HB 43

1AN ACT
2  RELATING TO PUBLIC EMPLOYEE PENSIONS; CLARIFYING PROVISIONS
3  RELATING TO DISABILITY PENSIONS AND SURVIVOR PENSIONS;
4  ALLOWING STATE FIRE MEMBERS ELIGIBILITY FOR CERTAIN SERVICE
5  CREDIT RELATING TO WORKERS' COMPENSATION LEAVE; REMOVING
6  INCONSISTENCIES RELATING TO SURVIVOR PENSIONS; CLARIFYING THE
7  AMOUNT OF PENSION EARNED BY CERTAIN PUBLIC REGULATION
8  COMMISSION COMMISSIONERS; ALLOWING THE PUBLIC EMPLOYEES
9  RETIREMENT ASSOCIATION TO SHARE CERTAIN INFORMATION WITH THE
10 EDUCATIONAL RETIREMENT BOARD REGARDING CERTAIN RECIPROCITY
11 RETIREES; CLARIFYING CERTAIN PROVISIONS RELATING TO GIFTS;
12 CLARIFYING THE REQUIREMENTS FOR A RETIRED MEMBER WHO FILES AN
13 EXEMPTION FROM MEMBERSHIP UNDER THE MAGISTRATE RETIREMENT
14 ACT; MAKING TECHNICAL CHANGES.
15
16 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
17      SECTION 1.    Section 10-11-4 NMSA 1978 (being Laws 1987,
18 Chapter 253, Section 4, as amended) is amended to read:
19      "10-11-4.    SERVICE CREDIT--REQUIREMENTS FOR--
20 FORFEITURE--REINSTATEMENT.--
21A.     Personal service rendered an affiliated public
22 employer by a member shall be credited to the member's
23 service credit account in accordance with retirement board
24 rules and regulations.    Service shall be credited to the
25 nearest month.    In no case shall any member be credited with    HB 43
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1  a year of service for less than twelve months of service in
2  any calendar year or more than a month of service for all
3  service in any calendar month or more than a year of service
4  for all service in any calendar year.     In no case shall any
5  member be allowed to purchase service credit unless the
6  purchase is authorized in the Public Employees Retirement
7  Act.
8B.    Personal service rendered an affiliated public
9  employer prior to August 1, 1947 shall be credited to a
10 member if the member acquires one year of service credit for
11 personal service rendered an affiliated public employer.
12C.    Personal service rendered an affiliated public
13 employer after July 31, 1947 but prior to the date the public
14 employer became an affiliated public employer is prior
15 service and shall be credited to a member if:
16(1)   the member has the applicable minimum
17 number of years of service credit required for normal
18 retirement.     As used in this paragraph, "service credit"
19 means only the service credit earned by the member during
20 periods of employment with an affiliated public employer; and
21(2)   the member pays the association the
22 amount determined in accordance with Subsection D of this
23 section.
24D.    The purchase cost for each month of service
25 credit purchased under the provisions of this section is  HB 43
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1  equal to the member's final average salary multiplied by the
2  sum of the member contribution rate and employer contribution
3  rate determined in accordance with the coverage plan
4  applicable to the member at the time of the written election
5  to purchase.     Payment shall be made in accordance with the
6  procedures established by the retirement board.    The portion
7  of the purchase cost derived from the employer contribution
8  rate shall be credited to the employers accumulation fund and
9  shall not be refunded to the member in the event of cessation
10 of membership.    In no case shall any member be credited with
11 a month of service for less than the purchase cost as defined
12 in this section.
13E.     Service credit shall be forfeited if a member
14 terminates employment with an affiliated public employer and
15 withdraws the member's accumulated member contributions.
16F.     A member or former member who is a member of
17 another state system or the educational retirement system and
18 who has forfeited service credit by withdrawal of member
19 contributions may reinstate the forfeited service credit by
20 repaying the amount withdrawn plus compound interest from the
21 date of withdrawal to the date of repayment at the rate set
22 by the retirement board.    Withdrawn member contributions
23 shall be repaid in accordance with the procedures established
24 by the retirement board."
25      SECTION 2.    Section 10-11-4.2 NMSA 1978 (being Laws       HB 43
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1  1993, Chapter 239, Section 1, as amended) is amended to read:
2"10-11-4.2.     CORRECTION OF ERRORS AND OMISSIONS--
3  ESTOPPEL.--
4A.   If an error or omission results in an
5  overpayment to a member or beneficiary of a member, the
6  association shall correct the error or omission and adjust
7  all future payments accordingly.     The association shall
8  recover all overpayments made for a period of up to one year
9  prior to the date the error or omission was discovered.
