Study Pension Benefit Structures
The need for such a study arises from historical inequities identified in a report commissioned by the Educational Retirement Board, which highlighted significant differences in the compensation and pension benefits received by members of the educational system compared to their counterparts in public employment. Among the findings, it was noted that members of the educational retirement system, which includes teachers and staff in public education, tend to earn lower pensions despite having similar levels of experience and service duration as members of the public employees' system, which includes state and local government employees.
House Memorial 1 (HM1) is a legislative request aimed at conducting a comprehensive study on equalizing the pension benefit structures between two retirement systems in New Mexico: the Educational Retirement Board and the Public Employees Retirement Association. Introduced by Joy Garratt, the memorial calls for the Legislative Finance Committee to collaborate with the Interim Committee studying investments and pensions and the University of New Mexico Bureau of Business and Economic Research to explore disparities in pension benefits, multipliers, and cost-of-living adjustments between the two systems.
One notable point of contention in the discourse surrounding HM1 is the potential gender disparity linked to the pension benefits received. The evidence suggests that over time, the majority of beneficiaries from the educational retirement system have been female, raising concerns about fairness and equity in access to retirement benefits. As stakeholders evaluate the implications, supporters of the bill argue that the study is necessary for addressing these long-standing issues, while opponents may express concerns over costs or disruptions that could arise from implementing changes based on the study's findings.