2025 Legislative Updates

As of 02/21/2025, the following PERA-related legislation has been introduced.

House Bill 96	* The Legislation provides a two percent (2%) non-compounding 13th checks to all retirees for fiscal years 2026 and 2027. * The legislation includes an appropriation of sixty-six million dollars ($66,000,000) to fund the 13th checks. *The legislation is adequately funded.
House Bill 164	*The legislation introduces an automatic, annual two percent (2%) COLA for the following retirees: Retired prior to July 1, 2025 + Retired from state government + Attained the age of sixty-five (65). *The legislation introduces an ad hoc, annual two percent (2%) COLA for the following retirees: Retired prior to July 1, 2025 + Retired from a local government + Attained the age of sixty-five (65) + The local government provides the necessary funding for the increase through the Department of Finance and Administration. *The legislation includes an appropriation of ten million dollars ($10,000,000) to fund the increase for the state retirees. *The legislation is not adequately funded.
House Bill 182	*The legislation proposes the following changes for the Judicial Retirement Plan: ▪ Decrease the vesting period from eight (8) to five (5) years, consistent with members under the public employee plans. ▪ Increase the pension multiplier from three and one-half percent (3.5%) for judges/justices who took the bench prior to 07/01/2014 and from three and one-quarter percent (3.25%) for judges/justices who took the bench on or after 07/01/2014 to four percent (4%) for up to ten years of service credit. Thereafter, returning to three and one-half percent (3.5%) and three and one-quarter percent (3.25%) respectively. ▪ Increase the current pension maximum of eighty-five percent (85%) to one hundred percent (100%), consistent with members under the public employee plans. ▪ Increase employer contributions from fifteen percent (15%) to nineteen and twenty-four hundredths percent (19.24%) and the employee contributions from ten and one-half percent (10.5%) to fourteen and seventy-four hundredths percent (14.74%). *Due to the significant increase in contributions, the legislation decreases the amortization period for the Judicial Retirement Fund and can be considered adequately funded.
House Bill 183	*The legislation enacts the following changes for the Magistrate Retirement Plan: ▪ Decrease the vesting period from eight (8) to five (5) years, consistent with members under the public employee plans. ▪ Increase the pension multiplier from three percent (3%) to three and one-half percent (3.5%). ▪ Increase the current pension maximum of eighty-five percent (85%) to one hundred percent (100%), consistent with members under the public employee plans. ▪ Increase employer contributions from fifteen percent (15%) to nineteen and twenty-four hundredths percent (19.24%) and the employee contributions from ten and one-half percent (10.5%) to fourteen and seventy-four hundredths percent (14.74%). * Due to the significant increase in contributions, the legislation decreases the amortization period for the Magistrate Retirement Fund and can be considered adequately funded.
House Bill 299	* The legislation allows law enforcement instructors of the NM Law Enforcement Academy, who have a law enforcement certification, to elect to join the State Public Safety Plan. * The legislation would have a negligible impact on the fund.
House Bill 336	* The legislation expands the public safety return-to-work program, which was enacted in 2024, to include all state peace officers. * Return-to-work legislation is difficult to analyze as it requires assumptions relating to human behavioral patterns. Generally, if return-to-work legislation includes non-refundable contributions and prohibits the accrual of service credit during the subsequent employment, the impact on the fund is negligible.
House Bill 416	* Duplicate of Senate Bill 337 – See Below * The legislation amends several sections of the PERA Act to remove inconsistencies and ambiguities and to improve the administration of the act. * No fiscal impact.
Senate Bill 30	* The legislation introduces an automatic, annual two percent (2%) COLA for the following retirees: ▪ Retired prior to July 1, 2025 + Retired from state government + Attained the age of sixty-five (65). * The legislation introduces an ad hoc, annual two percent (2%) COLA for the following retirees: ▪ Retired prior to July 1, 2025 + Retired from a local government + Attained the age of sixty-five (65) + The local government provides the necessary funding for the increase through the Department of Finance and Administration. * The legislation includes an appropriation of ten million dollars ($10,000,000) to fund the increase for the state retirees. * The legislation is not adequately funded.
Senate Bill 77	* The legislation prohibits a hedge fund, private equity firm, corporation, or other business from purchasing a single-family residential property. * It is unclear whether there is any intention that the legislation apply to PERA. The new section of proposed law is not placed within any short title act, nor are the terms defined. * PERA will continue to monitor the legislation to determine the intent and effect of the legislation, if it is clarified to be applicable to PERA.
Senate Bill 117	* The legislation proposes to change the current cost-of-living adjustment structure for qualified pension recipients to a new calculation that provides an annual, compounding COLA equal to the Social Security and Supplemental Security Income cost-of-living adjustment. * The legislation provides a one-time $50 million dollar appropriation to fund this new model. * The legislation is not adequately funded. *This bill ties the cost-of-living adjustment (COLA) to the Consumer Price Index (CPI), which makes it harder to predict future COLA increases because inflation can fluctuate a lot. Based on CPI fluctuation PERA’s actuaries have determined a 2.5% COLA assumption for this bill, which would increase the amount of the unfunded liability by $2.7 billion, which would lower the funding ratio to 60.9%. However, if inflation is lower, like around 1.8% each year, the amount of PERA’S unfunded liability would still go by $1 billion, and our funding ratio would drop to 64.9%. In a scenario where inflation is higher, the amount of PERA’s unfunded liability would jump $4 billion, and our funding ratio would fall to 58.1%.
