The New Mexico Public Employees Retirement Association (PERA) has specific rules regarding the calculation of retirement benefits for members who have service credit from multiple public employers within New Mexico. When a member accrues service credit with different participating employers under PERA, the calculation of their retirement allowance generally involves combining all eligible service. The benefit is typically calculated based on the member’s final average salary and a service credit multiplier. For members who have service with the Educational Retirement Board (ERB) and then transition to PERA, or vice versa, specific provisions in New Mexico law and PERA rules govern how this combined service is treated for retirement calculations. Generally, the benefit is calculated as the sum of the benefit earned under each system, or a combined calculation if permitted by statute. In this scenario, the employee has 15 years of service with the City of Santa Fe (a PERA employer) and 10 years of service with the New Mexico Department of Transportation (also a PERA employer). Therefore, the total creditable service for the purpose of calculating their retirement benefit is the sum of these periods, which is 25 years. The retirement allowance is calculated using the member’s final average salary and the applicable multiplier for their plan. The question asks for the total creditable service, which is a foundational element for benefit calculation, not the final benefit amount itself.

The New Mexico Public Employees Retirement Association (PERA) rules and the New Mexico Uniform Probate Code (NMUPC) both address the disposition of benefits upon the death of a member. PERA Rule 2.80.2.10 NMAC outlines the procedures for designating beneficiaries and the distribution of benefits. Specifically, it addresses situations where a member dies before retirement and has designated beneficiaries. If a member dies before retirement and has a valid beneficiary designation on file with PERA, those designated beneficiaries receive the accumulated contributions and any other benefits payable. The NMUPC, particularly concerning the administration of estates and the disposition of assets, generally defers to valid contractual designations, such as beneficiary designations made with retirement systems, unless there is a specific statutory override or a court order to the contrary. In this scenario, the member, Ms. Elena Rodriguez, had a valid beneficiary designation on file with PERA naming her son, Mateo, as the primary beneficiary. This designation is a contractual agreement between Ms. Rodriguez and PERA. Upon her death before retirement, PERA is obligated to disburse the accumulated contributions to Mateo, the named beneficiary, according to its established rules. The fact that Ms. Rodriguez also had a will that named her daughter, Sofia, as the beneficiary of her “entire estate” does not supersede the specific beneficiary designation made with PERA. Beneficiary designations are generally considered outside the probate process and are not controlled by the terms of a will unless the beneficiary designation itself is invalid or the beneficiary predeceases the member without a contingent beneficiary. Therefore, Mateo is entitled to the accumulated contributions.

The New Mexico Public Employees Retirement Association (PERA) has specific rules regarding the calculation of retirement benefits for members who have periods of service that may not be directly creditable under standard formulas, such as certain types of leave or periods of service with affiliated entities. For a member to receive service credit for periods that are not automatically recognized, such as a leave of absence without pay, PERA generally requires the member to make a contribution for that period. This contribution is typically calculated based on the member’s salary during the period of service and the contribution rate in effect at that time, plus interest. The purpose of this member contribution is to ensure that the member’s retirement benefit accurately reflects the full period of service they are claiming, by making up for the contributions that would have been made had they been actively employed and contributing. This process is governed by the New Mexico statutes and PERA’s administrative rules, which aim to maintain the actuarial soundness of the retirement system while allowing for recognition of service under specific conditions. The calculation would involve determining the member’s salary during the period of leave, applying the statutory member contribution rate applicable at the time the service was rendered, and then adding the prescribed interest rate from the date the contribution was due until the date it is paid. For instance, if a member had a period of leave without pay and the applicable member contribution rate was 7.5% of their salary of \$5,000 per month for 12 months, and the interest rate was 5% compounded annually, the calculation would be: Total salary during leave = \$5,000/month * 12 months = \$60,000. Member contribution = \$60,000 * 7.5% = \$4,500. If the leave was from January 1, 2020, to December 31, 2020, and the payment was made on January 1, 2023, the interest would be calculated for two years. Using simple interest for illustrative purposes here, as PERA often uses specific compounding methods, the interest would be \$4,500 * 5% * 2 years = \$450. The total payment would be \$4,500 + \$450 = \$4,950. This payment, along with the employer’s portion (which is also typically required for such service credit), allows the period to be added to the member’s creditable service.

