TITLE 2 PUBLIC FINANCE
CHAPTER
81 RETIREE HEALTH CARE FUNDS
PART 11 ESTABLISHING SUBSIDY LEVELS ON THE
BASIS OF YEARS OF AGE AND
CREDITABLE SERVICE
2.81.11.1 ISSUING AUTHORITY: New Mexico Retiree HealthCare Authority
("NMRHCA").
[2.81.11.1 NMAC - N, 2/14/2002]
2.81.11.2 SCOPE: This rule applies to eligible retirees of
NMRHCA-participating employers who become eligible on or after July 1, 2001,
and to the dependents of such retirees.
[2.81.11.2 NMAC - N, 2/14/2002]
2.81.11.3 STATUTORY AUTHORITY: This rule is promulgated pursuant to the Retiree Health Care Act
("Act"), Sections 10-7C-1 et
seq., NMSA 1978, as amended.
[2.81.11.3 NMAC - N, 2/14/2002]
2.81.11.4 DURATION: Permanent.
[2.81.11.4 NMAC - N, 2/14/2002]
2.81.11.5 EFFECTIVE DATE: February 14, 2002 unless a later date is cited at the end of
a section.
[2.81.11.5 NMAC - N, 2/14/2002]
2.81.11.6 OBJECTIVE: The
objective of this rule is to establish subsidy levels commensurate with a
retiree's years of credited service with a participating employer for employees
who become eligible for enrollment into the NMRHCA health care program on or
after July 1, 2001, and their dependents, and subject to a minimum retiree age
for employees who become eligible for enrollment into the NMRHCA health care
program on or after July 31,
2021.
[2.81.11.6 NMAC - N,
2/14/2002; A,
1/1/2021; A, 7/31/2021]
2.81.11.7 DEFINITIONS:
A. "Board" means, the board of
directors of the NMRCHA.
B. "Credited service" means the
number of full years of employment with a participating employer as verified by
the authority.
C. "Disabled retiree" means an
eligible retiree who
has been authorized to retire due to disability by the appropriate state
retirement agency.
D. “Member
of an enhanced retirement plan”
means a member of a retirement plan as defined by Section 10-7C-15 NMSA
1978.
E. "Retiree health care authority" or
"authority" or "NMRHCA" means, the retiree health care authority
established by chapter 6 laws of New Mexico, 1990 (Sections 10-7C-1 et seq., NMSA 1978).
F. "State
retirement agency" means each of the agencies created and authorized
by law to administer the educational retirement act, the public employees retirement act, the judicial
retirement act, the magistrate retirement act, the public employees retirement
reciprocity act, or the retirement program of an independent public employer on
or before July 1, 1990.
G. "Subsidy" means a set portion
of the cost of an eligible retiree's monthly coverage, a varying percentage of which
is borne by the authority as determined by the board.
[2.81.11.7 NMAC - N, 2/14/2002; A, 12/30/2002; A: 1/1/2021: A,
7/31/2021]
2.81.11.8 NMRHCA CONTRIBUTION OF A
PERCENTAGE OF A SUBSIDY TO MONTHLY PREMIUMS OF ELIGIBLE RETIREES:
A. Except
as otherwise provided in 2.81.11.9 NMAC, for eligible retirees who are members of an enhanced retirement plan
and
become eligible for participation on or after July 1, 2001, or are not members of an enhanced retirement
plan and become eligible for participation on or after July 1, 2001 but before July
31, 2021, and the eligible dependents of such retirees, the NMRHCA will contribute the following
percentages of the subsidy to the monthly premiums according to the
corresponding numbers of years of credited service with an NMRHCA-participating
employer:
(1) Example: If the subsidy for a particular plan is one half the
premium cost, then for a retiree with 20 years of credited service the NMRHCA
would provide one hundred percent of the subsidy; half the cost.
(2) Example: For the same subsidy of one half the premium
cost, the percent of subsidy for a retiree with eight years of credited service would be twenty-five
percent of the fifty percent subsidy:
twelve and one-half percent of the cost.
|
Years of credited service |
Percentage of subsidy |
|
5 |
6.25 |
|
6 |
12.50 |
|
7 |
18.75 |
|
8 |
25.00 |
|
9 |
31.25 |
|
10 |
37.50 |
|
11 |
43.75 |
|
12 |
50.00 |
|
13 |
56.25 |
|
14 |
62.50 |
|
15 |
68.75 |
|
16 |
75.00 |
|
17 |
81.25 |
|
18 |
87.50 |
|
19 |
93.75 |
|
20 |
100.00 |
B. Subject to
2.81.11.10 NMAC and except as otherwise provided in 2.81.11.9 NMAC, for
eligible retirees who are not members of an enhanced retirement plan and become
eligible for participation on or after January 1, 2021, and the eligible
dependents of such retirees, the NMRCHA will contribute the following
percentages of the subsidy to the monthly premiums according to the
corresponding numbers of years of credited service with an NMRHCA-participating
employer:
(1) Example: If the subsidy for a particular plan is one
half the premium cost, then for a retiree with 25 years of credited service the
NMRHCA would provide one
hundred percent of the subsidy;
half the cost.
(2) Example: For the same subsidy of one half the premium
cost, the percent of subsidy for a retiree with twelve years of credited
service would be thirty-eight and one-tenth percent of the fifty percent
subsidy: nineteen and five-hundredths percent of the cost.
|
Years of credited service |
Percentage of subsidy |
|
5 |
4.76 |
|
6 |
9.52 |
|
7 |
14.29 |
|
8 |
19.05 |
|
9 |
23.81 |
|
10 |
28.57 |
|
11 |
33.33 |
|
12 |
38.10 |
|
13 |
42.86 |
|
14 |
47.62 |
|
15 |
52.38 |
|
16 |
57.14 |
|
17 |
61.90 |
|
18 |
66.67 |
|
19 |
71.43 |
|
20 |
76.19 |
|
21 |
80.95 |
|
22 |
85.71 |
|
23 |
90.48 |
|
24 |
95.24 |
|
25 |
100.00 |
[2.81.11.8 NMAC - N,
2/14/2002; A, 4/30/2003; A, 1/1/2021; A, 7/31/2021]
2.81.11.9 SUBSIDIES FOR DISABLED RETIREES: Notwithstanding
any other provision of this rule:
A. The subsidy paid
by the NMRHCA for a disabled retiree with a “duty disability,” as described in
Subsection B of 2.81.7.10 NMAC, and to the dependents of such a retiree, shall
be at the one hundred percent level, corresponding to the applicable maximum
year level set forth in 2.81.11.8 NMAC, regardless of such retiree’s period of
credited service and age.
B. The subsidy paid
by the NMRHCA for a disabled retiree with a “non-duty disability,” as described
in Subsection C of 2.81.7.10 NMAC, and to the dependents of such a retiree,
shall be as set forth in Subsection A of 2.81.11.9 NMAC, provided, that,
as a condition of eligibility for benefits, such retiree has five or more years
of credited service.
[2.81.11.9 NMAC - N,
2/14/2002; A, 12/30/2002; A, 4/30/2003; A, 1/1/2021; A, 7/31/2021]
2.81.11.10 AGE REQUIREMENT FOR SUBSIDIES: Except
as otherwise provided in 2.81.11.9 NMAC, for eligible retirees who are not
members of an enhanced retirement plan and become eligible for participation on
or after July 31, 2021, the minimum retiree age requirement to be eligible for
subsidies is 55.
[2.81.11.10 NMAC -
N, 1/1/2021 A; 7/31/2021]
HISTORY
OF 2.81.11 NMAC: [RESERVED]