NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Revenue Decreases)

Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION

Public Employees Retirement Association of New Mexico (PERA)

SUMMARY

Synopsis of Bill

This bill would give PERA full authority to make disability determinations by striking language that gives the social security administration determination of disability authority over the PERA. The disability review committee and the PERA Board will make all disability determinations.

Significant Issues

The significant issue of this bill is whether the standard the social security administration uses to determine disability is the standard that should be used by PERA.

FISCAL IMPLICATIONS

None. The PERA reports that this bill will decrease long-term costs by giving PERA more direct control over disability retirement benefits.

ADMINISTRATIVE IMPLICATIONS

PERA reports that this bill will alleviate staff from tracking social security disability status of members.

OTHER SUBSTANTIVE ISSUES

The proposed statute makes reevaluation optional. Currently, disabled members must submit documentation on an annual basis for continuation of disabled status. This bill would permit disabled retirees to be placed on evaluation schedules that are appropriate to their medical conditions.

The proposed statute will open up the period of time for the member to be reviewed. Currently only a member who is contributing to the fund may apply. This bill would make application available to persons who were contributing members within twelve months of the initial application. This amendment provides the member the opportunity to apply if they feel that they are debilitated in their current job as a result of a work-related injury that occurred when they were contributing members.

JBE/jsp