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.

Furthermore, the bill includes an appropriation of ten million dollars from the general fund to the public employees retirement association for fiscal year 2026 and subsequent years. This funding is designated to support the two percent COLA beginning July 1, 2025, for eligible retired members over the age of sixty-five who retired from state government by June 30, 2025. Any unspent funds at the end of a fiscal year will not revert to the general fund, ensuring that the allocated resources remain available for the intended purpose.

Statutes affected:
introduced version: 10-11-118