SB 75 — EDUCATIONAL RETIREMENT CHANGES

u » r (1) "adjustment factor" means a multiplicative t h g e factor computed to provide an annuity adjustment pursuant to l i h r i s the provisions of Subsection B of this section;

h , e h (2) "annuity" means any benefit payable under t u g e b l the Educational Retirement Act or the Public Employees e e , gh n d d i = = o h Retirement Reciprocity Act as a retirement benefit, disability l ] b ,d i a º r benefit or survivor benefit;

e r = t e w d (3) "calendar year" means the full twelve mmonths abeginning nJanuary o1 dand mending :December 31;

b r e t º o t n = .228647.2SAAIC February 3, 2025 (12:12pm) s k m e - 5 - e a n e d r e l u [ A d months beginning January 1 and ending December 31;

(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 SB 75 Page 4 calculated each fiscal year;

(7) "next preceding calendar year" means the full calendar year immediately prior to the preceding calendar h year;

and u » r (8) "preceding calendar year" means the full t h g e calendar year preceding the July 1 on which a benefit is to be l i h r i s adjusted.

h , e h B.

t u g e b l (1) the annuity of a member who retires e e , gh n d d i = = o h pursuant to Subsection A of Section 22-11-23 NMSA 1978 or l ] b ,d i a º r Subsection A of Section 22-11-23.1 NMSA 1978 shall be adjusted e r = t e w d annually and cumulatively commencing on July 1 of the year in mwhich a nmember oattains dthe mage :of sixty-five years or on July 1 following the year a member retires, whichever is later;

b r e t º o t n = .228647.2SAAIC February 3, 2025 (12:12pm) s k m e - 6 - e a n e d r e l u [ A d which a member attains the age of sixty-five years or on July 1 following the year a member retires, whichever is later;

Beginning on July 1, 2013 and on each July 1 SB 75 Page 5 thereafter:

(1) 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 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 h consumer price index between the next preceding calendar year u » r and the preceding calendar year.

The adjustment factor shall t h g e be applied as follows:

l i h r i s (a) if the percentage increase of the h , e h consumer price index is less than two percent in absolute t u g e b l value, the adjustment factor shall be the same amount as the e e , gh n d d i = = o h percentage increase of the consumer price index;

and l ] b ,d i a º r (b) if the percentage increase of the e r = t e w d consumer price index is two percent or greater in absolute mvalue, athe nadjustment ofactor dshall mbe :one-half of the percentage increase;

b r e t º o t n = .228647.2SAAIC February 3, 2025 (12:12pm) s k m e - 7 - e a n e d r e l u [ A d value, the adjustment factor shall be one-half of the percentage increase;

(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 SB 75 Page 6 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 value, for a member who has twenty-five or more years of h service credit at retirement and whose annuity is less than or u » r equal to the median adjusted annuity for the fiscal year next t h g e preceding the adjustment date, the adjustment factor shall be l i h r i s ninety-five percent of the adjustment factor determined h , e h pursuant to Subparagraph (a) of Paragraph (1) of this t u g e b l subsection;

e(b) eif ,the ghpercentage nincrease din dthe iconsumer =price =index ois hless (b)than iftwo thepercent percentagein increaseabsolute invalue, thefor la ]member bwho ,dhas iless athan ºtwenty-five ryears consumerof priceservice indexcredit at retirement and whose annuity is less than twoor percentequal into absolutethe emedian radjusted =annuity tfor ethe wfiscal dyear value,next preceding the adjustment date, and for a member whowhose hasannuity lessis greater than twenty-fivethe yearsmedian adjusted annuity for the fiscal year next preceding the adjustment date, the adjustment factor shall be ninety percent of mthe aadjustment nfactor odetermined dpursuant mto :Subparagraph (a) of Paragraph (1) of this subsection;

bSB r75 ePage t7 º(c) oif tthe npercentage =increase .228647.2SAAICin Februarythe 3,consumer 2025price (12:12pm)index sis kgreater mthan eor -equal 8to -two epercent ain nabsolute evalue dfor ra emember lwho uhas [twenty-five Aor dmore 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 ninetyninety-five percent of the adjustment factor determined pursuantunder to Subparagraph (a)(b) of Paragraph (1) of this subsection;