The New Mexico Public Employees Retirement Association (PERA) rules govern the crediting of service for members. Specifically, PERA Rule 2.70.2.13 NMAC outlines the conditions under which service rendered by an employee of a participating employer in New Mexico, but for a non-participating governmental entity within New Mexico, can be credited. This rule typically requires that the employee must have been employed by a non-participating public employer in New Mexico, and that the employee later became a member of PERA. Furthermore, the rule often specifies a period within which the member must elect to purchase this service, and the purchase must be made by paying the actuarial cost determined by PERA. This actuarial cost is calculated to reflect the present value of the future benefit attributable to that service, ensuring the plan remains actuarially sound. The core principle is to allow members to consolidate qualifying public service within New Mexico, provided they meet the specific procedural and financial requirements established by PERA. The calculation of the actuarial cost is complex, involving factors like the member’s age, final average salary, projected salary increases, life expectancy, and assumed investment returns, all designed to ensure the purchase is cost-neutral to the PERA fund. The final answer is the actuarial cost as determined by PERA.

The New Mexico Public Employees Retirement Association (PERA) Board of Trustees is responsible for the prudent management and investment of PERA’s assets, as well as the administration of retirement benefits for eligible public employees in New Mexico. This fiduciary duty is governed by various statutes, including the Public Employees Retirement Act (PERA Act) and related administrative rules. The Board must act in the best interests of the plan participants and beneficiaries, adhering to a prudent investor rule. This rule, often mirroring federal standards like ERISA’s prudent person rule, requires trustees to exercise the care, skill, prudence, and diligence that a prudent person acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and with like aims. This includes diversifying investments to minimize the risk of large losses, unless under the circumstances it is clearly prudent not to do so. The Board’s investment decisions are subject to oversight and review to ensure compliance with these standards. The establishment of investment policies, the selection and monitoring of investment managers, and the ongoing evaluation of the portfolio’s performance are all critical components of fulfilling this fiduciary responsibility.

The New Mexico Public Employees Retirement Association (PERA) is governed by specific statutes that dictate how service credit can be purchased. New Mexico law, specifically within the PERA statutes, outlines the conditions under which a member can purchase service credit for periods of employment that were not previously credited. For a former public employee of New Mexico who was a member of PERA and subsequently worked for a different state agency in New Mexico that also participates in PERA, the ability to purchase service credit for the intervening period depends on the specific provisions of the PERA statutes regarding reciprocity and purchase of service. Generally, PERA allows for the purchase of service credit for periods of public employment within New Mexico that were not previously credited, provided certain conditions are met. These conditions often involve making a payment that reflects the actuarial cost of the service or a combination of member and employer contributions plus interest. The crucial element here is whether the intervening employment was also public service covered by a New Mexico retirement system, and if PERA rules permit such a purchase. Without specific details about the nature of the intervening employment and the exact PERA rules applicable at the time of the purchase, a definitive calculation of cost is not possible. However, the legal framework permits such purchases under defined circumstances, typically involving actuarial cost or contribution-based payments with interest. The question tests the understanding of the general principle of purchasing service credit for prior public employment within New Mexico under PERA, which is a common aspect of pension law. The core concept is the ability to “buy back” service credit for periods of qualified public service, which is a fundamental feature of many defined benefit pension plans, including PERA.

The scenario involves the New Mexico Public Employees Retirement Association (PERA) and the application of its rules regarding service credit purchases for former participants. Specifically, the question probes the conditions under which a former participant can purchase service credit for periods of employment that were not previously credited. New Mexico law, particularly within the PERA statutes, outlines specific requirements for such purchases. These requirements often include a period of separation from PERA-covered employment and a subsequent re-employment or a specific election to purchase. In this case, Mr. Abernathy was a PERA member, left covered employment, and later returned to a position that is also covered by PERA. The critical factor is the timing of his request to purchase service credit for his prior service. PERA Rule 2.70.3.6 NMAC, concerning the purchase of service credit, generally permits the purchase of prior service by members who are currently in service and have not previously received a refund of contributions for that service. The rule often specifies that such purchases must be made while the member is actively contributing to PERA. Therefore, if Mr. Abernathy is currently an active member of PERA and has not received a refund for his prior service, he is eligible to purchase that service credit. The calculation, in this context, is not a numerical one but rather a determination of eligibility based on the presented facts and the governing statutes and regulations. The eligibility hinges on his current membership status and the absence of a prior refund, which are met by the scenario’s description.

