Summary:

 House Bill 416 (HB 416) clarifies provisions relating to disability pensions and survivor pensions; removes inconsistencies relating to survivor pensions; provides an exemption to the procurement code for the collection of overpayments; clarifies the amount of pension earned by certain public regulation commission commissioners; allows the Public Employees Retirement Association to share certain information with the Educational Retirement Board regarding certain reciprocity retirees; clarifies certain provisions relating to gifts; clarifies the requirements for a retired member who files an exemption from membership under the Magistrate Retirement Act; and makes technical and stylistic changes.  

Legislation Overview:

 House Bill 416 (HB 416) amends Section 10-11-4 NMSA 1978, stating that withdrawn member contributions must be repaid in accordance with the procedures established by the Retirement Board.

Section 10-11-4.2 NMSA 1978 is amended to state that the provisions of the Procurement Code do not apply to the procurement of services related to the collection of overpayments.

Section 10-11-10.1 NMSA 1978 is amended to state that the Retirement Board must give preference to a physician licensed in New Mexico, when choosing the physician member for the Disability Review Committee. Further, payment of the state disability retirement pension is to be discontinued if the amount of earnings from gainful employment is one hundred percent or more of the amount that causes a decrease or suspension of an old age benefit under the federal social security program. The caveat that such payment would be discontinued if earnings are fifteen thousand dollars is removed.

Section 10-11-14.5 NMSA 1978 is amended regarding designated survivor beneficiaries, and this statement is added: “The survivor pension shall be payable to and divided equally among all eligible surviving children, if any.”  The following statement is removed:

“The total amount of survivor pension shall be divided equally among all eligible surviving children. If there is only one eligible child, the amount of pension shall be twenty-five percent of the deceased member's final average salary.”

The following language is removed:

If there is a designated survivor beneficiary and the retirement board finds the death to have been the natural and proximate result of causes arising solely and exclusively out of and in the course of the member's performance of duty with an affiliated public employer, a survivor pension shall be payable to the designated survivor beneficiary. The amount of the survivor pension shall be the greater of: (1) the amount as calculated under the coverage plan applicable to the deceased member at the time of death as though the deceased member had retired the day preceding death under form of payment B using the actual amount of service credit attributable to the member at the time of death; or (2) fifty percent of the deceased member's final average salary. K. If there is a designated survivor beneficiary, if the member had the applicable minimum number of years of service credit required for normal retirement and if the Retirement Board did not find the death to have been the natural and proximate result of causes arising solely and exclusively out of and in the course of the member's performance of duty with an affiliated public employer, a survivor pension shall be payable to the designated survivor beneficiary. The amount of the survivor pension shall be the greater of: (1) the amount as calculated under the coverage plan applicable to the deceased member at the time of death as though the deceased member had retired the day preceding death under form of payment B using the actual amount of service credit attributable to the member at the time of death; or (2) thirty percent of the deceased member's final average salary.

Section 10-11-130 NMSA 1978 is amended to allow the Public Employees Retirement Association to share certain information with the educational retirement board regarding certain reciprocity retirees.

Section 10-11-130.1 NMSA 1978 is amended to clarify certain provisions relating to gifts.

Section 10-12C-4 NMSA 1978 is amended to clarify the requirements for a retired member who files an exemption from membership under the Magistrate Retirement Act.

Some technical and stylistic changes are made through the amendments.

 

Current Law:

 Current Law states that withdrawn member contributions may be repaid and that full payment of each one-year increment must be made in a single lump-sum amount. Language also currently states that payment of the state disability retirement pension is to be discontinued if the amount of earnings from gainful employment is one hundred percent or more of the amount that causes a decrease or suspension of an old age benefit under the federal social security program or fifteen thousand dollars ($15,000), whichever is less. 

Currently the guideline is that the total amount of survivor pension is to be divided equally among all eligible children, or if there is only one eligible child, the amount of pension is to be twenty-five percent of the deceased member’s final average salary.

There are also these stipulations: 

If there is a designated survivor beneficiary and the retirement board finds the death to have been the natural and proximate result of causes arising solely and exclusively out of and in the course of the member's performance of duty with an affiliated public employer, a survivor pension shall be payable to the designated survivor beneficiary. The amount of the survivor pension shall be the greater of: (1) the amount as calculated under the coverage plan applicable to the deceased member at the time of death as though the deceased member had retired the day preceding death under form of payment B using the actual amount of service credit attributable to the member at the time of death; or (2) fifty percent of the deceased member's final average salary. K. If there is a designated survivor beneficiary, if the member had the applicable minimum number of years of service credit required for normal retirement and if the retirement board did not find the death to have been the natural and proximate result of causes arising solely and exclusively out of and in the course of the member's performance of duty with an affiliated public employer, a survivor pension shall be payable to the designated survivor beneficiary. The amount of the survivor pension shall be the greater of: (1) the amount as calculated under the coverage plan applicable to the deceased member at the time of death as though the deceased member had retired the day preceding death under form of payment B using the actual amount of service credit attributable to the member at the time of death; or (2) thirty percent of the deceased member's final average salary.

Specific guidelines are provided for situations involving gifts, unlike the proposed version which simply states that members of the retirement board and employees of the association must comply with the provisions of the Gift Act.

Clarifications regarding the requirements for a retired member who files an exemption from membership under the Magistrate Retirement Act are not included.