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. The retirement board is tasked with certifying the applicable COLA annually, starting January 1, 2026, with the adjustments taking effect on July 1 of the same year.

Additionally, the bill includes an appropriation of $50 million from the general fund to the public employees retirement association for fiscal year 2026 and subsequent years to ensure adequate funding for these COLAs. It also allows qualified pension recipients the option to decline the increase by providing written notice to the association at least thirty days prior to the effective date of the increase. The provisions of this act are set to take effect on December 1, 2025.

Statutes affected:
introduced version: 10-11-118