Final Report from Legislature
February 13, 2024
Greetings UNM Retiree Association Members,The gavel descended in the House and the Senate at noon today to bring a fast and furious 30-day session to an end. No one came to blows, even though the House received budget revisions from the Senate at the 11th hour. The 54th Legislative session lawmakers approved a $7.6 Billion budget bill where it advances to the Governor Michelle Lujan Grisham’s desk for final approval. This budget increased state spending by 7.6 percent over last year - $536 million more.
The Governor has until Wednesday, March 11 to act upon passed legislation. All legislation not acted upon by governor is pocket vetoed. The effective date for enacted legislation is Wednesday May 20, other than a general appropriation bill or a bill carrying an emergency clause or other specified date.
For the 2nd consecutive year, lawmakers were “heartsick,” they could not address allotting monies for improving the sustainability for the Educational Retirement Fund. The Appropriations and Finance Committee (HAFC) members admitted they were kicking the ERB can down the road when they voted to table HB 46. During the SB 111 debate, Senator Mimi Stewart assured the ERB issue must be taken care of next year. At that same bill debate, Senator Munoz, Investment Pensions Oversight Interim Committee Chair and Senate Finance Committee Co-Chair, commented there was a great $75 million disappearing act for ERB in the House. What happened to the monies the Senate Finance Committee (SFC) allotted at the beginning of the session to ERB is anyone’s guess. The HVAC did reduce the PERA allotment from $75 million to a $55 million fund infusion instead and it passed the Senate and House before the session ended. Hmm… the $20 million they deducted from the PERA original appropriation could have been beneficial to the ERB fund.
We can only hope 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.
For those retirees interested in returning to work for a system under ERB, SB 111 passed. It reverses the lay-out period, .25 work mandate from $15,000 max and required employee contributions. Happy job hunting.
UNM RA IS TRACKED 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 not include 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.
OTHER BILLS UNM RA FOLLOWED:
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 – never heard
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: Passed in the Senate - Y:32 N:7, 2/11/20 & Passed in the House of Representatives - Y:66 N:2, 2/20/20
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. Passed in the House of Representatives - Y:40 N:28, 2/17/20 & Senate concurred with House Amendments
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 – never heard
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 – never heard
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: Passed in the Senate - Y:33 N:9, 2/15/20 – (Uncertain about its status, it was fast-tracked and assumed it passed on 2/20/20)
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 – never heard
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, never heard
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.
We will keep you posted on when the ERB management calls state Stakeholders back to discuss legislation for next year. You can be assured there will be a new bill to address ERB’s fund sustainability. Once again, the UNM RA Board members and Legislative Committee will be there to represent your interests and protect your COLA. In the meantime, take your representatives out for coffee, get to know them and thank them for their service.
Sincerely,
UNM Retiree Association Board
