PERA COST-OF-LIVING ADJUSTMENTS

SB 117 would adjust retirement benefits for New Mexico public employees by linking cost-of-living increases directly to the Social Security and Supplemental Security Income annual adjustments starting July 2026. It applies to eligible retirees (who have been retired 1-2 years) and survivor beneficiaries, replacing previous COLA calculation methods. The bill appropriates $50 million from the state general fund for fiscal year 2026 and beyond to cover these adjustments, with unspent funds carrying forward. This change ensures retirement payments rise at the same rate as Social Security COLAs, providing predictable increases for qualifying recipients.