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SB 402

Real Estate Commission rule relating to consideration of prior criminal convictions in initial license eligibility determination

2025 Regular Session Introduced by Jack Woodrum

Expands PERA military service credit to include non-active uniformed service (e.g., inactive National Guard), risking double-dipping and uncertain costs for members and plans.

Reported in Com. Sub. for S. B. 369
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WeVote Research Nonpartisan
Bill Summary · SB 402

SB 402 — Uniform Officer Service Credit (summary)

Status: Action postponed indefinitely
Introduced: February 14, 2025
Subject areas: Law enforcement officers, public employees retirement

Main purpose

SB 402 would change how military service time may be purchased as retirement service credit under the Public Employees Retirement Act (PERA). The bill expands the types of uniformed service periods that PERA members may buy as service credit and removes certain restrictions intended to prevent double‑crediting the same period in multiple retirement systems.

Key provisions

  • Broadens purchaseable military service credit beyond periods of active duty to include all non‑active duty periods of uniformed service (e.g., inactive National Guard duty and other non‑active service).
  • Deletes two current statutory limits:
    1. The formula provision that allowed reducing the purchase cost when the member already acquired service credit for military service; and
    2. The prohibition on purchasing service credit for periods that have been used to obtain benefits in another retirement program.
  • No specific effective date is included in the bill text; absent an explicit date, the bill would become effective 90 days after adjournment (noted in analysis as June 20, 2025).

Who is affected

  • PERA members who have (or had) uniformed service — including police, sheriffs, and other public employees eligible for PERA — could buy additional types of military service credit.
  • Other New Mexico public retirement systems (e.g., Educational Retirement Board) could be affected if members purchase overlapping credit in more than one system.
  • PERA (administration and trust fund) — operational changes and possible fiscal effects.

Fiscal and operational impact

  • Legislative Finance Committee / PERA estimate: an indeterminate but likely minimal recurring loss to the PERA trust fund because military service purchases use a reduced, non‑actuarial formula.
  • PERA would need system and form changes to implement the broader purchase eligibility.
  • The change could permit “double‑dipping” (buying the same military period in more than one retirement system), contrary to current law, which may increase actuarial and constitutional scrutiny: New Mexico’s Constitution bars enacting benefit increases without adequate funding and assigns actuarial assumption authority to retirement boards.

Significant issues & considerations

  • Potential overlap with benefits in other retirement systems raises actuarial and funding concerns; the exact budgetary effect is uncertain and depends on how many members exercise the expanded purchase option and on the purchase pricing formula.
  • Administrative burden for PERA to verify and process broader categories of military service.

Related/companion measures noted in analyses: House Bills 96 and 164 and Senate Bills 30 and 117 (context: other PERA/COLA proposals).

Compiled from official sources — confirm details with the bill’s official record.

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