LESC bill analyses are available on the New Mexico Legislature website ( www.nmlegis.gov). Bill analyses are
prepared by LESC staff for standing education committees of the New Mexico Legislature. LESC does not assume
any responsibility for the accuracy of these reports if they are used for other purposes.
LEGISLATIVE EDUCATION STUDY COMMITTEE
BILL ANALYSIS
57th Legislature, 1st Session, 2025
Bill Number HB254 Sponsor Moya/Garrat/Baca/Gonzales
Tracking Number .229348.3 Committee Referrals HLVMC/HAFC
Short Title Ed. Retirees Returning to Work Time Period
Original Date 2/8/2025
Analyst Montoya Last Updated
BILL SUMMARY
Synopsis of Bill
House Bill 254 (HB254) would amend the Education Retirement Act (Section 22-11-25.1 NMSA
1978) to extend the amount of time a retired Education Retirement Board (ERB) member may
return to work for a local administrative unit without having their retirement benefits suspended. HB254 would extend the current statutory employment period of 36 months ( consecutive or
nonconsecutive) to 84 months (consecutive or nonconsecutive) .
FISCAL IMPACT
HB254 does not carry an appropriation.
SUBSTANTIVE ISSUES
Impact on School Districts. HB254 could allow school districts and charter schools to further
leverage the expertise of retired personnel to provide additional staffing support on a part-time and
short-term basis. The proposed extension would allow retirees to supplement their income without
affecting their ERB benefits while also giving school districts greater access to their expertise.
This change could help address staffing shortages, particularly for substitute teachers and other support roles. By extending the employment period, school districts and charter schools could
retain these experienced professionals longer, potentially improving stability and continuity in
schools. Local Administrative Unit. The term l ocal administrative unit (LAU) refers to an employer that
participates in the ERB retirement system. This includes public schools, charter schools, universities, and other educational institutions that employ staff who contribute to the educational
retirement fund. Each LAU is responsible for enrolling eligible employees in ERB, reporting
wages, and remitting employer and employee contributions to the retirement system.
HB254 – Page 2
ADMINISTRATIVE IMPLICATIONS
HB254 would require ERB to update policies and procedures to account for the proposed increase
in the employment period limitations for RTW members.
RELATED BILLS
Relates to Senate Bill 75, Educational Retirement Changes, which proposes changes to the ERB
system, including investing unclaimed member contributions, ensuring annuity adjustments for
disabled members over 60, extending the service credit payment deadline to 90 days, and allowing
information sharing with the Public Employees Retirement Board for administration.
Relates to Senate Bill 133, Educational Retirees Returning to Work, which would raise the
maximum salary a retired member can earn without suspending retirement benefits when returning
to work, increasing the threshold from $15 thousand to $25 thousand.
Relates to House Bill 251, Ed. Retirement Beneficiary Changes, which proposes additional
beneficiary designation options for retired ERB members.
SOURCES OF INFORMATION
• LESC Files
• Education Retirement Board (ERB)
MAM/clh/mca/jkh