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SENATE BILL 151
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Elizabeth "Liz" Stefanics and Patricia Roybal Caballero
AN ACT
RELATING TO MAGISTRATE RETIREMENT; PROVIDING FOR APPROPRIATIONS
AND INCOME DERIVED FROM INVESTMENTS TO BE CREDITED TO THE
MAGISTRATE RETIREMENT FUND; ADJUSTING YEARS OF SERVICE CREDIT
REQUIRED FOR CERTAIN MAGISTRATE JUDGES; INCREASING CERTAIN
SERVICE CREDIT MULTIPLIERS PROVIDED IN THE MAGISTRATE
RETIREMENT ACT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 10-12C-3 NMSA 1978 (being Laws 1992,
Chapter 118, Section 3, as amended) is amended to read:
"10-12C-3. MAGISTRATE RETIREMENT FUND ESTABLISHED--
ADMINISTRATION OF FUND--ACCOUNTING FUNDS.--
A. There is established in the state treasury the
"magistrate retirement fund". The fund [is comprised ] consists
of appropriations, money received from docket fees of
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magistrate courts, employer and member contributions and [any ]
all income derived from the investment [earnings on fees and
contributions] 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
Magistrate 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
Magistrate Retirement Act shall 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 Magistrate 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 Magistrate Retirement
Act. The member's court shall cause member contributions to be
deducted from the salary of the member and shall remit the
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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
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 administrative office of the
courts. The state, through the administrative office of the
courts, 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
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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
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
Magistrate Retirement Act. Expenses related to the
administration of the Magistrate 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 10-12C-8 NMSA 1978 (being Laws 1992,
Chapter 118, Section 8, as amended by Laws 2014, Chapter 39,
Section 5 and by Laws 2014, Chapter 43, Section 5) is amended
to read:
"10-12C-8. AGE AND SERVICE CREDIT REQUIREMENTS FOR NORMAL
RETIREMENT.--
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A. [For a magistrate who was a member on June 30,
2014] The age and service credit requirements for retirement
provided for in the Magistrate Retirement Act are:
(1) age sixty-five years or older and five or
more years of service credit;
(2) age sixty years or older and fifteen or
more years of service credit; or
(3) any age and twenty-four or more years of
service credit.
[B. For a magistrate who initially became a member
on or after July 1, 2014, the age and service requirements for
normal retirement provided for in the Magistrate Retirement Act
are:
(1) age sixty-five years or older and eight or
more years of service credit;
(2) age sixty years or older and fifteen or
more years of service credit; or
(3) any age and twenty-four or more years of
service credit.
C.] B. 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
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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 Magistrate Retirement Act or provisions of
the Public Employees Retirement Reciprocity Act.
[D.] C. No member shall be eligible to receive a
pension pursuant to the provisions of the Magistrate Retirement
Act while still in office."
SECTION 3. Section 10-12C-9 NMSA 1978 (being Laws 1992,
Chapter 118, Section 9, as amended by Laws 2014, Chapter 39,
Section 6 and by Laws 2014, Chapter 43, Section 6) is amended
to read:
"10-12C-9. AMOUNT OF PENSION.--
A. For a magistrate who was a member on June 30,
2014, the monthly pension is an amount equal to the sum of:
(1) for service credit earned on or before
June 30, 2014, the amount is equal to one-twelfth of:
seventy-five percent
of salary received (number of years of
during last year in X .05 X service, not exceeding
office prior to fifteen years,
retirement plus five years); and
(2) for service credit earned on and after July
1, 2014, an amount equal to one-sixtieth of the greatest aggregate
amount of salary received for sixty consecutive, but not
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necessarily continuous, months in office multiplied by the product
of three and one-half percent times the [sum of the ] number of
years of service.
B. For a magistrate who initially became a member on
or after July 1, 2014, the amount of monthly pension is 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 sum of] the number of years of service.
C. The amount of monthly pension under form of payment
A for a pension calculated pursuant to Subsection B of this
section shall not exceed [eighty-five ] 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.
D. The amount of monthly pension payable for a pension
calculated pursuant to Subsection A of this section shall not
exceed [eighty-five] 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 10-12C-10 NMSA 1978 (being Laws 1992,
Chapter 118, Section 10, as amended by Laws 2014, Chapter 39,
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Section 7 and by Laws 2014, Chapter 43, Section 7) is amended to
read:
"10-12C-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.
[B.] C. Upon implementation, the state, acting as
employer of members covered pursuant to the provisions of the
Magistrate 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 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 Magistrate Retirement Act
and shall be considered as part of the member's annual salary for
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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 pick up 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 10-12C-11 NMSA 1978 (being Laws 1992,
Chapter 118, Section 11, as amended by Laws 2014, Chapter 39,
Section 8 and by Laws 2014, Chapter 43, Section 8) is amended to
read:
"10-12C-11. EMPLOYER CONTRIBUTIONS.--
A. [The state, through the administrative office of
the courts, shall contribute to the fund fifteen percent of salary
for each member in office, except that, from July 1, 2014 through
June 30, 2015, the state contribution rate shall be eleven percent
of salary for each member in office ] On and after July 1, 2025,
the member's court shall contribute nineteen and twenty-four
hundredths percent of salary to the fund for each member in
office.
B. Twenty-five dollars ($25.00) from each civil case
docket fee paid in magistrate court and ten dollars ($10.00) from
each civil jury fee paid in magistrate court shall be paid by the
court clerk to the employer's accumulation fund."
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SECTION 6. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2025.
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