HB 43 — DISABILITY & SURVIVOR PENSIONS CHANGES

Section 10-11-10.1 NMSA 1978 (being Laws 1993, i a e r 20 Chapter 160, Section 3, as amended) is amended to read:

a t m m 21 "10-11-10.1.

DISABILITY RETIREMENT.-- d r e 22 A.

There is created a "disability review committee" c e s k 23 of the retirement board.

The disability review committee shall e a n b 24 consist of at least three but not more than five retirement u [ board members and at least one licensed physician [licensed in .232419.2SA - 6 - New Mexico] appointed by the retirement board.

(1) the member applying for disability HB 43 Page 6 retirement was a member at the time the disability was incurred;

(2) a written application for disability retirement, in the form and containing the information 5 prescribed by the association, has been filed with the e t 17 association by the member, the member's representative or [by] w l n d 18 the member's affiliated public employer;

= = 19 a l (3) employment is terminated within forty-fiveforty- ifive a e r 20 days of the date of approval of the application for disability a t m m 21 retirement;

d r e 22 (4) if:

c e s k 23 (a) the member has the applicable e a n b 24 minimum number of years of service credit required for normal u [ retirement.

For the purposes of this subparagraph, "service .232419.2SA - 7 - credit" means only the service credit earned by the member during periods of employment with an affiliated public employer;

(5) the member submits to all medical examinations and tests and furnishes copies of all medical reports requested by the association or disability review HB 43 Page 7 committee;

and 5 (6) the disability review committee makes the e t 17 determination required under Subsection C of this section.

w l n d 18 C.

The disability review committee shall review = = 19 a l applications for disability retirement to determine whether:

i a e r 20 (1) if the member is a currently employed, a t m m 21 contributing employee of an affiliated public employer:

d r e 22 (a) the member is mentally or physically c e s k 23 totally incapacitated for continued employment with an e a n b 24 affiliated public employer;

and u [ (b) the incapacity is likely to be .232419.2SA - 8 - permanent;

The disability retirement pension shall be paid HB 43 Page 8 for a period of one year after approval of the initial application unless the disability review committee for good cause shown grants disability retirement for a longer period of time.

[After approval] Payment shall be effective commencing the first of 5 the month following [submission] approval of the initial application and termination of employment.

At the end of the first year that a disability retirement pension is paid, the disability retired member's e t 17 condition shall be reevaluated to determine eligibility for w l n d 18 continuation of payment of a disability retirement pension.

If = = 19 a l the disability retired member has applied for disability i a e r 20 benefits under the federal social security program, the member a t m m 21 shall submit copies of the member's application.

The d r e 22 association shall continue payment of the state disability c e s k 23 retirement pension if the disability retired member presents a e a n b 24 written final determination from the federal social security u [ administration that the disability retired member qualifies, .232419.2SA - 9 - based on the same conditions as presented in the application for a state disability retirement pension, for federal disability benefits.

If the disability retired member applied for federal disability benefits within thirty days of receiving approval for a state disability retirement pension but the federal social security administration has not made a written final determination of entitlement by the end of the first HB 43 Page 9 year that the disability retired member has received a state disability retirement pension, eligibility for continued payment of the state disability retirement pension shall be determined by the disability review committee.

The state 5 disability retirement pension shall be discontinued if the disability review committee finds that the disability retired member is capable of any gainful employment.

The disability retired member shall notify the e t 17 association of the federal social security administration's w l n d 18 final determination within fifteen working days of the date of = = 19 a l issuance of the final written determination.

If the federal i a e r 20 social security administration denies federal disability a t m m 21 benefits, the state disability retirement pension shall be d r e 22 discontinued effective the first of the month following the c e s k 23 month in which the written final determination of the federal e a n b 24 social security administration was issued.

If the federal u [ social security administration grants federal disability .232419.2SA - 10 - benefits, the state disability retirement pension shall be continued so long as the disability retired member provides annually, on or before the anniversary date of commencement of payment of the state disability retirement pension, written evidence of continuation of payment of federal disability benefits.

