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.
HB 41 provides a temporary, additional 2% payment to eligible retired public employees under New Mexico's Public Employees Retirement Act (PERA) for fiscal years 2027 and 2028. It directly affects retirees who meet specific criteria, such as having retired for at least two years (or one year if over 65), disability retirees with one year of retirement, or survivor beneficiaries with two years of payments. The bill appropriates $70 million from the general fund to cover these payments, which are calculated as 2% of each recipient’s current pension amount (not compounded), with special provisions for retirees receiving under $25,000 annually or aged 75+.
SB 52 (PERA Cost-of-Living Adjustments) changes how cost-of-living adjustments (COLAs) are calculated for New Mexico public retirement pension recipients. It requires that starting July 1, 2027, pension increases equal the Social Security and Supplemental Security Income (SSI) COLA rate determined by the federal government each year, instead of the previous method. This directly affects retirees who meet specific duration requirements (e.g., retired for 2 years, or age 65+ for 1 year), as well as survivor beneficiaries. The bill appropriates $50 million from the general fund for fiscal year 2027 to fund these adjustments, with unspent funds carrying forward to future years.
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.
