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| SPONSOR: | Picraux | DATE TYPED: | 02/23/99 | HB | 168/aHEC | ||
| SHORT TITLE: | Amend Educational Retirement Act | SB | |||||
| ANALYST: | Eaton | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY99 | FY2000 | |||
| $ 0.0 | ERA Retirement | |||
(Parentheses ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
New Mexico Commission on Higher Education
Education Retirement Board (ERB)
SUMMARY
Synopsis of HEC amendment
This amendment strikes language that included New Mexico military institute, New Mexico school for the deaf and New Mexico school for the visually handicapped. The amendment also strikes language that would have allowed a school to be eligible that previously ineligible pursuant to Section 22-11-24 NMSA 1978.
Synopsis of Bill
This bill would permit independent two year institutions like TVI, Luna Vo-Tech, and others, to participate in the Alternative Retirement Plan (ARP) administered by the Educational Retirement Board (ERB). The ARP is a defined contribution plan as opposed to the Educational Retirement Act which is a defined benefit.
FISCAL IMPLICATIONS
HEC amendment: No changes to the fiscal implications described below.
No fiscal Impact. The Educational Retirement Board's (ERB) actuary reports that this proposed legislation will weaken the actuarial soundness of the ERA retirement fund. The ERB predicts that the membership in ERA will decrease and cause the stability and growth of the fund to be compromised. Over time, the ERB predicts a diminished ability to provide future benefits.
ADMINISTRATIVE IMPLICATIONS
The Educational Retirement Board conveys that additional staff and funding in their FY2000 budget will be necessary to handle the increased workload that this proposed legislation will cause.
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