PERA COST-OF-LIVING ADJUSTMENTS

SB0052

SENATE BILL 52

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Michael Padilla
and
Peter Wirth
and
Micaelita Debbie O’Malley

and
Elizabeth "Liz" Stefanics
and
Pete Campos

AN ACT

RELATING TO PUBLIC EMPLOYEE RETIREMENT; REPEALING AND
REENACTING A SECTION OF THE PUBLIC EMPLOYEES RETIREMENT ACT
RELATING TO COST-OF-LIVING ADJUSTMENT PROVISIONS FOR QUALIFIED
PENSION RECIPIENTS; PROVIDING COST-OF-LIVING ADJUSTMENTS THAT
ARE EQUAL TO SOCIAL SECURITY AND SUPPLEMENTAL SECURITY INCOME
COST-OF-LIVING ADJUSTMENTS; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1.
Section 10-11-118 NMSA 1978 (being Laws 2020,
Chapter 11, Section 61) is repealed and a new Section 10-11-118
NMSA 1978 is enacted to read:

"10-11-118. [
NEW MATERIAL
] COST-OF-LIVING ADJUSTMENTS--QUALIFIED PENSION RECIPIENT.--

A. As used in this section, "qualified pension
recipient" means:

(1) a normal retired member who has been
retired for at least two full calendar years from the effective
date of the member's latest retirement prior to July 1 of the
year in which the pension is being adjusted;

(2) a normal retired member who has attained
the age of sixty-five years and has been retired for at least
one full calendar year from the effective date of the member's
latest retirement prior to July 1 of the year in which the
pension is being adjusted;

(3) a disability retired member who has been
retired for at least one full calendar year from the effective
date of the member's latest retirement prior to July 1 of the
year in which the pension is being adjusted;

(4) a survivor beneficiary who has received a
survivor pension for at least two full calendar years; or

(5) a survivor beneficiary of a deceased
retired member who otherwise would have been retired for at
least two full calendar years from the effective date of the
member's latest retirement prior to July 1 of the year in which
the pension is being adjusted.

B. A qualified pension recipient is eligible for a
cost-of-living pension adjustment.

C. Beginning January 1, 2027, and no later than
each January 1 thereafter, the retirement board shall certify
to the association the social security and supplemental
security income cost-of-living adjustment determined by the
federal social security administration for that calendar year.

D. Beginning July 1, 2027, and each July 1
thereafter, the cost-of-living adjustment to a qualified
pension recipient payable pursuant to the Public Employees
Retirement Act shall be in an amount equal to the amount
certified by the retirement board pursuant to Subsection C of
this section, and the amount of increase shall be determined by
multiplying the amount of pension, inclusive of all prior
adjustments, by the social security and supplemental security
income cost-of-living adjustment determined by the federal
social security administration for that calendar year.

E. A qualified pension recipient may decline an
increase in a pension by giving the association written notice
of the decision to decline the increase at least thirty days
prior to the date that the increase would take effect."

SECTION 2.
APPROPRIATION.--Fifty million dollars
($50,000,000) is appropriated from the general fund to the
public employees retirement association for expenditure in
fiscal year 2027 and subsequent fiscal years to provide
adequate funding for cost-of-living adjustments to qualified
pension recipients. Any unexpended balance remaining at the
end of a fiscal year shall not revert to the general fund.

SECTION 3.
EFFECTIVE DATE.--The effective date of the
provisions of this act is December 1, 2026.