HB 45 — CHANGES TO RETIREE HEALTH CARE FUND

HOUSEAN BILLACT 45RELATING 54THTO LEGISLATURERETIREE -HEALTH STATEOFNEWMEXICO-CARE; SECOND SESSION , 2020 INTRODUCED BY Tomás E.

SalazarINCREASING andEMPLOYEE RaymundoAND LaraEMPLOYER ThisCONTRIBUTION documentRATES incorporatesTO amendmentsTHE thatRETIREE haveHEALTH beenCARE adoptedFUND. during the current legislative session.

The5 documentBE isIT aENACTED toolBY toTHE showLEGISLATURE theOF amendmentsTHE inSTATE contextOF andNEW isMEXICO: not to be used for the purpose of amendments.

ENDORSEDSECTION BY1. THE INVESTMENTS AND PENSIONS OVERSIGHT COMMITTEE AN ACT RELATING TO RETIREE HEALTH CARE;

INCREASINGSection EMPLOYEE10-7C-15 ANDNMSA h1978 EMPLOYER(being CONTRIBUTIONLaws RATES1990, TOChapter THE6, RETIREESection HEALTH15, CAREas FUNDamended gby oLaws HAFCº2009, ;Chapter 287, Section 2 and by Laws 2009, Chapter 288, Section 3) is amended to read:

TRANSFERRING"10-7C-15. MONEY TO THE RETIREE HEALTH CARE FUND;

t hr g e i k MAKING AN APPROPRIATION.»HAFC HAFCº.»HAFC h r i s h , t, BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

e u g e b l e e h SECTION 1.

Section 10-7C-15 NMSA 1978 (being Laws 1990, n d d i = = o h Chapter 6, Section 15, as amended by Laws 2009, Chapter 287, l ] b ,d i a º e Section 2 and by Laws 2009, Chapter 288, Section 3) is amended r i = r t e w d m a n o to read:

d m :

b e d s º o t n = .216154.2SAAIC February 8, 2020 (1:10pm) s k m e e a n e d r e l u [ A d "10-7C-15.

(1) for participating employees who are not members of an enhanced retirement plan, the employer's contribution shall equal [(a)two one and three-tenthsthirty-three percenthundredths of each participating employee's salary for the period from July 1, 2002 through June 30, 2010 (b) one and six hundred sixty-six thousandths percent of each participating employee's salarysalary; for the period from July 1, 2010 through June 30, 2011;

(c)(2) onefor andparticipating eightemployees hundredwho thirty-fourare thousandthsmembers percent of eachan participatingenhanced employee'sretirement salaryplan, for the periodemployer's fromcontribution Julyshall 1,equal 2011two throughand Juneninety-three 30,hundredths 2012;percent of each participating employee's salary;

and h(3) (d)]each twoemployer andthat thirty-threechooses hundredthsto gbecome oa tparticipating hremployer percentafter ofJanuary each1, participating1998 employee'sshall salarymake [beginningcontributions Julyto gthe efund iin kthe 1,amount 2012];determined to be HB 45/a Page 1 appropriate by the board.

h r i s (2) for participating employees who are h , t, members of an enhanced retirement plan, the employer's e u g e b l e e h contribution shall equal:

n d d i = = o h [(a) one and three-tenths percent of l ] b ,d i a º e each participating employee's salary for the period from July r i = r t e w d m a n o 1, 2002 through June 30, 2010 d m :

b e d s º o t n = .216154.2SAAIC February 8, 2020 (1:10pm) s k m e - 2 - e a n e d r e l u [ A d (b) two and eighty-four thousandths percent of each participating employee's salary for the period from July 1, 2010 through June 30, 2011;

(c) two and two hundred ninety-two thousandths percent of each participating employee's salary for the period from July 1, 2011 through June 30, 2012;

and (d)] two and [one-half] ninety-three hundredths percent of each participating employee's salary [beginning July 1, 2012 ];

and (3) each employer that chooses to become a participating employer after January 1, 1998 shall make contributions to the fund in the amount determined to be appropriate by the board.

