New Mexico Administrative Code › Title 2 - PUBLIC FINANCE › Chapter 80 - PUBLIC EMPLOYEES RETIREMENT › Part 500 - REMITTANCE OF CONTRIBUTIONS › Section 2.80.500.8 - REMITTANCE OF CONTRIBUTIONS

Current through Register Vol. 35, No. 13, July 16, 2024
A. In
				accordance with the Public Employees Retirement Act each state agency or
				affiliated public employer shall be responsible for deducting the applicable
				contribution from the salary or wages paid to each member for each payroll
				period.
B. The employer shall
				transmit to PERA the member and employer contributions for every member in its
				employ for each pay period on or before the fifth working day following the
				payday applicable to the pay period. The contributions shall be accompanied by
				a transmittal report in a format designated by PERA, which shall clearly set
				forth the amount of employer and member contributions, and adjustments for
				prior pay periods if applicable, transmitted.
C. Except as provided in subsection H below,
				interest will be assessed on any remittance of employee and employer
				contributions not made by the due date of the remittance. The rate of interest
				shall be set annually by the board at a July meeting and shall be effective
				beginning the next succeeding January 1st. Any interest paid on unremitted
				contributions shall not be posted to the member's account or refunded to the
				member or the employer.
D. Except
				as provided in subsection H below, a penalty of fifty dollars ($50) per day
				shall be assessed for any employee and employer contribution transmittal report
				that is untimely. For purposes of this subsection, "untimely" is defined as
				fifteen (15) days after the end of the month in which the transmittal report
				was due.
E. In the event the
				employer fails to make the necessary deductions, the employer shall be
				responsible to remit to PERA the total amount due for both the member and
				employer contributions plus interest as provided in subsection C
				above.
F. Pick-up of member
				contributions
(1) If an employer has adopted
				a resolution or executed a collective bargaining agreement pursuant to NMSA
				1978, Section
				10-11-5
				which obligates the employer to pay up to 75% of the members' contributions,
				the resolution or collective bargaining agreement shall become effective on the
				first day of the first full pay period of the month following filing of the
				resolution or collective bargaining agreement with the retirement board. PERA
				may refuse for filing a resolution containing conditions or contingencies, or
				not prepared in compliance with requirements for such resolutions approved by
				the PERA board. "First full pay period" for purposes of adopting a new coverage
				plan shall mean the first pay period that ends within the month in which the
				new coverage plan becomes applicable to a member.
(2) Under the Internal Revenue Code Section
				414(h), an employer can pick up 100% of member contributions, but only 75% of
				the contributions are additional salary.
(3) Member contributions picked-up by the
				employer under NMSA 1978, Section
				10-11-125
				are not considered compensation for purposes of Internal Revenue Code Section
				415(c).