This bill repeals and reenacts Section 10-11-118 of the New Mexico Statutes, establishing new provisions for cost-of-living adjustments (COLAs) for qualified pension recipients. The new law specifies that these adjustments will be equal to the COLAs determined by the Social Security Administration for both Social Security and Supplemental Security Income. It outlines the eligibility criteria for qualified pension recipients, which include normal retired members, disability retired members, and survivor beneficiaries, among others. The adjustments will begin on July 1, 2026, with the retirement board required to certify the applicable COLA each January 1, starting in 2026.

Additionally, the bill appropriates $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