A. After the effective date of the Deferred Compensation Act, the board shall review and approve deferred compensation plans for participation by state and local public employees. A deferred compensation plan shall provide for the method of transfer of funds to a plan through written or electronic salary reduction agreements with state and local public employees and shall provide for deferral of only those salary amounts upon which income taxes are eligible for deferral pursuant to federal law.

B. Compensation deferred under any deferred compensation plan shall be included with current income for purposes of computing retirement contributions and benefits.

C. Amounts by which salary is reduced shall be transmitted to the approved deferred compensation carrier.

D. Local public employees may participate in a deferred compensation plan selected by their local public body employer after it takes formal action conforming to board requirements. If the plan selected is different from the plan approved by the board, the board shall have no responsibility concerning the plan. If the plan selected is that approved by the board pursuant to Section 10-7A-5 NMSA 1978, the provisions of Section 10-7A-8 NMSA 1978 shall apply.

History: 1978 Comp., § 10-7A-3, enacted by Laws 1984, ch. 127, § 988.1; 1985, ch. 161, § 2; 2017, ch. 20, § 2.

Repeals and reenactments. — Laws 1984, ch. 127, § 988.1, repealed former 10-7A-3 NMSA 1978, as amended by Laws 1983, ch. 251, § 1, and enacted a new section.

Compiler's notes. — The phrase "effective date of the Deferred Compensation Act" means April 6, 1981, the effective date of Laws 1981, ch. 155.

The 2017 amendment, effective June 16, 2017, provided for the use of electronic transactions to transfer funds to a deferred compensation plan, and allowed local public body employers to select a deferred compensation plan for local public employees; in the catchline, after "public", deleted "body"; in Subsection A, after "through written", added "or electronic"; in Subsection C, after "shall be transmitted", deleted "to the state treasurer or his designated agent who shall then transfer such amounts directly"; in Subsection D, after "public employees may", deleted "through formal action of their governing boards", after "plan selected by", deleted "such governing board" and added "their local public body employer after it takes formal action conforming to board requirements", after "10-7A-5 NMSA 1978,", deleted "participation by employees of the local public body so selecting is effected pursuant to" and added "the provisions of", and after "10-7A-8 NMSA 1978", added "shall apply".