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SENATE BILL 75
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Natalie Figueroa
ENDORSED BY THE INVESTMENTS AND PENSIONS OVERSIGHT COMMITTEE
AN ACT
RELATING TO EDUCATIONAL RETIREMENT; MAKING CHANGES TO THE
EDUCATIONAL RETIREMENT ACT; CLARIFYING RESTRICTIONS ON RECEIPT
OF GIFTS; PROVIDING FOR UNCLAIMED MEMBER CONTRIBUTIONS TO BE
DEPOSITED INTO THE EDUCATIONAL RETIREMENT FUND; CLARIFYING
CERTAIN TERMS; ALLOWING FOR A MEMBER ON DISABILITY STATUS WHO
IS OVER SIXTY AND WHO RECEIVES AN ANNUITY ADJUSTMENT TO
CONTINUE RECEIVING THE ANNUITY ADJUSTMENT; REQUIRING PAYMENT OF
ALLOWED SERVICE WITHIN NINETY DAYS; ALLOWING FOR DISCLOSURE OF
MEMBER OR RETIRED MEMBER INFORMATION TO THE PUBLIC EMPLOYEES
RETIREMENT BOARD TO ADMINISTER.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 22-11-5.1 NMSA 1978 (being Laws 1999,
Chapter 153, Section 2, as amended) is amended to read:
"22-11-5.1. RESTRICTIONS ON RECEIPT OF GIFTS.--Except for
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gifts of food or beverage [given ] consumed in a place of public
accommodation [consumed ] at the time of receipt [not exceeding
fifty dollars ($50.00) for ] or a single gift of value not
exceeding fifty dollars ($50.00) , and the aggregate value of
which gifts [may] shall not exceed one hundred fifty dollars
($150) in a calendar year, neither a board member nor an
employee of the board shall receive or accept anything of value
directly or indirectly from a person who:
A. has a current contract with the board;
B. is a potential bidder, offeror or contractor for
the provision of services or personal property to the board;
C. is authorized to invest public funds pursuant to
state or federal law or is an employee or agent of such a
person; or
D. is an organization, association or other entity
having a membership that includes persons described in
Subsections A through C of this section."
SECTION 2. Section 22-11-11 NMSA 1978 (being Laws 1967,
Chapter 16, Section 135, as amended) is amended to read:
"22-11-11. EDUCATIONAL RETIREMENT FUND--SUSPENSE FUND.--
A. The "educational retirement fund" and the
"educational retirement suspense fund" are created.
B. The state treasurer shall be the custodian of
the funds, and the board shall be the trustee of the funds.
C. All membership fees, contributions from members
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and local administrative units, securities evidencing the
investment of money from the fund, unclaimed member
contributions, interest, gifts, grants or bequests shall be
deposited in the educational retirement fund.
D. All amounts received in satisfaction of a claim
brought by private attorneys on behalf of the board shall be
deposited into the educational retirement suspense fund. The
board shall disburse the compensation due the private
attorneys, together with reimbursement for reasonable costs and
expenses, in accordance with the terms of the contract with the
attorneys. After the disbursements have been made, the balance
of each deposit shall be distributed to the educational
retirement fund."
SECTION 3. Section 22-11-24 NMSA 1978 (being Laws 1967,
Chapter 16, Section 147) is amended to read:
"22-11-24. RETIREMENT BENEFITS--MINIMUM CONTRIBUTORY
EMPLOYMENT.--
A. A member [must] shall have acquired not less
than five years of contributory employment to be eligible for
retirement benefits pursuant to the Educational Retirement Act.
B. A member desiring to retire before having
completed five years of contributory employment shall be
limited to the maximum benefit [he ] the member would have been
entitled to receive under any statute repealed by the
Educational Retirement Act. A member may acquire five years or
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less of contributory employment by contributing to the fund,
for each year of contributory employment desired, a sum equal
to the prevailing combined contributions of the member and the
local administrative unit in effect at the time the
contributory employment is acquired. This contribution shall
be computed on the member's average annual salary for the last
five years of employment plus an additional sum as interest
from the effective date of the Educational Retirement Act as
fixed by the board, but not to exceed three percent a year.
C. Years of contributory employment purchased
pursuant to this section shall not be considered as an addition
to service actually performed in computing the sum of the
member's retirement benefit.
D. The retirement benefits of members retired
pursuant to the Educational Retirement Act prior to July 1,
1959 and who have acquired contributory employment years by
purchase shall be computed upon the basis of the amount paid
therefor.
