HB 182/a
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AN ACT
RELATING TO JUDICIAL RETIREMENT; PROVIDING FOR APPROPRIATIONS
AND INCOME DERIVED FROM INVESTMENTS TO BE CREDITED TO THE
JUDICIAL RETIREMENT FUND; ADJUSTING YEARS OF SERVICE CREDIT
REQUIRED FOR CERTAIN JUDGES; INCREASING CERTAIN SERVICE
CREDIT MULTIPLIERS PROVIDED IN THE JUDICIAL RETIREMENT ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 10-12B-3 NMSA 1978 (being Laws 1992,
Chapter 111, Section 3, as amended) is amended to read:
"10-12B-3. JUDICIAL RETIREMENT FUND ESTABLISHED--
ADMINISTRATION OF FUND--ACCOUNTING FUNDS.--
A. There is established in the state treasury the
"judicial retirement fund". The fund consists of
appropriations, money received from docket and jury fees of
metropolitan courts, district courts, the court of appeals
and the supreme court, employer and employee contributions
and all income derived from the investment of the fund. The
board is the trustee of the fund and shall administer and
invest the fund. Investment of the fund shall be conducted
pursuant to the provisions of the Public Employees Retirement
Act. The provisions of the Judicial Retirement Act shall be
administered by the board. The board is authorized to
promulgate rules. Expenses related to the investment of the
fund and administration of the Judicial Retirement Act shall HB 182/a
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be paid from the fund.
B. For purposes of this section, the accounting
funds shall be known as the "member contribution fund",
"employer's accumulation fund", "retirement reserve fund" and
"income fund". The maintenance of separate accounting funds
shall not require the actual segregation of the assets of the
fund.
C. The accounting funds provided for in this
section are trust funds and shall be used only for the
purposes provided for in the Judicial Retirement Act.
D. The member contribution fund is the accounting
fund in which shall be accumulated contributions of members
and from which shall be made refunds and transfers of
accumulated member contributions as provided in the Judicial
Retirement Act. The member's court shall cause member
contributions to be deducted from the salary of the member
and shall remit the deducted member contributions to the
association in accordance with procedures and schedules
established by the association. The association may assess
an interest charge and a penalty charge on any late
remittance. Each member shall be deemed to consent and agree
to the deductions made and provided for in this section.
Contributions by members shall be credited to the members'
individual accounts in the member contribution fund. A
member's accumulated member contributions shall be HB 182/a
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transferred to the retirement reserve fund when a pension
becomes payable.
E. The employer's accumulation fund is the
accounting fund in which shall be accumulated the
contributions paid by the state through the member's court.
The state, through the member's court, shall remit its
contributions to the association in accordance with
procedures and schedules established by the association. The
board may assess an interest charge and a penalty charge on
any late remittance.
F. The retirement reserve fund is the accounting
fund from which shall be paid all pensions to retired members
and survivor beneficiaries and all residual refunds to refund
beneficiaries of retired members and survivor beneficiaries.
G. Each year, following receipt of the report of
the annual actuarial valuation, the excess, if any, of the
reported actuarial present value of pensions being paid and
likely to be paid to retired members and survivor
beneficiaries and residual refunds likely to be paid to
refund beneficiaries of retired members and survivor
beneficiaries over the balance in the retirement reserve fund
shall be transferred to the retirement reserve fund from the
employer's accumulation fund.
H. The income fund is the accounting fund to which
shall be credited all interest, dividends, rents and other HB 182/a
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income from investments of the fund, all gifts and bequests,
all unclaimed member contributions and all other money the
disposition of which is not specifically provided for in the
Judicial Retirement Act. Expenses related to the
administration of the Judicial Retirement Act shall be paid
for from the income fund.
I. The association shall at least annually
distribute all or a portion of the balance in the income fund
to the member contribution fund, the retirement reserve fund
and the employer's accumulation fund. Distribution rates
shall be determined by the board and may vary for the
respective accounting funds."
SECTION 2. Section 10-12B-8 NMSA 1978 (being Laws 1992,
Chapter 111, Section 8, as amended) is amended to read:
"10-12B-8. AGE AND SERVICE CREDIT REQUIREMENTS FOR
NORMAL RETIREMENT.--
A. For an individual who initially became a member
prior to July 1, 2005, the age and service credit
requirements for retirement provided for in the Judicial
Retirement Act are:
(1) age sixty-five years or older and five
or more years of service credit; or
(2) age sixty years or older and fifteen or
more years of service credit.
