New Mexico 2025 Regular Session

New Mexico Senate Bill SB402 Compare Versions

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

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28	28	SENATE BILL 402
29	29	57
30	30	TH LEGISLATURE
31	31	-
32	32
33	33	STATE
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35	35	OF
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37	37	NEW
38	38
39	39	MEXICO
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41	41	-
42	42	FIRST SESSION
43	43	,
44	44
45	45	2025
46	46	INTRODUCED BY
47	47	Gabriel Ramos and Jay C. Block and Anthony L. Thornton
48	48	AN ACT
49	49	RELATING TO PUBLIC EMPLOYEE PENSIONS; ALLOWING A MEMBER WHO
50	50	ENTERED A UNIFORMED SERVICE OF THE UNITED STATES FOR ANY AMOUNT
51	51	OF TIME TO PURCHASE SERVICE CREDIT SUBJECT TO CERTAIN
52	52	CONDITIONS.
53	53	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
54	54	SECTION 1. Section 10-11-7 NMSA 1978 (being Laws 1987,
55	55	Chapter 253, Section 7, as amended) is amended to read:
56	56	"10-11-7. SERVICE CREDIT--PURCHASE OF SERVICE.--
57	57	A. A member who entered a uniformed service of the
58	58	United States may purchase service credit [for periods of
59	59	active duty in the uniformed services ] subject to the following
60	60	conditions:
61	61	(1) the member pays the association the
62	62	purchase cost determined according to Subsection E of this
63	63	.229765.1 underscored material = new
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90	90	section;
91	91	(2) the member has the applicable minimum
92	92	number of years of service credit required for normal
93	93	retirement. As used in this paragraph, "service credit" means
94	94	only the service credit earned by the member during periods of
95	95	employment with an affiliated public employer;
96	96	(3) the aggregate amount of service credit
97	97	purchased pursuant to this subsection does not exceed five
98	98	years [reduced by any period of service credit acquired for
99	99	military service pursuant to any other provision of the Public
100	100	Employees Retirement Act;
101	101	(4) service credit may not be purchased for
102	102	periods of service in the uniformed services that are used to
103	103	obtain or increase a benefit from another retirement program ];
104	104	and
105	105	[(5)] (4) the member must not have received a
106	106	discharge or separation from uniformed service under other than
107	107	honorable conditions.
108	108	B. A member who was a civilian prisoner of war
109	109	captured while in service to the United States as an employee
110	110	of the federal government or as an employee of a contractor
111	111	with the federal government may purchase service credit for the
112	112	period of internment as a civilian prisoner of war, provided
113	113	that:
114	114	(1) the member provides proof of employment
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143	143	with the federal government or as a contractor to the federal
144	144	government in a form acceptable to the association;
145	145	(2) the member provides proof of the period of
146	146	internment in a form acceptable to the association;
147	147	(3) the member has the applicable minimum
148	148	number of years of service credit required for normal
149	149	retirement. As used in this paragraph, "service credit" means
150	150	only the service credit earned by the member during periods of
151	151	employment with an affiliated public employer;
152	152	(4) the aggregate amount of service credit
153	153	purchased pursuant to this subsection does not exceed five
154	154	years reduced by any period of service credit acquired for
155	155	military service pursuant to any other provision of the Public
156	156	Employees Retirement Act;
157	157	(5) service credit may not be purchased for
158	158	periods of service in internment as a civilian prisoner of war
159	159	if such periods are used to obtain or increase a benefit from
160	160	another retirement program; and
161	161	(6) the member pays the association the
162	162	purchase cost determined according to Subsection E of this
163	163	section.
164	164	C. A member who was employed by a utility company,
165	165	library, museum, transit company or nonprofit organization
166	166	administering federally funded public service programs, which
167	167	utility company, library, museum, transit company or nonprofit
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196	196	organization administering federally funded public service
197	197	programs or federally funded public service programs
198	198	administered by a nonprofit organization are subsequently taken
199	199	over by an affiliated public employer, or a member who was
200	200	employed by an entity created pursuant to a joint powers
201	201	agreement between two or more affiliated public employers for
202	202	the purpose of administering or providing drug or alcohol
203	203	addiction treatment services irrespective of whether the entity
204	204	is subsequently taken over by an affiliated public employer,
205	205	may purchase service credit for the period of employment
206	206	subject to the following conditions:
207	207	(1) the member pays the association the
208	208	purchase cost determined according to Subsection E of this
209	209	section;
210	210	(2) the member has the applicable minimum
211	211	number of years of service credit required for normal
212	212	retirement. As used in this paragraph, "service credit" means
213	213	only the service credit earned by the member during periods of
214	214	employment with an affiliated public employer; and
215	215	(3) the aggregate amount of service credit