The New Mexico Public Employees Retirement Association (PERA) administers retirement benefits for public employees in New Mexico. PERA’s rules, as established by the New Mexico Legislature and PERA’s Board of Trustees, govern eligibility for retirement, benefit calculations, and post-retirement employment. Specifically, the Public Employees Retirement Act (PERA Act) outlines the framework. When a PERA-covered employee leaves covered service before meeting retirement eligibility, they have options regarding their accumulated contributions. One such option is to withdraw their contributions. However, PERA rules, particularly those concerning re-employment, impose specific limitations to prevent individuals from immediately re-entering PERA-covered service and collecting both a salary and a pension without a substantial break in service. This is often referred to as a “cooling-off period” or a prohibition on consecutive service. The intent is to ensure that retirement benefits are paid to individuals who have genuinely separated from public service, rather than to those who are merely cycling through brief periods of separation to circumvent employment restrictions. The New Mexico PERA Act and its associated regulations define what constitutes a separation from service and the conditions under which re-employment is permissible without jeopardizing retirement benefits or incurring penalties. The specific period of separation required before a former member can receive PERA retirement benefits while simultaneously being employed in a PERA-covered position is a critical aspect of these regulations, designed to maintain the financial integrity of the retirement system and uphold the principle of retirement as a cessation of active employment. The regulations stipulate a minimum period of separation from PERA-covered service before a member can receive their pension and simultaneously be employed in a PERA-covered position without impacting their benefit payments. This period is crucial for demonstrating a bona fide retirement and separation from employment.

The scenario describes a situation where a public employer in New Mexico is considering a new defined contribution retirement plan for its employees. The New Mexico Public Employees Retirement Association (PERA) administers retirement plans for public employees in the state. While PERA primarily manages defined benefit plans, it also has provisions for defined contribution plans. The question revolves around the process of establishing such a plan under New Mexico law. New Mexico Statutes Annotated (NMSA) Chapter 10, Article 11, specifically addresses the Public Employees Retirement Association. Section 10-11-114 NMSA outlines the powers and duties of the Board of Trustees of PERA, which includes the authority to establish and administer retirement plans. Importantly, the establishment of new retirement plans, particularly those that deviate from the traditional defined benefit structure or are supplementary, often requires specific legislative authorization or board approval under PERA’s governing statutes. This process is not a simple administrative decision but rather involves adherence to statutory frameworks that govern the creation and management of public employee retirement systems in New Mexico. The key consideration is whether PERA’s existing statutory authority, as interpreted and implemented by its Board of Trustees, permits the direct establishment of a new, distinct defined contribution plan without further legislative action. Given the structured nature of public pension systems and the specific mandates of PERA’s governing statutes, the most appropriate and legally sound path for a public employer to implement a new defined contribution plan, especially one intended to operate alongside or as an alternative to existing PERA provisions, would involve a formal process of plan design and approval by the PERA Board, operating within the bounds of its statutory authority. This ensures compliance with state law and proper integration with the overall public retirement system framework.

The New Mexico Public Employees Retirement Association (PERA) is governed by the Public Employees Retirement Act, NMSA 1978, Chapter 10, Article 11. This act establishes the framework for retirement benefits for public employees in New Mexico. Specifically, the law addresses eligibility for retirement, calculation of retirement benefits, contribution rates for members and employers, and the administration of the retirement system by the PERA Board. The Public Employees Retirement Act outlines the various retirement plans available, such as the retirement plan for general members, municipal members, and judicial members, each with distinct eligibility criteria and benefit formulas. It also details provisions for disability retirement, survivor benefits, and post-retirement adjustments. Understanding the nuances of these provisions is crucial for both employees and employers participating in the PERA system. The act also specifies the fiduciary duties of the PERA Board and the investment policies for the retirement fund. When considering the impact of a member’s service in multiple PERA systems, such as a period with the Municipal Public Safety Personnel Retirement Fund and a subsequent period with the State Personnel Board, the Public Employees Retirement Act, particularly sections pertaining to reciprocity and service credit, would govern the aggregation of service. This ensures that a member’s combined service history is appropriately recognized for retirement benefit calculations, provided certain conditions regarding the transfer of contributions and service credits are met. The law mandates that such transfers are subject to specific procedures to maintain the actuarial soundness of the retirement system.

The New Mexico Public Employees Retirement Association (PERA) provides retirement benefits to public employees in New Mexico. The calculation of a member’s retirement benefit involves several factors, including the member’s final average salary, years of service, and the applicable benefit multiplier. For a member retiring under the regular retirement plan, the benefit is calculated as: \(Benefit = Final Average Salary \times Years of Service \times Benefit Multiplier\). The final average salary is typically the average of the highest consecutive 36 months of compensation. The benefit multiplier varies based on the member’s hire date and service category. For a member who became a member of PERA on or after July 1, 2010, and is retiring with 30 years of service and a final average salary of \$75,000, the benefit multiplier is 2.5%. Therefore, the annual retirement benefit would be calculated as: \(Benefit = \$75,000 \times 30 \times 0.025 = \$56,250\). This annual benefit is then typically paid out in monthly installments. The question asks for the monthly benefit. To find the monthly benefit, divide the annual benefit by 12: \(\$56,250 / 12 = \$4,687.50\). This calculation demonstrates the application of PERA’s defined benefit formula for a specific member scenario. Understanding the components of this formula, including the definition of final average salary and the impact of different benefit multipliers based on membership dates, is crucial for accurately determining retirement income for New Mexico public employees. The PERA statutes and regulations, particularly those governing benefit calculations and eligibility, are the primary sources for this information.