If the disability review committee has denied continuation of payment of a state disability retirement pension and the disability retired HB 43 Page 10 member is later granted federal disability benefits, the state disability retirement pension shall be reinstated effective the first of the month following the month in which the state disability retirement pension was discontinued.

5 H.

If, at the time of reevaluation under Subsection E of this section, the disability retired member has applied for and has qualified for federal disability benefits, but for a different condition than was reviewed by the disability e t 17 review committee, the disability review committee shall review w l n d 18 the disability retired member's condition as described by the = = 19 a l application for federal disability benefits.

The process set i a e r 20 forth in Subsection I of this section shall be followed to a t m m 21 determine whether payment of a state disability retirement d r e 22 pension should be continued.

c e s k 23 I.

If the disability retired member is not eligible e a n b 24 to apply for federal disability benefits or is not a member of u [ the federal social security program, the disability review .232419.2SA - 11 - committee annually shall determine eligibility for continuation of payment of a state disability retirement pension.

HB 43 Page 11 (1) the medical and all other information provided by the disability retired member;

(2) at least one independent medical or other examination performed at the association's expense if 5 required by the disability review committee;

and (3) any medical, vocational or other information related to the disability compiled during the period of disability by any medical or other practitioner consulted by the disability retired member regarding the e t 17 disability [which] that was not paid for by the association.

w l n d 18 J.

Each disability retired member annually shall = = 19 a l submit to the association, prior to July 1, a statement of i a e r 20 earnings from gainful employment during the preceding calendar a t m m 21 year.

The statement of earnings shall be in the form d r e 22 prescribed by the association.

Payment of the state disability c e s k 23 retirement pension shall be discontinued if the amount of e a n b 24 earnings from gainful employment is one hundred percent or more u [ of the amount that causes a decrease or suspension of an old .232419.2SA - 12 - age benefit under the federal social security programprogram. [or fifteen thousand dollars ($15,000), whichever is less].

Upon prior approval by the association, a disability retired member may return to employment with an HB 43 Page 12 affiliated public employer or other employer for a trial period not to exceed one hundred twenty calendar days without becoming a member or causing suspension or discontinuation of payment of a state disability retirement pension.

If the 5 trial period of employment is successfully completed, payment of the disability retirement pension shall be discontinued beginning the first of the month following the one hundred twentieth day of the trial period of employment.

Trial periods of employment shall be limited to two in any five-yearfive- year period following disability e t 17 retirement.

w l n d 18 L.

If the disability retired member meets the = = 19 a l minimum age and service credit requirements for normal i a e r 20 retirement while receiving a disability retirement pension, the a t m m 21 disability retirement pension shall be reclassified by the d r e 22 association as a normal retirement pension, and no further c e s k 23 determinations of eligibility for continuation of payment of e a n b 24 the disability retirement pension shall be made.

Upon u [ reclassification as a normal retirement pension, all the .232419.2SA - 13 - provisions of the Public Employees Retirement Act regarding normal retirement shall be applicable.

If the disability review committee found the disability to be the natural and proximate result of causes arising solely and exclusively out of and in the course of the member's employment with an affiliated public employer, service credit shall continue to accrue during the disability HB 43 Page 13 retirement period as though the disability retired member was actively employed.

The amount of a disability retirement pension shall be calculated according to the provisions of the 5 coverage plan applicable to the member at the time of application, except that the service credit requirement shall be waived and the actual amount of service credit shall be used instead.

If the disability is the natural and proximate result of causes arising solely and exclusively out of and in the course of the e t 17 member's performance of duty for an affiliated public employer, w l n d 18 the amount of disability retirement pension shall be calculated = = 19 a l according to the provisions of the coverage plan applicable to i a e r 20 the member, imputing the amount of service credit necessary to a t m m 21 meet the minimum service credit requirements for normal d r e 22 retirement.

c e s k 23 O.