(c)and (d) if the percentage increase in the consumer price index is greater than or equal to two percent in absolute valuevalue, for a member who has twenty-fiveless orthan moretwenty-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-fiveninety percent of the adjustment factor determined under Subparagraph (b) of Paragraph (1) of this subsection;

and(3) (d) if the percentagefunded increaseratio inof the hfund consumeras pricereported indexby isthe greaterboard's thanactuary or equal to two percent in uthe »actuarial rvaluation absolutereport value, for a member who has less than twenty-five t h g e years of service credit at retirement and whose annuity is less l i h r i s than or equal to the mediannext adjustedpreceding annuity for the fiscal h , e h year nextis precedingninety thepercent adjustmentor date,less, andexcept for a member whosewho t u g e b l annuity is greateron thandisability thestatus medianin adjustedaccordance annuitywith forSection the22-11-35 eNMSA e1978 ,and ghwhose nbenefit dSB d75 iPage =8 =is oadjusted has fiscalprovided yearin nextSubsection precedingG theof adjustmentthis date,section theor adjustmenta lmember ]who bis ,dretired ipursuant ato ºSection r22-11-38 factorNMSA shall1978, be ninety percent of the adjustment factor eprovided rfor =in tSubsection eB w d determined under Subparagraph (b) of Paragraph (1) of this msection ashall nbe oapplied das mfollows: :

b(a) rif ethe tpercentage ºincrease oin tthe nconsumer =price .228647.2SAAICindex Februaryis 3,less 2025than (12:12pm)two spercent kin mabsolute evalue, -for 9a -member ewho ahas ntwenty-five eor dmore ryears eof lservice ucredit [at Aretirement dand 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;

(3)(b) if the fundedpercentage ratioincrease ofin the fundconsumer asprice reportedindex byis theless board'sthan actuarytwo percent in theabsolute actuarialvalue, valuationfor reporta formember thewho nexthas precedingless fiscalthan yeartwenty-five years of service credit at retirement and whose annuity is ninetyless percentthan or less,equal exceptto forthe amedian memberadjusted whoannuity isfor onthe disabilityfiscal statusyear innext accordancepreceding withthe Sectionadjustment 22-11-35date, NMSAand 1978for anda member whose benefitannuity is adjustedgreater asthan providedthe inmedian Subsectionadjusted Gannuity offor thisthe sectionfiscal oryear anext memberpreceding whothe isadjustment retireddate, pursuantthe toadjustment Sectionfactor 22-11-38shall NMSAbe 1978,eighty percent of the adjustment factor provideddetermined forpursuant into SubsectionSubparagraph B(a) of thisParagraph section(1) shallof bethis appliedsubsection; as follows:

(a)(c) if the percentage increase in the SB 75 Page 9 consumer price index is lessgreater than or equal to two percent in absolute value,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 h ninety percent of the adjustment factor determined pursuantunder to u » r Subparagraph (a)(b) of Paragraph (1) of this subsection;

tand h(d) g e (b) if the percentage increase in the l i h r i s consumer price index is lessgreater than or equal to two percent in absolute h , e h value, for a member who has less than twenty-five years of t u g e b l service credit at retirement and whose annuity is less than or e e , gh n d d i = = o h equal to the median adjusted annuity for the fiscal year next l ] b ,d i a º r preceding the adjustment date, and for a member whose annuity e r = t e w d is greater than the median adjusted annuity for the fiscal year mnext apreceding nthe oadjustment ddate, mthe :adjustment factor shall be eighty percent of the adjustment factor determined under Subparagraph (b) of Paragraph (1) of this subsection;

band r(4) ean tannuity ºshall onot tbe ndecreased =if .228647.2SAAICthere Februaryis 3, 2025 (12:12pm) s k m e - 10 - e a ndecrease ein dthe rconsumer eprice lindex ubetween [the A d next preceding thecalendar adjustmentyear date,and the adjustmentpreceding factorcalendar shallyear. be eighty percent of the adjustment factor determined pursuant to Subparagraph (a) of Paragraph (1) of this subsection;