The New Mexico Public Employees Retirement Association (PERA) rules, particularly concerning service credit purchases, are governed by the Public Employees Retirement Act. Specifically, the Act and associated regulations dictate the conditions under which former members can purchase service credit for periods of public employment not previously credited. Section 10-7-14 NMSA 1978 outlines the general provisions for purchasing service credit, including periods of employment with other public employers within New Mexico, provided certain conditions are met. These conditions typically involve the member not being currently eligible for retirement benefits from the other public employer and the purchase being for a period of actual service. The cost of such a purchase is generally calculated based on actuarial factors and the member’s salary during the period of service being purchased, or a combination thereof, to ensure the PERA fund is not adversely affected. When a former member seeks to purchase service credit for employment with another New Mexico public employer where they were a member of a different retirement system, the key is that they must have been a member of PERA during the period they are seeking to purchase credit for, or become a member of PERA at the time of purchase, and not be receiving benefits from the prior system. The purchase allows for the integration of prior public service into their PERA retirement calculation. The specific calculation of the cost involves actuarial assumptions and is determined by PERA based on the member’s age, final average salary, and the period of service being purchased, ensuring that the purchase is actuarially sound.

The New Mexico Public Employees Retirement Association (PERA) has specific rules regarding service credit purchases. Under New Mexico law, particularly as governed by the Public Employees Retirement Act, members can purchase certain types of service credit that are not automatically granted. This includes service rendered in positions that were not covered by PERA, or periods of leave without pay. The cost of purchasing such service credit is actuarially determined to ensure that the pension fund is not adversely affected. The actuarial cost is calculated based on the member’s age, the salary earned during the period of service, and the current contribution rates, adjusted for the time value of money and projected future benefit payments. Specifically, the cost is typically calculated as the present value of the future benefit attributable to that service, minus the contributions already made by the member and employer for that service. This calculation ensures that the purchase is neutral to the fund’s financial health. The explanation of the calculation involves actuarial present value formulas that account for mortality rates, interest rates, and salary progression. For instance, the present value of a future benefit payment is calculated using a discount rate. The total cost is then the sum of the present values of all expected future benefit payments for the service being purchased, less any contributions already credited for that service. While a precise numerical calculation requires specific member data and actuarial assumptions, the principle is that the member must contribute the actuarial cost, which reflects the full economic cost of the service to the fund. This is a fundamental principle in defined benefit pension plans to maintain solvency.

The New Mexico Public Employees Retirement Association (PERA) governs the retirement benefits for many public employees in the state. A key aspect of PERA is the determination of eligibility for retirement benefits, which often involves meeting specific age and service credit requirements. For a member to be eligible for a regular retirement benefit, they generally must have attained a certain age and completed a minimum number of years of credited service. PERA rules, as outlined in the New Mexico statutes and PERA’s own administrative rules, define these thresholds. For example, a common pathway to regular retirement requires a member to be at least 57 years old and have at least 5 years of credited service. However, different retirement plans within PERA might have slightly varied requirements, and specific circumstances, such as disability retirement or early retirement provisions, introduce further complexities. The scenario presented requires understanding these foundational eligibility criteria. The core of PERA’s regular retirement is the combination of age and service, ensuring that members have contributed sufficiently to the system over a substantial period before drawing benefits. This is designed to ensure financial sustainability for the pension fund while providing a secure retirement for its members. The specific age and service requirements are crucial for determining when a member can transition from active employment to receiving retirement income without penalty.

The New Mexico Public Employees Retirement Association (PERA) is governed by the Public Employees Retirement Act, specifically NMSA 1978, Chapter 7, Article 10. This act outlines the eligibility, contribution, and benefit calculation rules for members. For a member to be eligible for a service retirement allowance, they must have accumulated a minimum number of years of credited service and reached a certain age. NMSA 1978, § 10-7-4, specifies that a member may retire with a full retirement allowance upon reaching age 67 with at least 5 years of credited service, or upon reaching age 62 with at least 30 years of credited service, or upon reaching any age with at least 35 years of credited service. A reduced retirement allowance is available earlier under specific conditions, but the question asks about a full retirement allowance. Therefore, the core requirement for a full service retirement allowance without an age reduction is the accumulation of at least 35 years of credited service, regardless of age. This ensures that long-tenured public servants can retire with their full earned benefit. The other options represent different eligibility thresholds or conditions that may lead to reduced benefits or are not the primary condition for a full, unreduced service retirement when 35 years of service is met.

