📢 Let’s Talk About PERA, COLAs, and New Mexico’s Priorities
I’ve been hearing from many retirees who are frustrated by Cost of Living Adjustments (COLAs) that aren't keeping pace with inflation.
In 2020, Senate Bill 72 changed how PERA COLAs are calculated. While the intent was to improve the system's long-term financial health, many retirees have seen COLAs of less than 1%. At the same time, the costs of groceries, utilities, insurance, and healthcare have increased.
At the same time, PERA’s unfunded liability is estimated at approximately $9.7 billion, while ERB’s unfunded liability is approximately $8.8 billion.
I believe New Mexico needs to have an honest conversation about pension funding.
If oil and gas revenues can help fund countless other priorities, why aren’t we discussing ways to use some of those revenues to strengthen the retirement systems that thousands of retired teachers, police officers, firefighters, and public employees depend on?
There are options worth discussing, including:
✔️ Using surplus revenues to pay down pension debt faster
✔️ Creating a pension stabilization fund during strong revenue years
✔️ Providing supplemental COLA payments to retirees
✔️ Prioritizing assistance for lower-income retirees and surviving spouses
✔️ Improving long-term funding strategies without increasing contributions for current workers
New Mexico has money for almost everything else. Why aren't we having a serious discussion about protecting the retirement systems that public employees paid into for decades?
Our retirees kept their promises to New Mexico.
New Mexico should keep its promises to them.
#PERA
#ERB
#COLA
#RetireesMatter
#NMPol
#NMLeg
#NewMexico
#PublicEmployees
#Teachers
#Firefighters
#LawEnforcement
#KeepThePromise