A. A distribution pursuant to Section 7-1-6.1 NMSA 1978 from the net receipts attributable to the amount of tax deducted pursuant to the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act [Chapter 7, Article 3A NMSA 1978] shall be made as follows:
(1) to the magistrate retirement fund in the amount of one hundred thousand dollars ($100,000);
(2) to the judicial retirement fund in the amount of one hundred thousand dollars ($100,000); and
(3) on and after July 1, 2025, to the legislative retirement fund in the amount of seventy-five thousand dollars ($75,000) or, if larger, in an amount equal to one-twelfth of the amount necessary to pay out the retirement benefits due under state legislator member coverage plan 2 and Paragraph (2) of Subsection C of Section 10-11-41 NMSA 1978 for the succeeding calendar year.
B. In regard to the distributions to the magistrate retirement fund and the judicial retirement fund, in December 2024 and in each December thereafter, the public employees retirement association, with the assistance of the administrative office of the courts, shall determine the funded ratio of each fund as of the end of the preceding fiscal year. If the funded ratio of the magistrate retirement fund for the preceding fiscal year is equal to or greater than one hundred percent, the association shall notify the department, and no further distributions pursuant to Paragraph (1) of Subsection A of this section shall be made. If the funded ratio of the judicial retirement fund for the preceding fiscal year is equal to or greater than one hundred percent, the association shall notify the department, and no further distributions pursuant to Paragraph (2) of Subsection A of this section shall be made.
C. In regard to the distribution to the legislative retirement fund, in December 2024 and in each December thereafter, the public employees retirement association, with the assistance of the legislative council service, shall determine the amount of retirement benefits for the succeeding calendar year. If the monthly average exceeds seventy-five thousand dollars ($75,000), the association shall immediately notify the department of the average amount.
History: Laws 2003, ch. 86, § 1; 2016 (2nd S.S.), ch. 3, § 1; 2017 (1st S.S.), ch. 3, § 6; 2020, ch. 38, § 1.
ANNOTATIONSThe 2020 amendment, effective July 1, 2020, provided for distributions pursuant to the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act to the judicial retirement fund and the magistrate retirement fund, and delayed further distributions to the legislative retirement fund until fiscal year 2026; in the section heading, added "oil and gas proceeds and pass-through entity withholding tax; magistrate retirement fund; judicial retirement fund"; in Subsection A, in the introductory clause, deleted "Beginning on July 1, 2019", and after "shall be made", added "as follows", and added Paragraphs A(1) through A(3); added a new Subsection B and redesignated former Subsection B as Subsection C; and in Subsection C, after the first occurrence of "December", deleted "2003" and added "2024", and after "thereafter", deleted "except in 2017".
The 2017 (1st S.S.) amendment, effective July 1, 2017, suspended certain distributions to the legislative retirement fund; in the catchline, after "Distribution", deleted "to"; in Subsection A, added "Beginning on July 1, 2019", and added "from the net receipts attributable to the amount of tax deducted pursuant to the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax Act", after "legislative retirement fund in", deleted "an" and added "the", after "amount", deleted "equal to" and added "of", after "if larger", added "in an amount equal to", and after "NMSA 1978 for the", added "succeeding"; and in Subsection B, after "In", added "regard to the distribution to the legislative retirement fund, in", after "thereafter", added "except in 2017", after "determine the amount of", deleted "those", after "association shall", deleted "notify", after "immediately", added "notify", and deleted the last sentence, which related to the timing of certain distributions to the legislative retirement fund.
The 2016 (2nd S.S.) amendment, effective October 19, 2016, reduced a distribution to the legislative retirement fund; in Subsection A, after "in an amount equal to", deleted "two hundred thousand dollars ($200,000)" and added "seventy-five thousand dollars ($75,000)", and after "Subsection C of Section", deleted "10-11-42" and added "10-11-41"; in Subsection B, after "the monthly average exceeds", deleted "two hundred thousand dollars ($200,000)" and added "seventy-five thousand dollars ($75,000)".