New Mexico 2025 Regular Session

New Mexico Senate Bill SB151 Compare Versions

Only one version of the bill is available at this time.

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28	28	SENATE BILL 151
29	29	57
30	30	TH LEGISLATURE
31	31	-
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33	33	STATE
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35	35	OF
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39	39	MEXICO
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42	42	FIRST SESSION
43	43	,
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45	45	2025
46	46	INTRODUCED BY
47	47	Elizabeth "Liz" Stefanics and Patricia Roybal Caballero
48	48	AN ACT
49	49	RELATING TO MAGISTRATE RETIREMENT; PROVIDING FOR APPROPRIATIONS
50	50	AND INCOME DERIVED FROM INVESTMENTS TO BE CREDITED TO THE
51	51	MAGISTRATE RETIREMENT FUND; ADJUSTING YEARS OF SERVICE CREDIT
52	52	REQUIRED FOR CERTAIN MAGISTRATE JUDGES; INCREASING CERTAIN
53	53	SERVICE CREDIT MULTIPLIERS PROVIDED IN THE MAGISTRATE
54	54	RETIREMENT ACT.
55	55	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
56	56	SECTION 1. Section 10-12C-3 NMSA 1978 (being Laws 1992,
57	57	Chapter 118, Section 3, as amended) is amended to read:
58	58	"10-12C-3. MAGISTRATE RETIREMENT FUND ESTABLISHED--
59	59	ADMINISTRATION OF FUND--ACCOUNTING FUNDS.--
60	60	A. There is established in the state treasury the
61	61	"magistrate retirement fund". The fund [is comprised ] consists
62	62	of appropriations, money received from docket fees of
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90	90	magistrate courts, employer and member contributions and [any ]
91	91	all income derived from the investment [earnings on fees and
92	92	contributions] of the fund. The board is the trustee of the
93	93	fund and shall administer and invest the fund. Investment of
94	94	the fund shall be conducted pursuant to the provisions of the
95	95	Public Employees Retirement Act. The provisions of the
96	96	Magistrate Retirement Act shall be administered by the board.
97	97	The board is authorized to promulgate rules. Expenses related
98	98	to the investment of the fund and administration of the
99	99	Magistrate Retirement Act shall be paid from the fund.
100	100	B. For purposes of this section, the accounting
101	101	funds shall be known as the "member contribution fund",
102	102	"employer's accumulation fund", "retirement reserve fund" and
103	103	"income fund". The maintenance of separate accounting funds
104	104	shall not require the actual segregation of the assets of the
105	105	fund.
106	106	C. The accounting funds provided for in this
107	107	section are trust funds and shall be used only for the purposes
108	108	provided for in the Magistrate Retirement Act.
109	109	D. The member contribution fund is the accounting
110	110	fund in which shall be accumulated contributions of members and
111	111	from which shall be made refunds and transfers of accumulated
112	112	member contributions as provided in the Magistrate Retirement
113	113	Act. The member's court shall cause member contributions to be
114	114	deducted from the salary of the member and shall remit the
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143	143	deducted member contributions to the association in accordance
144	144	with procedures and schedules established by the association.
145	145	The association may assess an interest charge and a penalty
146	146	charge on any late remittance. Each member shall be deemed to
147	147	consent and agree to the deductions made and provided for in
148	148	this section. Contributions by members shall be credited to
149	149	the members' individual accounts in the member contribution
150	150	fund. A member's accumulated member contributions shall be
151	151	transferred to the retirement reserve fund when a pension
152	152	becomes payable.
153	153	E. The employer's accumulation fund is the
154	154	accounting fund in which shall be accumulated the contributions
155	155	paid by the state through the administrative office of the
156	156	courts. The state, through the administrative office of the
157	157	courts, shall remit its contributions to the association in
158	158	accordance with procedures and schedules established by the
159	159	association. The board may assess an interest charge and a
160	160	penalty charge on any late remittance.
161	161	F. The retirement reserve fund is the accounting
162	162	fund from which shall be paid all pensions to retired members
163	163	and survivor beneficiaries and all residual refunds to refund
164	164	beneficiaries of retired members and survivor beneficiaries.
