This bill repeals and reenacts a new section of the Public Employee Retirement Act, specifically Section 10-11-118 NMSA 1978, to establish cost-of-living adjustments (COLAs) for qualified pension recipients. The new provisions stipulate that these adjustments will be equal to the cost-of-living adjustments determined by the Social Security Administration for both Social Security and Supplemental Security Income. The eligibility criteria for qualified pension recipients include normal retired members, disability retired members, and survivor beneficiaries, each with specific retirement duration and age requirements.

Additionally, the bill mandates that starting January 1, 2026, the retirement board will certify the applicable COLA annually, and beginning July 1, 2026, the adjustments will be applied to the pensions of qualified recipients. The bill also includes an appropriation of $50 million from the general fund to support these adjustments in fiscal year 2026 and beyond, ensuring that any unspent funds do not revert to the general fund. The effective date for the provisions of this act is set for December 1, 2025.

Statutes affected:
introduced version: 10-11-118