10B.   A person who is paid more than the amount that
11 is lawfully due to that person as a result of fraudulent
12 information provided by the person shall be liable for the
13 repayment of that amount to the association plus interest on
14 that amount at the rate set by the retirement board plus all
15 costs of collection, including attorney fees.     Recovery of
16 such overpayments shall extend back to the date the first
17 payment was made based on the fraudulent information.
18C.   Statements of fact or law made by retirement
19 board members or employees of the retirement board or the
20 association shall not estop the retirement board or the
21 association from acting in accordance with the applicable
22 statutes."
23      SECTION 3.     Section 10-11-6.1 NMSA 1978 (being Laws
24 2016, Chapter 39, Section 2) is amended to read:
25      "10-11-6.1.     SERVICE CREDIT FOR CERTAIN INJURED MEMBERS    HB 43
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1  ON APPROVED WORKERS' COMPENSATION LEAVE.--
2A.   A member whose affiliated public employer has
3  provided written certification to the association, in the
4  form and manner prescribed by the association, that the
5  employee was injured while performing a work-related function
6  or duty in an inherently dangerous location or under
7  inherently dangerous circumstances and that the member is
8  absent from work and has been placed on approved workers'
9  compensation leave as a result of the injury shall accrue
10 service credit for the period of absence from work while on
11 workers' compensation leave; provided that:
12(1)   the member is a peace officer covered
13 pursuant to state general member coverage plan 3; a state
14 police member; a state fire member; an adult correctional
15 officer member; a municipal fire member; a municipal police
16 member; or a municipal detention officer member;
17(2)   the member retains membership in the
18 association during the period of absence from work on
19 approved workers' compensation leave; and
20(3)   the member's affiliated public employer
21 pays the injured employee's member contributions as well as
22 the employer contributions and remits to the association the
23 total amount of employee and employer contributions that
24 would have been paid if the member had not been absent from
25 work while on approved workers' compensation leave.    The      HB 43
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1  contribution amounts shall be calculated based upon a salary
2  equal to the member's salary at the time of the injury.
3B.   The affiliated public employer shall provide an
4  appeal process for an injured employee on approved workers'
5  compensation leave who is determined by the affiliated public
6  employer not to meet the criteria in Subsection A of this
7  section."
8SECTION 4.    Section 10-11-10.1 NMSA 1978 (being Laws
9  1993, Chapter 160, Section 3, as amended) is amended to read:
10      "10-11-10.1.       DISABILITY RETIREMENT.--
11A.   There is created a "disability review
12 committee" of the retirement board.      The disability review
13 committee shall consist of at least three but not more than
14 five retirement board members and at least one licensed
15 physician appointed by the retirement board.       The board shall
16 give preference to a physician licensed in New Mexico.        The
17 disability review committee shall review all applications for
18 disability retirement, review reports required under this
19 section and approve or deny applications for disability
20 retirement.
21B.   The disability review committee may retire a
22 member on account of disability before the time the member
23 would otherwise be eligible for retirement if the following
24 requirements are satisfied:
25(1)    the member applying for disability  HB 43
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1  retirement was a member at the time the disability was
2  incurred;
3(2)   a written application for disability
4  retirement, in the form and containing the information
5  prescribed by the association, has been filed with the
6  association by the member, the member's representative or the
7  member's affiliated public employer;
8(3)   employment is terminated within forty-
9  five days of the date of approval of the application for
10 disability retirement;
11(4)   if:
12(a)   the member has the applicable
13 minimum number of years of service credit required for normal
14 retirement.    For the purposes of this subparagraph, "service
15 credit" means only the service credit earned by the member
16 during periods of employment with an affiliated public
17 employer; or
18(b)   the disability review committee
19 finds the disability to have been the natural and proximate
20 result of causes arising solely and exclusively out of and in
21 the course of the member's performance of duty with an
22 affiliated public employer;
23(5)   the member submits to all medical
24 examinations and tests and furnishes copies of all medical
25 reports requested by the association or disability review        HB 43
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1  committee; provided that if the disability review committee
2  requires independent medical or other examinations, those
3  examinations shall be performed at the association's expense;
4  and
5(6)   the disability review committee makes
6  the determination required under Subsection C of this
7  section.
8C.   The disability review committee shall review
9  applications for disability retirement to determine whether:
10(1)   if the member is a currently employed,
11 contributing employee of an affiliated public employer:
12(a)   the member is mentally or
13 physically totally incapacitated for continued employment
14 with an affiliated public employer; and
15(b)   the incapacity is likely to be
16 permanent; or
17(2)   if the member is not a currently
18 employed, contributing employee of an affiliated public
19 employer:
20(a)   the member is mentally or
21 physically totally incapacitated for any gainful employment;
22 and
23(b)   the incapacity is likely to be
24 permanent.
