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(Parenthesis ( ) Indicate Revenue Decreases)

SOURCES OF INFORMATION

Public Employees Retirement Association of New Mexico (PERA)

SUMMARY

Synopsis of Bill

This bill would amend sections of the Public Employees Retirement Act as it relates to municipal police and fire members.

Municipal Police Members The proposed changes would set minimum service of a member at fifteen years under police member plans three, four or five (or a combination thereof) for retirement eligibility under those plans, regardless of age, if combined public service credit is at least twenty years.

Municipal Fire Members The proposed changes would set minimum service of a member at fifteen years under fire member plans three, four or five (or a combination thereof) for retirement eligibility under those plans, regardless of age, if combined public service credit is at least twenty years.

FISCAL IMPLICATIONS

PERA reports that this amendment would positively affect the municipal and firefighter retirement plans actuarial soundness.

ADMINISTRATIVE IMPLICATIONS

PERA reports that this change in the Act will facilitate the administration of the municipal police retirement fund and the municipal fire retirement fund.

OTHER SUBSTANTIVE ISSUES

PERA reports that the current legislation, as written, would require a former police member with fifteen years of service credit who switched to a non-police public retirement plan to acquire an additional ten years (twenty-five years total) to be eligible for retirement.

Conversely, a former non-police public employee member with fifteen years of service credit who switched to a police retirement plan would have to acquire an additional five years (twenty years total) to be eligible for retirement under police retirement plans 3, 4 & 5.

The proposed changes in service requirements would over time improve the actuarial soundness of the retirement plans.

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