165	165	G. Each year, following receipt of the report of
166	166	the annual actuarial valuation, the excess, if any, of the
167	167	reported actuarial present value of pensions being paid and
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196	196	likely to be paid to retired members and survivor beneficiaries
197	197	and residual refunds likely to be paid to refund beneficiaries
198	198	of retired members and survivor beneficiaries over the balance
199	199	in the retirement reserve fund shall be transferred to the
200	200	retirement reserve fund from the employer's accumulation fund.
201	201	H. The income fund is the accounting fund to which
202	202	shall be credited all interest, dividends, rents and other
203	203	income from investments of the fund, all gifts and bequests,
204	204	all unclaimed member contributions and all other money the
205	205	disposition of which is not specifically provided for in the
206	206	Magistrate Retirement Act. Expenses related to the
207	207	administration of the Magistrate Retirement Act shall be paid
208	208	for from the income fund.
209	209	I. The association shall at least annually
210	210	distribute all or a portion of the balance in the income fund
211	211	to the member contribution fund, the retirement reserve fund
212	212	and the employer's accumulation fund. Distribution rates shall
213	213	be determined by the board and may vary for the respective
214	214	accounting funds."
215	215	SECTION 2. Section 10-12C-8 NMSA 1978 (being Laws 1992,
216	216	Chapter 118, Section 8, as amended by Laws 2014, Chapter 39,
217	217	Section 5 and by Laws 2014, Chapter 43, Section 5) is amended
218	218	to read:
219	219	"10-12C-8. AGE AND SERVICE CREDIT REQUIREMENTS FOR NORMAL
220	220	RETIREMENT.--
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249	249	A. [For a magistrate who was a member on June 30,
250	250	2014] The age and service credit requirements for retirement
251	251	provided for in the Magistrate Retirement Act are:
252	252	(1) age sixty-five years or older and five or
253	253	more years of service credit;
254	254	(2) age sixty years or older and fifteen or
255	255	more years of service credit; or
256	256	(3) any age and twenty-four or more years of
257	257	service credit.
258	258	[B. For a magistrate who initially became a member
259	259	on or after July 1, 2014, the age and service requirements for
260	260	normal retirement provided for in the Magistrate Retirement Act
261	261	are:
262	262	(1) age sixty-five years or older and eight or
263	263	more years of service credit;
264	264	(2) age sixty years or older and fifteen or
265	265	more years of service credit; or
266	266	(3) any age and twenty-four or more years of
267	267	service credit.
268	268	C.] B. Except for a member who is retired under any
269	269	state system or the educational retirement system, if a member
270	270	leaves office for any reason, other than removal pursuant to
271	271	Article 6, Section 32 of the constitution of New Mexico before
272	272	meeting the age and service credit requirements for retirement
273	273	pursuant to the provisions of this section and if that member
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302	302	leaves the member contributions on deposit in the fund, that
303	303	member may apply for retirement when that member meets the age
304	304	and service credit requirements for retirement pursuant to the
305	305	provisions of the Magistrate Retirement Act or provisions of
306	306	the Public Employees Retirement Reciprocity Act.
307	307	[D.] C. No member shall be eligible to receive a
308	308	pension pursuant to the provisions of the Magistrate Retirement
309	309	Act while still in office."
310	310	SECTION 3. Section 10-12C-9 NMSA 1978 (being Laws 1992,
311	311	Chapter 118, Section 9, as amended by Laws 2014, Chapter 39,
312	312	Section 6 and by Laws 2014, Chapter 43, Section 6) is amended
313	313	to read:
314	314	"10-12C-9. AMOUNT OF PENSION.--
315	315	A. For a magistrate who was a member on June 30,
316	316	2014, the monthly pension is an amount equal to the sum of:
317	317	(1) for service credit earned on or before
318	318	June 30, 2014, the amount is equal to one-twelfth of:
319	319	seventy-five percent
320	320	of salary received (number of years of
321	321	during last year in X .05 X service, not exceeding
322	322	office prior to fifteen years,
323	323	retirement plus five years); and
324	324	(2) for service credit earned on and after July
325	325	1, 2014, an amount equal to one-sixtieth of the greatest aggregate
326	326	amount of salary received for sixty consecutive, but not
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355	355	necessarily continuous, months in office multiplied by the product
356	356	of three and one-half percent times the [sum of the ] number of
357	357	years of service.
