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 qualified pension recipients, including normal retired members, disability retired members, and survivor beneficiaries, will receive an annual, non-compounding additional payment of two percent of their annual pension payments for fiscal years 2021, 2022, and 2023. Starting July 1, 2023, the COLA 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. New provisions are added to ensure that normal retired members who retired before July 1, 2025, and are over the age of sixty-five will receive a two percent increase each July 1.

Additionally, the bill includes an appropriation of ten million dollars 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. The bill also allows qualified pension recipients to decline the increase by providing written notice to the association. Overall, the legislation aims to enhance the financial security of retired public employees in New Mexico by ensuring regular cost-of-living adjustments to their pensions.

Statutes affected:
introduced version: 10-11-118