25D.   The disability retirement pension shall be paid HB 43
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1  for a period of one year after approval of the initial
2  application unless the disability review committee for good
3  cause shown grants disability retirement for a longer period
4  of time.   Payment shall be effective commencing the first of
5  the month following approval of the initial application and
6  termination of employment.
7E.   At the end of the first year that a disability
8  retirement pension is paid, the disability retired member's
9  condition shall be reevaluated to determine eligibility for
10 continuation of payment of a disability retirement pension.
11 If the disability retired member has applied for disability
12 benefits under the federal social security program, the
13 member shall submit copies of the member's application.   The
14 association shall continue payment of the state disability
15 retirement pension if the disability retired member presents
16 a written final determination from the federal social
17 security administration that the disability retired member
18 qualifies, based on the same conditions as presented in the
19 application for a state disability retirement pension, for
20 federal disability benefits.
21F.   If the disability retired member applied for
22 federal disability benefits within thirty days of receiving
23 approval for a state disability retirement pension but the
24 federal social security administration has not made a written
25 final determination of entitlement by the end of the first       HB 43
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1  year that the disability retired member has received a state
2  disability retirement pension, eligibility for continued
3  payment of the state disability retirement pension shall be
4  determined by the disability review committee.    The state
5  disability retirement pension shall be discontinued if the
6  disability review committee finds that the disability retired
7  member is capable of any gainful employment.
8G.   The disability retired member shall notify the
9  association of the federal social security administration's
10 final determination within fifteen working days of the date
11 of issuance of the final written determination.    If the
12 federal social security administration denies federal
13 disability benefits, the state disability retirement pension
14 shall be discontinued effective the first of the month
15 following the month in which the written final determination
16 of the federal social security administration was issued.     If
17 the federal social security administration grants federal
18 disability benefits, the state disability retirement pension
19 shall be continued so long as the disability retired member
20 provides annually, on or before the anniversary date of
21 commencement of payment of the state disability retirement
22 pension, written evidence of continuation of payment of
23 federal disability benefits.   If the disability review
24 committee has denied continuation of payment of a state
25 disability retirement pension and the disability retired  HB 43
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1  member is later granted federal disability benefits, the
2  state disability retirement pension shall be reinstated
3  effective the first of the month following the month in which
4  the state disability retirement pension was discontinued.
5H.   If, at the time of reevaluation under
6  Subsection E of this section, the disability retired member
7  has applied for and has qualified for federal disability
8  benefits, but for a different condition than was reviewed by
9  the disability review committee, the disability review
10 committee shall review the disability retired member's
11 condition as described by the application for federal
12 disability benefits.     The process set forth in Subsection I
13 of this section shall be followed to determine whether
14 payment of a state disability retirement pension should be
15 continued.
16I.   If the disability retired member is not
17 eligible to apply for federal disability benefits or is not a
18 member of the federal social security program, the disability
19 review committee annually shall determine eligibility for
20 continuation of payment of a state disability retirement
21 pension.   To make its determination of continued entitlement,
22 the disability review committee shall use the guidelines
23 established by the federal social security administration for
24 determination of eligibility for federal disability benefits.
25 The determination shall be based on:  HB 43
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1(1)   the medical and all other information
2  provided by the disability retired member;
3(2)   at least one independent medical or
4  other examination performed at the association's expense if
5  required by the disability review committee; and
6(3)   any medical, vocational or other
7  information related to the disability compiled during the
8  period of disability by any medical or other practitioner
9  consulted by the disability retired member regarding the
10 disability that was not paid for by the association.
11J.     Each disability retired member annually shall
12 submit to the association, prior to July 1, a statement of
13 earnings from gainful employment during the preceding
14 calendar year.    The statement of earnings shall be in the
15 form prescribed by the association.    Payment of the state
16 disability retirement pension shall be discontinued if the
17 amount of earnings from gainful employment is one hundred
18 percent or more of the amount that causes a decrease or
19 suspension of an old age benefit under the federal social
20 security program.    Payment of the state disability retirement
21 pension shall be discontinued starting with the month of July
22 if the statement of earnings is not received by the
23 association prior to July 1.
24K.     Upon prior approval by the association, a
25 disability retired member may return to employment with an        HB 43
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1  affiliated public employer or other employer for a trial
2  period not to exceed one hundred twenty calendar days without
3  becoming a member or causing suspension or discontinuation of
4  payment of a state disability retirement pension.    If the
5  trial period of employment is successfully completed, payment
6  of the disability retirement pension shall be discontinued
7  beginning the first of the month following the one hundred
8  twentieth day of the trial period of employment.    Trial
9  periods of employment shall be limited to two in any five-
10 year period following disability retirement.
