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| SPONSOR: | Vigil | DATE TYPED: | 03/05/99 | HB | HJM 87 | ||
| SHORT TITLE: | Hazardous Duty Member Plan | SB | |||||
| ANALYST: | Eaton | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY99 | FY2000 | FY99 | FY2000 | ||
| $ 0.0 | |||||
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
Public Employees Retirement Association (PERA)
SUMMARY
Synopsis of Bill
This bill requests that the Corrections Department and the PERA initiate and complete an actuarial study as to the cost of funding a new state hazardous duty member coverage plan. The purpose of the memorial is to help recruit and retain correctional officers. The memorial suggests that a retirement plan similar to the state police retirement plan 1 be established for correctional officers.
An actuarial study is implicitly required pursuant to Article XX, Section 22C of the New Mexico Constitution:
Sec. 22. (Proposed) [Public employees and educational retirement systems trust funds; expenditures and encumbrances prohibited; administration; vesting of property rights.]
C. A retirement board shall have the sole and exclusive power and authority to adopt actuarial assumptions for its system based upon the recommendations made by an independent actuary with whom it contracts. The legislature shall not enact any law that increases the benefits paid by the system in any manner or changes the funding formula for a retirement plan unless adequate funding is provided.
FISCAL IMPLICATIONS
The cost of the actuarial study will be paid for by the Corrections Department; however, no appropriations are included in this memorial. PERA estimates that the cost of the actuarial study will be five thousand dollars.
ADMINISTRATIVE IMPLICATIONS
PERA reports that an increase in workload will occur, but that they will absorb the administrative impact.
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