Retirement Updates ERB

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Retirement Updates ERB ARP

• Elaine Phelps
• Benefits and Employee Services Director

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3 Bills of Interest

• Senate Bill 572
• House Bill 573
• House Bill 854

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Senate Bill 572 ARP Changes

• 1 time election to change from ARP to ERB
• after contributing to ARP for 7 years
• ARP distributions more flexible
• Up to 5 vendors may participate in ARP

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Senate Bill 572 ARP Changes

• Things to remember when deciding whether to
  switch from ARP to ERB
• One time option after contributing to ARP for 7
  years
• Option available for 120 days
• Cant buy service for time in ARP
• Balance in ARP stays in ARP until retirement
• Must have 5 years in ERB to become vested
• Consult with a financial advisor

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House Bill 573

• Changes effective July 1, 2010 (Employees hired
  on or after July 1, 2010)
• - Rule of 75 changes to Rule of 80
• - Retirement at age 65 changes to age 67
• Retirement with 25 years of service changes to
• 30 years of service
• Changes effective July 1, 2010 (Employees
  retiring on or after July 1, 2010)
• - Lump-sum payments for AL will be excluded from
  calculation of average annual salary

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House Bill 854

• 7/1/09 6/30/11 if annual salary gt 20,000,
  members contribution rate is 9.40
• 7/1/09 6/30/10 UNM contributes 10.90
• 7/1/10 6/30/11 UNM contributes 11.65
• 7/1/09 6/30/11 if annual salary is 20,000 or
  less, members contribution rate is 7.90
• 7/1/09 6/30/10 UNM contributes 12.40
• 7/1/10 6/30/11 UNM contributes 13.15

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House Bill 854

• Employees who reach the IRS annual compensation
  limit (245,000 in 2009)
• Applies to employees hired after July 1, 1996
• No additional contributions required
• Employee will receive service credit
• Compensation divided into 4 equal portions
• Each portion attributable to a quarter of
  calendar year

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Questions Contact Slide

• Dawn Lafleur
• Retirement Manager
• 277-MYHR (6947)
• Email dlafleur_at_unm.edu
• Elaine Phelps
• Director, Benefits/Retirement Services/EHPP
• 277-MYHR (6947)
• Email ephelps_at_unm.edu