SB 165/a LEGISLATIVE RETIREMENT CHANGES

Sen Roberto "Bobby" Gonzales

Actions: [2] SCC/SFC-SCC-germane-SFC [8] DP [9] PASSED/S (36-3) [14] HAFC-HAFC- DP/a [15] PASSED/H (46-18) [14] s/cncrd SGND BY GOV (Feb. 29) Ch. 29.

Scheduled: Not Scheduled

 Senate Bill 165 (SB 165) changes the calculation of the amount of pension for State Legislator Member Coverage Plan 2 (SLMC-2) and makes an appropriation. 

 Senate Bill 165 (SB 165) changes the calculation of the amount of pension for State Legislator Member Coverage Plan 2 (SLMC-2) and makes an appropriation.

Under SLMC-2, the annual amount of pension under form of payment A is equal in any calendar year to fourteen percent of the per diem rate in effect, pursuant to Section 2-1-8 NMSA 1978, on the first day of the fiscal year that the legislator or lieutenant governor retires multiplied by ninety (increased from the previous multiplier of sixty) and further multiplied by credited service as a legislator or lieutenant governor. 

Twenty-five thousand dollars ($25,000) is appropriated from the General Fund to the Public Employees Retirement Association for expenditure in Fiscal Year 2025 and subsequent fiscal years to cover the cost associated with the increase in the multiplier in SLMC-2 as provided in Section 1 of the act. Any unexpended or unencumbered balance remaining at the end of a Fiscal Year does not revert to the general fund. 

The provisions of the act apply to credited service accrued: 

•	on and after the effective date of this act; and 
•	prior to the effective date of this act, provided that the credited service was accrued by a state legislator member who has not previously retired.
 

 The proposed multiplier for calculating the amount of pension for State Legislator Member Coverage Plan 2 is ninety rather than sixty. If the bill does not pass, the multiplier will remain the same. Further, if the bill does not pass, there will be no appropriation related to the administration of the calculations. 

 Amended February 13, 2024 in the Senate Appropriations and Finance Committee

SAFCa/SB 165: The Senate Appropriations and Finance Committee’s amendment to Senate Bill 165 (SB 165) is as follows:

1. On page 1, line 13, strike "; MAKING AN APPROPRIATION". 

2. On page 2, lines 7 through 14, strike Section 2. 3. Renumber the succeeding section accordingly.