11L.   If the disability retired member meets the
12 minimum age and service credit requirements for normal
13 retirement while receiving a disability retirement pension,
14 the disability retirement pension shall be reclassified by
15 the association as a normal retirement pension, and no
16 further determinations of eligibility for continuation of
17 payment of the disability retirement pension shall be made.
18 Upon reclassification as a normal retirement pension, all the
19 provisions of the Public Employees Retirement Act regarding
20 normal retirement shall be applicable.
21M.   If the disability review committee found the
22 disability to be the natural and proximate result of causes
23 arising solely and exclusively out of and in the course of
24 the member's employment with an affiliated public employer,
25 service credit shall continue to accrue during the disability   HB 43
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1  retirement period as though the disability retired member was
2  actively employed.
3N.    The amount of a disability retirement pension
4  shall be calculated according to the provisions of the
5  coverage plan applicable to the member at the time of
6  application, except that the service credit requirement shall
7  be waived and the actual amount of service credit shall be
8  used instead.   If the disability is the natural and proximate
9  result of causes arising solely and exclusively out of and in
10 the course of the member's performance of duty for an
11 affiliated public employer, the amount of disability
12 retirement pension shall be calculated according to the
13 provisions of the coverage plan applicable to the member,
14 imputing the amount of service credit necessary to meet the
15 minimum service credit requirements for normal retirement.
16O.    For the purposes of this section, the following
17 definitions apply:
18(1)   "continued employment with the
19 affiliated public employer" means the ability of the member
20 to fulfill the required duties of the position in which the
21 member was last employed by an affiliated public employer;
22(2)   "gainful employment" means remunerative
23 employment or self-employment that is commensurate with the
24 applicant's background, age, education, experience and any
25 new skills or training the applicant may have acquired after      HB 43
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1  terminating public employment or incurring the disability;
2(3)    "state disability retirement pension"
3  means the pension paid pursuant to the provisions of this
4  section; and
5(4)    "federal disability benefits" means
6  those benefits paid by the federal social security program."
7SECTION 5.    Section 10-11-14.5 NMSA 1978 (being Laws
8  1993, Chapter 160, Section 4, as amended) is amended to read:
9"10-11-14.5.       DEATH BEFORE RETIREMENT--SURVIVOR
10 PENSIONS.--
11A.    A survivor pension may be paid to certain
12 persons related to or designated by a member who dies before
13 normal or disability retirement if a written application for
14 the pension, in the form prescribed by the association, is
15 filed with the association by the potential survivor
16 beneficiary or beneficiaries within one year of the death of
17 the member.    Applications may be filed on behalf of the
18 potential survivor beneficiary or beneficiaries or by a
19 person legally authorized to represent them.
20B.    If the retirement board finds the death to have
21 been the natural and proximate result of causes arising
22 solely and exclusively out of and in the course of the
23 member's performance of duty with an affiliated public
24 employer, a survivor pension shall be payable to the
25 designated survivor beneficiary.      If there is no designated   HB 43
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1  survivor beneficiary, a survivor pension shall be payable to
2  the eligible surviving spouse.    The amount of the survivor
3  pension shall be the greater of:
4(1)   the amount as calculated under the
5  coverage plan applicable to the deceased member at the time
6  of death as though the deceased member had retired the day
7  preceding death under form of payment B using the actual
8  amount of service credit attributable to the deceased member
9  at the time of death; or
10(2)   fifty percent of the deceased member's
11 final average salary.
12C.   A survivor pension shall also be payable to
13 eligible surviving children if the retirement board finds the
14 death to have been the natural and proximate result of causes
15 arising solely and exclusively out of and in the course of
16 the member's performance of duty with an affiliated public
17 employer.   The survivor pension shall be payable to and
18 divided equally among all eligible surviving children, if
19 any.   The total amount of survivor pension payable for all
20 eligible surviving children shall be either:
21(1)   fifty percent of the deceased member's
22 final average salary if an eligible surviving spouse or
23 designated survivor beneficiary is not paid a pension; or
24(2)   twenty-five percent of the deceased
25 member's final average salary if an eligible surviving spouse    HB 43
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1  or designated survivor beneficiary is paid a pension.
2D.   If the member had the applicable minimum number
3  of years of service credit required for normal retirement,
4  but the retirement board did not find the death to have been
5  the natural and proximate result of causes arising solely and
6  exclusively out of and in the course of the member's
7  performance of duty with an affiliated public employer, a
8  survivor pension shall be payable to the designated survivor
9  beneficiary.    If there is no designated survivor beneficiary,
10 a survivor pension shall be payable to the eligible surviving
11 spouse.   The amount of the survivor pension shall be the
12 greater of:
13(1)   the amount as calculated under the
14 coverage plan applicable to the deceased member at the time
15 of death as though the deceased member had retired the day
16 preceding death under form of payment B using the total
17 amount of actual service credit attributable to the deceased
18 member at the time of death; or
19(2)   thirty percent of the deceased member's
20 final average salary.
