Current through Register Vol. 35, No. 18, September 24, 2024
A. Except as otherwise set forth herein and
subject to the limitations set forth in Section
22-11-21.2
NMSA 1978, a member's annual salary for the purpose of contributions to the
fund and computation of the member's benefit shall consist of total
compensation or wages paid to the member for services rendered during each of
the four calendar quarters of a fiscal year, beginning July 1 and ending June
30. For purposes of determining contribution rates, a member's expected annual
salary at the beginning of the fiscal year shall be considered. When relevant,
a member's annual salary shall take into consideration the FTE of the position
and the aggregation of salaries if the member will have multiple positions with
the same or other local administrative units during the fiscal year. If a
member's total annual salary is more than $24,000, the member shall be subject
to the contribution rate set forth in Subsection A of Section
22-11-21
NMSA 1978. If a member's total annual salary is $24,000 or less the member
shall be subject to the lower contribution rate set forth in Subsection B of
Section
22-11-21
NMSA 1978. When a member whose salary is $24,000 or less earns in excess of the
$24,000 limit during the fiscal year, the member shall be subject to the higher
contribution rate in Subsection A of Section
22-11-21
NMSA 1978 effective the first day of the month in which the member earns in
excess of the $24,000 limit. However, if a member whose salary is $24,000 or
less changes positions with a local administrative unit during the fiscal year
or engages in additional employment with the same or other local administrative
unit during the fiscal year, and that change in employment creates the
expectation that the member's total annual salary shall be more than $24,000,
then the member's contribution rate shall be adjusted in accordance with the
change in employment beginning the first day of the month of the change in
employment.
(1) Salary includes payments made
directly to the member or to a third party on behalf of or for the benefit of
the member. Salary includes, without limitation:
(a) base salary, compensation, or
wages;
(b) salary, compensation or
wages for additional services rendered; examples include: teaching courses in
addition to or above a full teaching load during the September to May academic
year; teaching courses or performing research during summer (e.g., June through
August) where such courses or research are not included in the duties on which
the member's salary is based; and, performing work in addition to that
specified in the employee's job description; performing administrative duties,
such as serving as a department head, head of a faculty or staff group, or for
providing other additional services;
(c) salary, compensation or wages based on
professional certifications or qualifications, or skills such as being
bilingual or multilingual;
(d)
overtime, shift differential, and 'on-call' or call back pay.
(2) Retirement contributions shall
be made by a local administrative unit and a member on base salary earnings
before the salary is reduced due to the local administrative unit and member
entering into a voluntary "cafeteria" plan.
(3) The salary or compensation paid to a
member under a school bus owner-driver contract shall be covered for
contributions and benefit calculation purposes. Contributions for compensation
paid under a school bus owner-driver contract shall be based upon and limited
to the compensation amount paid to a person who drives a single school bus
owned by that person over a regularly established route under a regular
contract in that person's name with a local administrative unit.
(4) Tips or other remuneration paid to a
member by a third party are considered salary to the extent that a local
administrative unit reports such amounts as the member's income for tax
purposes.
B. The
following items shall not be considered annual salary for the purposes of
contributions to the fund and computation of the member's annual benefit:
(1) Bonuses, awards and prizes, pay
supplements or salary supplements or other "one-time" payments which do not
increase an employee's annual base pay or which are made in lieu of an increase
in base pay, and similar additional payments, as well as allowances or
reimbursements for travel, housing, food, equipment or similar items.
(2) Lump-sum payments to the member for
accrued sick leave made at any time, and lump-sum payments of accrued annual
leave (also referred to as "vacation leave") made after July 1, 2010. Lump-sum
payments for accrued annual leave made on or before July 1, 2010 shall be
includable as annual salary only to the extent that it does not include payment
for more than 30 days of such leave.
(3) Payments made by a local administrative
unit to a member where services are not rendered. By way of example, and with
limitation to such examples:
(a) payments by
an employer to "buy-out" the remaining term of a member's employment contract
or in connection with an early retirement program are not payments for services
rendered, irrespective of whether payment is made in a lump-sum or distributed
over a period of time, and
(b)
payments as a result of a legal settlement, whether related to the member's
employment or otherwise, are not payments for services rendered, unless such
payments are specifically made for salary that was not previously
paid.
(4) Stipends,
salary, or other compensation paid to student teachers.
(5) Stipends or one-time payments for
attending training sessions where such payments are not reimbursements for
travel expenses.
(6) Allowances or
reimbursements for, or expenses related to, travel, housing, food, equipment,
cars, or similar items.
(7) After
July 1, 2012, additional pay or a pay differential that is based solely on a
member performing duties at (a) a location that is different than the location
at which the member regularly performs his or her job duties or (b) that is
based on the member performing duties outside of the United States and its
insular areas, territories, and possessions (e.g., a location differential or
hazard or hazardous duty pay).
