New Mexico Statutes
Article 11 - Educational Retirement
Section 22-11-25.1 - Return to employment; benefits; contributions.

A. Except as otherwise provided in Subsections B, F and H of this section, until January 1, 2024, a retired member who begins employment with a local administrative unit at a level greater than one-quarter full-time employee, regardless of salary level, is required to suspend the member's retirement benefits until the end of that employment unless the member has not rendered service to a local administrative unit for at least twelve consecutive months after the date of retirement.
B. Until January 1, 2024, a retired member who retired on or before January 1, 2001, has not suspended or been required to suspend retirement benefits pursuant to the Educational Retirement Act and returns to employment with a local administrative unit is not required to suspend the member's retirement benefits.
C. A retired member who returns to employment with a local administrative unit in accordance with this section is entitled to receive retirement benefits during that employment but is not entitled to acquire or purchase service credit for that employment.
D. A retired member may return to employment with a local administrative unit only if the member submits an application to return to work, on a form prescribed by the board, the board approves the application and the applicant complies with other application rules promulgated by the board.
E. A retired member who returns to employment pursuant to Subsection A, B or F of this section shall make nonrefundable contributions to the fund as would be required by Section 22-11-21 NMSA 1978 if the retired member were a non-retired employee. The local administrative unit employing the retired member shall likewise make contributions as would be required by that section.
F. Until January 1, 2024, a retired member who retired on or before January 1, 2001, who suspended or was required to suspend retirement benefits under the Educational Retirement Act is not required to suspend the member's retirement benefits if the retired member has not rendered service to a local administrative unit for an additional twelve or more consecutive months, not including any part of a summer or other scheduled break or vacation period, after the initial date of retirement.
G. A retired member who returns to employment with a local administrative unit shall make contributions to the retiree health care fund during the period of that employment and in the amount specified in Section 10-7C-15 NMSA 1978. The local administrative unit employing the retired member shall likewise make contributions during the period of that employment and in the amount specified in that section.
H. A retired member may return to employment with a local administrative unit without a suspension of the member's retirement benefits; provided that:
(1) the retired member has not rendered service to a local administrative unit for at least ninety days after the date of retirement;
(2) prior to the date of retirement, or within ninety days after the date of retirement, the retired member did not enter into any formal or informal agreement with a local administrative unit or with any contractor providing services to a local administrative unit to return to employment; and
(3) the retired member earns a salary of less than fifteen thousand dollars ($15,000) per year.
I. As used in this section:
(1) "rendered service" includes employment, whether full or part time; substitute teaching; voluntarily performing duties that would otherwise be, or in the past have been, performed by a paid employee or independent contractor; and performing duties as an independent contractor or an employee of an independent contractor; and
(2) "local administrative unit" includes any entity incorporated, formed or otherwise organized by, or subject to the control of, a local administrative unit, regardless of whether the entity is created for profit or nonprofit purposes.
History: Laws 2001, ch. 283, § 2; 2003, ch. 80, § 1; 2003, ch. 145, § 1; 2009, ch. 288, § 16; 2011, ch. 6, § 1; 2019, ch. 258, § 3; 2020, ch. 10, § 1; 2021, ch. 44, § 2.
The 2021 amendment, effective July 1, 2021, extended the sunset for return-to-work provisions from January 1, 2022 to January 1, 2024; in Subsection A, changed "2022" to "2024" throughout.
The 2020 amendment, effective May 20, 2020, removed the requirement for employees and employers to make nonrefundable contributions for certain retired members who have returned to part-time employment, and allowed retirees earning less than $15,000 a year to return to work without a suspension of retirement benefits; in Subsection A, after "F", added "and H"; in Subsection E, deleted "In addition, on and after July 1, 2020, a retired member who has returned to employment at a level of one-fourth or less full-time employee, regardless of salary level, shall make nonrefundable contributions to the fund as would be required by Section 22-11-21 NMSA 1978 if the retired member were a non-retired employee. The local administrative unit employing the retired member shall likewise make contributions as would be required by that section."; and added a new Subsection H and redesignated the succeeding subsection accordingly.
The 2019 amendment, effective July 1, 2019, revised provisions related to retired members who return to work, and required employee and employer contributions from individuals who return to work; in the section heading, deleted "continued administrative unit"; in Subsection A, after "this section", deleted "beginning January 1, 2002 and continuing", after "local administrative unit", deleted "and shall not be" and added "at a level greater than one-quarter full-time employee, regardless of salary level, is", after "retirement benefits", deleted "if" and added "until the end of that employment unless", and deleted the last sentence of the subsection, which related to retired members who return to work but have not completed twelve consecutive months of retirement; in Subsection B, added "Until January 1, 2022", after "Educational Retirement Act", deleted "may, at any time prior to January 1, 2022, return" and added "and returns"; in Subsection C, after "returns to employment", deleted "during retirement pursuant to Subsection A, B or F of" and added "with a local administrative unit in accordance with", and after "service credit", deleted "or to acquire or purchase service credit in the future for the period of the retired member's reemployment with a local administrative unit" and added "for that employment"; in Subsection D, after "A retired member", deleted "shall not be eligible to" and added "may", after "return to employment", deleted "pursuant to Subsection A, B or F of this section unless" and added "with a local administrative unit only if the member submits"; in Subsection E, after "section shall", deleted "pay" and added "make nonrefundable contributions", after "member shall", deleted "pay to the fund an amount equal to the local administrative unit" and added "likewise make", and added the last sentence; in Subsection F, deleted "Beginning July 1 2003 and continuing", and after "suspend retirement benefits", deleted "and who has not rendered service to a local administrative unit for at least ninety days, may begin employment at a local administrative unit without suspending" and added "under the Educational Retirement Act is not required to suspend the member's"; in Subsection G, deleted "Both the" and added "A", after "retiree health care fund", added "during the period of that employment and", after "specified in", deleted "Subsections A and B of", and added the last sentence; and in Subsection H, in the introductory clause, after "used in", deleted "Subsections A and F of", and in Paragraph H(1), included "local administrative unit" to the definition of "rendered service".
The 2011 amendment, effective July 1, 2011, in Subsection E, required retired members who return to employment to pay the educational retirement fund a nonrefundable amount equal to the contributions the member would be required to pay if the member were a non-retired employee; and reduced the amount of the local administrative unit contribution by eliminating the requirement that the local administrative unit contribute an amount equal to the total of the member contribution in addition to the local administrative unit contribution specified in Section 22-11-21 NMSA 1978.
The 2009 amendment, effective July 1, 2009, in Subsection A, deleted "continuing until January 1, 2012"; deleted "been employed as an employer or independent contractor by" and added "rendered service to"; deleted "to the commencement of employment or reemployment with a local administrative unit"; in Subsection B, deleted "and is reemployed by a local administrative unit may continue employment at the" and added "may, at any time prior to January 1, 2022, return to employment for a"; in Subsection C, added the reference to Subsection F; added Subsection D; in Subsection E, added the reference to Subsection F; deleted "unit's contributions as specified in that act shall be paid to the fund as" and added new language; in Subsection F, deleted "continuing until January 1, 2012"; deleted "and who has not been employed as an employee or independent contractor" and added new language; and added Subsections G and H.
The 2003 amendment, effective June 20, 2003, inserted "Except as provided in Subsections B and E of this section" near the beginning of Subsection A, inserted present Subsections B and E; renumbered former Subsections B and C as Subsections C and D, inserted "or B" following "Subsection A" in present Subsection C; and in Subsection D, inserted "pursuant to Subsections A or B of this section" following "employment" and "local" preceding "administrative."

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