21E.   If the member had the applicable minimum number
22 of years of service credit required for normal retirement,
23 but the retirement board did not find the death to have been
24 the natural and proximate result of causes arising solely and
25 exclusively out of and in the course of the member's  HB 43
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1  performance of duty with an affiliated public employer and
2  there is no designated survivor beneficiary, and if there is
3  no eligible surviving spouse at the time of death, a survivor
4  pension shall be payable to and divided equally among all
5  eligible surviving children, if any.    The total amount of
6  survivor pension payable for all eligible surviving children
7  shall be the greater of:
8(1)     the amount as calculated under the
9  coverage plan applicable to the deceased member at the time
10 of death as though the deceased member had retired the day
11 preceding death under form of payment B with the oldest
12 eligible surviving child as the survivor beneficiary using
13 the total amount of actual service credit attributable to the
14 deceased member at the time of death; or
15(2)     thirty percent of the deceased member's
16 final average salary.
17F.   An eligible surviving spouse is the spouse to
18 whom the deceased member was married at the time of death.
19 An eligible surviving child is a child under the age of
20 eighteen years and who is an unmarried, natural or adopted
21 child of the deceased member and who is not the designated
22 survivor beneficiary of the deceased member.
23G.   An eligible surviving spouse's pension shall
24 terminate upon death.    An eligible surviving child's pension
25 shall terminate upon death or marriage or reaching age  HB 43
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1  eighteen years, whichever comes first.
2H.   If there is no eligible surviving child, the
3  designated survivor beneficiary or eligible surviving spouse
4  may elect to be refunded the deceased member's accumulated
5  member contributions instead of receiving a survivor pension.
6I.   A member may designate a survivor beneficiary
7  to receive a pre-retirement survivor pension, subject to the
8  following conditions:
9(1)   a written designation, in the form
10 prescribed by the association, is filed by the member with
11 the association;
12(2)   if the member is married at the time of
13 designation, the designation shall only be made with the
14 consent of the member's spouse, in the form prescribed by the
15 association;
16(3)   if the member is married subsequent to
17 the time of designation, any prior designations shall
18 automatically be revoked upon the date of the marriage;
19(4)   if the member is divorced subsequent to
20 the time of designation, any prior designation of the former
21 spouse as survivor beneficiary shall automatically be revoked
22 upon the date of divorce; and
23(5)   a designation of survivor beneficiary
24 may be changed, with the member's spouse's consent if the
25 member is married, by the member at any time prior to the  HB 43
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1  member's death.
2J.   If all pension payments permanently terminate
3  before there is paid an aggregate amount equal to the
4  deceased member's accumulated member contributions at time of
5  death, the difference between the amount of accumulated
6  member contributions and the aggregate amount of pension paid
7  shall be paid to the deceased member's refund beneficiary.
8  If no refund beneficiary survives the survivor beneficiary,
9  the difference shall be paid to the estate of the deceased
10 member.
11K.   For purposes of this section, "service credit"
12 means only the service credit earned by a member during
13 periods of employment with an affiliated public employer."
14      SECTION 6.   Section 10-11-26.3 NMSA 1978 (being Laws
15 1994, Chapter 128, Section 4, as amended) is amended to read:
16      "10-11-26.3.   STATE GENERAL MEMBER COVERAGE PLAN 3--
17 AMOUNT OF PENSION--FORM OF PAYMENT A.--Under state general
18 member coverage plan 3:
19A.   for a member with age and service requirements
20 provided under Paragraph (1) or (3) of Subsection A of
21 Section 10-11-26.2 NMSA 1978, the amount of pension under
22 form of payment A is equal to three percent of final average
23 salary multiplied by service credit.   The amount shall not
24 exceed one hundred percent of the final average salary; and
25B.   for a member with age and service requirements   HB 43
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1  provided under Paragraph (2) or (4) of Subsection A of
2  Section 10-11-26.2 NMSA 1978, the amount of pension under
3  form of payment A is equal to two and one-half percent of the
4  final average salary multiplied by service credit.       The
5  amount shall not exceed one hundred percent of the final
6  average salary."
