February Legislative Session Update
February 13, 2024
February 10, 2010
Greetings UNM Retiree Association Members,
FROM THE AARP: THE IMPORTANCE OF COLAs TO PENSION PLANS
We are beginning the fourth week for the 54th Legislative session, with eleven more days remaining in the session. Days and bills are zooming by.
HB 46, Changes to the Educational Retirement Fund, was heard on Saturday in the House Appropriations and Finance Committee. A vote was taken to remove the appropriations for the bill, and HB 46 was TABLED. Unless something unusual occurs, the bill died and will not be heard again in this session. Unfortunately, this means the UNM Retiree Association and other stakeholders from around the state will be meeting once again this spring and up until December, 2020 to discuss legislative actions needed to ensure the ERB’s fund sustainability. Maybe with next year’s sixty-day session the legislature will see its way to contribute the funds requested in HB 46 or a similar bill to ensure the ERB fund for K-12 teachers and higher education educators is sustainable.
We are also following SB 72, PERA Solvency, to note how our legislators vote on the PERA changes and monies SB 72 allots the PERA fund. It should prove interesting to see the legislated PERA COLA changes in this session versus how the ERB COLA was viewed and legislated in 2013. The bill received a DO PASS in the Senate Finance Committee today and moves to the Senate Floor for a vote.
On a happier note, SB 111 received DO Pass votes in two committee hearings. SB 111 relates to return to work issues for our retirees. The bill was primarily introduced to address hiring substitutes for K-12 and the unintended consequences of HB 360 (2019). It reverses the lay-out period, .25 work mandate from $15,000 max and required employee contributions. It received a DO PASS on Saturday, February 8th in the Senate Finance Committee. It will now be scheduled for a third reading to be heard on the Senate Floor for a vote.
UNM RA IS TRACKING THE FOLLOWING BILLS:
ERB PENSION:
HB 46, Changes to the Educational Retirement Fund
Sponsor: Rep. Tomas Salazar
Synopsis: The bill consists of allotment of funds by the state over a four-year period with the goal to achieve full funding in a 30-year period. It does notinclude changes to the ERB COLA!
Status: SB 46 received a DO PASS in the Labor Veterans’ & Military Affairs Committee by a 6 to 1 vote, 1/31.
Current Location: House Appropriations and Finance Committee. HB 46 was TABLED on Saturday, 2/8/2020.
You can always call the committee members to discuss their decision to table HB 36.
House Appropriations and Finance Committee Members:
Rep. Patricia Lundstrom, Chair
Telephone: 505 986-4316
Email: patricia.lundstrom@nmlegis.gov
Rep. Joseph Sanchez, Vice Chair
Telephone: 505 986-4319
Email: joseph.sanchez@nmlegis.gov
Rep. Anthony Allison
Telephone: 505 986-4464
Email: anthony.allison@nmlegis.gov
Rep. Phelps Anderson
Telephone: 505 986-4450
Email: phelps.anderson@nmlegis.gov
Rep. Gail Armstrong
Telephone: 505 986-4242
Email: gailfornewmexico.com
Rep. Paul Bandy
Telephone: 505 986-4215
Email: paul@paulbandy.org
Rep. Cathrynn Brown
Telephone: 505 986-4420
Email: c.brown.nm55@gmail.com
Rep. Jack Chatfield
Telephone: 505 986-4467
Email: jackchd67@gmail.com
Rep. Randal Crowder
Telephone: 505 986-4215
Email: randal.crowder@nmlegis.gov
Rep. Harry Garcia
Telephone: 505 986-4323
Email: hgarciad69@gmail.com
Rep. Susan Herrera
Telephone: 505 986-4249
Email: susan.herrera@nmlegis.gov
Rep. Rudolpho “Rudy” Martinez
Telephone: 505 986-4233
Email: rodolpho.martinez@nmlegis.gov
Rep. Tomas Salazar
Telephone: 505 986-4236
Email: tomas.salazar@nmlegis.gov
Rep. Nathan Small
Telephone: 505 986 4438
Email: nathan.small@nmlegis.gov
Rep. Melanie Stansbury
Telephone: 505 986-4336
Email: melanie.stansbury@nmlegis.gov
Rep. Candie Sweetser
Telephone: 505 986 4255
Email: candie.sweetser@nmlegis.gov
Rep. Christine Trujillo
Telephone: 505 986-4435
Email: christine.trujillo@nmlegis.gov
ISSUE: HOUSE BILL 46 “CHANGES TO EDUCATIONAL RETIREMENT FUND”
STATEMENT: The UNM Retiree Association represents the welfare of all retired UNM employees and serves in an advisory role to the UNM Board of Regents, UNM Administration and Educational Retirement Stakeholders Group. NMERB’s retirees, current and future members have largely shouldered the burdens of pension reform in 2010, 2013 and 2019 as compared to PERA employees and PERA retirees. It is time for the state to do its share and pass HB 46. HB 46 will improve the ERB pension fund ratio and shortens the amount of years ERB retirees must live with a reduced COLA amount due to the 2013 legislation, SB 115. Most importantly, it demonstrates our state legislators value educators and support staff from K-12 to Higher Education and will uphold – Pension Promises Made are Pension Promises Kept.