B. For an individual who initially became a member HB 182/a
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after June 30, 2005 but on or before June 30, 2014, the age
and service credit requirements for retirement provided for
in the Judicial Retirement Act are:
(1) age sixty-five years or older and five
or more years of service credit; or
(2) age fifty-five years or older and
sixteen or more years of service credit.
C. For an individual who initially became a member
on or after July 1, 2014, the age and service requirements
provided for in the Judicial Retirement Act are:
(1) age sixty-five years and five or more
years of service credit; or
(2) age sixty years and fifteen or more
years of service credit.
D. Except for a member who is retired under any
state system or the educational retirement system, if a
member leaves office for any reason, other than removal
pursuant to Article 6, Section 32 of the constitution of New
Mexico, before meeting the age and service credit
requirements for retirement pursuant to the provisions of
this section and if that member leaves the member
contributions on deposit in the fund, that member may apply
for retirement when that member meets the age and service
credit requirements for retirement pursuant to the provisions
of the Judicial Retirement Act or provisions of the Public HB 182/a
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Employees Retirement Reciprocity Act.
E. No member shall be eligible to receive a
pension pursuant to the provisions of the Judicial Retirement
Act while still in office."
SECTION 3. Section 10-12B-9 NMSA 1978 (being Laws 1992,
Chapter 111, Section 9, as amended) is amended to read:
"10-12B-9. AMOUNT OF PENSION.--
A. For a judge or justice who occupied such an
office prior to July 1, 1980, but who had ceased to hold such
an office prior to that date and who elected to be excluded
from the provisions of the Judicial Retirement Act; or a
judge or justice who occupied such an office on July 1, 1980,
but who elected to be covered under the provisions of the
retirement plan in effect at that time, the amount of monthly
pension is an amount equal to one-twelfth of:
seventy-five percent
of salary received X number of years of
during last year in service credit, not
office prior to exceeding ten years,
retirement divided by ten.
B. For a judge or justice who initially became a
member before July 1, 2005 and who initially occupied such an
office after July 1, 1980; or a judge or justice who occupied
such an office on or before July 1, 1980 and who has elected
to be covered pursuant to the provisions of the Judicial HB 182/a
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Retirement Act, the amount of monthly pension is an amount
equal to the sum of:
(1) for service credit earned on or before
June 30, 2014, an amount equal to one-twelfth of:
seventy-five (number of years of
percent of salary service credit not
received during X .05 X exceeding fifteen
last year in office years, plus five
prior to retirement years);
(2) for service credit earned on and after
July 1, 2014, but before July 1, 2025, an amount equal to
one-sixtieth of the greatest aggregate amount of salary
received for sixty consecutive, but not necessarily
continuous, months in office multiplied by the product of
three and one-half percent times the number of years of
service credit;
(3) for service credit earned on and after
July 1, 2025, an amount equal to one-sixtieth of the greatest
aggregate amount of salary received for sixty consecutive,
but not necessarily continuous, months in office multiplied
by the product of four percent times the number of years of
service credit, up to ten years, or one hundred twenty
months, of accumulated service credit; and
(4) for service credit earned after ten
years, or one hundred twenty months, of service credit earned HB 182/a
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pursuant to this section, an amount equal to one-sixtieth of
the greatest aggregate amount of salary received for sixty
consecutive, but not necessarily continuous, months in office
multiplied by the product of three and one-half percent times
the number of years of service credit.
C. For a judge or justice who initially became a
member after June 30, 2005 but on or before June 30, 2014,
the amount of monthly pension is an amount equal to the sum
of:
(1) for service credit earned on or before
June 30, 2014, an amount equal to one-twelfth of the salary
received during the last year in office prior to retirement
multiplied by the product of three and seventy-five
hundredths percent times the sum of the number of years of
service credit;
(2) for service credit earned on and after
July 1, 2014, but before July 1, 2025, an amount equal to
one-sixtieth of the greatest aggregate amount of salary
received for sixty consecutive, but not necessarily
continuous, months in office multiplied by the product of
three and one-half percent times the number of years of
service credit;
(3) for service credit earned on and after
July 1, 2025, an amount equal to one-sixtieth of the greatest
aggregate amount of salary received for sixty consecutive, HB 182/a
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but not necessarily continuous, months in office multiplied
by the product of four percent times the number of years of
service credit up to ten years, or one hundred twenty months,
of accumulated service credit; and
(4) for service credit earned after ten
years, or one hundred twenty months, of service credit earned
pursuant to this section, an amount equal to one-sixtieth of
the greatest aggregate amount of salary received for sixty
consecutive, but not necessarily continuous, months in office
multiplied by the product of three and one-half percent times
the number of years of service credit.