E. As used only in this section, "five years of
contributory employment" means the member and employer have
made contributions through the last business day of the
sixtieth month of contributory employment, or if the member is
under contract, the member and employer have made contributions
for five years through the last business day that the member
can provide services under the contract. "
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SECTION 4. Section 22-11-31 NMSA 1978 (being Laws 1979,
Chapter 333, Section 2, as amended) is amended to read:
"22-11-31. COST-OF-LIVING ADJUSTMENT--ELIGIBILITY--BASED
ON FUNDED RATIO--ADDITIONAL CONTRIBUTIONS.--
A. For the purposes of this section:
(1) "adjustment factor" means a multiplicative
factor computed to provide an annuity adjustment pursuant to
the provisions of Subsection B of this section;
(2) "annuity" means any benefit payable under
the Educational Retirement Act or the Public Employees
Retirement Reciprocity Act as a retirement benefit, disability
benefit or survivor benefit;
(3) "calendar year" means the full twelve
months beginning January 1 and ending December 31;
(4) "consumer price index" means the average
of the monthly consumer price indexes for a calendar year for
the entire United States for all items as published by the
United States department of labor;
(5) "funded ratio" means the ratio of the
actuarial value of the assets of the fund to the actuarial
accrued liability of the educational retirement system;
(6) "median adjusted annuity" means the median
value of all annuities and retirement benefits paid pursuant to
Section 22-11-29 or 22-11-30 NMSA 1978, as calculated each
fiscal year; provided, however, that the benefits paid to a
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member pursuant to Section 22-11-38 NMSA 1978 shall not be
included in the median adjusted annuity calculation;
(7) "next preceding calendar year" means the
full calendar year immediately prior to the preceding calendar
year; and
(8) "preceding calendar year" means the full
calendar year preceding the July 1 on which a benefit is to be
adjusted.
B. On or after July 1, 1984:
(1) the annuity of a member who retires
pursuant to Subsection A of Section 22-11-23 NMSA 1978 or
Subsection A of Section 22-11-23.1 NMSA 1978 shall be adjusted
annually and cumulatively commencing on July 1 of the year in
which a member attains the age of sixty-five years or on July 1
following the year a member retires, whichever is later; and
(2) the annuity of a member who retires
pursuant to Subsection A of Section 22-11-23.2 NMSA 1978 shall
be adjusted annually and cumulatively commencing on July 1 of
the year in which the member attains the age of sixty-seven
years or on July 1 following the year the member retires,
whichever is later.
C. Beginning on July 1, 2013 and on each July 1
thereafter:
(1) if the funded ratio of the fund as
reported by the board's actuary in the actuarial valuation
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report for the next preceding fiscal year is one hundred
percent or greater, the annuity adjustments provided for under
Subsection B of this section shall be adjusted by applying an
adjustment factor based on the percentage increase of the
consumer price index between the next preceding calendar year
and the preceding calendar year. The adjustment factor shall
be applied as follows:
(a) if the percentage increase of the
consumer price index is less than two percent in absolute
value, the adjustment factor shall be the same amount as the
percentage increase of the consumer price index; and
(b) if the percentage increase of the
consumer price index is two percent or greater in absolute
value, the adjustment factor shall be one-half of the
percentage increase; except that the adjustment shall not
exceed four percent in absolute value nor be less than two
percent in absolute value;
(2) if the funded ratio of the fund as
reported by the board's actuary in the actuarial report for the
next preceding fiscal year is greater than ninety percent but
less than one hundred percent, except for a member who is on
disability status in accordance with Section 22-11-35 NMSA 1978
and whose benefit is adjusted as provided in Subsection G of
this section or a member who is retired pursuant to Section
22-11-38 NMSA 1978, the adjustment factor provided for in
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Subsection B of this section shall be applied as follows:
(a) if the percentage increase in the
consumer price index is less than two percent in absolute
value, for a member who has twenty-five or more years of
service credit at retirement and whose annuity is less than or
equal to the median adjusted annuity for the fiscal year next
preceding the adjustment date, the adjustment factor shall be
ninety-five percent of the adjustment factor determined
pursuant to Subparagraph (a) of Paragraph (1) of this
subsection;
(b) if the percentage increase in the
consumer price index is less than two percent in absolute
value, for a member who has less than twenty-five years of
service credit at retirement and whose annuity is less than or
equal to the median adjusted annuity for the fiscal year next
preceding the adjustment date, and for a member whose annuity
is greater than the median adjusted annuity for the fiscal year
next preceding the adjustment date, the adjustment factor shall
be ninety percent of the adjustment factor determined pursuant
to Subparagraph (a) of Paragraph (1) of this subsection;
(c) if the percentage increase in the
consumer price index is greater than or equal to two percent in
absolute value for a member who has twenty-five or more years
of service credit at retirement and whose annuity is less than
or equal to the median adjusted annuity for the fiscal year
