Summary:

 House Bill 164 (HB 164) increases the cost-of-living adjustment for certain retired members and makes an appropriation. 

Legislation Overview:

 House Bill 164 (HB 164) amends Section 10-11-118 NMSA 1978 to stipulate that for a normal retired member who retired from employment with the state before July 1, 2025, and who has attained the age of sixty-five, the pension benefits are to be increased by two percent each July 1. The amount of the increase is to be determined by multiplying the amount of pension, inclusive of all prior adjustments, by two percent.

For a normal retired member who retired from employment with a local government before July 1, 2025 and who has attained the age of sixty-five, the pension benefit shall be increased by two percent each July 1, contingent on the local government making contributions to the income fund in an amount adequate to fund the increase, as determined by the Department of Finance and Administration. The amount of the increase is to be determined by multiplying the amount of pension, inclusive of all prior adjustments, by two percent.

Ten million dollars ($10,000,000) is appropriated from the General Fund to the Public Employees Retirement Association for expenditure in Fiscal Year 2026 and subsequent fiscal years to provide a cost-of-living increase of two percent beginning July 1, 2025 for normal retired members over the age of sixty-five who retired from state government by June 30, 2025. Any unexpended or unencumbered balance remaining at the end of a fiscal year is not to revert to the General Fund.
 

Current Law:

 The current law does not include the continuing increases guaranteed for the special groups identified. 

Amendments:

 
Amended February 10, 2025 in the HGEIC

HGEICa/HB 164: The House Government, Elections and Indian Affairs Committee amends HB 164 as follows:

1. On page 1, line 11, after the semicolon, insert "TEMPORARILY". 
2. On page 6, line 1, strike "For" and insert in lieu thereof "Until January 1, 2030, for". 
3. On page 6, line 7, strike "For" and insert in lieu thereof "Until January 1, 2030, for".