New Mexico pension reforms would increase contributions

New Mexico

SANTA FE, N.M. (AP) — Legislators are holding their first open discussion of suggested pension reforms from the governor’s office to address a roughly $6 billion unfunded liability at the New Mexico retirement plan for state and local government employees.

The Legislature’s pensions-oversight committee meets Wednesday to discuss ways to shore up the fund overseen by the Public Employees Retirement Association.

A pension solvency task force appointed by Gov. Michelle Lujan Grisham has suggested a combined 4% increase in pension contributions by the state and most employees. Annual cost of living adjustments on pension payouts would be linked to investment returns on pension assets.

State Senator George Munoz, chairman of the pension oversight committee, said Tuesday that it will be hard to approve a pension reform bill during next year’s rapid-fire, 30-day legislative session.

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