SB 111 — CHANGES TO EDUCATIONAL RETIREMENT

SENATEAN BILLACT 111RELATING 54THTO LEGISLATUREEDUCATIONAL -RETIREMENT; STATEOFNEWMEXICO- SECOND SESSION , 2020 INTRODUCED BY Mimi Stewart This document incorporates amendments that have been adopted during the current legislative session.

TheREMOVING documentTHE isREQUIREMENT aFOR toolEMPLOYEES toAND showEMPLOYERS theTO amendmentsMAKE inNONREFUNDABLE contextCONTRIBUTIONS andFOR isEMPLOYEES notAT toA beLEVEL usedOF forONE-FOURTH theOR purposeLESS ofFULL-TIME amendments.EMPLOYEE;

FORALLOWING THECERTAIN LEGISLATIVERETIREES EDUCATIONTO STUDYRETURN COMMITTEETO ANWORK ACTWITHOUT RELATINGA TOSUSPENSION EDUCATIONALOF RETIREMENT;RETIREMENT BENEFITS;

REMOVINGEXEMPTING THE REQUIREMENT h FOR EMPLOYEES ANDCONSIDERED EMPLOYERS TO MAKEBE NONREFUNDABLESUBSTITUTES CONTRIBUTIONSFROM gTHE oREQUIREMENTS FOR EMPLOYEES AT A LEVEL OF ONE-FOURTHTHE OREDUCATIONAL LESSRETIREMENT FULL-TIMEACT; t hr g e i k EMPLOYEE;

ALLOWINGEXEMPTING CERTAIN RETIREES TOUNDER RETURNTHE TOPUBLIC WORKEMPLOYEES WITHOUTRETIREMENT AACT hFROM rCONTRIBUTION iREQUIREMENTS sUNDER SUSPENSIONTHE OFEDUCATIONAL RETIREMENT BENEFITS;ACT IF THEY HAVE NOT SUSPENDED RETIREMENT BENEFITS.

EXEMPTING EMPLOYEES h , t, CONSIDERED TO BE SUBSTITUTESIT FROMENACTED BY THE REQUIREMENTSLEGISLATURE OF THE eSTATE uOF gNEW eMEXICO: b l e e h EDUCATIONAL RETIREMENT ACT SECº ;

EXEMPTING RETIREES UNDER THE n d d i = = o h PUBLIC EMPLOYEES RETIREMENT ACT FROM CONTRIBUTION REQUIREMENTS l ] b ,d i a º e UNDER THE EDUCATIONAL RETIREMENT ACT IF THEY HAVE NOT SUSPENDED r i = r t e w d m a n o RETIREMENT BENEFITS»SEC.

d m :

b e d s º o t n = .216216.1AIC February 5, 2020 (9:18am) s k m e e a n e d r e l u [ A d BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Except as otherwise provided in Subsections B, [and ] F and H of this section, until January 1, 2022, a retired member who begins employment with a local administrative unit at a level greater than one-quarter full-time employee, regardless of salary level, is required to suspend the member's retirement benefits until the end of that employment unless the member has not rendered service to a local SB 111 Page 1 administrative unit for at least twelve consecutive months after the date of retirement.

Until January 1, 2022, a retired member who retired on or before January 1, 2001, has not suspended or been h required to suspend retirement benefits pursuant to the u » r t h Educational Retirement Act and returns to employment with a g e l i local administrative unit is not required to suspend the h r i s member's retirement benefits.

h , e h t u g C.

A retired member who returns to employment with e b l e e , gh a local administrative unit in accordance with this section is n d d i = = o h entitled to receive retirement benefits during that employment l ] b ,d i a º r e r = but is not entitled to acquire or purchase service credit for t e w d m a n o that employment.

dD. m :

b r e t º o t n = .216216.1AIC February 5, 2020 (9:18am) s k m e - 2 - e a n e d r e l u [ A d D.

A retired member who returns to employment pursuant to Subsection A, B or F of this section shall make nonrefundable contributions to the fund as would be required by Section 22-11-21 NMSA 1978 if the retired member were a non-non-retired retired employee.

The local administrative unit employing the retired member shall likewise make SB 111 Page 2 contributions as would be required by that section.

