HB 222 EDUCATIONAL RETIREES RETURNING SALARY CAP

Rep Jason C. Harper

Actions: [3] HEC/HAFC-HEC

Scheduled: Not Scheduled

 House Bill 222 (HB 222):  This legislation outlines the conditions, exceptions, and requirements for retired members returning to employment with local administrative units in New Mexico, particularly focusing on the suspension and continuation of retirement benefits. 

 House Bill 222 (HB 222): Section 1 - This legislative act proposes to amend Section 22-11-25.1 of the New Mexico Statutes Annotated (NMSA) 1978, related to educational retirement. 
Suspension of Retirement Benefits:
•	Until January 1, 2024, a retired member who starts employment with a local administrative unit (such as a school district) at a level greater than one-quarter full-time employee is generally required to suspend their retirement benefits until the end of that employment, unless they have not worked for a local administrative unit for at least twelve consecutive months after retirement.
Exceptions for Pre-2001 Retirees:
•	Retired members who retired on or before January 1, 2001, and return to employment with a local administrative unit are not required to suspend their retirement benefits until January 1, 2024.
Retirement Benefits During Employment:
•	A retired member returning to employment is entitled to receive retirement benefits during that employment but cannot acquire or purchase service credit for that period.
Application Process:
•	Retired members must submit an application to return to work, which needs approval from the board. Other application rules established by the board must also be followed.
Contributions to the Fund:
•	Retired members returning to employment must make nonrefundable contributions to the retirement fund, similar to contributions required if they were non-retired employees. The employing local administrative unit is also required to make contributions.
Additional Conditions for No Suspension:
•	There are conditions under which a retired member may return to employment without suspending retirement benefits. These include not rendering service for at least ninety days after retirement, not having any agreements to return to employment before retirement, and earning a salary below a specified amount.
Retiree Health Care Fund Contributions:
•	Retired members returning to employment must make contributions to the retiree health care fund, with specified amounts. The employing local administrative unit also needs to contribute.
Time Limit for Return to Employment:
•	There are provisions allowing a retired member to return to employment without a suspension of retirement benefits, subject to certain conditions, including a time limit of no more than thirty-six consecutive or nonconsecutive months.