Summary:

 House Bill 454 (HB 454), relating to educational retirement, provides a temporary, additional, non-compounding payment to retired members under the Educational Retirement Act. HB 454 makes an appropriation. 

Legislation Overview:

 House Bill 454 makes a temporary change in payment to the Educational Retirement Act.
SECTION 1 amends Public Schools in Cost-of-living Adjustment to insert Subsection C: 
C. During Fiscal Years 2026 and 2027, a retired member receiving an annuity pursuant to the Educational Retirement Act shall receive an annual, non-compounding, additional payment. The amount of the payment shall be determined each fiscal year by multiplying the amount of annual annuity payments, inclusive of all cost-of-living adjustments prior to that fiscal year, by two percent.
SECTION 2 makes an appropriation of $60,000,000 from the General Fund to the Educational Retirement Board for expenditure in Fiscal Year 2026 and subsequent fiscal years to provide adequate funding to cover the cost of the temporary, additional, non-compounding payments. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the General Fund. 

Current Law:

 House Bill 454 amends educational retirement in Section 22-11-31 NMSA 1978 (being Laws 1979, Chapter 333, Section 2, as amended) to provide an additional cost-of-living payment that is not included in current law.