Bill > SB30

This bill modifies the Public Employees Retirement Association (PERA) cost-of-living adjustment (COLA) provisions, introducing several key changes to how retired public employees receive pension increases. The bill restores a two percent annual non-compounding increase for certain retired members, specifically targeting normal retired members who have reached age 65 and retired from state employment before July 1, 2025, and local government employees who have similarly retired, with the local government increase contingent on adequate funding contributions. The bill maintains a complex formula for COLAs based on the retirement fund's funded ratio and investment returns, which generally limits increases to between 0.5% and 5% depending on the fund's financial health. For specific groups, such as members who worked 25+ years or have lower pension benefits (under $25,000), different COLA rules apply, including a 2.5% annual increase. The legislation also includes a $10 million appropriation from the general fund to support these COLA increases for state government retirees, with funds available for fiscal year 2026 and subsequent years. Notably, the bill allows pension recipients to decline the increase if they choose, providing flexibility for individual financial planning.

Health and Social Services

https://www.nmlegis.gov/Legislation/Legislation?chamber=S&legtype=B&legno=30&year=25