2020 New Mexico Statutes
Chapter 22 - Public Schools
Article 11 - Educational Retirement
Section 22-11-21 - Contributions; members; local administrative units.

A. Except as provided in Subsection D of this section, for a member whose annual salary is greater than twenty-four thousand dollars ($24,000), the member shall make contributions to the fund at the rate of ten and seven-tenths percent of the member's annual salary.

B. For a member whose annual salary is twenty-four thousand dollars ($24,000) or less, the member shall make contributions to the fund at the rate of seven and nine-tenths percent of the member's annual salary.

C. Except as provided in Subsection D of this section, each local administrative unit shall make an annual contribution to the fund on and after July 1, 2019, at the rate of fourteen and fifteen-hundredths percent of the annual salary of each member employed by the local administrative unit.

D. If, in a calendar year, the salary of a member, initially employed by a local administrative unit on or after July 1, 1996, equals the annual compensation limit set pursuant to Section 401(a)(17) of the Internal Revenue Code of 1986, as amended, then:

(1) for the remainder of that calendar year, no additional member contributions or local administrative unit contributions for that member shall be made pursuant to this section; provided that no member shall be denied service credit solely because contributions are not made by the member or on behalf of the member pursuant to this subsection; and

(2) the amount of the annual compensation limit shall be divided into four equal portions, and, for purposes of attributing contributory employment and crediting service credit, each portion shall be attributable to one of the four quarters of the calendar year.

History: 1953 Comp., § 77-9-20, enacted by Laws 1967, ch. 16, § 144; 1974, ch. 5, § 1; 1981, ch. 293, § 1; 1984, ch. 19, § 2; 1991, ch. 140, § 1; 1992, ch. 117, § 1; 2005, ch. 273, § 1; 2008, ch. 68, § 1; 2009, ch. 127, § 11; 2010, ch. 67, § 1; 2011, ch. 178, § 13; 2013, ch. 61, § 1; 2019, ch. 237, § 18; 2019, ch. 258, § 1.

Cross references. — For Section 401(a)(17) of the Internal Revenue Code of 1986, see 26 U.S.C. 401.

2019 Multiple Amendments. — Laws 2019, ch. 237, § 18 and Laws 2019, ch. 258, § 1, both effective July 1, 2019, enacted different amendments to this section. Pursuant to 12-1-8 NMSA 1978, Laws 2019, ch. 258, § 1, as the last act signed by the governor, has been compiled into the NMSA 1978 as set out above, and Laws 2019, ch. 237, § 18, while not compiled pursuant to 12-1-8 NMSA 1978, is set out below.

Laws 2019, ch. 258, § 1 [set out above], effective July 1, 2019, raised the salary threshold for member contribution amounts; in Subsection A, in the introductory clause, after "greater than", deleted "twenty thousand dollars ($20,000)" and added "twenty-four thousand dollars ($24,000)", and after "fund", deleted "according to the following schedule", deleted Paragraph A(1), paragraph designation "(2)" and the language "On and after July 1, 2014"; in Subsection B, after the subsection designation, deleted "On and after July 1, 2008", after "annual salary is", deleted "twenty thousand dollars ($20,000)" and added "twenty-four thousand dollars ($24,000)", and after "member", deleted "contribution" and added "shall make contributions to the fund at the"; and in Subsection C, after "contribution to the fund", deleted "according to the following schedule:" and added "on and after July 1, 2019, at the rate of fourteen and fifteen-hundredths percent of the annual salary of each member employed by the local administrative unit", and deleted former Paragraphs C(1) and C(2).

Laws 2019, ch. 237, § 18 [set out below], effective July 1, 2019, increased employer contribution rates to the educational retirement fund; in Subsection A, after "contributions to the fund", deleted "according to the following schedule:" and added "in an amount equal to", deleted former Paragraph A(1) and paragraph designation "(2)", after "in an amount equal to", deleted "on and after July 1, 2014, the member contribution rate shall be"; and in Subsection C, after "contribution to the fund", deleted "according to the following schedule:" and added "in an amount equal to fourteen and fifteen-hundredths", deleted former Paragraph C(1) and paragraph designation "(2)", and after "fifteen-hundredths", deleted "on and after July 1, 2014, a sum equal to thirteen and nine-tenths".

"22-11-21. Contributions; members; local administrative units.

A. Except as provided in Subsection D of this section, for a member whose annual salary is greater than twenty thousand dollars ($20,000), the member shall make contributions to the fund in an amount equal to ten and seven-tenths percent of the member's annual salary.

B. On and after July 1, 2008, for a member whose annual salary is twenty thousand dollars ($20,000) or less, the member contribution rate shall be seven and nine-tenths percent of the member's annual salary.

C. Except as provided in Subsection D of this section, each local administrative unit shall make an annual contribution to the fund in an amount equal to fourteen and fifteen-hundredths percent of the annual salary of each member employed by the local administrative unit.

