The bill amends the Magistrate Retirement Act to enhance the funding and benefits of the magistrate retirement system in New Mexico. It establishes that the Magistrate Retirement Fund will consist of appropriations, docket fees, contributions from employers and members, and all income derived from investments. The bill also modifies the service credit requirements for magistrate judges, allowing for adjustments in the multipliers used to calculate pensions. Specifically, it increases the service credit multipliers for pensions and sets new contribution rates for members and employers, with a gradual increase in member contributions from 10.5% to 14.74% by July 1, 2025, and employer contributions rising to 19.24% by the same date.

Additionally, the bill clarifies the accounting structure of the retirement fund, detailing the purposes of various accounting funds, including the member contribution fund, employer's accumulation fund, retirement reserve fund, and income fund. It also stipulates that members who leave office before meeting retirement requirements can still apply for retirement benefits if they leave their contributions in the fund. The effective date for these changes is set for July 1, 2025.

Statutes affected:
introduced version: 10-12C-3