7SECTION 7.    Section 10-11-130 NMSA 1978 (being Laws
8  1987, Chapter 253, Section 130, as amended) is amended to
9  read:
10"10-11-130.    RETIREMENT BOARD--AUTHORITY--MEMBERSHIP.--
11A.   The "retirement board" is created and is the
12 trustee of the association and the funds created by the state
13 retirement system acts and has all the powers necessary or
14 convenient to carry out and effectuate the purposes and
15 provisions of the state retirement system acts, including, in
16 addition to any specific powers provided for in the Public
17 Employees Retirement Act but without limiting the generality
18 of the foregoing, the power to:
19(1)   administer the state retirement system
20 acts, including the management of the association and making
21 effective the provisions of those acts, as well as to
22 administer and manage any other employee benefit acts as
23 provided by law;
24(2)   in addition to utilizing services of the
25 attorney general and notwithstanding any other provision of  HB 43
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1  law, employ or contract with and compensate competent legal
2  counsel to handle the legal matters and litigation of the
3  retirement board and the association and to give advice and
4  counsel in regard to any matter connected with the duties of
5  the retirement board;
6(3)     administer oaths;
7(4)     adopt and use a seal for authentication
8  of records, processes and proceedings;
9(5)     create and maintain records relating to
10 all members, affiliated public employers and all activities
11 and duties required of the retirement board;
12(6)     issue subpoenas and compel the
13 production of evidence and attendance of witnesses in
14 connection with any hearings or proceedings of the retirement
15 board;
16(7)     make and execute contracts;
17(8)     purchase, acquire or hold land adjacent
18 to the state capitol grounds or other suitable location and
19 build thereon a building to house the association and its
20 employees and, in the event additional office space is
21 available in the building after the retirement board and its
22 employees have been housed, to rent or lease the additional
23 space to any public agency or private person; provided that
24 first priority for the rental or leasing shall be to public
25 agencies; and further provided that for the purpose of  HB 43
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1  purchasing, acquiring or holding the land and the building
2  thereon, the retirement board may use funds from the income
3  fund and any other funds controlled by the retirement board
4  the use of which for such purposes is not prohibited by law;
5(9)    after the sale of the land and building
6  acquired pursuant to Paragraph (8) of this subsection,
7  acquire land and build thereon a new building to house the
8  association and its employees and hold the building and land
9  in fee simple in the name of the association.   In order to
10 acquire the land and plan, design and construct the building,
11 the retirement board may expend the proceeds of the sale of
12 the land and building acquired pursuant to Paragraph (8) of
13 this subsection or any funds controlled by the board, the use
14 of which for such purposes is not otherwise prohibited by
15 law;
16(10)    make and adopt such reasonable rules as
17 may be necessary or convenient to carry out the duties of the
18 retirement board and activities of the association, including
19 any rules necessary to preserve the status of the association
20 as a qualified pension plan under the provisions of the
21 Internal Revenue Code of 1986, as amended, or under successor
22 or related provisions of law;
23(11)    designate committees and designate
24 committee members, including individuals who may not be
25 members of the association; and  HB 43
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1(12)     select and contract for the services of
2  one or more custodian banks for all funds under the
3  retirement board's management.    For the purpose of this
4  paragraph, "custodian bank" means a financial institution
5  with the general fiduciary duties to manage, control and
6  collect the assets of an investment fund, including receiving
7  all deposits and paying all disbursements as directed by
8  staff, safekeeping of assets, coordination of asset
9  transfers, timely settlement of securities transactions and
10 accurate and timely reporting of the assets by individual
11 account and in total.
12B.   The retirement board consists of:
13(1)     the secretary of state;
14(2)     the state treasurer;
15(3)     four members under a state coverage plan
16 to be elected by the members under state coverage plans;
17(4)     four members under a municipal coverage
18 plan to be elected by the members under municipal coverage
19 plans; provided that one member shall be a municipal member
20 employed by a county; and
21(5)     two retired members to be elected by the
22 retired members of the association.
23C.   The results of elections of elected members of
24 the retirement board shall be certified at the annual meeting
25 of the association.    Elections shall be conducted according      HB 43
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1  to rules the retirement board adopts from time to time.
2D.   The regular term of office of the elected
3  members of the retirement board is four years.   The term of
4  one retirement board member under a state coverage plan
5  expires annually on December 31.   The terms of retirement
6  board members under a municipal coverage plan expire on
7  December 31 of noncoinciding years in the pattern set by the
8  retirement board.   Members of the retirement board serve
9  until their successors have qualified.
10E.   A member elected to the retirement board who
11 fails to attend four consecutively scheduled meetings of the
12 retirement board, unless in each case excused for cause by
13 the retirement board members in attendance, is considered to
14 have resigned from the retirement board, and the retirement
15 board shall by resolution declare the office vacated as of
16 the date of adoption of the resolution.   A vacancy occurring
17 on the retirement board, except in the case of an elected
18 official, shall be filled by the remaining retirement board
19 members, without requirement that a quorum be present.     The
20 member appointed to fill the vacancy serves for the remainder
21 of the vacated term.
