Vetoed by Governor Bill Richardson

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Veto Letter

Vote Smart's Synopsis:

Vote to pass a bill that establishes restrictions on state employees that return to work for the state after retiring and drawing a pension.

Highlights:

- Suspends a state employee's pension on the first day of the month following the month in which the employee's salary exceeds $30,000 in one year, with the following exceptions (Sec. 1):

- If the governing body of the employer adopts a resolution declaring that the employee's position fulfills a critical need of the employer, the $30,000 cap is either (1) suspended for two years following the commencement of reemployment or (2) suspended from July 1, 2010 through July 1, 2012 if the date of reemployment occurred prior to July 1, 2009; or - If the employee works for a small public employer and the governing body of the employer adopts a resolution declaring that the employee's position fulfills a critical need of the employer, the $30,000 cap is either (1) suspended for five years following the commencement of reemployment or (2) suspended from July 1, 2010 through July 1, 2015 if the date of reemployment occurred prior to July 1, 2009.

- Prohibits retirees from returning to work and continuing to draw a pension under the conditions specified above until one year following the date of retirement, with the following exceptions (Sec. 1):

- If the governing body of the employer, including a small public employer, adopts a resolution declaring that the employee's position fulfills a critical need of the employer, the retiree is only required to wait 90 consecutive days following the date of retirement; or - If the date of reemployment occurred prior to July 1, 2009, the retiree is only required to wait 90 consecutive days following the date of retirement.

- Specifies that retirees who returns to work prior to the required one year or 90 day period specified above will have their pensions suspended immediately (Sec. 1). - Specifies that the restrictions on retirees returning to work and continuing to draw a pension under the conditions specified above do not apply to retirees that are elected on or after July 1, 2009 to serve a term as an elected official (Sec. 1). - Defines a "governing body" as one of the following (Sec. 1):

- Governing body of a political subdivision if the employer is a political subdivision of the state; - Supreme Court if the employer is within the judicial branch of the state; - District Attorney Personnel Review Board if the employer is a district attorney; - New Mexico Legislative Council if the employer is within the legislative branch of the state; or - Personnel board if the employer is not specified in this list.

- Defines a "small public employer" as a public employer that is a political subdivision with a population of less than 50,000 (Sec. 1). - This is a substitute bill sponsored by the House Committee on Appropriations and Finance.

Full Bill Text