Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Hall/Lundstrom/Hernandez, J.
LAST UPDATED 2/10/2025
ORIGINAL DATE 2
/07/2025
SHORT TITLE State Law Enforcement Instructor PERA
BILL
NUMBER House Bill 299
ANALYST Hanika-Ortiz
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 *FY26 *FY27
*3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
PERA
Indeterminate
but minimal
Indeterminate
but minimal
Indeterminate
but minimal
Recurring PERA trust fund
DPS (employer
contributions)
Indeterminate
but minimal
$3.6 $3.7 $7.3 Recurring General Fund
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Relates to Senate Bill 173, Telecommunicators as Police in PERA
Sources of Information
LFC Files
Agency Analysis Received From
Public Employees Retirement Association (PERA)
Department of Public Safety (DPS)
SUMMARY
Synopsis of House Bill 299
House Bill 299 (HB299) amends the Public Employees Retirement Act (PERA) Section 10-11-2
NMSA 1978 to create a state law enforcement instructor member which is a member who
maintains a law enforcement certification and is employed by the New Mexico Law
Enforcement Academy (NMLEA) to provide training pursuant to the Law Enforcement Training
Act.
Members that meet this new definition would be covered under a State Public Safety
Member Coverage Plan.
The bill requires PERA to hold an election to allow members in a position covered by the new
state law enforcement instructor member definition (currently under State General Member
Coverage Plan 3), to elect to join State Public Safety Member Coverage Plan 1. If adopted, the
service credit accrued by members after July 1, 2025, would increase by 20 percent. Also, Tier 2
members would be transitioned to a 25-year retirement plan with no enhancements.
The bill includes a temporary provision that on or before June 30, 2025, PERA will hold an
election to submit to members the question of adopting State Public Safety Member Coverage 1. House Bill 299 – Page 2
FISCAL IMPLICATIONS
If this bill is signed into law and the instructor members elect coverage, these positions would
transition to the State Public Safety Member Coverage Plan 1, as well as to the New Mexico
Retiree Health Care Authority’s enhanced plan for police, at higher employer contribution rates.
The
Department of Public Safety (DPS) projects the additional costs at approximately $3,600 per
year, increasing each year with payroll growth, which would be absorbed by the NMLEA’s
general fund operating budget. To cover costs, DPS may need additional budget authority or a
higher general fund appropriation.
As of June 30, 2024, the State Public Safety Member Coverage Plan 1 has a funded ratio of 124
percent. However, contributions, no matter the source, accumulate for the benefit of all PERA
members. As of June 30, 2024, the funded status of the entire system was 67 percent. This means
the plan is underfunded; projected assets may not be sufficient to cover all benefits promised.
Despite the risks and challenges of increasing benefits only for some members, PERA reports the
change would have a negligible impact to the unfunded portion of its long-term liabilities.
SIGNIFICANT ISSUES
DPS noted
7 full-time permanent instructor positions that would be eligible to vote in the election.
Law enforcement instructors currently under State General Member Coverage Plan 3 would
transition to State Public Safety Member Coverage Plan 1, if in an election they decide to do so.
The State General Member Coverage Plan 3 is structured for state employees who have longer
service periods before retirement than public safety employees. Plans geared toward public
safety allow an earlier retirement, due to the physically demanding and higher risks of the work.
Of note, different benefit levels between public employees create perceptions of unfairness,
leading to decreased morale. Employees in groups with lower benefits often feel undervalued.
PERFORMANCE IMPLICATIONS
PERA noted that HB299 will not impact its performance measures.
CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP
This bill relates to Senate Bill 173 Telecommunicators as Police in PERA which would make
telecommunicators eligible to join a public safety plan under PERA for an increased benefit.
TECHNICAL ISSUES
In November 2024, PERA was asked to clarify the status of these instructors, at the request of
DPS. It was concluded that under State statute, in addition to the New Mexico Administrative
Code, the instructors did not qualify as a “police member,” disqualifying them from moving to a
public safety plan “Although the position requires a current New Mexico police officer
certification, the instructor position is not an officer of the New Mexico State Police as required House Bill 299 – Page 3
by statute.” Further, a member employed as both a police officer and non-police officer
employee shall be regarded as a police member only if more than 50 percent of their salary is
paid as a police officer with law enforcement duties. Although NMLEA plays a crucial role in
training officers, DPS noted, their primary job function does not include being paid 50 percent of
salary as a police officer. Therefore, it was concluded these positions were correctly classified.
OTHER SUBSTANT IVE ISSUES
DPS also commented on changes instructors would see regarding contributions, overtime pay,
and social security benefits, which are different for public safety plan members. For instance, if
instructors are added to the State Police plan, overtime would only be paid after a 40-hour week
as opposed to the 84th hour onward in an 80-hour period. In addition, at retirement they would
rely solely on their PERA pension, which replaces social security for their years of service.
ALTERNATIVES
DPS suggested amending the PERA plan for “peace officer” which is defined as “any employee
of the state with a duty to maintain public order or to make arrests for crimes…and who is not
specifically covered by another coverage plan." Peace officers include conservation officers at
the Department of Game and Fish. However, new members are only eligible for TIER 2. PERA
may be able to open TIER 1 to the instructors, many of whom have served more than 10 years.
AHO/hj/hg