2023 Legislative Updates

In April 2023, Governor Michelle Lujan-Grisham signed House Bill 106 (HB106) into law. Effective June 16, 2023, HB106 will allow members of all coverage plans to surpass the current allowable maximum benefit of 90% of their final average salary. It will allow members to earn up to 100% of their final average salary. HB106 will not allow retroactive calculations prior to June 16, 2023.

For example,

• A member with a 3.5% pension factor would have to work 28 years and 7 months.
• A member with a 3% pension factor would have to work 33 years and 4 months (Tier 1 enhancement plan members would have to work 27 years and 9 months).
• A member with a 2.5% pension factor would have to work 40 years.
• A member with a 2% pension factor would have to work 50 years.

If a member has worked under more than one PERA plan on or after July 1, 2013, a blending of pension factors may be in effect which could lengthen or shorten the amount of service credit required to reach 100%.

Governor Michelle Lujan-Grisham also signed House Bill 304 (HB304) into law, which means that effective June 16, 2023, a member can designate a supplemental needs trust as a refund, survivor or post-retirement beneficiary.