For the purposes of this section, the following e a n b 24 definitions apply:

u [ (1) "continued employment with the affiliated .232419.2SA - 14 - public employer" means the ability of the member to fulfill the required duties of the position in which the member was last employed by an affiliated public employer;

(2) "gainful employment" means remunerative employment or self-employment that is commensurate with the applicant's background, age, education, experience and any new skills or training the applicant may have acquired after HB 43 Page 14 terminating public employment or incurring the disability;

and 5 (4) "federal disability benefits" means those benefits paid by the federal social security program." SECTION 5.

DEATH BEFORE RETIREMENT--SURVIVOR e t 17 PENSIONS.-- w l n d 18 A.

A survivor pension may be paid to certain = = 19 a l persons related to or designated by a member who dies before i a e r 20 normal or disability retirement if a written application for a t m m 21 the pension, in the form prescribed by the association, is d r e 22 filed with the association by the potential survivor c e s k 23 beneficiary or beneficiaries within one year of the death of e a n b 24 the member.

Applications may be filed on behalf of the u [ potential survivor beneficiary or beneficiaries or by a person .232419.2SA - 15 - legally authorized to represent them.

If [there is no designated survivor beneficiary and] the retirement board finds the death to have been the natural and proximate result of causes arising solely and exclusively out of and in the course of the member's performance of duty with an affiliated public employer, a survivor pension shall be payable to the designated survivor beneficiary.

If there is no designated HB 43 Page 15 survivor beneficiary, a survivor pension shall be payable to the eligible surviving spouse.

(1) the amount as calculated under the 5 coverage plan applicable to the deceased member at the time of death as though the deceased member had retired the day preceding death under form of payment B using the actual amount of service credit attributable to the deceased member at the e t 17 time of death;

or w l n d 18 (2) fifty percent of the deceased member's = = 19 a l final average salary.

i a e r 20 C.

A survivor pension shall also be payable to a t m m 21 eligible surviving children if [there is no designated survivor d r e 22 beneficiary and] the retirement board finds the death to have c e s k 23 been the natural and proximate result of causes arising solely e a n b 24 and exclusively out of and in the course of the member's u [ performance of duty with an affiliated public employer.

The .232419.2SA - 16 - survivor pension shall be payable to and divided equally among all eligible surviving children, if any.

or (2) twenty-five percent of the deceased member's final average salary if an eligible surviving spouse HB 43 Page 16 or designated survivor beneficiary is paid a pension.

[TheD. total amount of survivor pension shall be divided equally among all eligible surviving children.

If therethe ismember onlyhad onethe eligibleapplicable child,minimum number of years of service credit required for normal retirement, but the amountretirement board did not find the death to have been 5 the natural and proximate result of pensioncauses shallarising besolely twenty-and fiveexclusively percentout of and in the deceasedcourse of the member's finalperformance averageof salary.]duty D.with an affiliated public employer, a survivor pension shall be payable to the designated survivor beneficiary.

If the member had the applicable minimum number of years of service credit required for normal retirement, but e t 17 the retirement board did not find the death to have been the w l n d 18 natural and proximate result of causes arising solely and = = 19 a l exclusively out of and in the course of the member's i a e r 20 performance of duty with an affiliated public employer, [and a t m m 21 there is no designated survivor beneficiary]beneficiary, a survivor pension d r e 22 shall be payable to the designatedeligible survivorsurviving beneficiary.spouse.

IfThe camount eof sthe k 23 there is no designated survivor beneficiary, a survivor pension e a n b 24 shall be payable to the eligiblegreater survivingof: spouse.

The(1) the amount uas [calculated under the coverage plan applicable to the deceased member at the time of death as though the survivordeceased pensionmember shallhad beretired the greaterday of:preceding death under form of payment B using the total amount of actual service credit attributable to the deceased member at the time of death;

.232419.2SA - 17 - (1) the amount as calculated under the coverage plan applicable to the deceased member at the time of death as though the deceased member had retired the day preceding death under form of payment B using the total amount of actual service credit attributable to the deceased member at the time of death;

If the member had the applicable minimum number of years of service credit required for normal retirement, but the retirement board did not find the death to have been the natural and proximate result of causes arising solely and exclusively out of and in the course of the member's HB 43 Page 17 performance of duty with an affiliated public employer and there is no designated survivor beneficiary, and if there is no eligible surviving spouse at the time of death, a survivor e t 17 pension shall be payable to and divided equally among all w5 l n d 18 eligible surviving children, if any.

