Bill > HB65

This bill: - Increases employee contribution rates for various PERA (Public Employees Retirement Association) member coverage plans over time, with the highest contribution rate reaching nearly 20-27% of salary by 2029 and thereafter. - Adjusts the pension calculation formula to limit the maximum pension to 90% of the final average salary, with the final average salary being multiplied by a lower percentage for any portion of service credit that would increase the pension above 90% of the final average salary. - Changes the cost-of-living adjustment (COLA) provisions, replacing the previous formula based on the investment rate of return and funded ratio with a flat 2% annual COLA increase starting in 2023. - Maintains the existing 2.5% COLA for certain members whose annual pension is below $25,000. Overall, this bill aims to increase PERA member contribution rates and adjust pension calculation and COLA provisions in an effort to improve the long-term financial sustainability of the retirement system.

Military Affairs and Security

https://www.nmlegis.gov/lcs/legislation.aspx?chamber=H&legtype=B&legno=65&year=21