The scenario involves the New Mexico Public Employees Retirement Association (PERA). PERA’s rules, as governed by the New Mexico Public Employees Retirement Act (PERA Act), dictate eligibility for retirement benefits. Specifically, the Act addresses service retirement requirements. For members who became members on or after July 1, 2013, the standard service retirement eligibility requires a combination of age and credited service. The formula for eligibility is generally 5 years of credited service plus reaching the age of 67, or 30 years of credited service regardless of age. In this case, Elara has 28 years of credited service and is 65 years old. She does not meet the 30 years of service requirement. She also does not meet the age requirement of 67 if she were to have 5 years of service. Therefore, she is not yet eligible for unreduced service retirement benefits under the standard provisions for members joining after July 1, 2013. PERA rules also allow for early retirement with reduced benefits, but the question specifically asks about eligibility for service retirement without mentioning reductions, implying unreduced benefits. The key is the combination of age and service credit as defined by the PERA Act for post-2013 members.

The New Mexico Public Employees Retirement Association (PERA) is governed by specific statutes that dictate how service credit is purchased and recognized. For members who have previously separated from covered service and are returning, PERA law outlines the conditions under which prior service can be reinstated. Specifically, New Mexico Statutes Annotated (NMSA) 1978, Section 10-11-111 addresses the purchase of prior service. This statute generally requires a member to be currently in covered service to purchase or reinstate certain types of prior service. When a member has terminated employment and is no longer contributing to PERA, their ability to purchase service credit for that prior period is typically contingent upon re-employment in a PERA-covered position. Upon re-employment, the member can then elect to purchase the service credit, often with interest, as stipulated by the law. The critical factor here is the requirement of current membership and contribution to PERA to make such a purchase. Without being an active member, the option to buy back service credit is generally unavailable.

The New Mexico Public Employees Retirement Association (PERA) provides retirement benefits to public employees. The calculation of a member’s retirement benefit typically involves a formula that considers the member’s years of service and their average final compensation. For members who retire under the PERA’s defined benefit plan, the benefit is calculated using a multiplier applied to the average of the member’s highest consecutive years of compensation. The specific multiplier and the number of years used for averaging compensation can vary based on the member’s hire date and the specific PERA plan provisions in effect at the time of their retirement. For instance, a member hired before July 1, 2013, might have a different calculation basis than someone hired after that date, reflecting legislative changes aimed at ensuring the long-term solvency of the retirement system. The New Mexico Legislature periodically reviews and adjusts these formulas and parameters. Understanding these nuances is crucial for both members planning their retirement and for administrators managing the system. The core principle is to provide a predictable retirement income based on a defined contribution formula, but the exact application requires knowledge of specific PERA statutes and rules.

The New Mexico Public Employees Retirement Association (PERA) has specific rules regarding the distribution of retirement benefits upon the death of a member. When a member dies before retirement, their designated beneficiary is entitled to receive the accumulated contributions plus any interest earned. However, if the member had elected a specific retirement option that guarantees a benefit for a survivor, the distribution rules can differ. In this scenario, Mr. Alistair Vance, a PERA member, died before retiring but after electing a “period certain” retirement option. This option, typically a 10-year certain and life annuity, means that if the member dies within the first 10 years of receiving benefits, payments continue to the beneficiary for the remainder of that 10-year period. Since Mr. Vance died before commencing retirement benefits, the provisions for a member dying before retirement apply, which entitle the beneficiary to the member’s accumulated contributions and credited interest. The election of a retirement option, especially a period certain, primarily affects benefit distribution *after* retirement begins. Therefore, the beneficiary, Ms. Clara Bellweather, is entitled to the total accumulated contributions and credited interest earned by Mr. Vance in his PERA account at the time of his death, not a lifetime annuity. This is consistent with the foundational principle that pre-retirement death benefits focus on the member’s accrued savings, whereas post-retirement options address the structure of annuity payments.

