SENATE BILL 20

56th legislature - STATE OF NEW MEXICO - first session, 2023

INTRODUCED BY

Gay G. Kernan

 

 

 

ENDORSED BY THE INVESTMENTS AND PENSIONS OVERSIGHT COMMITTEE

 

AN ACT

RELATING TO EDUCATIONAL RETIREMENT; PROVIDING AN EXCEPTION TO ALLOW CERTAIN CONTRACTS OF THE EDUCATIONAL RETIREMENT BOARD TO EXCEED FOUR YEARS PURSUANT TO THE PROCUREMENT CODE; ALLOWING ELIGIBLE EMPLOYEES OF SOUTHEAST NEW MEXICO COLLEGE TO PARTICIPATE IN THE ALTERNATIVE RETIREMENT PLAN; CONFORMING THE REQUIRED MINIMUM DISTRIBUTION AGE TO THE FEDERAL INTERNAL REVENUE CODE OF 1986.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 13-1-150 NMSA 1978 (being Laws 1984, Chapter 65, Section 123, as amended) is amended to read:

     "13-1-150. MULTI-TERM CONTRACTS--SPECIFIED PERIOD.--

          A. A multi-term contract for items of tangible personal property, construction or services except for professional services, in an amount under twenty-five thousand dollars ($25,000), may be entered into for any period of time deemed to be in the best interests of the state agency or a local public body not to exceed four years; provided that the term of the contract and conditions of renewal or extension, if any, are included in the specifications and funds are available for the first fiscal period at the time of contracting. If the amount of the contract is twenty-five thousand dollars ($25,000) or more, the term shall not exceed ten years, including all extensions and renewals, except that for a contract entered into pursuant to the Public Facility Energy Efficiency and Water Conservation Act, the term shall not exceed twenty-five years, including all extensions and renewals. Payment and performance obligations for succeeding fiscal periods shall be subject to the availability and appropriation of funds therefor.

          B. A contract for professional services may not exceed four years, including all extensions and renewals, except for the following:

                (1) services required to support or operate federally certified medicaid, financial assistance and child support enforcement management information or payment systems;

                (2) services to design, develop or implement the taxation and revenue information management systems project authorized by Laws 1997, Chapter 125;

                (3) a multi-term contract for the services of trustees, escrow agents, registrars, paying agents, letter of credit issuers and other forms of credit enhancement and other similar services, excluding bond attorneys, underwriters and financial advisors with regard to the issuance, sale and delivery of public securities, may be for the life of the securities or as long as the securities remain outstanding;

                (4) services relating to the implementation, operation and administration of the Education Trust Act;

                (5) services relating to measurement and verification of conservation-related cost savings and utility cost savings pursuant to the Public Facility Energy Efficiency and Water Conservation Act; [and]

                (6) services relating to the design and engineering of a state public works project:

                     (a) for a period not to exceed the requisite time for project completion and a subsequent warranty period; and

                     (b) upon approval of the secretary of finance and administration; and

                (7) services required to design, develop, implement or operate the pension administration system of the educational retirement board."

     SECTION 2. Section 22-11-2 NMSA 1978 (being Laws 1967, Chapter 16, Section 126, as amended) is amended to read:

     "22-11-2. DEFINITIONS.--As used in the Educational Retirement Act:

          A. "member" means an employee, except for a participant or a retired member, coming within the provisions of the Educational Retirement Act;

          B. "regular member" means:

                (1) a person regularly employed by a state educational institution, except for:

                     (a) a participant; or

                     (b) all employees of a general hospital or outpatient clinics thereof operated by a state educational institution named in Article 12, Section 11 of the constitution of New Mexico;

                (2) a person regularly employed by a junior college or community college created pursuant to Chapter 21, Article 13 NMSA 1978, except for a participant;

                (3) a person regularly employed by a technical and vocational institute created pursuant to the Technical and Vocational Institute Act, except for a participant;

                (4) a person regularly employed by the

New Mexico boys' school, the girls' welfare home, the Los Lunas medical center or a school district or as a licensed school employee of a state institution or agency providing an educational program and holding a license issued by the department, except for a participant;

                (5) a person regularly employed by the department holding a license issued by the department at the time of commencement of such employment;

                (6) a member classified as a regular member in accordance with the rules of the board;

                (7) a person regularly employed by the New Mexico activities association holding a license issued by the department at the time of commencement of such employment; or

                (8) a person regularly employed by a regional education cooperative holding a license issued by the department at the time of commencement of such employment;

          C. "provisional member" means a person described in Section 22-11-17 NMSA 1978;

          D. "local administrative unit" means an employing agency however constituted that is directly responsible for the payment of compensation for the employment of members or participants;

          E. "beneficiary" means a person having an insurable interest in the life of a member or a participant designated by written instrument duly executed by the member or participant and filed with the director to receive a benefit pursuant to the Educational Retirement Act that may be received by someone other than the member or participant;

