COST-OF-LIVING ADJUSTMENT FOR RETIREES

HB 242 provides a temporary 1.68% annual cost-of-living pay increase for eligible New Mexico public retirees aged 65+ who have retired for at least two years. It applies to normal retirees, disability retirees, and survivors meeting specific criteria, with an additional 2.5% increase for retirees with pensions under $25,000 annually. The state appropriates $10 million from the general fund for fiscal years 2027-2028 to fund these adjustments, starting July 1, 2026. The bill ensures retirees receive these increases without compounding and allows them to opt out of the adjustment.