State Codes and Statutes
Statutes > New-mexico > Chapter-10 > Article-7a > Section-10-7a-310-7A-3. Deferred compensation plan; state and local public body employees.
A. After the effective date of the Deferred Compensation Act [10-7A-1 NMSA 1978], 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 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 state treasurer or his designated agent who shall then transfer such amounts directly to the approved deferred compensation carrier.
D. Local public employees may, through formal action of their governing boards, participate in a deferred compensation plan selected by such governing board. 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, participation by employees of the local public body so selecting is effected pursuant to Section 10-7A-8 NMSA 1978.
