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SENATE BILL 402
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Gabriel Ramos and Jay C. Block and Anthony L. Thornton
AN ACT
RELATING TO PUBLIC EMPLOYEE PENSIONS; ALLOWING A MEMBER WHO
ENTERED A UNIFORMED SERVICE OF THE UNITED STATES FOR ANY AMOUNT
OF TIME TO PURCHASE SERVICE CREDIT SUBJECT TO CERTAIN
CONDITIONS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 10-11-7 NMSA 1978 (being Laws 1987,
Chapter 253, Section 7, as amended) is amended to read:
"10-11-7. SERVICE CREDIT--PURCHASE OF SERVICE.--
A. A member who entered a uniformed service of the
United States may purchase service credit [for periods of
active duty in the uniformed services ] subject to the following
conditions:
(1) the member pays the association the
purchase cost determined according to Subsection E of this
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section;
(2) the member has the applicable minimum
number of years of service credit required for normal
retirement. As used in this paragraph, "service credit" means
only the service credit earned by the member during periods of
employment with an affiliated public employer;
(3) the aggregate amount of service credit
purchased pursuant to this subsection does not exceed five
years [reduced by any period of service credit acquired for
military service pursuant to any other provision of the Public
Employees Retirement Act;
(4) service credit may not be purchased for
periods of service in the uniformed services that are used to
obtain or increase a benefit from another retirement program ];
and
[(5)] (4) the member must not have received a
discharge or separation from uniformed service under other than
honorable conditions.
B. A member who was a civilian prisoner of war
captured while in service to the United States as an employee
of the federal government or as an employee of a contractor
with the federal government may purchase service credit for the
period of internment as a civilian prisoner of war, provided
that:
(1) the member provides proof of employment
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with the federal government or as a contractor to the federal
government in a form acceptable to the association;
(2) the member provides proof of the period of
internment in a form acceptable to the association;
(3) the member has the applicable minimum
number of years of service credit required for normal
retirement. As used in this paragraph, "service credit" means
only the service credit earned by the member during periods of
employment with an affiliated public employer;
(4) the aggregate amount of service credit
purchased pursuant to this subsection does not exceed five
years reduced by any period of service credit acquired for
military service pursuant to any other provision of the Public
Employees Retirement Act;
(5) service credit may not be purchased for
periods of service in internment as a civilian prisoner of war
if such periods are used to obtain or increase a benefit from
another retirement program; and
(6) the member pays the association the
purchase cost determined according to Subsection E of this
section.
C. A member who was employed by a utility company,
library, museum, transit company or nonprofit organization
administering federally funded public service programs, which
utility company, library, museum, transit company or nonprofit
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organization administering federally funded public service
programs or federally funded public service programs
administered by a nonprofit organization are subsequently taken
over by an affiliated public employer, or a member who was
employed by an entity created pursuant to a joint powers
agreement between two or more affiliated public employers for
the purpose of administering or providing drug or alcohol
addiction treatment services irrespective of whether the entity
is subsequently taken over by an affiliated public employer,
may purchase service credit for the period of employment
subject to the following conditions:
(1) the member pays the association the
purchase cost determined according to Subsection E of this
section;
(2) the member has the applicable minimum
number of years of service credit required for normal
retirement. As used in this paragraph, "service credit" means
only the service credit earned by the member during periods of
employment with an affiliated public employer; and
(3) the aggregate amount of service credit
purchased pursuant to this subsection does not exceed five
years.
D. A member who was appointed to participate in a
cooperative work study training program established jointly by
a state agency and a state post-secondary educational
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institution may purchase service credit for the period of
participation subject to the following conditions:
(1) the member pays the association the full
actuarial present value of the amount of the increase in the
employee's pension as a consequence of the purchase as
determined by the association;
(2) the member pays the full cost of the
purchase within sixty days of the date the member is informed
of the amount of the payment;
(3) the member has the applicable minimum
number of years of service credit required for normal
retirement. As used in this paragraph, "service credit" means
only the service credit earned by the member during periods of
employment with an affiliated public employer; and
(4) the aggregate amount of service credit
purchased pursuant to this subsection does not exceed five
years.
E. Except for service to be used under a state
legislator coverage plan, the purchase cost for each month of
service credit purchased pursuant to the provisions of this
section is equal to the member's final average salary
multiplied by the sum of the member contribution rate and
employer contribution rate, determined in accordance with the
coverage plan applicable to the member at the time of the
written election to purchase. The purchase cost for each year
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of service credit to be used under a state legislator coverage
plan is equal to three times the normal member contribution per
year of service credit under the state legislator coverage plan
applicable to the member. Full payment shall be made in a
single lump sum within sixty days of the date the member is
informed of the amount of the payment. The portion of the
purchase cost derived from the employer contribution rate shall
be credited to the employer's accumulation fund and shall not
be paid out of the association in the event of cessation of
membership. In no case shall a member be credited with a month
of service for less than the purchase cost as defined in this
section.
F. A member shall be refunded, upon written request
filed with the association, the portion of the purchase cost of
service credit purchased pursuant to this section that the
association determines to have been unnecessary to provide the
member with the maximum pension applicable to the member. The
association shall not pay interest on the portion of the
purchase cost refunded to the member.
G. A member of the magistrate retirement system who
during the member's service as a magistrate was eligible to
become a member of the public employees retirement system and
elected not to become a member of that system may purchase
service credit pursuant to the public employees retirement
system for the period for which the magistrate elected not to
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become a public employees retirement system member by paying
the amount of the increase in the actuarial present value of
the magistrate pension as a consequence of the purchase as
determined by the association. Full payment shall be made in a
single lump-sum amount in accordance with procedures
established by the retirement board. Except as provided in
Subsection F of this section, seventy-five percent of the
purchase cost shall be considered to be employer contributions
and shall not be refunded to the member in the event of
cessation of membership.
H. At any time prior to retirement, any member may
purchase service credit in monthly increments, subject to the
following conditions:
(1) the member has the applicable minimum
number of years of service credit required for normal
retirement. As used in this paragraph, "service credit" means
only the service credit earned by the member during periods of
employment with an affiliated public employer;
(2) the aggregate amount of service credit
purchased pursuant to this subsection does not exceed one
year;
(3) the member pays full actuarial present
value of the amount of the increase in the employee's pension
as a consequence of the purchase as determined by the
association;
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(4) the member pays the full cost of the
purchase within sixty days of the date the member is informed
of the amount of the payment; and
(5) the purchase of service credit under this
subsection cannot be used to determine the final average salary
or the pension factor or be used to exceed the pension maximum.
I. A member receiving service credit under this
section who enrolls in the retiree health care authority shall
make contributions pursuant to Subsection C of Section 10-7C-15
NMSA 1978."
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