D. For a judge or justice who initially became a
member on or after July 1, 2014, but on or before June 30,
2025, the amount of monthly pension is an amount equal to the
sum of:
(1) for service credit earned on or before
June 30, 2025, an amount equal to one-sixtieth of the
greatest aggregate amount of salary received for sixty
consecutive, but not necessarily continuous, months in office
multiplied by the product of three and one-fourth percent
times the number of years of service credit;
(2) for service credit earned on and after
July 1, 2025, an amount equal to one-sixtieth of the greatest
aggregate amount of salary received for sixty consecutive,
but not necessarily continuous, months in office multiplied HB 182/a
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by the product of four percent times the number of years of
service credit up to ten years, or one hundred twenty months,
of accumulated service credit; and
(3) for service credit earned after ten
years, or one hundred twenty months, of service credit earned
pursuant to this section, an amount equal to one-sixtieth of
the greatest aggregate amount of salary received for sixty
consecutive, but not necessarily continuous, months in office
multiplied by the product of three and one-half percent times
the number of years of service credit.
E. For a judge or justice who initially became a
member on or after July 1, 2025, the amount of monthly
pension is an amount equal to the sum of:
(1) an amount equal to one-sixtieth of the
greatest aggregate amount of salary received for sixty
consecutive, but not necessarily continuous, months in office
multiplied by the product of four percent times the number of
years of service credit up to ten years, or one hundred
twenty months, of accumulated service credit; and
(2) for service credit earned after ten
years, or one hundred twenty months, of service credit earned
pursuant to this section, an amount equal to one-sixtieth of
the greatest aggregate amount of salary received for sixty
consecutive, but not necessarily continuous, months in office
multiplied by the product of three and one-half percent times HB 182/a
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the number of years of service credit.
F. The amount of pension payable for a pension
calculated pursuant to Subsection A, B, C, D or E of this
section shall not exceed one hundred percent of one-sixtieth
of the greatest aggregate amount of salary received for sixty
consecutive, but not necessarily continuous, months prior to
the member leaving office. A pension benefit determined
pursuant to this subsection shall not be less than the
benefit earned as of June 30, 2014."
SECTION 4. Section 10-12B-10 NMSA 1978 (being Laws
1992, Chapter 111, Section 10, as amended) is amended to
read:
"10-12B-10. MEMBER CONTRIBUTIONS--TAX TREATMENT.--
A. On and after July 1, 2014, but before July 1,
2025, members, while in office, shall contribute ten and one-
half percent of salary to the member contribution fund.
B. On and after July 1, 2025, members, while in
office, shall contribute fourteen and seventy-four hundredths
percent of salary to the member contribution fund.
C. Upon implementation, the state, acting as
employer of members covered pursuant to the provisions of the
Judicial Retirement Act, shall, solely for the purpose of
compliance with Section 414(h) of the Internal Revenue Code
of 1986, pick up, for the purposes specified in that section,
member contributions required by this section for all annual HB 182/a
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salary earned by the member. Member contributions picked up
pursuant to the provisions of this section shall be treated
as employer contributions for purposes of determining income
tax obligations under the Internal Revenue Code of 1986;
however, such picked-up member contributions shall be
included in the determination of the member's gross annual
salary for all other purposes under federal and state laws.
Member contributions picked up pursuant to the provisions of
this section shall continue to be designated member
contributions for all purposes of the Judicial Retirement Act
and shall be considered as part of the member's annual salary
for purposes of determining the amount of the member's
contribution. The provisions of this section are mandatory,
and the member shall have no option concerning the pickup or
concerning the receipt of the contributed amounts directly
instead of having the amounts paid by the employer to the
retirement system. Implementation occurs upon authorization
by the board. In no event may implementation occur other
than at the beginning of a pay period applicable to the
member."
SECTION 5. Section 10-12B-11 NMSA 1978 (being Laws
1992, Chapter 111, Section 11, as amended) is amended to
read:
"10-12B-11. EMPLOYER CONTRIBUTIONS.--
A. On and after July 1, 2025, the member's court HB 182/a
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shall contribute nineteen and twenty-four hundredths percent
of salary to the fund for each member in office.
B. Thirty-eight dollars ($38.00) from each civil
case docket fee paid in the district court, twenty-five
dollars ($25.00) from each civil docket fee paid in
metropolitan court and ten dollars ($10.00) from each jury
fee paid in metropolitan court shall be paid by the court
clerk to the employer's accumulation fund."
SECTION 6. APPLICABILITY.--The provisions of Subsection
F of Section 3 of this act apply to credited service
performed after the effective date of this act. Any credited
service performed or amount of pension earned prior to the
effective date of this act shall not be calculated or
adjusted to conform to the provisions of this act.
SECTION 7. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.