2023 New Mexico Statutes › Chapter 22 - Public Schools › Article 11 - Educational Retirement › Section 22-11-49 - Alternative retirement plan; contributions.

A. A participant shall contribute an amount equal to the percentage of the participant's salary that the participant would be required to contribute if the participant were, instead, a regular member. The contribution shall be made as provided by the board.
B. A qualifying state educational institution shall contribute on behalf of each participant an amount of the participant's salary equal to the contribution that would be required of the employer if the participant were, instead, a regular member. Of that contribution, a sum equal to the following percentage of the annual salary of each participant shall be paid to the fund, and the remainder of the contribution shall be paid to the alternative retirement plan as provided by the board:
(1) from July 1, 2021 through June 30, 2022, four and one-fourth percent;
(2) from July 1, 2022 through June 30, 2023, six and one-fourth percent; and
(3) on and after July 1, 2023, seven and one-fourth percent; or
(4) if, on July 1 following any report by the actuary to the board that concludes that less than that percentage is required to satisfy the unfunded actuarial liability attributable to the participation of the participants in the alternative retirement plan, then the percentage the actuary determines is the minimum required to satisfy that liability.
C. Contributions required by this section may be made by a reduction in salary or by a public employer pick-up as provided in the Internal Revenue Code of 1986, as amended.
History:
1978 Comp., § 22-11-49, enacted by Laws 1991, ch. 118, § 7; 1999, ch. 261, § 3; 2019, ch. 258, § 6; 2021, ch. 44, § 3; 2022, ch. 29, § 2.
ANNOTATIONS
Cross references.
— For the Internal Revenue Code of 1986,
see
26 U.S.C.
The 2022 amendment,
effective May 18, 2022, increased employer contributions to the educational retirement fund; and in Subsection B, added a new Paragraph B(2) and redesignated former Paragraphs B(2) and B(3) as Paragraphs B(3) and B(4), respectively, and in Paragraph B(3), after "July 1", deleted "2022, five" and added "2023, seven".
The 2021 amendment,
effective July 1, 2021, increased certain contributions, and revised the schedule for contributions, to the educational retirement fund; and in Subsection B, after "sum equal to", deleted "three and one-fourth percent" and added "the following percentage", and added new Paragraphs B(1) and B(2), and in Paragraph B(3), after "concludes that less than", deleted "three and one-fourth percent" and added "that percentage".
Temporary provisions.
— Laws 2021, ch. 44, § 4 provided that before July 1, 2022, the educational retirement board shall report to the department of finance and administration, any other affected agency, the legislative finance committee, legislative education study committee and any other appropriate interim legislative committees on fund status and options to improve pension plan solvency without additional contributions from public employers.
The 2019 amendment,
effective July 1, 2019, increased employer contribution rates; in Subsection B, after "Of that contribution", deleted "made by a qualifying state educational institution on behalf of a participant beginning October 1, 1991, or October 1, 1999, whichever is applicable", after "sum equal to", deleted "three percent" and added "three and one-fourth percent", after "concludes that less than", deleted "three percent of the contributions made by a qualifying sate educational institution on behalf of its participants" and added "three and one-fourth percent", after "retirement plan", deleted "the three percent shall be reduced" and added "then", and after "actuary", added "determines is the minimum required to satisfy that liability".
The 1999 amendment,
effective June 18, 1999, inserted "or October 1, 1999, whichever is applicable" in the second sentence of Subsection B.