(c)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 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;

andA (d)retired ifmember thewhose percentagebenefit increase in the consumer price index is greatersubject than or equal to twoadjustment percentunder inthe absoluteprovisions value, for a member who has less than twenty-five years of servicethe creditEducational atRetirement retirementAct andin whoseeffect annuityprior is less than or equal to theJuly median1, adjusted1984 annuityshall forhave the fiscalmember's hSB year75 nextPage preceding10 theannuity adjustmentreadjusted date,annually and forcumulatively aunder memberthe whoseprovisions uof »that ract annuityin iseffect greaterprior thanto theJuly median1, adjusted1984 annuityuntil forJuly the1 tof hthe g e fiscal year nextin precedingwhich the adjustmentmember date,attains the adjustmentage lof isixty-five hyears, rwhen ithe smember factor shall behave eighty percent of the adjustmentannuity factorreadjusted hannually ,and ecumulatively h determined under Subparagraphthe (b)provisions of Paragraph (1) of this tsection. u g e b l subsection;

and e e , gh n d d i = = o h (4) an annuity shall not be decreased if there l ] b ,d i a º r is a decrease in the consumer price index between the next e r = t e w d preceding calendar year and the preceding calendar year.

m a n o d m :

b r e t º o t n = .228647.2SAAIC February 3, 2025 (12:12pm) s k m e - 11 - e a n e d r e l u [ A d 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.

or h (2) retires pursuant to Subsection A of u » r Section 22-11-23.2 NMSA 1978 after attaining the age of t h g e sixty-seven years shall have the member's annuity adjusted as l i h r i s provided in Subsections B and C of this section commencing on h , e h July 1 of the year following the member's retirement.

t u g e b l F.

A retired member who returns to work and e e , gh n d d i = = o h suspends retirement shall be subject to the provisions of this l ] b ,d i a º r section as they exist at the time of the member's latest e r = t e w d retirement.

mG. a n o d m :

bBenefits rof ea tmember ºwho ois ton na =disability .228647.2SAAICstatus Februaryin 3,accordance 2025with (12:12pm)Section s22-11-35 kNMSA m1978 eor -a 12member -who eis acertified nby ethe dboard ras edisabled lat uregular [SB A75 dPage G.11 retirement shall be adjusted in accordance with Subsections B and C of this section;

Benefitsprovided ofthat: 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:

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 the annuity adjustment at the rate of benefits received for the disability." SECTION SECº5.»SEC4. SECº4.»SEC Section 22-11-34 NMSA (being Laws 1967, Chapter 16, Section 157, as amended) is h amended to read:

gSection o22-11-34 "22-11-34.NMSA 1978 (being Laws 1967, Chapter 16, Section 157, as amended) is amended to read:

ALLOWED"22-11-34. SERVICE CREDIT.-- t hr g e i k A.

AALLOWED memberSERVICE shallCREDIT.-- beA. certified to have acquired h r i s allowed service credit pursuant to the Internal Revenue Code of h , t, 1986 for those periods of time when the member was:

eA umember gshall ebe bcertified lto ehave eacquired hallowed (1)service employedcredit priorpursuant to Julythe 1,Internal 1967Revenue inCode aof n1986 dfor dthose iperiods =of =time owhen hthe federalmember educationalwas: program within New Mexico, including United l ] b ,d i a º e States Indian schools and civilian conservation corps camps.

r(1) iemployed =prior rto tJuly e1, w1967 din Thisa servicefederal crediteducational shallprogram bewithin allowedNew withoutMexico, contribution;including United States Indian schools and civilian conservation corps camps.

m a n o d m :

b e d s º o t n = .228647.2SAAIC February 3, 2025 (12:12pm) s k m e - 13 - e a n e d r e l u [ A d (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.

(2) engaged in military service that interrupted the member's employment in New Mexico if the member returned to employment within eighteen months SB 75 Page 12 following honorable discharge.

