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Service Credit --Quicklinks-- Calculating Retirement Retirement Benefits Benefit Options Preparing for Retirement Earned Service Credit Leave of Absence Membership Contributions Refund Information Pension Payments Disability Retirement Disability Benefits Employment after Retirement Return to Work Program Contractors $15.000 or FTE Rule Reemployment of Retirees Community Property Rights Dividing Benefits Divorce NM Health Care Authority Cost of Living Adjustment Retirement Eligibility Deferred Retirement Rule of 75 Allowed Service Effective Retirement Date Reciprocity ERA/PERA Options before Retirement Alternative Retirement Plan Sabbatical Leave

Prior Legislation 2006

SUMMARY OF 2008 LEGISLATION IMPACTING ERB

These bills have been introduced. No new bills may be introduced this legislative session. Please go to the legislative web site to see what action, if any, has been taken. Remember that bills do not become law until signed by the Governor.

HOUSE BILLS:

HB616 - Luciano “Lucky” Varela (D) - Educational Retirement Contributions.

This bill will align the Alternative Retirement Plan (ARP) with Internal Revenue Code (IRC) 401(a) 17.

SENATE BILLS:

SB67 -  John Arthur Smith (D) - Retiree Health Care Fund & Members

This bill affects RHCA and may be of interest to ERB's membership.

SUMMARY OF 2007 LEGISLATION IMPACTING ERB

These bills have been introduced. No new bills may be introduced this legislative session. Please go to the legislative web site to see what action, if any, has been taken. Remember that bills do not become law until signed by the Governor.

Click on the blue letters and numbers to read the entire bill

HOUSE BILLS:

HB9 – Luciano “Lucky” Varela (D) – Public Employee Salary Increases

Provides appropriations for funding public officers, and employees, public school personnel and higher education faculty and employees with  a 4.25% increase in salary for public education employees and a .75% increase for the employer contribution to the ERB fund.

HB179 – Larry Larranaga (R) – Return to Work for Certain Retirees

For ERB retiree’s beginning the Return to Work program after 7-1-07 a maximum of $25,000 could be earned.

HB221 - Luciano “Lucky” Varela (D) – Payment Obligations of State Pension Systems

In a pension having benefits from both ERA and PERA each system would separately pay the retiree.

HB313 – John A. Heaton (D) – Certain Retirees Returning to Work

For Return to Work applicants between 7-1-07 and 7-1-09 the local administrative unit must adopt a resolution declaring that the employment of the retired member will fill a critical need of the local administrative unit. (same as SB 310)

HB 1091 – Mimi Stewart (D) – Increase the Retirement Benefit and Change the Calculation of the Average Annual Salary

Increases the multiplier from 2.35 to 2.4% for calendar year 2008, 2.45% for calendar year 2009, and 2.5% after 1-1-2010. Changes the final average salary from the high 5 to the highest consecutive 3 years effective as of 1-1-08.

SENATE BILLS:

SB184 – John Arthur Smith (D) – Return to Employment for Certain Retirees

The ERA Return to Work program would not be open to new applicants after June 30, 2008.

SB310 – Phil A. Griego (D) – Certain Retirees Returning to Work

For Return to Work applicants between 7-1-07 and 7-1-09 the local administrative unit must adopt a resolution declaring that the employment of the retired member will fill a critical need of the local administrative unit. (Same as HB313)

The Education Committee amended the bill on February 23 so that there is no reference to ERB’s Return to Work program.

SB1150 – Pete Campos (D) – Average 7% Salary Increase for teachers and education-related Staff

Provides for an average 7% salary increase for all teachers and education related staff throughout the state including public, public-postsecondary, teachers working in other departments, and public education transportation employees. The bill appropriates $197,213,458 from the general fund. The salary increase would increase the unfunded liability of ERB. 

SB1162 – Stuart Ingle (D) – Changing the Composition and Appointing Authority fo the Educational Retirement Board

Changes one member of the board from being elected by the New Mexico members of the American Association of University Professors to a chief financial officer of a four-year institution of higher education appointed by the governor.

The Senate Education committee passed as amended. The amendment changes the bill so that the position would be elected by the members of the Council of University Presidents for a 4 year term.

SJM6 – John Arthur Smith (D) – Benefit Enhancement Bill Moratorium

Requests that no bills be introduced to enhance pension benefits for the next two years.

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SUMMARY OF 2006 LEGISLATION IMPACTING ERB

The following is a list of bills and memorials that concern The Educational Retirement Board. Also included is whether or not the bill or memorial was passed. You may click on the bill number in order to access the link to the bill on the NM Legislative Website.

HOUSE BILLS

HB 3 – Education Appropriation Act - Rick Miera

Identical to the appropriation for Public Education as described in the General Appropriation Act of 2006. Increases the state equalization guarantee from the 2005 act by $158,900,600 to $2,122,727,400. Defines the performance standards to be achieved through the 2006-2007 school year. Provides for an average four and one-half percent salary increase for all teachers and instructional staff, and a $45,000 minimum annual salary for level 3-A teachers. Increases employer contribution to the educational retirement fund by three-fourths percent.