216	216	purchased pursuant to this subsection does not exceed five
217	217	years.
218	218	D. A member who was appointed to participate in a
219	219	cooperative work study training program established jointly by
220	220	a state agency and a state post-secondary educational
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249	249	institution may purchase service credit for the period of
250	250	participation subject to the following conditions:
251	251	(1) the member pays the association the full
252	252	actuarial present value of the amount of the increase in the
253	253	employee's pension as a consequence of the purchase as
254	254	determined by the association;
255	255	(2) the member pays the full cost of the
256	256	purchase within sixty days of the date the member is informed
257	257	of the amount of the payment;
258	258	(3) the member has the applicable minimum
259	259	number of years of service credit required for normal
260	260	retirement. As used in this paragraph, "service credit" means
261	261	only the service credit earned by the member during periods of
262	262	employment with an affiliated public employer; and
263	263	(4) the aggregate amount of service credit
264	264	purchased pursuant to this subsection does not exceed five
265	265	years.
266	266	E. Except for service to be used under a state
267	267	legislator coverage plan, the purchase cost for each month of
268	268	service credit purchased pursuant to the provisions of this
269	269	section is equal to the member's final average salary
270	270	multiplied by the sum of the member contribution rate and
271	271	employer contribution rate, determined in accordance with the
272	272	coverage plan applicable to the member at the time of the
273	273	written election to purchase. The purchase cost for each year
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302	302	of service credit to be used under a state legislator coverage
303	303	plan is equal to three times the normal member contribution per
304	304	year of service credit under the state legislator coverage plan
305	305	applicable to the member. Full payment shall be made in a
306	306	single lump sum within sixty days of the date the member is
307	307	informed of the amount of the payment. The portion of the
308	308	purchase cost derived from the employer contribution rate shall
309	309	be credited to the employer's accumulation fund and shall not
310	310	be paid out of the association in the event of cessation of
311	311	membership. In no case shall a member be credited with a month
312	312	of service for less than the purchase cost as defined in this
313	313	section.
314	314	F. A member shall be refunded, upon written request
315	315	filed with the association, the portion of the purchase cost of
316	316	service credit purchased pursuant to this section that the
317	317	association determines to have been unnecessary to provide the
318	318	member with the maximum pension applicable to the member. The
319	319	association shall not pay interest on the portion of the
320	320	purchase cost refunded to the member.
321	321	G. A member of the magistrate retirement system who
322	322	during the member's service as a magistrate was eligible to
323	323	become a member of the public employees retirement system and
324	324	elected not to become a member of that system may purchase
325	325	service credit pursuant to the public employees retirement
326	326	system for the period for which the magistrate elected not to
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355	355	become a public employees retirement system member by paying
356	356	the amount of the increase in the actuarial present value of
357	357	the magistrate pension as a consequence of the purchase as
358	358	determined by the association. Full payment shall be made in a
359	359	single lump-sum amount in accordance with procedures
360	360	established by the retirement board. Except as provided in
361	361	Subsection F of this section, seventy-five percent of the
362	362	purchase cost shall be considered to be employer contributions
363	363	and shall not be refunded to the member in the event of
364	364	cessation of membership.
365	365	H. At any time prior to retirement, any member may
366	366	purchase service credit in monthly increments, subject to the
367	367	following conditions:
368	368	(1) the member has the applicable minimum
369	369	number of years of service credit required for normal
370	370	retirement. As used in this paragraph, "service credit" means
371	371	only the service credit earned by the member during periods of
372	372	employment with an affiliated public employer;
373	373	(2) the aggregate amount of service credit
374	374	purchased pursuant to this subsection does not exceed one
375	375	year;
376	376	(3) the member pays full actuarial present
377	377	value of the amount of the increase in the employee's pension
378	378	as a consequence of the purchase as determined by the
379	379	association;
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408	408	(4) the member pays the full cost of the
409	409	purchase within sixty days of the date the member is informed
410	410	of the amount of the payment; and
411	411	(5) the purchase of service credit under this
412	412	subsection cannot be used to determine the final average salary
413	413	or the pension factor or be used to exceed the pension maximum.
414	414	I. A member receiving service credit under this
415	415	section who enrolls in the retiree health care authority shall
416	416	make contributions pursuant to Subsection C of Section 10-7C-15
417	417	NMSA 1978."
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