WHAT THE BILL DOES:
In 2020:
· A transfer from General Fund to ERB trust fund - $50 million
· Plus--transfer from General Fund to ERB an amount equal to a 1% employer contribution increase - $32.9 million
After 2020:
· Distributions from Gross Receipts Tax to ERB trust fund:
· In 2021 the amount equal to a 2% increase in employer contribution- $65.8 million
· In 2022 a transfer from Gross Receipts Tax to ERB trust fund - $50 million plus an amount equal to a 3% increase in employer contribution $98.7 million
· Also, in 2022 and thereafter - an amount equal to a $32.9 million x 1% = 3% increase in employer contribution - $98.7 million
WHY:
We need to strive to be 100% funded as soon as possible. (While the UNM Retiree Association’s opinion disputes the necessity for 100% funding versus an 80% > funded ratio, HB 46 moves the fund in the right direction.)
· Being 100% funded benefits all NMERB’s stakeholders: students, members, retirees, employers, taxpayers and the state.
· NMERB is currently 62.9% funded and unfunded liabilities are $7.9 billion.
· the unfunded liability hurts the state’s, schools’, colleges’ and universities’ credit ratings.
Without these changes NMERB will be 100% funded in 47 years, but WITH these changes full funding will take only 30 years.
FACTS: HB 46, sponsored by Representative Tomas Salazar, was extensively vetted by stakeholders throughout the state, ERB management, the ERB Board of Trustees and the Investment Pension Oversight Committee. HB 46 takes in account previous pension benefit reduction legislation affecting both the employee and employer. HB 46 helps rectify the ERB COLA reductions which affects retirees across your state and is legislated to continue until sustainability is achieved. Extensive analysis, communication and feedback were considered by the ERB management in drafting HB 46 to design a strategic solution to improve the ERB’s pension sustainability.
RECOMMENDED ACTION: PASS HB 46” CHANGES TO EDUCATIONAL RETIREMENT FUND.” IT IS TIME FOR REPRESENTATIVES IN THE NEW MEXICO HOUSE AND SENATE TO JOIN IN SUPPORT OF EDUCATORS IN K-12 AND HIGHER EDUCATION.
Other Bills UNM RA is following:
HB 226, Retired Teachers as Substitutes
Sponsor: Rep. Sheryl Williams Stapleton, , Christine Trujillo, Linda Trujillo, Joy Garratt and G. Andres Romero
Synopsis: Relating to educational retirement; allowing certain retired
members to return to employment as substitute teachers.
Status: Was not ruled germane and will not be heard this session.
HB 260, Retired Teachers as Substitutes,
Sponsor: Rep. Sheryl Williams Stapleton, Linda Trujillo, Debra Sarinana, Joy Garratt and Susan Herrera
Synopsis: Relating to education; allowing certain retired members to
return to employment as substitute teachers.
Status: Was not ruled germane and will not be heard this session.
SB 94, Retired Law Enforcement Returning to Work
Sponsor: Senator Clemente Sanchez
Synopsis: Relating to public employee retirement; allowing retired law
enforcement officers to return to employment as law enforcement
patrol officers under certain conditions.
Status: Referrals SPREF
Current Location: Senate Committees Committee
SB 111, Changes to Educational Retirement
Sponsor: Senator Mimi Stewart
Synopsis: Amends the Educational Retirement Act (ERA) to remove provisions requiring nonrefundable employee and employer contributions for retirees who return to work at 0.25 FTE or less. SB111 also allows retired members to return to work without suspending pension payments so long as the retiree has not worked for or contracted with a school for at least 90 days prior to returning to work and the retiree will earn an annual salary less than $15 thousand.
