COST-OF-LIVING FOR SOME RETIREES

SB 169 provides a temporary cost-of-living adjustment (COLA) of 1.68% annually for certain retired New Mexico public employees starting July 1, 2026, covering fiscal years 2027 and 2028. This applies to normal retirees over age 65 with at least two years of retirement, disability retirees, and eligible survivor beneficiaries. Additionally, the bill includes a higher 2.5% COLA for specific subgroups: retirees with 25+ years of service and pensions under $25,000, disability retirees in that pension bracket, and retirees who turned 75 before 2020. The $10 million appropriation from the state general fund covers these adjustments, with unspent funds remaining in the retirement system.