SB 128 — STATE FIRE RETIREMENT

SB 128 Page 5 R.

"refund beneficiary" means a supplemental needs trust or a natural person designated by the member, in writing, in the form prescribed by the association, as the trust or person that would be refunded the member's accumulated member contributions payable if the member dies and no survivor h pension is payable or that would receive the difference between u » r pension paid and accumulated member contributions if the t h g e l i retired member dies before receiving in pension payments the h r i s amount of the accumulated member contributions;

h , e h S.

t u g e b l e e , gh (1) terminate employment with all employers n d d i = = o h covered by any state system or the educational retirement l ] b ,d i a º r system;

and e r = t e w d m a n o (2) receive a pension from a state system or dthe meducational :retirement system;

b r e t º o t n = .226481.4GLGAIC January 30, 2024 (2:15pm) s k m e - 6 - e a n e d r e l u [ A d the educational retirement system;

"Salary" shall not include overtime pay, unless the overtime payment is required SB 128 Page 6 for a regular scheduled tour of duty as set forth in Section 207(k) of Title 29 of the United States Code and is made on the regular payroll for the period represented by that payment, allowances for housing, clothing, equipment or travel, payments for unused sick leave, unless the unused sick leave payment is made through continuation of the member on the regular payroll h for the period represented by that payment, and any other form u » r of remuneration not specifically designated by law as included t h g e l i in salary for Public Employees Retirement Act purposes.

Salary h r i s in excess of the limitations set forth in Section 401(a)(17) of h , e h the Internal Revenue Code of 1986, as amended, shall be t u g e b l e e , gh disregarded.

The limitation on compensation for eligible n d d i = = o h employees shall not be less than the amount that was allowed to l ] b ,d i a º r be taken into account under the state retirement system acts in e r = t e w d m a n o effect on July 1, 1993.

For purposes of this subsection, d"eligible memployee" :means an individual who was a member of a state system before the first plan year beginning after December 31, 1995;

b r e t º o t n = .226481.4GLGAIC January 30, 2024 (2:15pm) s k m e - 7 - e a n e d r e l u [ A d "eligible employee" means an individual who was a member of a state system before the first plan year beginning after December 31, 1995;

SB 128 Page 7 Y.

"supplemental needs trust" means a valid third-third-party party irrevocable trust that is authorized by the federal Social Security Act, as amended, for the sole benefit and lifetime of a trust beneficiary who is disabled and is created for the purpose of providing, accounting for or receiving supplemental assets that do not supplant, impair or diminish h any benefits or assistance of any federal, state or other u » r government entity for which the beneficiary would otherwise be t h g e l i eligible;

and h r i s Z.

"survivor beneficiary" means a supplemental h , e h needs trust or a natural person that receives a pension or that t u g e b l e e , gh has been designated to be paid a pension as a result of the n d d i = = o h death of a member or retired member." l ] b ,d i a º r SECTION 2.

Section 10-11-27 NMSA 1978 (being Laws 1987, e r = t e w d m a n o Chapter 253, Section 27, as amended) is amended to read:

d"10-11-27. m :

bSTATE rPUBLIC eSAFETY tMEMBER ºCOVERAGE oPLAN t1 n--APPLICABILITY--CREDITED =SERVICE.-- .226481.4GLGAICA. January 30, 2024 (2:15pm) s k m e - 8 - e a n e d r e l u [ A d "10-11-27.

STATEState [POLICEpublic MEMBER,safety CORRECTIONALmember OFFICERcoverage MEMBERplan AND1 PROBATIONis ANDapplicable PAROLEto: OFFICER] PUBLIC SAFETY MEMBER COVERAGE PLAN 1--APPLICABILITY--CREDITED SERVICE.-- A.

State [police member, correctional officer member and probation and parole officer] public safety member coverage plan 1 is applicable to:

[(3)(3) juvenileadult correctionalprobation and parole officer members;

(4)](4) (3)juvenile adult probation and parole officer SB 128 Page 8 members;

[and (5)] (4) juvenile probation and parole officer members;

The credited service of a state police member h who was a retired member or a member on or before June 30, 2013 g o t hr or of an adult correctional officer member shall have actual g e i k credited service increased by twenty percent for the purposes h r i s of state [police member, correctional officer member and h , t, probation and parole officer] public safety member coverage e u g e b l e e h plan 1.

n d d i = = o h C.