Senate Bill 138	* The legislation removes further distributions to the Magistrate and Judicial Retirement Funds from the Oil and Gas Proceeds and Pass-Through Entity Withholding Tax. * The legislation also removes the provision that PERA inform the Taxation and Revenue Department if an increased distribution is required for the Legislative Retirement Fund. This provision was inadvertent and will be corrected. * The legislation is not adequately funded.
Senate Bill 150	* The legislation enacts the following changes for the Judicial Retirement Plan: ▪ Decrease the vesting period from eight (8) to five (5) years, consistent with members under the public employee plans. ▪ Increase the pension multiplier from three and one-half percent (3.5%) for judges/justices who took the bench prior to 07/01/2014 and from three and one-quarter percent (3.25%) for judges/justices who took the bench on or after 07/01/2014 to four percent (4%) for up to ten years of service credit. Thereafter, returning to three and one-half percent (3.5%) and three and one-quarter percent (3.25%) respectively. ▪ Increase the current pension maximum of eighty-five percent (85%) to one hundred percent (100%), consistent with members under the public employee plans. ▪ Increase employer contributions from fifteen percent (15%) to nineteen and twenty-four hundredths percent (19.24%) and the employee contributions from ten and one-half percent (10.5%) to fourteen and seventy-four hundredths percent (14.74%). * Due to the significant increase in contributions, the legislation decreases the amortization period for the Judicial Retirement Fund and can be considered adequately funded.
Senate Bill 151	* The legislation enacts the following changes for the Magistrate Retirement Plan: ▪ Decrease the vesting period from eight (8) to five (5) years, consistent with members under the public employee plans. ▪ Increase the pension multiplier from three percent (3%) to three and one-half percent (3.5%). ▪ Increase the current pension maximum of eighty-five percent (85%) to one hundred percent (100%), consistent with members under the public employee plans. ▪ Increase employer contributions from fifteen percent (15%) to nineteen and twenty-four hundredths percent (19.24%) and the employee contributions from ten and one-half percent (10.5%) to fourteen and seventy-four hundredths percent (14.74%). * Due to the significant increase in contributions, the legislation decreases the amortization period for the Judicial Retirement Fund and can be considered adequately funded.
Senate Bill 165	* The legislation permits retired members to return to employment as certified lifeguards without a suspension of their pension benefits. * The restrictions provided for the public safety return-to-work program that was established in the 2024 Legislative Session would apply to these members. * Return-to-work legislation is difficult to analyze as it requires assumptions relating to human behavioral patterns. Generally, if return-to-work legislation includes non-refundable contributions and prohibits the accrual of service credit during the subsequent employment, the impact on the fund is negligible.
Senate Bill 173	* The legislation proposes to allow 911 Operators to elect to adopt and join the plan that their employer has made available for police officers in their jurisdiction. * PERA has not received a comprehensive list of the persons that this legislation could affect and is therefore unable to perform an accurate actuarial analysis.
Senate Bill 251	* Duplicate of House Bill 336 – See Above * The legislation expands the public safety return to work program, that was enacted in 2024, to include all state peace officers. * Return to work legislation is difficult to analyze as it requires assumptions relating to human behavioral patterns. Generally, if return-to-work legislation includes non-refundable contributions and prohibits the accrual of service credit during the subsequent employment, the impact on the fund is negligible.
Senate Bill 275	* The legislation enacts the Strategic Bitcoin Reserve Act. The act permits certain the State Treasurer and the State Investment Council to invest in bitcoin. The legislation also provides a provision that PERA and ERB may invest in exchange-traded products (ETFs) that are registered by the Federal Securities and Exchange Commission, the United States Commodity Futures Trading Commission, or the Securities Division of RLD.
Senate Bill 292	* The legislation expands the public safety return-to-work program, that was enacted in 2024, to include all employees of the protective services divisions of CYFD. * Return to work legislation is difficult to analyze as it requires assumptions relating to human behavioral patterns. Generally, if return-to-work legislation includes non-refundable contributions and prohibits the accrual of service credit during the subsequent employment, the impact on the fund is negligible.
Senate Bill 337	* Duplicate of House Bill 416 – See Above * The legislation amends several sections of the PERA Act to remove inconsistencies and ambiguities and to improve the administration of the act. * No fiscal impact.
Senate Bill 402	* The legislation amends the provision relating to purchasing service credit for military service. Currently, a member may buy up to five years for corresponding time in active-duty military service. The bill removes the requirement for active-duty service, permits the purchase of up to five-years for any period of military service, and removes that restriction that military time may not be used to obtain service credit in more than one retirement system. * Analysis projects that any impact to the fund would be negligible.
Senate Bill 438	* The legislation proposes to enhance all state police members to Tier One under the Public Safety Plan. Tier one members receive a twenty percent (20%) enhancement on service credit earned under the plan. * The legislation would not apply retroactively to enhance the past credit earned by the current Tier Two members. * The legislation is currently undergoing actuarial analysis.
Senate Bill 454	* The legislation proposes to provide to all State Public Safety Members the twenty percent (20%) enhancement on service credit earned under the State Public Safety Plan. This enhancement is currently only provided to Tier One members. * The legislation would not apply retroactively to enhance the past credit earned by the current Tier Two members. * The legislation would also lower the age and service credit requirement for all Municipal Police and Fire members from “any age and twenty-five years” to “any age and twenty years.” * The legislation is not adequately funded.