Following completion of the preliminary contribution period, each participating employee, as a condition of employment, shall contribute to the fund pursuant h to the following provisions:

g o t hr (1) for a participating employee who is not a g e i k member of an enhanced retirement plan, the employee's h r i s contribution shall equal h , t, [(a) sixty-five hundredths of one eand useventeen-hundredths g e b l e e h percent of the employee's salarysalary; for the period from July 1, n d d i = = o h 2002 through June 30, 2010 l ] b ,d i a º e (b) eight hundred thirty-three r i = r t e w d m a n o thousandths of one percent of the employee's salary for the d m :

b(2) efor da sparticipating ºemployee owho tis n = .216154.2SAAIC February 8, 2020 (1:10pm) s k m e - 3 - e a nmember eof dan renhanced eretirement lplan, uthe [employee's Acontribution dshall periodequal fromone Julyand 1,forty-seven 2010hundredths throughpercent Juneof 30,the 2011;employee's salary;

(c)and nine(3) hundredas seventeena thousandthscondition of oneemployment, percenteach participating employee of thean employee'semployer salarythat forchooses theto periodbecome froma Julyparticipating employer after January 1, 20111998 throughshall Junecontribute 30,to 2012;the fund an amount that is determined to be appropriate by the board.

and (d)] one and seventeen-hundredths percent of the employee's salary [beginning July 1, 2012 ];

(2) for a participating employee who is a member of an enhanced retirement plan, the employee's contribution shall equal [(a) sixty-five hundredths of one percent of the employee's salary for the period from July 1, through June 30, 2010;

(b) one and forty-two thousandths percent of the employee's salary for the period from July 1, through June 30, 2011;

(c) one and one hundred forty-six h thousandths percent of the employee's salary for the period u » r from July 1, 2011 through June 30, 2012;

and t h g e l i (d)] one and [one-fourth] forty-seven h r i s hundredths percent of the employee's salary [beginning July 1, h , e h 2012];

and t u g e b l e e , gh (3) as a condition of employment, each n d d i = = o h participating employee of an employer that chooses to become a l ] b ,d i a º r participating employer after January 1, 1998 shall contribute e r = t e w d m a n o to the fund an amount that is determined to be appropriate by d m :

b r e t º o t n = .216154.2SAAIC February 8, 2020 (1:10pm) s k m e - 4 - e a n e d r e l u [ A d the board.

[On or after July 1, 2009 ] No person who has obtained service credit pursuant to Subsection B of Section 10-11-6 NMSA 1978, Section 10-11-7 NMSA 1978 or Paragraph (3) or (4) of HB 45/a Page 2 Subsection A of Section 22-11-34 NMSA 1978 may enroll with the authority unless the person makes a contribution to the fund equal to the full actuarial present value of the amount of the increase in the person's health care benefit, as determined by the authority.

Except for contributions made pursuant to Subsection C of this section, a participating employer that fails to remit before the tenth day after the last day of the month all employer and employee deposits required by the h Retiree Health Care Act to be remitted by the employer for the u » r month shall pay to the fund, in addition to the deposits, t h g e l i interest on the unpaid amounts at the rate of six percent per h r i s year compounded monthly.

h , e h E.

Except for contributions made pursuant to t u g e b l e e , gh Subsection C of this section, the employer and employee n d d i = = o h contributions shall be paid in monthly installments based on l ] b ,d i a º r the percent of payroll certified by the employer.

e r = t e w d m a n o F.

Except in the case of erroneously made dcontributions mor :as may be otherwise provided in Subsection D of Section 10-7C-9 NMSA 1978, contributions from participating employers and participating employees shall become the property of the fund on receipt by the board and shall not be refunded under any circumstances, including termination of employment or termination of the participating employer's operation or participation in the Retiree Health HB 45/a Page 3 Care Act.

b r e t º o t n = .216154.2SAAIC February 8, 2020 (1:10pm) s k m e - 5 - e a n e d r e l u [ A d contributions or as may be otherwise provided in Subsection D of Section 10-7C-9 NMSA 1978, contributions from participating employers and participating employees shall become the property of the fund on receipt by the board and shall not be refunded under any circumstances, including termination of employment or termination of the participating employer's operation or participation in the Retiree Health Care Act.

Notwithstanding any other provision in the Retiree Health Care Act and at the first session of the legislature following July 1, 2013, the legislature shall review and adjust the distributions pursuant to Section [7-1-6.1 ] 7-1-6.30 NMSA 1978 and the employer and employee contributions to the authority in order to ensure the actuarial soundness of the benefits provided under the Retiree Health Care Act.

As used in this section, "member of an enhanced h retirement plan" means: