New Mexico SB 42: INCREASE ED RETIREMENT CONTRIBUTIONS

Bill Text

SB 42
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AN ACT
RELATING TO EDUCATIONAL RETIREMENT; INCREASING CERTAIN
CONTRIBUTIONS TO THE EDUCATIONAL RETIREMENT FUND; REQUIRING
A REPORT; EXTENDING CERTAIN RETURN-TO-WORK PROVISIONS;
REPEALING LAWS 2019, CHAPTER 237, SECTION 18 TO CORRECT A
TECHNICAL STATUTORY CONFLICT.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
SECTION 1. Section 22-11-21 NMSA 1978 (being Laws 1967,
Chapter 16, Section 144, as amended by Laws 2019, Chapter
237, Section 18 and by Laws 2019, Chapter 258, Section 1) is
amended to read:
"22-11-21. CONTRIBUTIONS--MEMBERS--LOCAL ADMINISTRATIVE
UNITS.--
A. Except as provided in Subsection D of this
section, for a member whose annual salary is greater than
twenty-four thousand dollars ($24,000), the member shall make
contributions to the fund at the rate of ten and seven-tenths
percent of the member's annual salary.
B. For a member whose annual salary is
twenty-four thousand dollars ($24,000) or less, the member
shall make contributions to the fund at the rate of seven and
nine-tenths percent of the member's annual salary.
C. Except as provided in Subsection D of this
section, each local administrative unit shall make an annual

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contribution to the fund according to the following schedule:
(1) from July 1, 2021 through June 30, 2022,
at the rate of fifteen and fifteen-hundredths percent of
the annual salary of each member employed by the local
administrative unit; and
(2) on and after July 1, 2022, at the rate
of sixteen and fifteen-hundredths percent of the annual
salary of each member employed by the local administrative
unit.
D. If, in a calendar year, the salary of a member,
initially employed by a local administrative unit on or after
July 1, 1996, equals the annual compensation limit set
pursuant to Section 401(a)(17) of the Internal Revenue Code
of 1986, as amended, then:
(1) for the remainder of that calendar year,
no additional member contributions or local administrative
unit contributions for that member shall be made pursuant to
this section; provided that no member shall be denied service
credit solely because contributions are not made by the
member or on behalf of the member pursuant to this
subsection; and
(2) the amount of the annual compensation
limit shall be divided into four equal portions, and, for
purposes of attributing contributory employment and crediting
service credit, each portion shall be attributable to one of

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the four quarters of the calendar year."
SECTION 2. Section 22-11-25.1 NMSA 1978 (being Laws
2001, Chapter 283, Section 2, as amended) is amended to read:
"22-11-25.1. RETURN TO EMPLOYMENT--BENEFITS--
CONTRIBUTIONS.--
A. Except as otherwise provided in Subsections B,
F and H of this section, until January 1, 2024, a retired
member who begins employment with a local administrative unit
at a level greater than one-quarter full-time employee,
regardless of salary level, is required to suspend the
member's retirement benefits until the end of that employment
unless the member has not rendered service to a local
administrative unit for at least twelve consecutive months
after the date of retirement.
B. Until January 1, 2024, a retired member who
retired on or before January 1, 2001, has not suspended or
been required to suspend retirement benefits pursuant to the
Educational Retirement Act and returns to employment with a
local administrative unit is not required to suspend the
member's retirement benefits.
C. A retired member who returns to employment with
a local administrative unit in accordance with this section
is entitled to receive retirement benefits during that
employment but is not entitled to acquire or purchase service
credit for that employment.

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D. A retired member may return to employment with
a local administrative unit only if the member submits an
application to return to work, on a form prescribed by the
board, the board approves the application and the applicant
complies with other application rules promulgated by the
board.
E. A retired member who returns to employment
pursuant to Subsection A, B or F of this section shall make
nonrefundable contributions to the fund as would be required
by Section 22-11-21 NMSA 1978 if the retired member were a
non-retired employee. The local administrative unit
employing the retired member shall likewise make
contributions as would be required by that section.
F. Until January 1, 2024, a retired member who
retired on or before January 1, 2001, who suspended or was
required to suspend retirement benefits under the Educational
Retirement Act is not required to suspend the member's
retirement benefits if the retired member has not rendered
service to a local administrative unit for an addit