          F. "employment" means employment by a local administrative unit that qualifies a person to be a member or participant;

          G. "service employment" means employment that qualifies a person to be a regular member;

          H. "provisional service employment" means employment that qualifies a person to be a provisional member;

          I. "prior employment" means employment performed prior to the effective date of the Educational Retirement Act that would be service employment or provisional service employment if performed thereafter;

          J. "service credit" means that period of time with which a member is accredited for the purpose of determining the member's eligibility for and computation of retirement or disability benefits;

          K. "earned service credit" means that period of time during which a member was engaged in employment or prior employment with which the member is accredited for the purpose of determining the member's eligibility for retirement or disability benefits;

          L. "allowed service credit" means that period of time during which a member has performed certain nonservice employment with which the member may be accredited, as provided in the Educational Retirement Act, for the purpose of computing retirement or disability benefits;

          M. "retirement benefit" means an annuity paid monthly to members whose employment has been terminated by reason of their age;

          N. "disability benefit" means an annuity paid monthly to members whose employment has been terminated by reason of a disability;

          O. "board" means the educational retirement board;

          P. "fund" means the educational retirement fund;

          Q. "director" means the educational retirement director;

          R. "medical authority" means a medical doctor or medical review panel designated or employed by the board to examine medical records and report on the medical condition of applicants for or recipients of disability benefits;

          S. "actuary" means a person trained and regularly engaged in the occupation of calculating present and projected monetary assets and liabilities under annuity or insurance programs;

          T. "actuarial equivalent" means a sum paid as a current or deferred benefit that is equal in value to a regular benefit, computed upon the basis of interest rates and mortality tables;

          U. "contributory employment" means employment for which contributions have been made by both a member and a local administrative unit pursuant to the Educational Retirement Act;

          V. "qualifying state educational institution" means the university of New Mexico, New Mexico state university, New Mexico institute of mining and technology, New Mexico highlands university, eastern New Mexico university, western New Mexico university, central New Mexico community college, Clovis community college, Luna community college, Mesalands community college, New Mexico junior college, northern New Mexico [state school] college, San Juan college, [and] Santa Fe community college and southeast New Mexico college;

          W. "participant" means:

                (1) a person regularly employed as a faculty or professional employee of the university of New Mexico, New Mexico state university, New Mexico institute of mining and technology, New Mexico highlands university, eastern New Mexico university or western New Mexico university who first becomes employed with such an educational institution on or after July 1, 1991, or a person regularly employed as a faculty or professional employee of the central New Mexico community college, Clovis community college, Luna community college, Mesalands community college, New Mexico junior college, northern New Mexico [state school] college, San Juan college or Santa Fe community college who is first employed by the institution on or after July 1, 1999, or a person regularly employed as a faculty or professional employee of southeast New Mexico college who is first employed by the institution on or after July 1, 2023, and who elects, pursuant to Section 22-11-47 NMSA 1978, to participate in the alternative retirement plan; and

                (2) a person regularly employed who performs research or other services pursuant to a contract between a qualifying state educational institution and the United States government or any of its agencies who elects, pursuant to Section 22-11-47 NMSA 1978, to participate in the alternative retirement plan; provided that the research or other services are performed outside the state;

          X. "salary" means the compensation or wages paid to a member or participant by any local administrative unit for services rendered. "Salary" includes payments made for annual or sick leave and payments for additional service provided to related activities, but does not include payments for sick leave not taken unless the payment for the unused sick leave is made through continuation of the member on the regular payroll for the period represented by that payment and does not include allowances or reimbursements for travel, housing, food, equipment or similar items;

          Y. "alternative retirement plan" means the retirement plan provided for in Sections 22-11-47 through 22-11-52 NMSA 1978; and

          Z. "retired member" means a person whose employment has been terminated by reason of age and who is receiving or is eligible to receive retirement benefits."

     SECTION 3. Section 22-11-30 NMSA 1978 (being Laws 1967, Chapter 16, Section 153, as amended) is amended to read:

     "22-11-30. RETIREMENT BENEFITS--REDUCTIONS.--

          A. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or before June 30, 1967 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the first four thousand dollars ($4,000) of the member's average annual salary and one percent of the remainder of the member's average annual salary multiplied by the number of years of the member's total service credit.

          B. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or after July 1, 1967 but on or before June 30, 1971 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the first six thousand six hundred dollars ($6,600) of the member's average annual salary and one percent of the remainder of the member's average annual salary multiplied by the number of years of the member's total service credit.

          C. Retirement benefits for a member retired pursuant to the Educational Retirement Act on or after July 1, 1971 but on or before June 30, 1974 shall be paid monthly and shall be one-twelfth of a sum equal to one and one-half percent of the member's average annual salary multiplied by the