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next preceding the adjustment date, the adjustment factor shall
be ninety-five percent of the adjustment factor determined
under Subparagraph (b) of Paragraph (1) of this subsection; and
(d) if the percentage increase in the
consumer price index is greater than or equal to two percent in
absolute value, for a member who has less than twenty-five
years of service credit at retirement and whose annuity is less
than or equal to the median adjusted annuity for the fiscal
year next preceding the adjustment date, and for a member whose
annuity is greater than the median adjusted annuity for the
fiscal year next preceding the adjustment date, the adjustment
factor shall be ninety percent of the adjustment factor
determined under Subparagraph (b) of Paragraph (1) of this
subsection;
(3) if the funded ratio of the fund as
reported by the board's actuary in the actuarial valuation
report for the next preceding fiscal year is ninety percent or
less, except for a member who is on disability status in
accordance with Section 22-11-35 NMSA 1978 and whose benefit is
adjusted as provided in Subsection G of this section or a
member who is retired pursuant to Section 22-11-38 NMSA 1978,
the adjustment factor provided for in Subsection B of this
section shall be applied as follows:
(a) if the percentage increase in the
consumer price index is less than two percent in absolute
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value, for a member who has twenty-five or more years of
service credit at retirement and whose annuity is less than or
equal to the median adjusted annuity for the fiscal year next
preceding the adjustment date, the adjustment factor shall be
ninety percent of the adjustment factor determined pursuant to
Subparagraph (a) of Paragraph (1) of this subsection;
(b) if the percentage increase in the
consumer price index is less than two percent in absolute
value, for a member who has less than twenty-five years of
service credit at retirement and whose annuity is less than or
equal to the median adjusted annuity for the fiscal year next
preceding the adjustment date, and for a member whose annuity
is greater than the median adjusted annuity for the fiscal year
next preceding the adjustment date, the adjustment factor shall
be eighty percent of the adjustment factor determined pursuant
to Subparagraph (a) of Paragraph (1) of this subsection;
(c) if the percentage increase in the
consumer price index is greater than or equal to two percent in
absolute value for a member who has twenty-five or more years
of service credit at retirement and whose annuity is less than
or equal to the median adjusted annuity for the fiscal year
next preceding the adjustment date, the adjustment factor shall
be ninety percent of the adjustment factor determined under
Subparagraph (b) of Paragraph (1) of this subsection; and
(d) if the percentage increase in the
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consumer price index is greater than or equal to two percent in
absolute value, for a member who has less than twenty-five
years of service credit at retirement and whose annuity is less
than or equal to the median adjusted annuity for the fiscal
year next preceding the adjustment date, and for a member whose
annuity is greater than the median adjusted annuity for the
fiscal year next preceding the adjustment date, the adjustment
factor shall be eighty percent of the adjustment factor
determined under Subparagraph (b) of Paragraph (1) of this
subsection; and
(4) an annuity shall not be decreased if there
is a decrease in the consumer price index between the next
preceding calendar year and the preceding calendar year.
D. A retired member whose benefit is subject to
adjustment under the provisions of the Educational Retirement
Act in effect prior to July 1, 1984 shall have the member's
annuity readjusted annually and cumulatively under the
provisions of that act in effect prior to July 1, 1984 until
July 1 of the year in which the member attains the age of
sixty-five years, when the member shall have the annuity
readjusted annually and cumulatively under the provisions of
this section.
E. A member who:
(1) retires pursuant to Subsection A of
Section 22-11-23 NMSA 1978 or Subsection A of Section
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22-11-23.1 NMSA 1978 after attaining the age of sixty-five
years shall have the member's annuity adjusted as provided in
Subsections B and C of this section commencing on July 1 of the
year following the member's retirement; or
(2) retires pursuant to Subsection A of
Section 22-11-23.2 NMSA 1978 after attaining the age of
sixty-seven years shall have the member's annuity adjusted as
provided in Subsections B and C of this section commencing on
July 1 of the year following the member's retirement.
F. A retired member who returns to work and
suspends retirement shall be subject to the provisions of this
section as they exist at the time of the member's latest
retirement.
G. Benefits of a member who is on a disability
status in accordance with Section 22-11-35 NMSA 1978 or a
member who is certified by the board as disabled at regular
retirement shall be adjusted in accordance with Subsections B
and C of this section; [except ] provided that:
(1) the benefits shall be adjusted annually
and cumulatively commencing on July 1 of the third full year
following the year in which the member was approved by the
board for disability or retirement; and
(2) upon attaining the age of sixty years, a
member on a disability status who is receiving an annuity
adjustment pursuant to this section shall continue to receive
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the annuity adjustment at the rate of benefits received for the
disability."
