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SENATE BILL 133
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Peter Wirth
AN ACT
RELATING TO EDUCATIONAL RETIREMENT; INCREASING THE SALARY A
RETIRED MEMBER MAY EARN WITHOUT A SUSPENSION OF THE MEMBER'S
RETIREMENT BENEFITS WHEN RETURNING TO WORK.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 22-11-25.1 NMSA 1978 (being Laws 2001,
Chapter 283, Section 2, as amended) is amended to read:
"22-11-25.1. RETURN TO EMPLOYMENT--BENEFITS--
CONTRIBUTIONS.--
A. Except as otherwise provided in Subsections B,
F, H and I of this section, until January 1, 2024, a retired
member who begins employment with a local administrative unit
at a level greater than one-quarter full-time employee,
regardless of salary level, is required to suspend the member's
retirement benefits until the end of that employment unless the
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member has not rendered service to a local administrative unit
for at least twelve consecutive months after the date of
retirement.
B. Until January 1, 2024, a retired member who
retired on or before January 1, 2001, has not suspended or been
required to suspend retirement benefits pursuant to the
Educational Retirement Act and returns to employment with a
local administrative unit is not required to suspend the
member's retirement benefits.
C. A retired member who returns to employment with
a local administrative unit in accordance with this section is
entitled to receive retirement benefits during that employment
but is not entitled to acquire or purchase service credit for
that employment.
D. A retired member may return to employment with a
local administrative unit only if the member submits an
application to return to work, on a form prescribed by the
board, the board approves the application and the applicant
complies with other application rules promulgated by the board.
E. A retired member who returns to employment
pursuant to Subsection A, B, F or I of this section shall make
nonrefundable contributions to the fund as would be required by
Section 22-11-21 NMSA 1978 if the retired member were a non-
retired employee. The local administrative unit employing the
retired member shall likewise make contributions as would be
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required by that section.
F. Until January 1, 2024, a retired member who
retired on or before January 1, 2001, who suspended or was
required to suspend retirement benefits under the Educational
Retirement Act is not required to suspend the member's
retirement benefits if the retired member has not rendered
service to a local administrative unit for an additional twelve
or more consecutive months, not including any part of a summer
or other scheduled break or vacation period, after the initial
date of retirement.
G. A retired member who returns to employment with
a local administrative unit shall make contributions to the
retiree health care fund during the period of that employment
and in the amount specified in Section 10-7C-15 NMSA 1978. The
local administrative unit employing the retired member shall
likewise make contributions during the period of that
employment and in the amount specified in that section.
H. A retired member may return to employment with a
local administrative unit without a suspension of the member's
retirement benefits; provided that:
(1) the retired member has not rendered
service to a local administrative unit for at least ninety days
after the date of retirement;
(2) prior to the date of retirement, or within
ninety days after the date of retirement, the retired member
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did not enter into any formal or informal agreement with a
local administrative unit or with any contractor providing
services to a local administrative unit to return to
employment; and
(3) the retired member earns a salary of less
than [fifteen thousand dollars ($15,000) ] twenty-five thousand
dollars ($25,000) per year.
I. A retired member may return to employment with a
local administrative unit without a suspension of the member's
retirement benefits; provided that:
(1) the retired member has not rendered
service to a local administrative unit for at least ninety days
after the date of retirement; and
(2) the retired member returns to employment
for a period of no more than thirty-six consecutive or
nonconsecutive months pursuant to this subsection.
J. As used in this section:
(1) "rendered service" includes employment,
whether full or part time; substitute teaching; voluntarily
performing duties that would otherwise be, or in the past have
been, performed by a paid employee or independent contractor;
and performing duties as an independent contractor or an
employee of an independent contractor; and
(2) "local administrative unit" includes any
entity incorporated, formed or otherwise organized by, or
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subject to the control of, a local administrative unit,
regardless of whether the entity is created for profit or
nonprofit purposes."
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