Status: SB 111 received a DO PASS in the Senate Education Committee, unanimous vote, 2/3/2020. It received a DO PASS in the Senate Finance Committee, 2/8/2020.
Current Location: Sent to Senate Floor for a vote.
BILLS RELATED TO PERA AND ERB:
SB 72, PERA Solvency
Sponsor: Senator George Munoz
Synopsis: Changes needed to address solvency for the PERA fund.
Status: Senate Public Affairs Committee voted DO PASS on 1/31/2020 with amendments
Current Location: Senate Finance Committee voted DO PASS, 10 to 2 votes on 2/10/2020 with amendment. Moves to Senate Floor for a vote.
SB 34, COLA Increases to Retired Law Enforcement
Sponsor: Senator Craig Brandt
Synopsis: Relating to retirement; allowing cost-of-living adjustment
increases to retired law enforcement officers hired as school
security personnel.
Status: No hearing
Current Location: Senate Committees Committee
SB 60, Public Employees Retirement Board Changes
Sponsor: Senator George Munoz
Synopsis: Relating to public employee retirement; changing the
composition of the public employee’s retirement board; removing
certain election requirements.
Status: Referrals SPREF
Current Location: Senate Committees Committee
SB 62, Public Employee Retirement Pay Changes
Sponsor: Senator George Munoz
Synopsis: Relating to public employee retirement; including overtime pay
required for a regular scheduled tour of duty in the definition of "salary" in the public employee’s retirement act.
Status: SB 62 received a Do Pass in Senate Public Affairs Committee, Friday, 1/31/2020
Current Location: Senate Finance Committee
SB 71, PERA & ERB Employee Compensation
Sponsor: Senator George Munoz
Synopsis: Provides for an investment performance-based framework for the compensation of public employee’s retirement association and educational retirement
board staff; exempting those agencies' investment staff positions from the personnel act.
Status: Referrals SPREF
Current Location: Senate Committees Committee
SB 201, Change PERA Board Membership
Sponsor: Senator George Munoz
Synopsis: Changes the
composition of the public employee’s retirement board; removing
certain election requirements.
Status: Ruled germane 1/31/2020
Current Location: Senate Rules Committee
Bills Related to Social Security:
HB 29, Social Security Incomed Tax Exemption
Sponsor: Rep. Cathryn Brown, Rep. Gail Armstrong, Rep. Rebecca Dow, Rep. Jack Chatfield and Rep. Randall Crowder
Synopsis: Exempts social security income from income tax.
Status: Received a DO PASS in HLVMAC
Current Location: House Taxation and Revenue Committee TABLED the bill.
HB 77, Social Security Income Tax Exemption,
Sponsor: Representatives Damon Ely, Rep. Bill Tallman and Rep. Dayan Hochman-Vigil.
Synopsis: Exempts a certain amount of social security income from income tax.
Status: Received a DO PASS in House Labor Veterans and Military Affairs Committee
Current Location: HB77 was TABLED in the House Taxation and Revenue Committee.
Please stayed tune for future updates!
IT IS UP TO ALL OF US, RETIREES AND THOSE STILL WORKING, TO PROTECT OUR BENEFITS!!! WHAT CAN YOU DO??
• Track the bills we are following – State bill finder site - https://nmlegis.gov/Legislation/Bill_Finder
• Sign up with UNM Government and Community Relations to receive bill updates and alerts – https://govrel.unm.edu/updates/index.html.
• Know your state senator’s and representative’s contact information before you really need it - Find your legislator by address -https://www.nmlegis.gov/Members/Find_By_Address
• Write, call or tweet legislators and ask them to protect your pension and the COLA - CAPITOL SWITCHBOARD - (505-986-4300) & #nmlegis
2020 LEGISLATIVE SESSION CALENDAR:
• Monday, December 16, 2019 – Friday, January 17, 2020 - Legislation may be pre-filed
• Tuesday, January 21 - Opening day (noon)
• Wednesday, February 5 - Deadline for introduction (Note: a legislation, dummy bill can be introduced at any time.)
• Thursday, February 20 - Session ends (noon)
• Wednesday, March 11 - Legislation not acted upon by governor is pocket vetoed
• Wednesday May 20 - The effective date of legislation, not a general appropriation bill or a bill carrying an emergency clause or other specified date
Sincerely,
UNM Retiree Association Board