[InF. addition, on and after July 1, 2020, a retired member who has returned to employment at a level of one-fourth or less full-time employee, regardless of salary level, shall make nonrefundable contributions to the fund as would be required by Section 22-11-21 NMSA 1978 if the h retired member were a non-retired employee.

TheUntil localJanuary u1, »2022, ra administrativeretired unitmember employingwho retired on or before January 1, 2001, who suspended or was required to suspend retirement benefits under the Educational Retirement Act is not required to suspend the member's retirement benefits if the retired member shallhas likewisenot trendered hservice gto ea llocal iadministrative makeunit contributionsfor asan wouldadditional betwelve requiredor bymore thatconsecutive section.]months, hnot rincluding iany spart F.of a summer or other scheduled break or vacation period, after the initial date of retirement.

Until January 1, 2022, a retired member who h , e h retired on or before January 1, 2001, who suspended or was t u g e b l e e , gh required to suspend retirement benefits under the Educational n d d i = = o h Retirement Act is not required to suspend the member's l ] b ,d i a º r retirement benefits if the retired member has not rendered e r = t e w d m a n o service to a local administrative unit for an additional twelve d m :

b r e t º o t n = .216216.1AIC February 5, 2020 (9:18am) s k m e - 3 - e a n e d r e l u [ A d or more consecutive months, not including any part of a summer or other scheduled break or vacation period, after the initial date of retirement.

h (2) prior to the date of retirement, or within u » r ninety days after the date of retirement, the retired memberSB t111 hPage g3 emember l i did not enter into any formal or informal agreement with a h r i s local administrative unit or with any contractor providing h , e h services to a local administrative unit to return to t u g e b l e e , gh employment;

and n d d i = = o h (3) the retired member earns a salary of less l ] b ,d i a º r than fifteen thousand dollars ($15,000) per year.

e r = t e w d m a n o [H.] I.

d(1) m"rendered :service" includes employment, whether full or part time;

b r e t º o t n = .216216.1AIC February 5, 2020 (9:18am) s k m e - 4 - e a n e d r e l u [ A d (1) "rendered service" includes employment, whether full or part time;

[NEW MATERIAL ] SUBSTITUTES--MEMBERSHIP STATUS.--An employee engaged on a day-to-day basis to replace h another employee who is temporarily absent shall be considered g o t hr a substitute and shall not be covered under the Educational gSB e111 iPage k4 Retirement Act.

An employee engaged to fill a vacant position, h r i s including a position vacated by a leave of absence of at least h , t, ninety days, shall not be considered a substitute and is e u g e b l e e h subject to the requirements of the Educational Retirement Act." n d d i = = o h SECº SECTION 3.

Section 22-11-25.2 NMSA 1978 (being Laws l ] b ,d i a º e 2003, Chapter 248, Section 1, as amended) is amended to read:

r i = r t e w d m a n o "22-11-25.2.

PERSONS RECEIVING RETIREMENT BENEFITS dPURSUANT mTO :THE PUBLIC EMPLOYEES RETIREMENT ACT.-- A.

b e d s º o t n = .216216.1AIC February 5, 2020 (9:18am) s k m e - 5 - e a n e d r e l u [ A d PURSUANT TO THE PUBLIC EMPLOYEES RETIREMENT ACT.-- A.

A local administrative unit that employs such a retiree [likewise] shall make contributions to the fund as required by that act.

[B.B.

An employee hiredwho priorreceives toretirement Julybenefits 1, 2019 by a local administrative unit as a police officer certified pursuant to the Law Enforcement Training Act, who is retired pursuant to the Public Employees Retirement Act andis who has not suspendedentitled retirement benefits received pursuant to thatacquire act,or shallpurchase notservice makecredit contributionsfor to the fundperiod soof longemployment aswith thea employeelocal remainsadministrative workingunit." asSB a111 certifiedPage police5 officer.25

The local administrative unit that hired the certified police h officer shall make contributions to the fund pursuant to the u » r t h Educational Retirement Act.

g e l i C.] B.

An employee who receives retirement benefits h r i s pursuant to the Public Employees Retirement Act is not entitled h , e h t u g to acquire or purchase service credit for the period of e b l e e , gh employment with a local administrative unit."»SEC n d d i = = o h - 6 - l ] b ,d i a º r e r = t e w d m a n o d m :

b r e t º o t n = .216216.1AIC February 5, 2020 (9:18am) s k m e e a n e d r e l u [ A d