Current through Register Vol. 35, No. 18, September 24, 2024
A. A
member who leaves office for reasons other than retirement may request a refund
of his or her total accumulated member contributions. Refunds shall include
interest as provided in Subsection D of this section.
B. No partial refund of a member's
contributions is permitted.
C.
Requests for refunds of member contributions shall be made on forms provided by
the association.
(1) The member or the
member's legal representative, or the member's designated refund beneficiary or
the beneficiary's legal representative, if the member is deceased, must
complete and sign the request for refund.
(2) If the member is deceased, the applicant
for refund must provide PERA with a copy of the member's death certificate. If
the deceased member has no living beneficiary, then the personal representative
of the estate must provide PERA with a copy of the letters of administration or
order of appointment of personal representative, signed and fled in court; or
must comply with NMSA 1978, Section
45-3-1201.
(3) The member's judicial agency
must certify that the member has left office before a refund may be
made.
(4) If the member has been
divorced, the member shall provide the association with complete endorsed
copies of all court documents the association deems necessary to ascertain the
current marital status of the member and whether any ex-spouse of the member is
entitled to any portion of the member's contributions. Such documents shall
include the final decrees and marital property settlements for all marriages
during the member's employment as a judge or justice. If the member's only
divorce was prior to becoming a member, then the final divorce decree is
required, but no marital property settlement is required. If the member was
divorced more than once before becoming a member, then only the most recent
final decree is required. If the member's former spouse is entitled to a
portion of a refund of member contributions pursuant to a court order entered
pursuant to NMSA 1978, Section
10-12B-7,
as amended, the member's former spouse may request, on a form prescribed by the
association that his or her share of a refund of member contributions be
transferred directly to another qualified plan as allowed by the Internal
Revenue Code, as specified under Subsection H of 2.83.500.8 NMAC.
(5) After tax employee contributions that are
not includible in gross income may be directly refunded to the
member.
D. Interest on
member contributions shall be posted annually effective June 30 at the rate of
two percent (2%).
E. Members may
designate only one refund beneficiary. Such designation shall be in writing in
the form prescribed by the association. If the refund beneficiary is other than
a natural person, the member shall provide documentation as required by the
association. The member shall be responsible for updating the beneficiary
designation form with current information, including but not limited to the
beneficiary's name and address. If a warrant for a refund to the most recent
beneficiary on file with the association is returned as undeliverable because
of incorrect name or address, the money will remain with the association until
it is furnished with the correct information.
F. Forfeitures arising from severance of
employment, death, or any other reason, must not be applied to increase the
benefits any judge would otherwise receive under the plan. PERA shall make all
reasonable efforts to refund contributions or to pay pensions as required by
the plan.
G. The maximum annual
contribution limits contained in Internal Revenue Code Section 415(c), as
amended and adjusted, are incorporated herein by reference.
H.For distributions made on or after January
1, 1993, notwithstanding any contrary provision or retirement law that would
otherwise limit a distributee's election under this rule, a distributee may
elect, at the time and in the manner prescribed by the PERA, to have any
portion of an eligible rollover distribution paid directly to an eligible
retirement plan specified by the distributee in a direct rollover.
(1) A non-spouse beneficiary may only
rollover the distribution to an individual retirement account or individual
retirement annuity established for the purpose of receiving the distribution
and the account or annuity will be treated as an inherited individual
retirement account or annuity.
(2)
Effective January 1, 2002, a portion of a distribution will not fail to be an
eligible rollover distribution merely because the portion consists of after-tax
employee contributions that are not includible in gross income. However, such
portion may be transferred only to an individual retirement account or annuity
described in Internal Revenue Code Section 408(a) or (b), or to a qualified
defined contribution plan described in Internal Revenue Code Section 401(a), or
on or after January 1, 2007, to a qualified defined benefit plan described in
Internal Revenue Code Section 401(a) or to an annuity contract described in
Internal Revenue Code Section 403(b), that agrees to separately account for
amounts so transferred, and earnings thereon, including separately accounting
for the portion of the distribution that is includible in gross income and the
portion of the distribution that is not so includible.
