A. On and after July 1, 2014, members, while in office, shall contribute ten and one-half percent of salary to the member contribution fund.
B. Upon implementation, the state, acting as employer of members covered pursuant to the provisions of the Magistrate Retirement Act [10-12C-1 NMSA 1978], shall, solely for the purpose of compliance with Section 414(h) of the Internal Revenue Code of 1986 [26 USCS § 414(h)], pick up, for the purposes specified in that section, member contributions required by this section for all annual salary earned by the member. Member contributions picked up pursuant to the provisions of this section shall be treated as employer contributions for purposes of determining income tax obligations under the Internal Revenue Code of 1986 [26 USCS § 1 et seq.]; however, such picked-up member contributions shall be included in the determination of the member’s gross annual salary for all other purposes under federal and state laws. Member contributions picked up pursuant to the provisions of this section shall continue to be designated member contributions for all purposes of the Magistrate Retirement Act and shall be considered as part of the member’s annual salary for purposes of determining the amount of the member’s contribution. The provisions of this section are mandatory, and the member shall have no option concerning the pick up or concerning the receipt of the contributed amounts directly instead of having the amounts paid by the employer to the retirement system. Implementation occurs upon authorization by the board. In no event may implementation occur other than at the beginning of a pay period applicable to the member.
HISTORY:
Laws 1992, ch. 118, § 10; 2004, ch. 101, § 2; 2005, ch. 247, § 1; 2009, ch. 127, § 9; 2011, ch. 178, § 11; 2014, ch. 39, § 7; 2014, ch. 43, § 7.
Amendment Notes.
The 2004 amendment, effective July 1, 2004, in Subsection A, added “and one-half” following “five”; and added Subsection C.
The 2005 amendment, effective July 1, 2005, in Subsection A, substituted “the following amounts” for “five and one-half percent of salary”; added Paragraphs A(1) and (2); and deleted Subsection C, which pertained to the increase in member contributions provided for in a 2004 act contingent upon a salary increase for justices and judges enacted by the second session of the forty-sixth legislature.
The 2009 amendment, effective July 1, 2009, added “except that, from July 1, 2009 through June 30, 2011, for members whose annual salary is greater than twenty thousand dollars ($20,000), the member contribution rate shall be nine percent of the salary” in (A)(2).
The 2011 amendment, effective July 1, 2011, deleted “from July 1, 2009 through June 30, 2011” following “except that” in the introductory language of (A)(2); added the (A)(2)(a) designation, added “from July 1, 2009 through June 30, 2011” in (A)(2)(a), and added (A)(2)(b) and (A)(2)(c).
The 2014 amendments. Laws 2014, ch. 39, § 7, and Laws 2014, ch. 43, § 7, both effective July 1, 2014, enacted identical amendments to this section. The section is set out as amended by Laws 2014, ch. 43, § 7. See 12-1-8 NMSA 1978. The 2014 amendment, in A, added “On and after July 1, 2014” and substituted “ten and one-half percent of salary” for “the following amounts”; deleted former A(1) and A(2), which read: “(1) through June 30, 2006, six and one-half percent of salary; and (2) on and after July 1, 2006, seven and one-half percent of salary, except that for members whose annual salary is greater than twenty thousand dollars ($20,000): (a) from July 1, 2009 through June 30, 2011, the member contribution rate shall be nine percent of salary; (b) from July 1, 2011 through June 30, 2012, the member contribution rate shall be ten and three-fourths percent of salary; and (c) from July 1, 2012 through June 30, 2013, the member contribution rate shall be nine percent of salary”; substituted “ 26 USCS § 414(h)” for “ 26 USCS § 414(d)” in the first sentence of B; and made stylistic changes.
Temporary provisions.
Laws 2011, ch. 178, § 14, effective July 1, 2011, provides “A. No later than September 30, 2013, the retirement board of the public employees retirement association and the educational retirement board shall each cause an actuarial study to be conducted for each retirement system administered by the board. Each study shall analyze whether the higher employee contribution rates and lower employer contribution rates required by this act and Laws 2009, Chapter 127 have had or will have an adverse actuarial effect on the retirement system in violation of Article 20, Section 22 of the constitution of New Mexico. The results of each study shall be submitted to the legislative finance committee and the governor. “B. If a study concludes that a retirement system has had or will have an adverse actuarial effect as a result of the higher employee contribution rates and the lower employer contribution rates required by this act and Laws 2009, Chapter 127, the board that administers that retirement system shall submit a request for a supplemental appropriation to the second session of the fifty-first legislature in the amount that will rectify the adverse actuarial effect.”
Laws 2011, ch. 178, § 15, effective July 1, 2011, provides “For the purposes of calculating employee and employer contributions due after June 30, 2011, in determining whether an employee has an annual salary greater or less than twenty thousand dollars ($20,000), the employee’s annual salary shall be the employee’s base hourly rate at the time the contribution is made multiplied by the number of compensable hours for a full-time-equivalent in the employee’s position at the time the contribution is made as determined by the employer; provided that the department of finance and administration shall determine the number of compensable hours for a full-time-equivalent in the employee’s position for employees who are members in a retirement program provided for in the Public Employees Retirement Act, the Magistrate Retirement Act or the Judicial Retirement Act.”
Laws 2011, ch. 178, § 16, effective July 1, 2011, provides “Notwithstanding a provision of this act to the contrary, the employer and employee contribution rates required by this act for the period from July 1, 2011 through June 30, 2012 shall continue for the period from July 1, 2012 through June 30, 2013 if, after the last consensus revenue forecast before the beginning of the second session of the fiftieth legislature, the secretary of finance and administration certifies to the retirement board of the public employees retirement association, the educational retirement board and the legislative finance committee that, according to the consensus revenue forecast:
“(1) general fund revenues in fiscal year 2012 will be less than one hundred million dollars ($100,000,000) more than the general fund revenue forecast reflected in the fiscal year 2012 state budget; and “(2) at the end of fiscal year 2012, the total amount in the state reserve funds will be less than five percent of the total general fund appropriations for fiscal year 2012.”
Severability.
As to severability, see the 2014 note under § 10-12C-2.