The total amount of = = 19 a l survivor pension payable for all eligible surviving children i a e r 20 shall be the greater of:

a t m m 21 (1) the amount as calculated under the d r e 22 coverage plan applicable to the deceased member at the time of c e s k 23 death as though the deceased member had retired the day e a n b 24 preceding death under form of payment B with the oldest u [ eligible surviving child as the survivor beneficiary using the .232419.2SA - 18 - total amount of actual service credit attributable to the deceased member at the time of death;

An eligible surviving child's pension shall terminate upon death or marriage or reaching age HB 43 Page 18 eighteen years, whichever comes first.

If there is [no designated survivor beneficiary and there is] no eligible surviving child, the designated e t 17 survivor beneficiary or eligible surviving spouse may elect to w l n d 18 be refunded the deceased member's accumulated member5 =member = 19 a l contributions instead of receiving a survivor pension.

i a e r 20 I.

A member may designate a survivor beneficiary to a t m m 21 receive a pre-retirement survivor pension, subject to the d r e 22 following conditions:

c e s k 23 (1) a written designation, in the form e a n b 24 prescribed by the association, is filed by the member with the u [ association;

.232419.2SA - 19 - (2) if the member is married at the time of designation, the designation shall only be made with the consent of the member's spouse, in the form prescribed by the association;

and (5) a designation of survivor beneficiary may be changed, with the member's spouse's consent if the member is married, by the member at any time prior to the HB 43 Page 19 member's death.

[J.J.

If thereall ispension apayments designatedpermanently survivorterminate beneficiarybefore andthere theis retirementpaid boardan findsaggregate theamount deathequal to have been the edeceased tmember's 17accumulated naturalmember andcontributions proximateat resulttime of causes5 arisingdeath, solelythe anddifference wbetween lthe namount dof 18accumulated exclusivelymember outcontributions of and in the courseaggregate ofamount the member's = = 19 a l performance of duty with an affiliated public employer, a i a e r 20 survivor pension paid shall be payablepaid to the designateddeceased survivormember's arefund t m m 21 beneficiary.

The amount of the survivor pension shall be the d r e 22 greater of:

c e s k 23 (1) the amount as calculated under the e a n b 24 coverage plan applicable to the deceased member at the time of u [ death as though the deceased member had retired the day .232419.2SA - 20 - preceding death under form of payment B using the actual amount of service credit attributable to the member at the time of death;

or (2) fifty percent of the deceased member's final average salary.

K.

If there is a designated survivor beneficiary, if the member had the applicable minimum number of years of service credit required for normal retirement and if the retirement board did not find the death to have been the natural and proximate result of causes arising solely and exclusively out of and in the course of the member's performance of duty with an affiliated public employer, a survivor pension shall be payable to the designated survivor beneficiary.

The amount of the survivor pension shall be the greater of:

(1) the amount as calculated under the e t 17 coverage plan applicable to the deceased member at the time of w l n d 18 death as though the deceased member had retired the day = = 19 a l preceding death under form of payment B using the actual amount i a e r 20 of service credit attributable to the member at the time of a t m m 21 death;

or d r e 22 (2) thirty percent of the deceased member's c e s k 23 final average salary.

e a n b 24 L.] J.

If all pension payments permanently u [ terminate before there is paid an aggregate amount equal to the .232419.2SA - 21 - deceased member's accumulated member contributions at time of death, the difference between the amount of accumulated member contributions and the aggregate amount of pension paid shall be paid to the deceased member's refund beneficiary.

[M.] K.

STATE GENERAL MEMBER COVERAGE PLAN 3--AMOUNT3-- AMOUNT OF PENSION--FORM OF PAYMENT A.--Under state general member coverage plan 3:

for a member with age and service requirements provided under Paragraph (1) or (3) of Subsection A of Section e t 17 10-11-26.2 NMSA 1978, the amount of pension under form of w l n d 18 payment A is equal to three percent of final average salary = = 19 a l multiplied by service credit.

