following educational institutions in the following amounts:

(a) university of New Mexico, six hundred sixty-one thousand dollars ($661,000);

(b) New Mexico state university, four hundred forty thousand dollars ($440,000);

(d) western New Mexico university, fifty-one thousand dollars ($51,000);

(e) eastern New Mexico university, seventy-nine thousand dollars ($79,000);

(f) New Mexico institute of mining and technology, seventy-three thousand dollars ($73,000);

(g) university of New Mexico, Gallup, thirty-three thousand dollars ($33,000);

(h) university of New Mexico, Los Alamos, eight thousand dollars ($8,000);

(i) university of New Mexico, Valencia, sixteen thousand dollars ($16,000);

(j) New Mexico state university, Alamogordo, twenty-three thousand dollars ($23,000);

(k) New Mexico state university, Carlsbad, fourteen thousand dollars ($14,000);

(l) New Mexico state university, Dona Ana, forty-seven thousand dollars ($47,000);

(m) New Mexico state university, Grants, eight thousand dollars ($8,000);

(n) eastern New Mexico university, Roswell, thirty-seven thousand dollars ($37,000);

(o) northern New Mexico state school, twenty-five thousand dollars ($25,000);

(p) New Mexico military institute, fifty-five thousand dollars ($55,000); and

(q) New Mexico school for the deaf, thirty-four thousand dollars ($34,000);

(2) to the community college board of Santa Fe community college, forty-three thousand dollars ($43,000);

(3) to the governing boards of:

(a) Albuquerque technical-vocational institute, one hundred eighty-six thousand dollars ($186,000);

(b) Luna vocational-technical institute, nineteen thousand dollars ($19,000);

(d) New Mexico junior college, thirty-three thousand dollars ($33,000);

(e) San Juan college, sixty thousand dollars ($60,000); and

(f) Clovis community college, thirty-six thousand dollars ($36,000);

(4) to the state department of public education for:

(a) public school support, eight million twenty-nine thousand dollars ($8,029,000);

(b) its employees, thirty-four thousand dollars ($34,000); and

(5) to the corrections department, twenty-six thousand dollars ($26,000);

(6) to the department of health, six thousand dollars ($6,000);

(7) to the children, youth and families department, seventeen thousand dollars ($17,000); and

(8) to the commission for the blind, five thousand dollars ($5,000).

B. Any unexpended or unencumbered balance remaining at the end of fiscal year 2000 shall revert to the general fund.

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