New Mexico’s pension program for public employees is not expected to hit its investment target this year.
The Albuquerque Journal reported Thursday that the executive director of the Public Employees Retirement Association told lawmakers Wednesday that missing the target could have a serious impact.
Wayne Propst says investment returns this year may come in at 3% to 5%, not the standard 7.25% target used by many plans in the nation.
The association handles a $15 billion pension fund.
Propst says that if the state program achieves a 5% return this year, the plan’s projected ratio in 2043 would drop from 74% to 69%.
Officials at the state’s Educational Retirement Board say it is too early to predict whether their pension fund will reach the 7.25% target this year.
Information from: Albuquerque Journal, http://www.abqjournal.com