The amount shall not exceed one i a e r 20 hundred percent of the final average salary;

and a t m m 21 B.

for a member with age and service requirements dHB r43 ePage 2220 provided under Paragraph (2) or (4) of Subsection A of Section c e s k 23 10-11-26.2 NMSA 1978, the amount of pension under form of e a n b 24 payment A is equal to two and one-half percent of the final u [ average salary multiplied by service credit.

The 5 amount shall .232419.2SA - 22 - not exceed one hundred percent of the final average salary." SECTION 7.

(1) administer the state retirement system acts, including the management of the association and making effective the provisions of those acts, as well as to administer and manage any other employee benefit acts as e t 17 provided by law;

w l n d 18 (2) in addition to utilizing services of the = = 19 a l attorney general and notwithstanding any other provision of iHB a43 ePage r21 20 law, employ or contract with and compensate competent legal a t m m 21 counsel to handle the legal matters and litigation of the d r e 22 retirement board and the association and to give advice and c e s k 23 counsel in regard to any matter connected with the duties of e5 a n b 24 the retirement board;

u [ (3) administer oaths;

.232419.2SA - 23 - (4) adopt and use a seal for authentication of records, processes and proceedings;

provided that first priority for the e t 17 rental or leasing shall be to public agencies;

and further w l n d 18 provided that for the purpose of purchasing,HB acquiring43 orPage =22 =purchasing, 19acquiring aor l holding the land and the building thereon, the retirement board i a e r 20 may use funds from the income fund and any other funds a t m m 21 controlled by the retirement board the use of which for such d r e 22 purposes is not prohibited by law;

c5 e s k 23 (9) after the sale of the land and building e a n b 24 acquired pursuant to Paragraph (8) of this subsection, acquire u [ land and build thereon a new building to house the association .232419.2SA - 24 - and its employees and hold the building and land in fee simple in the name of the association.

(11) designate committees and designate committee members, including individuals who may not be members e t 17 of the association;

and wHB l43 nPage d23 18 (12) select and contract for the services of = = 19 a l one or more custodian banks for all funds under the retirement i a e r 20 board's management.

For the purpose of this paragraph, a t m m 21 "custodian bank" means a financial institution 5 with the general d r e 22 fiduciary duties to manage, control and collect the assets of c e s k 23 an investment fund, including receiving all deposits and paying e a n b 24 all disbursements as directed by staff, safekeeping of assets, u [ coordination of asset transfers, timely settlement of .232419.2SA - 25 - securities transactions and accurate and timely reporting of the assets by individual account and in total.

Elections shall be conducted according toHB e43 tPage 1724 to rules the retirement board adopts from time to time.

w l n d 18 D.

The regular term of office of the elected = = 19 a l members of the retirement board is four years.

The term of one i a e r 20 retirement board member under a state coverage plan expires5 aexpires t m m 21 annually on December 31.

The terms of retirement board members d r e 22 under a municipal coverage plan expire on December 31 of c e s k 23 noncoinciding years in the pattern set by the retirement board.

e a n b 24 Members of the retirement board serve until their successors u [ have qualified.

.232419.2SA - 26 - E.

eHB t43 17Page 25 G.

The retirement board shall hold four regular w l n d 18 meetings each year and shall designate in advance the time and = = 19 a l place of the meetings.

Special meetings and emergency meetings i a e r 20 of the retirement board may be held upon call of the 5 chair or a t m m 21 any three members of the retirement board.

Written notice of d r e 22 special meetings shall be sent to each member of the retirement c e s k 23 board at least seventy-two hours in advance of the special e a n b 24 meeting.

Verbal notice of emergency meetings shall be given to u [ as many members as is feasible at least eight hours before the .232419.2SA - 27 - emergency meeting, and the meeting shall commence with a statement of the nature of the emergency.

The retirement board shall send a written notice to eHB t43 17Page 26 the last known residence address of each member currently w l n d 18 employed by an affiliated public employer at least ten days = = 19 a l prior to any meeting of the members of the association.