22F.   Members of the retirement board serve without
23 salary for their services as retirement board members, but
24 they shall receive those amounts authorized under the Per
25 Diem and Mileage Act.  HB 43
                                                                  Page 25
1G.   The retirement board shall hold four regular
2  meetings each year and shall designate in advance the time
3  and place of the meetings.     Special meetings and emergency
4  meetings of the retirement board may be held upon call of the
5  chair or any three members of the retirement board.       Written
6  notice of special meetings shall be sent to each member of
7  the retirement board at least seventy-two hours in advance of
8  the special meeting.     Verbal notice of emergency meetings
9  shall be given to as many members as is feasible at least
10 eight hours before the emergency meeting, and the meeting
11 shall commence with a statement of the nature of the
12 emergency.    The retirement board shall adopt its own rules of
13 procedure and shall keep a record of its proceedings.       All
14 meetings of the retirement board shall comply with the Open
15 Meetings Act.     A majority of retirement board members shall
16 constitute a quorum.     Each attending member of the retirement
17 board is entitled to one vote on each question before the
18 retirement board, and at least a majority of a quorum shall
19 be necessary for a decision by the retirement board.
20H.   Annual meetings of the members of the
21 association shall be held in Santa Fe at such time and place
22 as the retirement board shall from time to time determine.
23 Special meetings of the members of the association shall be
24 held in Santa Fe upon call of any seven retirement board
25 members.   The retirement board shall send a written notice to      HB 43
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1  the last known residence address of each member currently
2  employed by an affiliated public employer at least ten days
3  prior to any meeting of the members of the association.      The
4  notice shall contain the call of the meeting and the
5  principal purpose of the meeting.    All meetings of the
6  association shall be public and shall be conducted according
7  to procedures the retirement board shall from time to time
8  adopt.   The retirement board shall keep a record of the
9  proceedings of each meeting of the association.
10I.   Except as provided in Subsection J of this
11 section, neither the retirement board nor the association
12 shall allow public inspection of, or disclosure of, the
13 following information:
14(1)    information from any member or retiree
15 file unless a prior release and consent, in the form
16 prescribed by the association, has been executed by the
17 member or retiree; or
18(2)    information otherwise protected by law.
19J.   Notwithstanding the provisions of Paragraph (1)
20 of Subsection I of this section, the association may disclose
21 the following information:
22(1)    applicable coverage plans, amounts of
23 retirement plan contributions made by members and affiliated
24 public employers and aggregate pension amounts paid;
25(2)    the names and addresses of members or      HB 43
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1  retirees that are requested solely for election purposes by
2  candidates for election to the retirement board; and
3(3)   member file information to the
4  educational retirement board for the purpose of administering
5  the provisions of the Public Employees Retirement Reciprocity
6  Act."
7SECTION 8.    Section 10-11-130.1 NMSA 1978 (being Laws
8  1999, Chapter 153, Section 1) is amended to read:
9"10-11-130.1.      RESTRICTIONS ON RECEIPT OF GIFTS--
10 RESTRICTION ON CAMPAIGN CONTRIBUTIONS--REQUIRED REPORTING.--
11A.   Members of the retirement board and employees
12 of the association shall comply with the provisions of the
13 Gift Act.
14B.   No person who is a candidate in a primary or
15 general election for a position that qualifies the person for
16 ex-officio membership on the retirement board, no member
17 serving ex officio on the retirement board and no person who
18 is a nominee for retirement board membership by election by
19 some or all of the members of the association pursuant to the
20 Public Employees Retirement Act shall accept anything of a
21 value of more than twenty-five dollars ($25.00) as a
22 contribution to an ex-officio member's statewide campaign in
23 a primary or general election or as a contribution to the
24 campaign of a nominee for membership on the board as a member
25 elected by all or some of the members of the association from     HB 43
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1  a person who:
2(1)   has a current contract with the
3  retirement board or association;
4(2)   is a potential bidder, offeror or
5  contractor for the provision of services or personal property
6  to the retirement board or association;
7(3)   is authorized to invest public funds
8  pursuant to state or federal law or is an employee or agent
9  of such a person; or
10(4)   is an organization, association or other
11 entity having a membership that includes persons described in
12 Paragraphs (1) through (3) of this subsection.
13C.    Within ten days after an election in which one
14 or more board members are elected by some or all of the
15 members of the association pursuant to the Public Employees
16 Retirement Act, all persons who were candidates for board
17 membership in that election shall file with the association a
18 report disclosing all contributions to their respective
19 campaigns whether made directly to the candidate, a political
20 action committee or to some other entity supporting the
21 candidate's election.    The contributions shall be reported by
22 amount and specific source.    Within sixty days after the
23 election, the association shall publish the reports required
24 by this subsection."
