INCREASE RETIREE COLA

HB 164 would increase cost-of-living adjustments (COLAs) for certain retired public employees in New Mexico. It provides a fixed 2% annual COLA for state retirees over 65 who retired before June 30, 2025, and a 2.5% annual COLA for retirees with 25+ years of service and disability retirees, effective July 1, 2025. The bill appropriates $10 million from the state general fund to cover the 2% increase, with unspent funds carried forward to future years. This replaces the previous formula-based COLA calculation for these groups, guaranteeing a higher minimum increase than the prior system allowed.