The credited service, accrued after July 1, l ] b ,d i a º e 2021, of [aan juvenileadult correctionalprobation officerand memberparole ]officer anor adulta rjuvenile iprobation =and rparole tofficer eshall wbe dincreased mby atwenty npercent ofor probationthe andpurposes paroleof officerstate orpublic asafety juvenilemember probationcoverage andplan parole1. d m :

b e d s º o t n = .226481.4GLGAIC January 30, 2024 (2:15pm) s k m e - 9 - e a n e d r e l u [ A d officer shall be increased by twenty percent for the purposes of state [police member, correctional officer member and probation and parole officer] public safety member coverage plan 1.

The credited service, accrued after July 1, SHPACº2025»SHPAC2024, SHPACº2024»SHPAC , of a state fire member shall be increased by twenty percent for the purposes of state public safety member coverage plan 1.

[D.] F.

Except as provided in [Subsection] Subsections B through E of this section, the credited service of a member covered under state [police member, correctional officer member and probation and parole officer] public safety h member coverage plan 1 shall be credited as provided in Section u » r 10-11-4 NMSA 1978.

t h g e l i [E.] G.

State [policepublic member,safety correctionalmember officercoverage hplan r1 iis sSB member128 andPage 9 applicable to adult probation and parole officer]officer publicmembers safetyand memberjuvenile hprobation ,and eparole hofficer coveragemembers planin 1the isfirst applicablefull topay [juvenileperiod correctionalafter officerJuly t1, u2021 gif ethe bretirement lboard ecertifies eto ,the ghsecretary members]of state that, of those adult probation and parole officer members and n d d i = = o h juvenile probation and parole officer members into thebe firstcovered fullunder lstate ]public bsafety ,dmember icoverage aplan º1, ra paymajority periodof afterthe Julyrespective 1,members 2021voting ifhave thevoted retirementto boardapprove certifiesadoption eof rthat =plan tat ean welection dconducted mpursuant a n o to theLaws secretary2020, ofChapter state11, that,Sections of63 thosethrough [juvenile66. correctional d m :

b r e t º o t n = .226481.4GLGAIC January 30, 2024 (2:15pm) s k m e - 10 - e a n e d r e l u [ A d officer members] adult probation and parole officer members and juvenile probation and parole officer members to be covered under state [police member, correctional officer member and probation and parole officer] public safety member coverage plan 1, a majority of the respective members voting have voted to approve adoption of that plan at an election conducted pursuant to Laws 2020, Chapter 11, Sections 63 through 66.

State public safety member coverage plan 1 is applicable in the first full pay period after July 1, SHPACº2025»SHPAC2024 SHPACº2024»SHPAC for:

(1) state fire members who begin employment as a state fire member on or after July 1, SHPACº2025»SHPAC2024; SHPACº2024»SHPAC ;

and (2) state fire members who were employed in a position and were subject to the definition of a "state fire member" prior to July 1, SHPACº2025»SHPAC2024, SHPACº2024»SHPAC , h if the retirement board certifies to the secretary of state u » r that, of those state fire members to be covered under state t h g e l i public safety member coverage plan 1, a majority of the h r i s respective members voting have voted to approve the adoption of h , e h that plan at an election conducted pursuant to Section 8 of t u g e b l e e , gh this 2024 act." n d d i = = o h SECTION 3.

Section 10-11-27.1 NMSA 1978 (being Laws 2003, l ] b ,d i a º r Chapter 268, Section 10, as amended) is amended to SB 128 Page 10 read:

e r = t e w d m a n o "10-11-27.1.

STATE [POLICEPUBLIC MEMBER,SAFETY CORRECTIONALMEMBER OFFICERCOVERAGE dPLAN m1 :--SERVICE CREDIT REQUIRED.--Notwithstanding the provisions of Section 10-11-27 NMSA 1978, to qualify for payment under state public safety member coverage plan 1, an adult correctional officer member shall have eighteen months of service credit earned under state public safety member coverage plan 1 subsequent to July 1, 2004." SECTION 4.

b r e t º o t n = .226481.4GLGAIC January 30, 2024 (2:15pm) s k m e - 11 - e a n e d r e l u [ A d MEMBER AND PROBATION AND PAROLE OFFICER] PUBLIC SAFETY MEMBER COVERAGE PLAN 1--SERVICE CREDIT REQUIRED.--Notwithstanding the provisions of Section 10-11-27 NMSA 1978, to qualify for payment under state [police member, correctional officer member and probation and parole officer] public safety member coverage plan 1, an adult correctional officer member shall have eighteen months of service credit earned under state [police member, correctional officer member and probation and parole officer] public safety member coverage plan 1 subsequent to July 1, 2004." SECTION 4.

