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 bill specifies that normal retired members who retired from state employment before July 1, 2025, and who are at least sixty-five years old, will receive a two percent increase in their pension benefits each July 1. Additionally, normal retired members from local governments who meet the same age criteria will also receive the two percent increase, contingent upon their local government making adequate contributions to fund this increase. The bill also introduces a provision allowing qualified pension recipients to decline the increase by providing written notice.

Furthermore, the bill appropriates ten million dollars from the general fund for the public employees retirement association to fund these cost-of-living increases starting July 1, 2025. The legislation outlines the conditions under which pension adjustments will be calculated, including a minimum adjustment of five-tenths percent and caps based on the funded ratio of the pension fund. The adjustments aim to ensure that retired members receive adequate support in their pensions, reflecting the rising cost of living.

Statutes affected:
introduced version: 10-11-118