HB 251 New Mexico House · 2025 Regular Session

ED. RETIREMENT BENEFICIARY CHANGES

HB 251 allows retired educators in New Mexico to change their designated beneficiary for retirement payments under specific conditions. It enables retired members who initially chose a spouse as a beneficiary (Option B or C) to update this designation once, either to another person or to end the beneficiary arrangement (resulting in full payment without reduction). To make this change, retirees must pay a $100 fee, obtain spouse consent if switching from a spouse beneficiary, or secure court approval. This update applies only to those with a living beneficiary designated under Options B or C, streamlining beneficiary changes without retroactive adjustments.

Bill status signed all 5 stages cleared

Introduction

Feb 2025

Committee Review

Mar 2025

House Passage

Mar 2025

Senate Passage

Mar 2025

Signed into Law

Apr 2025

Introduced Feb 4, 2025 Signed Apr 8, 2025

Maddy AI version diff · 1 comparison

What changed between versions

introduced version → Final Version · 6 edits

MODERATE

This bill amends New Mexico's educational retirement law to allow retired members who originally chose a reduced annuity with a spouse as beneficiary to change that beneficiary designation under specific circumstances. The changes introduce new options for retirees to switch beneficiaries when their spouse dies, when a supplemental needs trust terminates, or when the retiree divorces their spouse, with provisions for recalculating annuity amounts and requiring spousal consent in certain cases.

Scope change

The bill expands eligibility for changing beneficiary designations from only pre-retirement elections to include post-retirement changes for retirees who originally selected Options B or C (reduced annuity with survivor benefits).

ELIGIBILITY

Allows retired members to change beneficiaries after retirement if their designated beneficiary predeceases them or a supplemental needs trust terminates while the retiree is still living.

Permits retired members to change beneficiaries upon divorce from their spouse, with specific conditions requiring court orders and spousal consent.

Restricts beneficiary changes to one-time irrevocable options, preventing repeated changes after the initial election.

REQUIREMENT

Requires a $100 fee to the board for recalculating annuity amounts when beneficiaries are changed.

Mandates spousal notarized consent when a retiree's spouse is the designated beneficiary and the retiree wishes to change that designation.

DEFINITION

Clarifies that actuarial present value must be recalculated on the effective date of any new beneficiary designation.

Floor votes · Senate Mar 20, 2025 · House Mar 5, 2025

How they voted

39–0

Passed · 1 other

Total votes 40

Mar 20, 2025

D Democratic24

23 Yea 1

95% Yea

R Republican16

16 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Apr 8, 2025

Signed into law

Signed

executive

Mar 20, 2025

Upper · Passed

passed Senate

upper

Mar 13, 2025

Upper · Passed

DO PASS committee report adopted

upper

Mar 5, 2025

Introduced

Sent to Senate Judiciary Committee

upper

Mar 5, 2025

Lower · Passed

passed House

lower

Feb 27, 2025

Lower · Passed

DO PASS committee report adopted

lower

Feb 12, 2025

Lower · Passed

DO PASS committee report adopted

lower

Feb 4, 2025

Introduced

Sent to House Labor, Veterans & Military Affairs Committee & House Education Committee

lower

5 primary · 0 co-sponsors