Summary:

 Senate Bill 251 (SB 251):  This legislation expands the definition of “peace officer” to encompass more law enforcement roles in return-to-work provisions, enabling certain retirees to resume public safety positions after a 90-day break and still receive pension payments for up to 36 months. It also imposes documentation, vacancy, and layoff-priority requirements on public employers to ensure fair hiring practices and workforce management. 

Legislation Overview:

 Senate Bill 251 (SB 251):  This bill expands the categories of eligible retirees and modifies the definition of "peace officer" for these return-to-work provisions.
Key Changes and Provisions - Expanded Definition of “Peace Officer”
•	The bill broadens the term “peace officer” to include: “…or an employee of the state with a duty to maintain public order or to make arrests for crime, whether that duty extends to all crimes or is limited to specific crimes.”
•	Effect: Allows a wider range of law enforcement personnel (beyond those specifically appointed by the Attorney General or a District Attorney) to qualify under the “peace officer” category for return-to-work purposes.
Return-to-Work Eligibility (Subsection J)
•	Certain retirees (including peace officers, firefighters, paramedics, correctional officers, etc.) who retired before December 31, 2023, may be re-employed by a public employer after a 90-day break (instead of the usual 12-month break).
•	While re-employed, these retirees: Continue receiving their pension (including cost-of-living adjustments) for up to 36 consecutive months of employment.
•	Do not rejoin the retirement system or accrue additional service credit.
•	Must still pay the employee retirement contribution (which is non-refundable).
•	Are subject to limited seniority (e.g., no shift-bidding rights based on prior service).
Employer Responsibilities (Subsection K)
•	Public employers must document and track the hiring and separation dates for any retiree re-employed under these provisions, as well as the vacancy rates for those positions.
•	In the event of layoffs due to budget constraints, re-employed retirees must be laid off before any active (non-retiree) employees.
Vacancy-Rate Threshold
•	A public employer cannot rehire a retiree into a position that has a vacancy rate lower than 10% at the time of hiring.
Contributions & No Refund Policy
•	Both the retiree and the employer continue to pay contributions (as if the retiree were still a member), but these payments do not increase or change the retiree’s pension in the future.
•	There is no refund of these contributions when employment ends.
Practical Impact
•	Broader Pool of Law Enforcement: More state-employed officers with arrest powers, not just those appointed by the AG or a District Attorney, can be rehired under the retiree-return-to-work rules.
•	Staffing Flexibility: Public safety agencies with high vacancies (≥10%) can quickly fill critical positions with experienced personnel who have already retired.
•	Cost and Oversight: Employers track the reemployment process meticulously to comply with reporting requirements and protect the rights of active employees.
•	Retiree Benefits: Eligible retirees can collect a pension and a paycheck simultaneously for up to 36 months under these conditions, alleviating workforce shortages without penalizing retirees indefinitely.
 

Current Law:

 Under current New Mexico law (Section 10-11-8 NMSA 1978), certain retirees can return to work for a public employer under specific conditions without forfeiting their pensions entirely.