CS/HB 236/a PUBLIC SAFETY RETIREES RETURNING TO WORK

Rep Gail C. Chasey

Actions: [3] HLVMC/HJC-HLVMC [7] DNP-CS/DP-HJC [10] DP/a [13] fl/aa- PASSED/H (56-7) [9] SHPAC-SHPAC- DP [14] PASSED/S (33-2) SGND BY GOV (Mar. 4) Ch. 48.

Scheduled: Not Scheduled

 House Bill 236 (HB 236):  This legislative act proposes to amend the Public Employees Retirement Act in the state of New Mexico. The proposed changes mainly focus on allowing certain public safety employees to return to work under specific conditions after retirement. 

 House Bill 236 (HB 236):  Section 1 - Normal Retirement and Return to Employment:
•	A member can retire if they meet specified requirements.
•	Upon retirement, the member's employment must be terminated with all covered employers.
•	The retired member's pension amount is determined by the applicable coverage plan.

Conditions for Subsequent Employment After Retirement:
•	Retired members may be subsequently employed by an affiliated public employer under certain conditions.
•	The retired member's pension may be suspended during subsequent employment.
•	The retired member shall not become a member during subsequent employment, and no service credit will be accrued.
•	Pension resumes upon termination of subsequent employment.

Exceptions to Conditions:
•	Certain exceptions to the conditions are outlined, including exemptions for retired members employed by the legislature, those temporarily employed for election work, and elected officials.

Service Credit and Pension Calculation:
•	Rules for determining the pension of a member with service credit under multiple coverage plans are provided.
•	Different scenarios are outlined based on service credit earned before and after specific dates.

Special Provisions for Certain Positions and Time Periods:
•	Specific conditions and limitations are outlined for retired members subsequently employed in certain positions (e.g., correctional officers, police officers) and retired before a specified date.
•	Affiliated public employers hiring retired members must track and document relevant information.

The effective date of the proposed changes is July 1, 2024.

 

 Amended February 3, 2024, in HLVMC
HLVMCa/HB 236: The following are proposed amendments:
1.  On page 8, between lines 24 and 25, insert:
 "(j) peace officer;".
 2.  Re-letter the succeeding subparagraphs accordingly.
 3.  On page 12, between lines 17 and 18, insert:
 "(10) "peace officer" means a person who is appointed
 by the attorney general or district attorney and who is a certified
 law enforcement officer who investigates and enforces state laws,
 rules and regulations, including the execution of warrants;".
 4.  Renumber the succeeding paragraphs accordingly
 

 Committee Substitute February 2, 2024, in HLVMC:

HLVMCcs/HB 236:  Normal Retirement and Return to Employment:
•	Members can retire by meeting specific requirements.
•	Employment must be terminated with all covered employers.
•	The retired member's pension is determined according to the applicable coverage plan.

Return to Employment After Retirement (Section C):
•	A retired member can be subsequently employed by an affiliated public employer under certain conditions.
•	A waiting period of twelve consecutive months is required before reemployment.
•	The retired member's pension is suspended during subsequent employment.
•	The retired member does not become a member and does not accrue service credit during reemployment.
•	Upon termination of subsequent employment, the pension resumes.

Exemptions from Return to Employment Conditions (Section D):
•	Certain exemptions are provided for specific categories of retired members (e.g., those employed by the legislature during legislative sessions).

Return to Employment with Affiliated Public Employer Prior to July 1, 2010 (Section G):
•	Retired members returning to work before July 1, 2010, are subject to specific provisions in effect at the time but must pay employee contributions after that date.

Return to Employment Covered by Magistrate Retirement Act or Judicial Retirement Act (Section H):
•	Specific conditions are outlined for retired members employed and covered under the Magistrate Retirement Act or Judicial Retirement Act.

Service Credit Determination (Section I):
•	The pension calculation for members with service credit under multiple coverage plans is outlined.

Specific Conditions for Subsequent Employment (Section J):
•	Retired members may be subsequently employed under specific conditions.
•	Limited to certain positions in public safety.
•	Retired members must have retired before December 31, 2023.
•	Pension, including cost-of-living adjustment, continues during subsequent employment.
•	Limited to thirty-six consecutive months of pension payments while reemployed.
•	Employment must begin before July 1, 2027.
Responsibilities of Affiliated Public Employers (Section K):
•	Employers must track and document various details regarding reemployed retired members.
•	If layoffs occur due to budgetary restrictions, reemployed retired members are laid off first.

Definition of Terms (Section L):
•	Definitions for various positions such as adult correctional officer, firefighter, etc.

Effective Date (Section 2):
•	The effective date of the provisions is July 1, 2024.