Gov. announces plan to stop double dipping

Posted at: 11/11/2009 3:28 PM | Updated at: 11/11/2009 6:49 PM
By: Matthew Kappus, KOB.com; Gadi Schwartz, Eyewitness News 4

Gov. Bill Richardson

Gov. Bill Richardson proposed changes Wednesday that would halt the practice of double dipping in New Mexico.

Currently, retired public employees can return to work while still receiving retirement payments. Gov. Richardson wants lawmakers to pass reforms when the legislature reconvenes in January to halt double dipping.

Richardson is urging lawmakers to eliminate employer retirement contributions for retirees who return to work.

The governor would make retirees with PERA (Public Employees Retirement Association) wait a year before they could be rehired by the state or county. Also, no PERA retirement payouts would be allowed while the employee is collecting a paycheck.

Lawmakers passed a double dipping bill in the regular session, but the governor vetoed it.

At the time, Richardson said the bill raised legal issues and ending the practice of doubling dipping would hurt the government. The governor said many of those employees took tough-to-fill positions.

Representative Lucky Varela, who crafted the bill Richardson vetoed, says he is anxious to see the new proposal.

"If we don't like what comes out, we may try to override the bill that he vetoed in the regular session," he said.

Varela says he was already planning on trying to override the double dipping veto in the January session.

The governor's office says there is a big difference between Richardson's bill and Varela's bill. Richardson's bill would not apply to current double dippers—Varela's would. Varela's bill would cap salaries for most double dippers, current and future, to about $30,000.

"Earlier this year, I said that I wanted to see the rules allowing for double dipping changed. Unfortunately, the bill lawmakers ultimately sent me raised serious legal issues and I had no choice but to veto it," Richardson said in a press release. "I moved forward by ordering a thorough review of our return to work rules to analyze their costs, effectiveness and fairness."

The changes aren't retroactive for the more than 2,100 government employees considered double dippers. Richardson says the changes could save the state $7 million.

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