Summary:

 House Bill 336 (HB 336):  This bill amends Section 10-11-8 NMSA 1978 of the Public Employees Retirement Act to allow retired public employees—specifically those who fit within an expanded definition of “peace officer”—to return to state employment under certain conditions without losing retirement benefits.  

Legislation Overview:

 House Bill 336 (HB 336):  This legislation offers the following key points:
Expanded Definition of “Peace Officer” - 
a)	Adds a new category: any employee of the state who has a duty to maintain public order or make arrests for crimes (whether for all crimes or specific crimes).
Return-to-Work Provision - 
a)	Retired peace officers (and certain other specified roles) may be re-employed by an affiliated public employer after a 90-day break in service from the date of retirement.
b)	Their pension benefit, including any cost-of-living adjustment, continues during re-employment (up to 36 consecutive months).
No Additional Service Credit -
a)	Re-employed retirees do not accrue additional service credit or membership in the retirement system, but both the retiree and employer must pay the regular contributions required by the applicable coverage plan.
Position Vacancy Requirement - 
a)	Re-employed retirees can only be hired for positions that have a vacancy rate of 10% or higher at the time of hire, aiming to address staffing shortages rather than displacing existing employees.
Layoff Priority - 
a)	If budget constraints force layoffs, re-employed retirees must be laid off before any active employees who are members of the retirement system.
The returning retiree must have retired before December 31, 2023, and the return-to-work arrangement must begin prior to July 1, 2027.
 

Current Law:

 Except as may be provided for in the Volunteer Firefighters Retirement Act 
[Chapter 10, Article 11A NMSA 1978], the Judicial Retirement Act [Chapter 10, Article 
12B NMSA 1978], the Magistrate Retirement Act [Chapter 10, Article 12C NMSA 1978], 
the Educational Retirement Act [Chapter 22, Article 11 NMSA 1978] and the provisions 
of Sections 29-4-1 through 29-4-11 NMSA 1978 governing the state police pension 
fund, each employee and elected official of every affiliated public employer shall be a 
member of the association, unless excluded from membership in accordance with 
Subsection B of this section.

E. "current retiree" means an eligible retiree who is receiving a disability or normal 
retirement benefit under the Educational Retirement Act, the Public Employees 
Retirement Act, the Judicial Retirement Act, the Magistrate Retirement Act, the Public 
Employees Retirement Reciprocity Act or the retirement program of an independent 
public employer on or before July 1, 1990;