Each year, PERA releases its Annual Comprehensive Financial Report (ACFR), Popular Annual Financial Report (PAFR) and Annual Actuarial Valuation Report to provide audited financials for our retirement plans. These reports allow our stakeholders to evaluate PERA’s financial condition and provide information on long-term liabilities.
This Snapshot provides a combined overview from these reports on investments, funding, membership, and economic impact to our members and New Mexico.
Dear PERA Members,
PERA has been and continues to be a source of reliable retirement security for New Mexico’s public employees since August 1, 1947. PERA has made significant progress since it was first created by the New Mexico Legislature. In 1947, members were required to contribute 3.5% of their gross salary and their employers matched with an equal amount. The maximum annuity any member could expect to receive was $150 per month.
Today, PERA is a 401(a) qualified governmental plan that is governed by the New Mexico Public Employees Retirement Act and offers 31 different coverage plans, two tiers of membership and is comprised of 335 participating public employers. PERA’s plans currently cover state, municipal and county employees, police, firefighters, judges, magistrates, legislators, and volunteer firefighters. ,PERA has approximately 47,855 active members and 45,216 retirees and beneficiaries. PERA continues to have an important economic impact to the State, as approximately 92% of the $1.42 billion in retirement benefits paid out in FY 2023 were paid to retirees living in New Mexico. In 2023, the average annual pension was $31,268.
PERA continues to preserve, protect and administer the PERA Trust fund to meet its current and future obligation, while offering one of the best retirement benefits in the country. Thank you to all of our members and public employers as we look forward to continuing to serve you.
Greg Trujillo
Executive Director
The Board and PERA employees are obligated to act in the exclusive interest of PERA members, retirees, and beneficiaries with the primary objective of prudently investing assets in order to meet its statutory obligations to its members. Strategic asset allocation is the most significant factor influencing the Fund’s ability to meet or exceed the Board adopted actuarial rate of return and funding goals over the long term. This is implemented through diversifying the portfolio across asset categories to avoid excessive exposure to any one source of risk. The investment portfolio income is a significant source of revenue for PERA and contributes approximately 50% of the annual benefit payments.
PERA currently utilizes external investment management to ensure its investment program is implemented in a cost-effective manner. For Fiscal year 2023, PERA paid 49 basis points (or 0.49%) on the net asset value of the total fund for asset management services. The fee is paid to manage a multi-billion-dollar, multi-asset portfolio with the objective of maximizing total return within prudent risk parameters to meet current and future statutory obligations to PERA members.
The graph below shows the percentage of PERA's investments by asset class.
PERA continues to preserve, protect and administer the Trust to meet it current and future obligations by offering one of the best retirement benefits in the country.
New Mexico PERA membership is divided into three categories: retirees and benefit recipients, who are receiving a PERA benefit, active members who are currently working for a PERA employer and contributing to PERA, and inactive members who are no longer working for a PERA employer but still have a PERA account.
Hover to show breakdowns by division.
PERA receives contributions as a percentage of payroll from active employees and employers and invests the money in a diversified investment portfolio. At retirement, members will receive a lifetime monthly benefit from PERA. The financials at a glance shows the inflows (contributions, investment income) and outflows (benefits paid, plan administration costs) during the year, and the net assets available to pay future benefit payments.
Total Defined Benefit
| Employer Contributions | $460,952,162.00 |
| Nonemployer Contributions (Distribution from General Fund) | $3,150,000.00 |
| Member Contributions | $367,175,486.00 |
| Purchased Service | $9,075,044.00 |
| Net Investment Income | ($910,122,768.00) |
| Other | $2,390,971.00 |
Deductions
| Benefit Payments | $1,437,897,962.00 |
| Refunds of Contribution Accounts | $51,710,841.00 |
| Administrative | $15,789,552.00 |
Net Position as of June 30, 2023: ($16,825,080,323)
PERA retirement benefit payments represent a steady stream of income in every county in New Mexico, and provide stability to state, regional, and local economies. In Fiscal Year 2023, PERA paid over $1.43 billion in pension benefits, and, of that, $1.3 billion was paid to PERA retirees living in New Mexico.
This snapshot is derived from information contained in the Annual Comprehensive Financial Report (ACFR) for the year ended June 30, 2023, but does not contain detailed financial information by plan, nor is it presented in a manner to conform to Generally Accepted Accounting Principles (GAAP).
View the Popular Annual Financial Report