The New Mexico Public Employees Retirement Association (PERA) is governed by the Public Employees Retirement Act, NMSA 1978, Chapter 10, Article 11. This act outlines the eligibility, contribution, and benefit calculation rules for public employees. Specifically, NMSA 1978, § 10-11-10 details the retirement eligibility requirements. For members of the regular retirement plan, eligibility for retirement typically requires a combination of age and years of credited service. A common pathway to retirement is achieving at least 25 years of credited service, regardless of age, or reaching age 65 with at least 5 years of credited service. The question asks about the earliest age a member can retire with 20 years of credited service under the regular plan. Since the act specifies a minimum of 25 years of service for retirement regardless of age, or a minimum age of 65 with 5 years of service, a member with only 20 years of service cannot meet the service-based retirement threshold. Therefore, they must meet the age-based requirement. The age-based requirement is 65 years old with at least 5 years of service, which the member meets. Thus, the earliest age to retire with 20 years of credited service, assuming they meet the age requirement, is 65.

The scenario describes a governmental plan in New Mexico that is not a qualified plan under Internal Revenue Code Section 401(a). Such plans are often established for a select group of management or highly compensated employees, or they may be non-qualified deferred compensation plans. The key distinction for New Mexico law is how such plans are treated regarding state income tax withholding and reporting. New Mexico, like many states, generally follows federal guidelines for the tax treatment of deferred compensation. For non-qualified plans, amounts are typically taxed when paid or made available to the participant, not when deferred. This means that the employer does not withhold New Mexico income tax on the contributions made to the plan on behalf of the employee until the employee actually receives the distribution. Furthermore, the employer is generally required to report these deferred amounts to the employee and the state tax authority, even if no tax is withheld currently. The New Mexico Taxation and Revenue Department provides specific guidance on reporting and withholding for non-qualified deferred compensation plans. The critical element here is the “non-qualified” status, which dictates the timing of taxation and withholding.

The New Mexico Public Employees Retirement Association (PERA) administers retirement benefits for public employees across the state. The Public Employees Retirement Act, specifically concerning the calculation of retirement benefits, involves factors such as the member’s final average salary, years of credited service, and the applicable retirement plan formula. For a member retiring under the regular retirement plan, the benefit is generally calculated as a percentage of their final average salary multiplied by their years of credited service. The final average salary is typically the average of the highest consecutive months of compensation, often 36 months. The applicable percentage is determined by the member’s age at retirement and their years of service, as outlined in the PERA statutes. For instance, a common formula involves a multiplier that increases with years of service and potentially with age. Without specific details on the member’s final average salary, years of service, and the exact PERA plan provisions applicable at their retirement date, a precise monetary calculation cannot be performed. However, the underlying principle is the multiplication of these core components. The question tests the understanding of the fundamental components of a PERA retirement benefit calculation in New Mexico, emphasizing the statutory framework rather than a specific numerical outcome. It probes the knowledge of what constitutes the basis for such calculations under New Mexico law.

The New Mexico Public Employees Retirement Association (PERA) rules regarding the calculation of retirement benefits are complex and depend on various factors including the member’s hire date, years of service, and final average salary. For a member hired on or after July 1, 2010, and retiring with 25 years of service and a final average salary of \$60,000, the calculation of their annual retirement benefit involves applying a specific multiplier based on their service credit. Under PERA’s tiered system, members hired after a certain date have a benefit calculation factor that is lower than those hired earlier. For this specific member profile, the applicable benefit factor is 2%. Therefore, the annual retirement benefit is calculated as: Years of Service × Final Average Salary × Benefit Factor. Plugging in the values: 25 years × \$60,000 × 0.02 = \$30,000. This annual benefit is then typically paid out in monthly installments. The explanation focuses on the statutory framework for calculating retirement benefits for a specific class of PERA members, emphasizing the interplay between service credit, compensation, and the applicable statutory multiplier to arrive at the gross annual retirement benefit. Understanding these components is crucial for both members planning for retirement and administrators processing claims within the New Mexico public retirement system.

