This bill amends Section 10-11-118 of the New Mexico Statutes to restore a two percent cost-of-living adjustment (COLA) for certain retired public employees. The adjustments will apply to normal retired members who retired from state or local government before July 1, 2025, and who have attained the age of sixty-five. The bill specifies that the pension benefit for these members will increase by two percent each July 1, contingent upon local governments making adequate contributions to fund the increase. Additionally, the bill allows qualified pension recipients to decline the increase by providing written notice to the association.

The bill also includes an appropriation of ten million dollars from the general fund to the public employees retirement association for fiscal year 2026 and subsequent years to support the two percent COLA starting July 1, 2025. The legislation ensures that any unexpended or unencumbered balance at the end of a fiscal year will not revert to the general fund, thereby securing the funds for the intended purpose of providing these pension increases.

Statutes affected:
introduced version: 10-11-118