358	358	B. For a magistrate who initially became a member on
359	359	or after July 1, 2014, the amount of monthly pension is equal to
360	360	one-sixtieth of the greatest aggregate amount of salary received
361	361	for sixty consecutive, but not necessarily continuous, months in
362	362	office multiplied by the product of three and one-half percent
363	363	times [the sum of] the number of years of service.
364	364	C. The amount of monthly pension under form of payment
365	365	A for a pension calculated pursuant to Subsection B of this
366	366	section shall not exceed [eighty-five ] one hundred percent of one-
367	367	sixtieth of the greatest aggregate amount of salary received for
368	368	sixty consecutive, but not necessarily continuous, months prior to
369	369	the member leaving office.
370	370	D. The amount of monthly pension payable for a pension
371	371	calculated pursuant to Subsection A of this section shall not
372	372	exceed [eighty-five] one hundred percent of one-sixtieth of the
373	373	greatest aggregate amount of salary received for sixty
374	374	consecutive, but not necessarily continuous, months prior to the
375	375	member leaving office. A pension benefit determined pursuant to
376	376	this subsection shall not be less than the benefit earned as of
377	377	June 30, 2014."
378	378	SECTION 4. Section 10-12C-10 NMSA 1978 (being Laws 1992,
379	379	Chapter 118, Section 10, as amended by Laws 2014, Chapter 39,
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408	408	Section 7 and by Laws 2014, Chapter 43, Section 7) is amended to
409	409	read:
410	410	"10-12C-10. MEMBER CONTRIBUTIONS--TAX TREATMENT.--
411	411	A. On and after July 1, 2014, but before July 1, 2025 ,
412	412	members, while in office, shall contribute ten and one-half
413	413	percent of salary to the member contribution fund.
414	414	B. On and after July 1, 2025, members, while in
415	415	office, shall contribute fourteen and seventy-four hundredths
416	416	percent of salary to the member contribution fund.
417	417	[B.] C. Upon implementation, the state, acting as
418	418	employer of members covered pursuant to the provisions of the
419	419	Magistrate Retirement Act, shall, solely for the purpose of
420	420	compliance with Section 414(h) of the Internal Revenue Code of
421	421	1986, pick up, for the purposes specified in that section, member
422	422	contributions required by this section for all annual salary
423	423	earned by the member. Member contributions picked up pursuant to
424	424	the provisions of this section shall be treated as employer
425	425	contributions for purposes of determining income tax obligations
426	426	under the Internal Revenue Code of 1986; however, such picked-up
427	427	member contributions shall be included in the determination of the
428	428	member's gross annual salary for all other purposes under federal
429	429	and state laws. Member contributions picked up pursuant to the
430	430	provisions of this section shall continue to be designated member
431	431	contributions for all purposes of the Magistrate Retirement Act
432	432	and shall be considered as part of the member's annual salary for
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461	461	purposes of determining the amount of the member's contribution.
462	462	The provisions of this section are mandatory, and the member shall
463	463	have no option concerning the pick up or concerning the receipt of
464	464	the contributed amounts directly instead of having the amounts
465	465	paid by the employer to the retirement system. Implementation
466	466	occurs upon authorization by the board. In no event may
467	467	implementation occur other than at the beginning of a pay period
468	468	applicable to the member."
469	469	SECTION 5. Section 10-12C-11 NMSA 1978 (being Laws 1992,
470	470	Chapter 118, Section 11, as amended by Laws 2014, Chapter 39,
471	471	Section 8 and by Laws 2014, Chapter 43, Section 8) is amended to
472	472	read:
473	473	"10-12C-11. EMPLOYER CONTRIBUTIONS.--
474	474	A. [The state, through the administrative office of
475	475	the courts, shall contribute to the fund fifteen percent of salary
476	476	for each member in office, except that, from July 1, 2014 through
477	477	June 30, 2015, the state contribution rate shall be eleven percent
478	478	of salary for each member in office ] On and after July 1, 2025,
479	479	the member's court shall contribute nineteen and twenty-four
480	480	hundredths percent of salary to the fund for each member in
481	481	office.
482	482	B. Twenty-five dollars ($25.00) from each civil case
483	483	docket fee paid in magistrate court and ten dollars ($10.00) from
484	484	each civil jury fee paid in magistrate court shall be paid by the
485	485	court clerk to the employer's accumulation fund."
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514	514	SECTION 6. EFFECTIVE DATE.--The effective date of the
515	515	provisions of this act is July 1, 2025.
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