STATE [POLICE MEMBER, CORRECTIONAL OFFICER MEMBER AND PROBATION AND PAROLE OFFICER] PUBLIC SAFETY MEMBER COVERAGE PLAN 1--AGE1 --AGE AND SERVICE REQUIREMENTS FOR NORMAL RETIREMENT.--Under state [police member, correctional officer h member and probation and parole officer] public safety member u » r coverage plan 1:

t h g e l i A.

for a member who was a retired member or a h r i s member on June 30, 2013, the age and service requirements for h , e h normal retirement are:

t u g e b l e e , gh (1) age sixty-five years or older and five or n d d i = = o h more years of credited service;

l ] b ,d i a º r (2) age sixty-four years and eight or more e r = t e w d m a n o years of credited service;

d(3) mage :sixty-three years and eleven or more years of credited service;

b r e t º o t n = .226481.4GLGAIC January 30, 2024 (2:15pm) s k m e - 12 - e a n e d r e l u [ A d (3) age sixty-three years and eleven or more years of credited service;

(5) age sixty-one years and seventeen or SB 128 Page 11 more years of credited service;

or (2) any age and twenty-five or more years of h service credit." g o t hr SECTION 5.

Section 10-11-29 NMSA 1978 (being Laws 1987, g e i k Chapter 253, Section 29, as amended) is amended to read:

h r i s "10-11-29.

STATE [POLICE MEMBER, CORRECTIONAL OFFICER h , t, MEMBER AND PROBATION AND PAROLE OFFICER] PUBLIC SAFETY MEMBER e u g e b l e e h COVERAGE PLAN 1--AMOUNT1 --AMOUNT OF PENSION--FORM OF PAYMENT A.--Under n d d i = = o h state [police member, correctional officer member and probation l ] b ,d i a º e and parole officer] public safety member coverage plan 1, the r i = r t e w d m a n o amount of pension under form of payment A is equal to three dpercent mof :final average salary multiplied by credited service.

b e d s º o t n = .226481.4GLGAIC January 30, 2024 (2:15pm) s k m e - 13 - e a n e d r e l u [ A d percent of final average salary multiplied by credited service.

STATE [POLICE MEMBER, CORRECTIONAL OFFICER MEMBER AND PROBATION AND PAROLE OFFICER] PUBLIC SAFETY MEMBER COVERAGE PLAN 1--MEMBER1 --MEMBER CONTRIBUTION RATE.--A member under state [police member, correctional officer member and probation and parole officer] public safety member coverage plan 1 shall contribute seven and SB 128 Page 12 six-tenths percent of salary, except that a member whose annual salary is greater than twenty-five thousand dollars ($25,000) shall contribute nine and one-tenth percent of salary." SECTION 7.

h "10-11-32.

STATE [POLICE MEMBER, CORRECTIONAL OFFICER u » r MEMBER AND PROBATION AND PAROLE OFFICER] PUBLIC SAFETY MEMBER t h g e l i COVERAGE PLAN 1--STATE1 --STATE CONTRIBUTION RATE.--The state shall h r i s contribute twenty-five and one-half percent of the salary of h , e h each member under state [police member, correctional officer t u g e b l e e , gh member and probation and parole officer] public safety member n d d i = = o h coverage plan 1." l ] b ,d i a º r SECTION 8.

TEMPORARY PROVISION--STATE PUBLIC SAFETY eMEMBER rCOVERAGE =PLAN t1--STATE eFIRE wMEMBERS--ELECTION.--On dor mbefore aJune n30, o2024, MEMBERthe COVERAGEretirement PLANboard 1--STATEprovided FIREfor MEMBERS--ELECTION.--Onin orthe dPublic mEmployees :Retirement Act shall conduct an election to submit to state fire members currently contributing under state general member coverage plan 3 the question of adopting state public safety member coverage plan 1.

bSB r128 ePage t13 º25 o t n = .226481.4GLGAIC January 30, 2024 (2:15pm) s k m e - 14 - e a n e d r e l u [ A d before SHPACºDecember»SHPAC SHPACºJune»SHPAC 30, 2024, the retirement board provided for in the Public Employees Retirement Act shall conduct an election to submit to state fire members currently contributing under state general member coverage plan 3 the question of adopting state public safety member coverage plan 1.

- 15 - » g o » r h t i k l i g t h s , e h t l i w l b l e e , g n d l h = = b , a l º d i a r e r = , a t e d m a n o d m :

b r e t º o t n = .226481.4GLGAIC January 30, 2024 (2:15pm) s k em e e a n e d r e l u [ A d