The i a e r 20 notice shall contain the call of the meeting and the principal5 aprincipal t m m 21 purpose of the meeting.

All meetings of the association shall d r e 22 be public and shall be conducted according to procedures the c e s k 23 retirement board shall from time to time adopt.

The retirement e a n b 24 board shall keep a record of the proceedings of each meeting of u [ the association.

.232419.2SA - 28 - I.

[NeitherExcept as provided in Subsection J of this section, neither the retirement board nor the association shall allow public inspection of, or disclosure of, information from any member or retiree file unless a prior release and consent, in the formfollowing prescribedinformation: by the association, has been executed by the member or retiree;

except(1) thatinformation applicablefrom coverageany plans,member amountsor ofretiree retirementfile planunless contributionsa madeprior byrelease members and affiliatedconsent, publicin employers, pension amounts paid and the namesform andprescribed addresses of public employees retirement association members or retirees requested for election purposes by candidates for election to the retirementassociation, boardhas maybeen beexecuted producedby or disclosed without release or consent.] Except as provided in Subsection J of this section, neither the retirementmember board nor the association shall allow public inspection of, or disclosureretiree; of, the following information:

(1) information from any member or retiree(2) einformation totherwise 17protected file unless a prior release and consent, in the form prescribed w l n d 18 by thelaw. association, has been executed by the member or retiree;

=J. = 19 a l or i a e r 20 (2) information otherwise protected by law.

aNotwithstanding tthe mprovisions mof 21Paragraph J.(1) of Subsection I of this section, the association may disclose the following information:

Notwithstanding the provisions of Paragraph (1) dapplicable rcoverage eplans, 22amounts of Subsectionretirement Iplan ofcontributions thismade section,by themembers associationand mayaffiliated disclosepublic cemployers eand saggregate kpension 23amounts thepaid; following information:

e(2) athe nnames band 24addresses (1) applicable coverage plans, amounts of umembers [or retirementHB plan43 contributionsPage made27 byretirees membersthat andare affiliatedrequested .232419.2SAsolely -for 29election -purposes publicby employerscandidates andfor aggregateelection pensionto amountsthe paid;retirement board;

(2) the names and addresses(3) ofmember membersfile orinformation retireesto thatthe areeducational requestedretirement solelyboard for electionthe purposespurpose byof candidatesadministering for5 electionthe toprovisions of the retirementPublic board;Employees Retirement Reciprocity Act." SECTION 8.

and (3) member file information to the educational retirement board for the purpose of administering the provisions of the Public Employees Retirement Reciprocity Act." SECTION 8.

RESTRICTIONS ON RECEIPT OF GIFTS-- RESTRICTION ON CAMPAIGN CONTRIBUTIONS--REQUIRED REPORTING.-- [A.A.

Except for gifts of food or beverage given in a place of public accommodation, consumed at the time of receipt, not exceeding fifty dollars ($50.00) for a single gift and the aggregate value of which gifts may not exceed one hundred fifty dollars ($150) in a calendar year, neither a retirement board e t 17 member nor an employee of the retirement board or association w l n d 18 shall receive or accept anything of value directly or = = 19 a l indirectly from a person who:

i a e r 20 (1) has a current contract with the retirement a t m m 21 board or association;

d r e 22 (2) is a potential bidder, offeror or c e s k 23 contractor for the provision of services or personal property e a n b 24 to the retirement board or association;

u [ (3) is authorized to invest public funds .232419.2SA - 30 - pursuant to state or federal law or is an employee or agent of such a person;

or (4) is an organization, association or other entity having a membership that includes persons described in Paragraphs (1) through (3) of this subsection.] A.

