SB 36 — CONTRIBUTIONS TO EDUCATIONAL RETIREMENT FUND

SENATE BILL 36 55TH LEGISLATURE -STATEOFNEWMEXICO- SECOND SESSION , 2022 INTRODUCED BY Mimi Stewart and Natalie Figueroa 6 8 FOR THE LEGISLATIVE EDUCATION STUDY COMMITTEE 10 AN ACT RELATING TO EDUCATIONAL RETIREMENT;

145 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

e t 17 "22-11-21.

CONTRIBUTIONS--MEMBERS--LOCAL ADMINISTRATIVE w l n d 18 UNITS.-- = = 19 a l A.

Except as provided in Subsection D of this i a e r 20 section, for a member whose annual salary is greater than a t m m 21 twenty-four thousand dollars ($24,000), the member shall make d r e 22 contributions to the fund at the rate of ten and seven-tenths c e s k 23 percent of the member's annual salary.

e a n b 24 B.

For a member whose annual salary is twenty-four u [ thousand dollars ($24,000) or less, the member shall make .221594.1 contributions to the fund at the rate of seven and nine-tenths percent of the member's annual salary.

[and]SB 36 Page 1 (2) from July 1, 2022 through June 30, 2023, at the rate of seventeen and fifteen-hundredths percent of the annual salary of each member employed by the local administrative unit;

and [(2)] (3) on and after July 1, [2022] 2023, at the rate of [sixteen] eighteen and fifteen-hundredths percent of the annual salary of each member employed by the local e t 17 administrative unit.

w l n d 18 D.

If, in a calendar year, the salary of a member, = = 19 a l initially employed by a local administrative unit on or after i a e r 20 July 1, 1996, equals the annual compensation limit set pursuant a t m m 21 to Section 401(a)(17) of the Internal Revenue Code of 1986, as d r e 22 amended, then:

c e s k 23 (1) for the remainder of that calendar year, e a n b 24 no additional member contributions or local administrative unit u [ contributions for that member shall be made pursuant to this .221594.1 - 2 - section;

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 the four quarters of the calendar year." SB 36 Page 2 SECTION 2.

ALTERNATIVE RETIREMENT PLAN--CONTRIBUTIONS.--PLAN-- CONTRIBUTIONS.-- A.

e t 17 B.

A qualifying state educational institution shall w l n d 18 contribute on behalf of each participant an amount of the = = 19 a l participant's salary equal to the contribution that would be i a e r 20 required of the employer if the participant were, instead, a a t m m 21 regular member.

Of that contribution, a sum equal to the d r e 22 following percentage of the annual salary of each participant c e s k 23 shall be paid to the fund, and the remainder of the e a n b 24 contribution shall be paid to the alternative retirement plan u [ as provided by the board:

.221594.1 - 3 - (1) from July 1, 2021 through June 30, 2022, four and one-fourth percent;

[and] (2) from July 1, 2022 through June 30, 2023, six and one-fourth percent;

and [(2)] (3) on and after July 1, [2022, five] 2023, seven and one-fourth percent;

or [(3)] (4) if, on July 1 following any report by SB 36 Page 3 the actuary to the board that concludes that less than that percentage is required to satisfy the unfunded actuarial liability attributable to the participation of the participants in the alternative retirement plan, then the percentage the actuary determines is the minimum required to satisfy that liability.

Contributions required by this section may be made by a reduction in salary or by a public employer pick-up as provided in the Internal Revenue Code of 1986, as amended." eSB t36 17Page - 4 -25 w l n d 18 = = 19 a l i a e r 20 a t m m 21 d r e 22 c e s k 23 e a n b 24 u [ .221594.1