The scenario describes a situation where a New Mexico public employee, Ms. Anya Sharma, a member of the Educational Retirement Board (ERB), is seeking to purchase service credit for a period of prior employment in another U.S. state. The key legal principle here relates to the portability of retirement benefits and the conditions under which a New Mexico retirement system can accept service credit from another state’s system. The New Mexico Public Employees Retirement Association (PERA) and the Educational Retirement Board (ERB) have specific statutes and regulations governing reciprocal agreements and the purchase of service credit from out-of-state employment. Generally, such purchases are permitted if there is a formal reciprocal agreement between the New Mexico system and the out-of-state system, or if specific statutory provisions allow for the purchase of such service under defined circumstances, often involving a direct transfer of funds or a purchase based on the member’s salary and service in the prior state. The ERB, under the Educational Retirement Act, has provisions for purchasing service credit, but these are typically for periods of service within New Mexico or under specific federal programs. For out-of-state service, the ability to purchase credit is usually contingent on established reciprocity or specific legislative authorization. The question probes the understanding of the limitations and conditions for such inter-state service credit purchases within the New Mexico ERB framework. The ERB’s enabling legislation, specifically the Educational Retirement Act (NMSA 1978, Chapter 22, Article 11), outlines the conditions for service credit. While it allows for certain types of service purchases, it does not inherently grant the right to purchase service credit from any out-of-state public retirement system without a specific reciprocal agreement or statutory provision enabling it. Therefore, the ERB’s ability to allow Ms. Sharma to purchase this service credit is entirely dependent on whether a specific inter-state reciprocal agreement exists between the ERB and the retirement system of the other U.S. state, or if New Mexico law explicitly permits such a purchase under these circumstances. Without such an agreement or specific statutory authorization, the ERB cannot unilaterally accept or allow the purchase of service credit for out-of-state employment.

The New Mexico Public Employees Retirement Association (PERA) Board of Trustees has a fiduciary duty to manage the assets of the PERA fund prudently. This duty is derived from common law principles of trust law and is further codified in New Mexico statutes, particularly within the Public Employees Retirement Act (PERA Act). The PERA Act mandates that the Board of Trustees invest PERA assets in a manner that is prudent, responsible, and aimed at maximizing the long-term rate of return consistent with the preservation of capital. This involves diversification of investments across various asset classes to mitigate risk. The concept of “prudent investor rule” is central to this fiduciary responsibility. Under this rule, trustees must act with the care, skill, and caution that a prudent person familiar with such matters would use in managing the affairs of others. This includes making informed investment decisions, monitoring investments regularly, and avoiding speculative investments that could jeopardize the fund’s financial stability. The PERA Board is empowered to establish investment policies and guidelines that align with these principles. The New Mexico State Investment Council also plays a role in overseeing certain state investments, but the PERA Board has direct responsibility for PERA fund management. The principle of diversification is a key component of the prudent investor rule, as it aims to reduce the risk of large losses by spreading investments across different types of assets and industries. The PERA Board must ensure that its investment strategy is designed to meet the long-term obligations to beneficiaries while adhering to legal and ethical standards of fiduciary conduct.

The scenario involves a potential violation of the New Mexico Public Employees Retirement Association (PERA) Act concerning the reporting of service credit. Specifically, the question probes the consequences of a public employer failing to report creditable service for an employee who has met the eligibility requirements for participation in the PERA system. Under New Mexico law, specifically as outlined in the PERA statutes and related administrative rules, public employers have a statutory duty to accurately report employee service and contributions to PERA. Failure to do so can result in penalties and liabilities for the employer. While the PERA Board has discretion in certain matters, the employer’s fundamental obligation to report service is a core requirement. The employer is responsible for the accurate and timely submission of all necessary information to PERA, including details regarding employee eligibility and the nature of their service. If an employee is determined to be eligible for participation and has rendered creditable service, the employer must ensure this is properly recorded. The PERA Act, in conjunction with its implementing regulations, establishes mechanisms for addressing such reporting failures. These mechanisms often involve the employer being assessed for the contributions that should have been made, along with any applicable interest or penalties. The PERA Board’s role is to administer the system and enforce its rules, which includes ensuring that employers fulfill their reporting obligations. Therefore, the employer would be liable for the unremitted employee and employer contributions, plus any statutory interest and potential penalties. The employee’s eligibility for benefits is contingent upon accurate service credit, and the employer’s failure to report directly impacts this. The PERA Board would likely assess the employer for the full amount of contributions that should have been made for the employee’s creditable service, along with any accrued interest and potential penalties as prescribed by the PERA Act.

The New Mexico Public Employees Retirement Association (PERA) provides retirement benefits to state and local government employees. A key aspect of PERA is the determination of benefit eligibility and calculation, which often involves understanding service credit. Service credit is earned for periods of employment with PERA-covered employers. The scenario describes a situation where an employee, Ms. Anya Sharma, has worked for a PERA-covered entity but also had a period of unpaid leave. Under New Mexico law and PERA rules, unpaid leave generally does not accrue service credit unless specific conditions are met, such as the employee making a retroactive payment for the period. Without such a payment or a specific statutory provision allowing credit for that particular type of unpaid leave, the period of absence would not count towards her total service credit for retirement benefit calculation purposes. Therefore, her total creditable service would exclude the period of unpaid leave. For instance, if she had 20 years of paid service and 1 year of unpaid leave, her creditable service would be 20 years, not 21, unless she made a qualifying purchase for that year of leave. This principle is fundamental to ensuring that retirement benefits are based on actual periods of covered employment or periods for which contributions have been made. The New Mexico statutes, such as those governing PERA, outline the precise rules for creditable service, including provisions for purchasing service credit for certain types of leave or prior public service. The absence of a qualifying purchase or specific exception means the unpaid leave does not count.