25      SECTION 9.    Section 10-11-135 NMSA 1978 (being Laws  HB 43
                                                                    Page 29
1  1987, Chapter 253, Section 135, as amended) is amended to
2  read:
3"10-11-135.    FUNDS NOT SUBJECT TO PROCESS.--Except as
4  provided in Sections 10-11-136 and 10-11-136.1 NMSA 1978,
5  none of the money, pensions or other benefits mentioned in
6  the Public Employees Retirement Act shall be assignable
7  either in law or in equity or be subject to execution, levy,
8  attachment, garnishment or other legal process, except as
9  required by federal law or pursuant to federal action or
10 order of a federal court or federal agency."
11SECTION 10.   Section 10-11A-7 NMSA 1978 (being Laws
12 1983, Chapter 263, Section 7, as amended) is amended to read:
13"10-11A-7.    RETIREMENT ANNUITY--SURVIVING BENEFICIARY.--
14 A member may designate a spouse or dependent child as a
15 beneficiary.    In the event a retirement annuitant dies, the
16 surviving beneficiary shall receive an annuity equal to two-
17 thirds of the retirement annuity being paid to the retirement
18 annuitant at the time of death; provided that the annuity
19 paid to a beneficiary spouse shall cease upon the surviving
20 spouse's death and the annuity paid to a beneficiary
21 dependent child shall cease upon the child reaching eighteen
22 years of age or upon the child's death, whichever comes
23 first."
24SECTION 11.   Section 10-12C-4 NMSA 1978 (being Laws
25 1992, Chapter 118, Section 4, as amended by Laws 2014,  HB 43
                                                                      Page 30
1  Chapter 39, Section 3 and by Laws 2014, Chapter 43, Section
2  3) is amended to read:
3"10-12C-4.    MEMBERSHIP.--Unless an irrevocable exemption
4  is filed pursuant to Subsection C of Section 10-12C-16 NMSA
5  1978, every magistrate while in office shall become a member
6  and shall be subject to the provisions of the Magistrate
7  Retirement Act.    A magistrate who is retired under any state
8  system or the educational retirement system, including a
9  magistrate who is otherwise exempt from the provisions of the
10 Magistrate Retirement Act, shall:
11A.   pay the applicable member contributions and the
12 state, through the administrative office of the courts, shall
13 pay the applicable employer contributions as provided
14 pursuant to the Magistrate Retirement Act; and
15B.   not accrue a service credit and shall not be
16 eligible to purchase service credit nor to retire pursuant to
17 the Magistrate Retirement Act."
18      SECTION 12.    Section 10-12C-8 NMSA 1978 (being Laws
19 1992, Chapter 118, Section 8, as amended by Laws 2014,
20 Chapter 39, Section 5 and by Laws 2014, Chapter 43, Section
21 5) is amended to read:
22      "10-12C-8.    AGE AND SERVICE CREDIT REQUIREMENTS FOR
23 NORMAL RETIREMENT.--
24A.   For a magistrate who was a member on June 30,
25 2014, the age and service credit requirements for retirement      HB 43
                                                                   Page 31
1  provided for in the Magistrate Retirement Act are:
2(1)   age sixty-five years or older and five
3  or more years of service credit;
4(2)   age sixty years or older and fifteen or
5  more years of service credit; or
6(3)   any age and twenty-four or more years of
7  service credit.
8B.   For a magistrate who initially became a member
9  on or after July 1, 2014, the age and service requirements
10 for normal retirement provided for in the Magistrate
11 Retirement Act are:
12(1)   age sixty-five years or older and eight
13 or more years of service credit;
14(2)   age sixty years or older and fifteen or
15 more years of service credit; or
16(3)   any age and twenty-four or more years of
17 service credit.
18C.   Except for a member who is retired under any
19 state system or the educational retirement system, if a
20 member leaves office for any reason, other than removal
21 pursuant to Article 6, Section 32 of the constitution of New
22 Mexico before meeting the age and service credit requirements
23 for retirement pursuant to the provisions of this section and
24 if that member leaves the member contributions on deposit in
25 the fund, that member may apply for retirement when that  HB 43
                                                                    Page 32
1  member meets the age and service credit requirements for
2  retirement pursuant to the provisions of the Magistrate
3  Retirement Act or provisions of the Public Employees
4  Retirement Reciprocity Act.
5D.   No member shall be eligible to receive a
6  pension pursuant to the provisions of the Magistrate
7  Retirement Act while serving a term of office for which
8  service credit is accrued."
9SECTION 13.   APPLICABILITY.--The provisions of Section 3
10 of this act shall apply to approved workers' compensation
11 leave that was taken by a member prior to or after the
12 effective date of this act.  HB 43
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