Below is a summary of The NM Educational Retirement Board's 2009 Legislative Proposals, please keep in mind the status of these bills are as of March 26, 2009 and may change depending on action the Governor decides to take on them. If you have any questions or need any additional information please contact us at 505-827-8030.
SB572 - Higher Ed Portability (Alternative Retirement Plan), Sen. Mary Jane Garcia (D36)
STATUS: Passed and Signed; Duplicates HB 525, sponsored by Rep. Chasey (D18)
Present law provides that the state post-secondary educational institution employees who become members of alternative retirement plans may not change plans. Starting July 1, 2009, this bill would allow these employees, if they have made contributions to alternative plans for seven years or more, to have a one-time chance, for 120 days, to become members of the regular retirement plan. Allows for other changes to the alternative plan. Contains emergency clause. The ERB will be drafting rules to implement this legislation and will be issuing requests for proposals for new retirement plans for the alternative retirement plan.
HB573 - Stricter Retirement Provisions for New Employees, Rep. John Heaton (D55)
STATUS: Passed and Signed by Governor
Amends the Public Employees Retirement Act and the Educational Retirement Act to establish stricter age and service credit retirement requirements for members employed after July 1, 2010 and covered by the acts. Amends the Retiree Health Care Act to increase employer and employee contributions to the Retiree Health Care Fund for members of enhanced retirement plans, and to require PERA and ERA members who purchase service credit or return to public employment after retirement to make contributions to the fund. Provides for ERA Military Services purchases. Extends the sunset date for the ERB return to work program to 2022 and clarifies requirements for participation in the program. Creates a retirement systems solvency task force of 25 members to study the actuarial soundness of the retirement plans and submit recommendations to the interim Investments and Pension Oversight Committee, the Legislative Finance Committee and the Governor no later than October 1, 2010. HB 573, incorporates the provisions of HB 453 and SB 633 (Purchase of Military Service Credit), HB 721 and SB476 (ERB Retired Employees Return to Work), and HB 631 (Stricter Retirement Rules for new ERA members).
HB631 - Stricter Retirement Rules for New ERA Members, Rep. Rhonda King (D50)
STATUS: Passed and Signed by Governor
Adds a section to the Educational Retirement Act to provide that persons who become members on or after July 1, 2010 shall be eligible for retirement: (1) at any age with 30 years of service; (2) at age 67 with five or more years of service credit; or (3) when the sum of the member’s age and years of service credit equals at least 80. Retirement eligibility for persons who were members before July 1, 2010 remains at age 65 with five or more years of service credit, or at any time when the sum of the member’s age and service credit equals at least 75 or 25 years service regardless of age.
HB722 - Educational Retirement Information Confidentiality, Rep. Jack Thomas (D60)
STATUS: Passed and Signed by Governor; Duplicates SB 490, Sen. Fischman (D37)
Provides that the only information maintained by the Educational Retirement Board regarding a member or retired member which is open to public inspection is the name of the member, where the member was employed, dates of retirement and reported death, service credit, reported salary and amount of contributions. Other information may only be disclosed to the member, the member’s spouse or authorized representative, or persons specifically identified by them in a written consent form.
SB399 - Educational Retirement Audits, Sen. Howie Morales (D28)
STATUS: Passed and Signed by Governor; Duplicates HB 588, Rep. O’Neill (D15)
Authorizes the director of the Educational Retirement Board to audit local school districts and public post-secondary institutions ensure compliance with the Educational Retirement Act and Board rules.
HB453 - Purchase of Military Service Credit, Rep. Miguel Garcia (D14)
STATUS: Amended into HB573; Duplicates SB 633, Sen. Fishman (D37)
Allows members with more than five years contributory service under the Educational Retirement Act to acquire up to five years additional service credit for prior service in the U. S. military or the commissioned corps of the Public Health Service by making full payment of the member’s average annual salary in the preceding five years multiplied by the sum of the current employer and member contribution rates. The member must make full payment for each year of service to be purchased within 60 days of being informed by ERA of the amount.
HB721 - ERA Retired Employees Return To Work, Rep. Jack Thomas (D60)
STATUS: Amended into HB573
Clarifies requirements for participation in the return to work program and extends the program’s sunset date to 2022.
SB476 - ERA Retired Employees Return To Work, Sen. Gay Kernan (R42)
STATUS: Amended into HB573
In order to continue retirement benefits after beginning employment at a local administrative unit, a retired member must not have rendered service to a local unit for at least 12 consecutive months after the date of retirement. Extends sunset to 2022. |
