This bill amends Section 10-11-118 of the New Mexico Statutes to increase the cost-of-living adjustment (COLA) for certain retired public employees. It establishes that beginning July 1, 2023, the COLA for qualified pension recipients will be determined based on the smoothed investment rate of return and the funded ratio of the retirement fund, with specific caps on the adjustments depending on the funded ratio. Additionally, it introduces new provisions for normal retired members who retired before July 1, 2025, and who are over the age of sixty-five, allowing for a two percent increase in their pension benefits each July 1. The bill also allows for a similar increase for local government retirees, contingent on adequate contributions from the local government.

Furthermore, the bill appropriates $10 million from the general fund to the public employees retirement association for fiscal year 2026 and subsequent years to support the two percent COLA for eligible retired members. It specifies that any unexpended or unencumbered balance at the end of a fiscal year will not revert to the general fund. The bill also includes a provision allowing qualified pension recipients to decline the increase by providing written notice to the association.

Statutes affected:
introduced version: 10-11-118