HB 78 - State Employee Salary Increases - Luciano “Lucky” Varela

Provides $35,686,504 (GF) to DFA for salary increases to state employees.

HB 100 - Restrict Public Employees Returning to Work - Larry A. Larranaga

(For the State Permanent Fund Task Force and the Legislative Finance Committee) Provides that if a PERA member retires and is subsequently reemployed by an affiliated public employer on or after July 1, 2006, that person’s pension would be suspended the first month following the point at which his reemployment earnings exceed $15,000 for a calendar year. A retired member who returns to work before July 1, 2006, would be entitled to receive full retirement benefits as well as full pay for his new job.

HB 212 - State Retirement System Oversight Committee - John A. Heaton

Creates the State Investment and Retirement Systems Oversight Committee as a joint interim legislative committee. Consists of five voting members from each legislative house and five nonvoting members; one each from the State Investment Office, PERA, Secretary of Finance and Administration, State Treasurer’s office and the Educational Retirement Board. Mandates the new committee to create a plan for oversight of the retirement fund activities of the organizations represented by the five nonvoting members. Provides for the continuing analysis of the financial status of those funds and development of recommendations for improved investment practices to ensure the financial soundness of those funds. Requests that all future legislation affecting state investment practices, the permanent funds or the retirement funds be presented to the committee for review and analysis prior to the session in which that legislation will be introduced. Provides an appropriation of $150,000 to the Legislative Council Service for technical and legal assistance to the committee through the end of fiscal year 2007.

HB 222 - Expand Educational Retirement Board Members - Luciano “Lucky” Varela

(For the State Permanent Fund Task Force and the Legislative Finance Committee) Increases the size of the Educational Retirement Board to 10 members from seven members.

HB 446 - Forfeiture of Retirement Benefits for Crimes - Al Park

(HEM66) If it appears to a New Mexico prosecutor that a felony defendant is a current or retired state employee and that the charge is related to the defendant’s past or present employment, the prosecutor must initiate the forfeiture of a state system pension. The requirement also applies to a felony conviction in federal or another state court.

HB 461 - Public Employees Benefits Oversight Committee - Ben Lujan

(For the Public Employee Benefits Oversight Subcommittee) Creates the joint interim Committee for the Oversight of Public Employee Benefits, Programs and Funds to function until December 1, 2008. Make up would be three House members appointed by the speaker, and three from the Senate appointed by the Committees' Committee with party representation proportionate to the membership of the two bodies.

SENATE BILLS

SB 23 - Contributions to Investors of Public Funds - Stuart Ingle

Makes it unlawful for the governor, lieutenant governor, state treasurer, state auditor, secretary of state, attorney general, land commissioner, state legislator or a candidate for those offices to solicit or accept anything of value from an investment agent doing business with the state.

SB 130 - Expand Educational Retirement Board Members - John Arthur Smith

(For the State Permanent Fund Task Force and the Legislative Finance Committee) Increases board membership from seven to 10. All new members must possess at least 10 years of investment or public finance experience. One member will be appointed by the governor. A second member with be appointed by the University Presidents’ Council and the third member will be appointed by the New Mexico Coalition of School Administrators. All new members will serve four-year terms and any unexpired term will be filled with a selection by the original appointing authority.

SB 206 - Adjust Educational Retirement Eligibility - John Arthur Smith

(For the State Permanent Fund Task Force) Retirement benefits from the Educational Retirement Act are available to a person becoming a member prior to July 1, 2006, when the sum of the member’s age and years of earned service equals 75. For a person becoming a member on or after July 1, 2006, the sum of the member’s age and years of earned service equals 80. The same formulation applies to members who terminate employment prior to retirement but do not withdraw contributions that have been made.

SB 300 - Restrict Public Employees Returning to Work - John Arthur Smith

(For the State Permanent Fund Task Force and the Legislative Finance Committee) (Identical to HB100) Same as HB100. Provides that if a PERA member retires and is subsequently reemployed by an affiliated public employer on or after July 1, 2006 that person’s pension would be suspended the first month following the point at which his reemployment earnings exceed $15,000 for a calendar year. A retired member who returns to work before July 1, 2006 would be entitled to receive full retirement benefits as well as full pay for his new job.

SB 528 - Frontier Teacher Act - Leonard Tsosie

The act adds a new measure of student achievement by requiring a student-specific assessment of grade-level attainment in mathematics, English and literacy in the first and final months of a grade-level.

SB 541 - Increase Educational Retirement Contributions - Sue Wilson Beffort

Increases member contributions to the Educational Retirement Association Fund as follows: FY 2007, from 7.75 percent to 7.8 percent; FY 2008, from 7.825 percent to 8.2 percent; on or after July 1, 2008, from 7.9 percent to 8.6 percent.