No person who is a candidate in a primary or general election for a position that qualifies the person for ex-officio membership on the retirement board, no member serving ex officio on the retirement board and no person who is a nominee for retirement board membership by election by some or all of the members of the association pursuant to the Public Employees Retirement Act shall accept anything of a value of more than twenty-five dollars ($25.00) as a contribution to an e t 17 ex-officio member's statewide campaign in a primary or general w l n d 18 election or as a contribution to the campaign of a nominee for = = 19 a l membership on the board as a member elected by all or some of i a e r 20 the members of the association from HB 43 Page 28 a person who:

a t m m 21 (1) has a current contract with the retirement d r e 22 board or association;

c e s k 23 (2) is a potential bidder, offeror or e5 a n b 24 contractor for the provision of services or personal property u [ to the retirement board or association;

.232419.2SA - 31 - (3) is authorized to invest public funds pursuant to state or federal law or is an employee or agent of such a person;

Within sixty days after the election, the e t 17 association shall publish the reports required by this w l n d 18 subsection." = = 19 a l SECTION 9.

Section 10-11-135 NMSA 1978 (being Laws 1987,HB i43 aPage e29 r1987, 20 Chapter 253, Section 135, as amended) is amended to read:

a t m m 21 "10-11-135.

FUNDS NOT SUBJECT TO PROCESS.--Except as d r e 22 provided in Sections 10-11-136 and 10-11-136.1 NMSA 1978, 5 none c e s k 23 of the money, pensions or other benefits mentioned in the e a n b 24 Public Employees Retirement Act shall be assignable either in u [ law or in equity or be subject to execution, levy, attachment, .232419.2SA - 32 - garnishment or other legal process, except as required by federal law or pursuant to federal action or order of a federal court or federal agency." SECTION 10.

RETIREMENT ANNUITY--SURVIVING BENEFICIARY.--ABENEFICIARY.-- A member may designate a spouse or dependent child as a beneficiary.

provided that the annuity paid to a beneficiary spouse shall cease upon the surviving spouse's [marriage or] death and the annuity paid to a beneficiary dependent child shall cease upon the child reaching eighteen years of age or upon the child's death, whichever comes first." SECTION 11.

Section 10-12C-4 NMSA 1978 (being Laws 1992, e t 17 Chapter 118, Section 4, as amended by Laws 2014, ChapterHB 39,43 wPage l30 nChapter d39, 18 Section 3 and by Laws 2014, Chapter 43, Section 3) is amended = = 19 a l to read:

i a e r 20 "10-12C-4.

MEMBERSHIP.--Unless an irrevocable exemption a t m m 21 is filed pursuant to Subsection C of Section 10-12C-16 NMSA d5 r e 22 1978, every magistrate while in office shall become a member c e s k 23 and shall be subject to the provisions of the Magistrate e a n b 24 Retirement ActAct. [provided, however, that a magistrate who, prior u [ to July 1, 2014, applied for and received an exemption from .232419.2SA - 33 - membership shall not become a member until such exemption ends].

e t 17 "10-12C-8.

AGE AND SERVICE CREDIT REQUIREMENTS FOR NORMAL w l n d 18 RETIREMENT.-- = = 19 a l A.

For a magistrate who was a member on June 30, i a e r 20 2014, the age and service credit requirements for retirement aHB t43 mPage m31 21 provided for in the Magistrate Retirement Act are:

d r e 22 (1) age sixty-five years or older and five or c e s k 23 more years of service credit;

e a n b 24 (2) age sixty years or older and fifteen or u5 [ more years of service credit;

or .232419.2SA - 34 - (3) any age and twenty-four or more years of service credit.

Except for a member who is retired under any state system or the educational retirement system, if a member leaves office for any reason, other than removal pursuant to Article 6, Section 32 of the constitution of New Mexico before e t 17 meeting the age and service credit requirements for retirement w l n d 18 pursuant to the provisions of this section and if that member = = 19 a l leaves the member contributions on deposit in the fund, that i a e r 20 member may apply for retirement when that HB 43 Page 32 member meets the age a t m m 21 and service credit requirements for retirement pursuant to the d r e 22 provisions of the Magistrate Retirement Act or provisions of c e s k 23 the Public Employees Retirement Reciprocity Act.

e5 a n b 24 D.

No member shall be eligible to receive a pension u [ pursuant to the provisions of the Magistrate Retirement Act .232419.2SA - 35 - while [still in office] serving a term of office for which service credit is accrued." SECTION 13.

-HB 3643 -Page 933 1125 13 15 e t 17 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 [ .232419.2SA