SECTION 5. Section 22-11-34 NMSA 1978 (being Laws 1967,
Chapter 16, Section 157, as amended) is amended to read:
"22-11-34. ALLOWED SERVICE CREDIT.--
A. A member shall be certified to have acquired
allowed service credit pursuant to the Internal Revenue Code of
1986 for those periods of time when the member was:
(1) employed prior to July 1, 1967 in a
federal educational program within New Mexico, including United
States Indian schools and civilian conservation corps camps.
This service credit shall be allowed without contribution;
(2) engaged in military service that
interrupted the member's employment in New Mexico if the member
returned to employment within eighteen months following
honorable discharge. This service credit shall be allowed
without contribution;
(3) engaged in United States military service
or the commissioned corps of the public health service from
which the member was honorably discharged; provided that:
(a) the member shall have five years or
more of contributory employment to be eligible to purchase
allowed service credit pursuant to this paragraph;
(b) the member shall contribute to the
fund, for each year of service credit the member elects to
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purchase, a sum equal to the member's average annual actual
salary for the five years preceding the date of the
contribution multiplied by the sum of the member contribution
rate and the employer contribution rate in effect at the time
of the member's written election to purchase, subject to the
federal Uniformed Services Employment and Reemployment Rights
Act of 1994;
(c) full payment shall be made [in a
single lump sum] within [sixty] ninety days of the date that
the member is informed of the amount of the payment; and
(d) the portion of the purchase cost
derived from the employer's contribution rate shall be credited
to the fund and, in the event that a member requests a refund
of contributions pursuant to Section 22-11-15 NMSA 1978, the
member shall not be entitled to a refund of that portion of the
purchase cost derived from the employer contribution rate; or
(4) employed:
(a) in a public school or public
institution of higher learning in another state, territory or
possession of the United States;
(b) in a United States military
dependents' school operated by a branch of the armed forces of
the United States;
(c) as provided in Paragraph (1) of this
subsection after July 1, 1967; or
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(d) in a private school or institution
of higher learning in New Mexico whose education program is
accredited or approved by the department at the time of
employment.
B. Effective July 1, 2001, the member or employer
under Paragraph (4) of Subsection A of this section shall
contribute to the fund for each year of allowed service credit
desired an amount equal to the actuarial value of the service
purchased as defined by the board. No allowed service credit
shall be purchased pursuant to Paragraph (4) of Subsection A of
this section unless the member is currently employed by a local
administrative unit.
C. No member shall be certified to have acquired
allowed service credit:
(1) under any single paragraph or the
combination of only Paragraphs (1) and (4) or only Paragraphs
(2) and (3) of Subsection A of this section in excess of five
years; or
(2) in excess of ten years for any other
combination of Paragraphs (1) through (4) of Subsection A of
this section.
D. A member receiving service credit under
Paragraph (3) or (4) of Subsection A of this section who
enrolls in the retiree health care authority shall make
contributions pursuant to Subsection C of Section 10-7C-15 NMSA
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1978."
SECTION 6. Section 22-11-55 NMSA 1978 (being Laws 2009,
Chapter 240, Section 1 and Laws 2009, Chapter 248, Section 1,
as amended) is amended to read:
"22-11-55. DISCLOSURE OF MEMBER OR RETIRED MEMBER
INFORMATION--PENALTY.--
A. Other than names of members and local
administrative units by which a member was employed; dates of
employment, retirement and reported death; service credit;
reported salary; retirement and disability benefits; and
amounts of contributions made by members and local
administrative units, neither the board nor its employees or
contractors shall allow public inspection or disclosure of any
information regarding a member or retired member to anyone
except:
(1) the member, retired member or the spouse
or authorized representative of the member or retired member;
(2) other persons specifically identified in a
prior release and consent, in the form prescribed by the board,
executed by the member, retired member, spouse or authorized
representative; [or]
(3) the attorney general, appropriate law
enforcement agencies, the state auditor or the public education
department or higher education department, if the information
provided relates to contributions, payments or management of
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money received by, or the financial controls or procedures of,
a local administrative unit; or
(4) the public employees retirement board for
the purpose of administering the Public Employees Retirement
Reciprocity Act.
B. No person receiving information disclosed by a
violation of Subsection A of this section shall disclose that
information to any other person unless authorized by an
applicable confidentiality agreement, board rule or state law.
C. Whoever knowingly violates a provision of
Subsection A or B of this section is guilty of a petty
misdemeanor and shall be sentenced in accordance with Section
31-19-1 NMSA 1978."
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