The New Mexico Public Employees Retirement Association (PERA) Board of Trustees is responsible for the prudent management of the PERA fund. This fiduciary duty is governed by the New Mexico Public Employees Retirement Act and the Uniform Prudent Investor Act as adopted in New Mexico. The Act requires that fiduciaries invest and manage plan assets in accordance with the “prudent investor rule.” This rule mandates that a trustee shall exercise reasonable care, skill, and caution that a prudent investor of comparable skills would use in similar circumstances. Key aspects include diversification of investments to avoid unreasonable risk of loss, considering the purposes of the plan, the terms of the governing instruments, the distribution requirements of the plan, the expected total return on investments, and other resources of the employee benefit plan. The PERA Board must also adhere to specific investment policies and guidelines established by the Board itself, which are designed to align with these legal standards. The diversification requirement, for instance, is not merely a suggestion but a core component of prudent investing, aiming to mitigate the impact of poor performance in any single asset class. The Board’s role is to oversee the investment strategy, which may involve hiring and monitoring external investment managers, but the ultimate responsibility for the fund’s performance and adherence to fiduciary standards rests with the Board.

The New Mexico Public Employees Retirement Association (PERA) administers retirement plans for most public employees in New Mexico. A key aspect of these plans involves understanding the rules around “service credit” which is used to calculate retirement benefits. Service credit is generally earned for periods of employment during which an employee contributes to PERA. However, there are specific provisions for purchasing or restoring service credit under certain circumstances. The Public Employees Retirement Act, specifically provisions related to purchasing or restoring service credit, outlines the conditions and methods for acquiring additional service credit beyond what is automatically earned. This can include periods of leave of absence, military service, or previous public employment where contributions were not made or were refunded. The cost of purchasing or restoring service credit is typically determined by an actuarial calculation based on the employee’s age, salary, and the PERA system’s funding status at the time of purchase. This ensures that the purchase is actuarialy sound and does not unduly burden the retirement system. The law provides specific timelines and procedures for making these purchases, and the credited service is then factored into the final retirement benefit calculation, usually through a formula that multiplies the years of service credit by a percentage based on the member’s age and final average salary. For instance, if a member is eligible for a 2.5% multiplier and has 30 years of service credit, their pension might be calculated as \(30 \text{ years} \times 2.5\% \times \text{Final Average Salary}\). Understanding these nuances is critical for members planning their retirement and ensuring they receive the maximum benefit to which they are entitled under New Mexico law.

The New Mexico Public Employees Retirement Association (PERA) rules regarding service credit for periods of employment with governmental entities outside of New Mexico are governed by specific statutes and regulations. Generally, PERA allows for the purchase of service credit for prior service with other public employers, provided certain conditions are met. These conditions often include the employer being a political subdivision or other governmental entity, and the employee having been a member of a retirement system in that other jurisdiction. For a former employee of the State of Colorado’s Public Employees Retirement Association (PERA) to purchase service credit with New Mexico PERA, the crucial element is the reciprocity or transferability of service credits between the two systems. New Mexico PERA has established agreements and statutory provisions that facilitate such transfers. Specifically, New Mexico law permits members to purchase service credit for periods of service rendered to other states’ public retirement systems, or to federal retirement systems, if there is a reciprocal agreement or if the service otherwise qualifies under New Mexico PERA statutes. The process typically involves the member initiating the request, providing documentation of the prior service and contributions, and then paying the calculated cost to purchase the credit, which is often based on the member’s current salary and the actuarial cost. The specific statutory authority for this is found within the New Mexico Statutes Annotated (NMSA) concerning PERA. Without a specific statutory provision or established reciprocal agreement between New Mexico PERA and Colorado PERA, the purchase of service credit might not be permissible or would be subject to different, potentially more costly, terms. However, given the commonality of such arrangements among state retirement systems, it is highly probable that such a transfer is facilitated. The question hinges on the specific legislative framework within New Mexico that allows for such inter-jurisdictional service credit purchases. The key is that New Mexico PERA can allow members to purchase service credit for prior service with another state’s public retirement system, provided the conditions set forth in New Mexico PERA statutes are met, which often includes a reciprocal agreement or a specific statutory allowance for such transfers. Therefore, the most accurate answer reflects New Mexico PERA’s ability to facilitate this, contingent on statutory provisions.