This bill amends Section 10-11-118 of the New Mexico Statutes to provide a temporary cost-of-living adjustment for certain retired public employees. Specifically, it establishes that for fiscal years 2027 and 2028, qualified pension recipients who are over the age of sixty-five will receive an increase in their pension benefits of one and sixty-eight hundredths percent each July 1. The bill also clarifies that a qualified pension recipient can only receive a pension adjustment under one subsection of the law. Additionally, it introduces new definitions related to cost-of-living adjustments, such as "cost-of-living adjustment hurdle rate" and "smoothed investment rate of return."

Furthermore, the bill includes an appropriation of ten million dollars from the general fund to the public employees retirement association for the purpose of funding these cost-of-living increases in fiscal years 2027 and 2028. It stipulates that any unexpended balance remaining at the end of fiscal year 2028 shall not revert to the general fund, ensuring that the funds are available for the intended purpose. The adjustments aim to support retired public employees in maintaining their purchasing power amidst inflation and rising living costs.

Statutes affected:
introduced version: 10-11-118