D. If, in a calendar year, the salary of a member, initially employed by a local administrative unit on or after July 1, 1996, equals the annual compensation limit set pursuant to Section 401(a)(17) of the Internal Revenue Code of 1986, as amended, then:

(1) for the remainder of that calendar year, no additional member contributions or local administrative unit contributions for that member shall be made pursuant to this section; provided that no member shall be denied service credit solely because contributions are not made by the member or on behalf of the member pursuant to the provisions of this subsection; and

(2) the amount of the annual compensation limit shall be divided into four equal portions, and, for purposes of attributing contributory employment and crediting service credit, each portion shall be attributable to one of the four quarters of the calendar year."

The 2013 amendment, effective July 1, 2013, increased the contribution rate of members whose annual salary is greater than twenty thousand dollars; in Subsection A, in the introductory sentence, after "Subsection", deleted "C" and added "D", and after "section", deleted "each" and added "for a member whose annual salary is greater than twenty thousand dollars ($20,000), the"; deleted former Paragraphs (1) through (5) of Subsection A, which provided the contribution rates for members for fiscal years beginning in 2005 and ending in 2013; added Paragraphs (1) through (2) of Subsection A; added Subsection B; in Subsection C, in the introductory sentence, after "Subsection", deleted "C" and added "D"; deleted former Paragraphs (1) through (8) of Subsection B, which provided the contribution rates for local administrative units for fiscal years beginning in 2005 and ending in 2013; renumbered former Paragraphs (9) and (10) of Subsection B as Paragraphs (1) and (2) of Subsection B respectively; and renumbered former Subsection C as Subsection D.

The 2011 amendment, effective July 1, 2011, for the period from July 1, 2011 through June 30, 2012, increased the member contribution rate for members whose annual salary is more than twenty thousand dollars; for the period July 1, 2011 through June 30, 2012, decreased the local administrative unit contribution rate by different percentages depending on whether the annual salary of members is more or less than twenty thousand dollars; for the period July 1, 2012 through June 30, 2013, increased the local administrative unit contribution rate for members whose annual salary is twenty thousand dollars or less; and increased the local administrative unit contribution rate for the period July 1, 2013 through June 30, 2014 and for periods beginning on and after July 1, 2014.

Temporary provisions. — Laws 2011, ch. 178, § 14 provided:

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 Laws 2011, Chapter 178 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 Laws 2011, Chapter 178 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.

The 2010 amendment, effective July 1, 2010, in Subsection B(7), after "July 1", changed "2010" to "2011"; after "June 30", changed "2011" to "2012"; after "a sum equal to", deleted "eleven and sixty-five hundredths" and added "thirteen and fifteen-hundredths"; after "local administrative unit", deleted the former language, which provided that for members whose annual salary is $20,000 or less, the local administrative unit would contribute thirteen and fifteen-hundredths percent of the member's annual salary; and in Subsection B(8), after "July 1", changed "2011" to "2012".

The 2009 amendment, effective July 1, 2009, in Paragraph (5) of Subsection A, added the exception at the end of the sentence; in Paragraph (6) of Subsection B, changed "twelve and four-tenths" to "ten and nine-tenths"; and added the exception at the end of the sentence; and in Paragraph (7) of Subsection B, changed "eleven and fifteen-hundredths" to "eleven and sixty-five hundredths" and added the exception at the end of the sentence.

The 2008 amendment, effective July 1, 2008, added Subsection C.

Temporary provision. — Laws 2008, ch. 68, § 3, provided for additional contributions to the educational retirement fund and restoration of service credit for employees whose member contributions and local administrative unit contributions were incorrectly capped prior to July 1, 2008, because the employee's salary exceeded the annual compensation limit set pursuant to Section 401(a)(17) of the Internal Revenue Code.

The 2005 amendment, effective June 17, 2005, deleted the former provision of Subsection A that each member shall contribute seven and six-tenths percent of his annual salary; provided in Subsections A(1) through (8) a schedule of annual contributions; deletes former provision of Subsection B which provided that each local administrative unit shall make an annual contribution of seven and six-tenths percent of the annual salary of each member employed by the administrative unit; provides in Subsections B(1) through (5) a schedule of annual contributions; and deleted former Subsection C, which provided that each administrative unit shall make an annual contribution of eight and sixty-five hundredths percent of the annual salary of each member employed by the administrative unit.

The 1992 amendment, effective March 10, 1992, substituted "1993" for "1992" near the beginning of Subsections B and C; and substituted "sixty-five hundredths" for "six-tenths" in Subsection C.

The 1991 amendment, effective June 14, 1991, added "Until July 1, 1992" at the beginning of Subsection B and added Subsection C.

Am. Jur. 2d, A.L.R. and C.J.S. references. — Validity and effect of retroactive change in rate of employee's contribution to public pension fund, 78 A.L.R.2d 1197.