This service credit shall be allowed without contribution;

(b) the member shall contribute to the fund, for each year of service credit the member elects to 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 h rate and the employer contribution rate in effect at the time u » r of the member's written election to purchase, subject to the t h g e federal Uniformed Services Employment and Reemployment Rights l i h r i s Act of 1994;

h , e h (c) full payment shall be made [in a t u g e b l single lump sum] within [sixty] ninety days of the date that e e , gh n d d i = = o h the member is informed of the amount of the payment;

and l(d) ]the bportion ,dof ithe apurchase ºcost rderived (d)from the portionemployer's ofcontribution rate shall be credited to the purchasefund costand, ein rthe =event tthat ea wmember drequests deriveda fromrefund theof employer'scontributions contributionpursuant rateto Section 22-11-15 NMSA SB 75 Page 13 1978, the member shall not be creditedentitled mto a nrefund oof dthat mportion :of the purchase cost derived from the employer contribution rate;

b r e t º o t n = .228647.2SAAIC February 3, 2025 (12:12pm) s k m e - 14 - e a n e d r e l u [ A d 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 (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 h employment.

u » r B.

Effective July 1, 2001, the member or employer t h g e under Paragraph (4) of Subsection A of this section shall l i h r i s contribute to the fund for each year of allowed service credit h , e h desired an amount equal to the actuarial value of the service t u g e b l purchased as defined by the board.

No allowed service credit e e , gh n d d i = = o h shall be purchased pursuant to Paragraph (4) of Subsection A of l ] b ,d i a º r this section unless the member is currently employed by a local e r = t e w d administrative unit.

mC. a n o d m :

bNo rmember eshall tbe ºcertified oto thave nacquired =SB .228647.2SAAIC75 FebruaryPage 3,14 2025allowed (12:12pm)service scredit: k m e - 15 - e a n e d r e l u [ A d C.

No member shall be certified to have acquired allowed service credit:

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 1978." SECTION SECº5. 6.»SEC SECº5.»SEC Section 22-11-55 NMSA (being Laws 2009, Chapter 240, Section 1 and Laws 2009, h Chapter 248, Section 1, as amended) is amended to read:

gSection o22-11-55 "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:

DISCLOSURE"22-11-55. OF MEMBER OR RETIRED MEMBER t hr g e i k INFORMATION--PENALTY.-- h r i s A.

OtherDISCLOSURE thanOF namesMEMBER ofOR membersRETIRED andMEMBER localINFORMATION--PENALTY.-- hA. , t, administrative units by which a member was employed;

datesOther ofthan enames uof gmembers eand blocal ladministrative eunits eby hwhich employment,a retirementmember andwas reportedemployed; death;

dates of employment, retirement and reported death;

n d d i = = o h reported salary;

and l ] b ,d i a º e amounts of contributions made by members and local r i = r t e w d administrative units, neither the board nor its employees or mcontractors shall allow public inspection or disclosure of SB 75 Page 15 any information regarding a nmember oor dretired mmember :to anyone except:

b e d s º o t n = .228647.2SAAIC February 3, 2025 (12:12pm) s k m e - 16 - e a n e d r e l u [ A d contractors shall allow public inspection or disclosure of any information regarding a member or retired member to anyone except:

[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 money received by, or the financial controls or procedures of, a local administrative unit;

or (4) the public employees retirement board for h the purpose of administering the Public Employees Retirement u » r Reciprocity Act.

t h g e B.

No person receiving information disclosed by a l i h r i s violation of Subsection A of this section shall disclose that h , e h information to any other person unless authorized by an t u g e b l applicable confidentiality agreement, board rule or state law.

e e , gh n d d i = = o h C.

Whoever knowingly violates a provision of l ] b ,d i a º r Subsection A or B of this section is guilty of a petty e r = t e w d misdemeanor and shall be sentenced in accordance with Section mSB a75 nPage o16 d31-19-1 mNMSA :1978.

bSECTION r e t º o t n = .228647.2SAAIC February 3, 2025 (12:12pm) s k m e - 17 - e a n e d r e l u [ A d 31-19-1 NMSA 1978." SECºSECTION 6.

REPEAL.--Section 22-11-5.1 NMSA 1978 (being Laws 1999, Chapter 153, Section 2, as amended) is repealed.»SECrepealed. - 18 - » 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 :

bSB r75 ePage t17 º7 o9 t25 n = .228647.2SAAIC February 3, 2025 (12:12pm) s k em e e a n e d r e l u [ A d