Bill > HB164

This bill modifies the cost-of-living adjustment (COLA) provisions for public employee retirees in New Mexico, introducing several new provisions for different categories of pension recipients. The bill establishes a new method for calculating annual pension increases based on the retirement system's funded ratio and investment returns, with a general maximum increase of 3-5% depending on the fund's financial health. Additionally, the bill creates specific COLA provisions for certain groups: members who worked 25+ years and have annual pensions under $25,000 will receive a 2.5% increase, and two new categories of retirees are added - state employees who retired before July 1, 2025 and are over 65 will receive a 2% annual increase, and local government employees in the same category will also receive a 2% increase, contingent on their local government contributing adequate funding. The bill also includes a $10 million appropriation from the general fund to support these increases, particularly for state government retirees. Retirees retain the option to decline the annual increase by providing written notice to the retirement association. These changes aim to provide more consistent and targeted cost-of-living adjustments for retired public employees across different employment sectors and retirement scenarios.

Government Affairs

https://www.nmlegis.gov/Legislation/Legislation?chamber=H&legtype=B&legno=164&year=25