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SENATE BILL 117
57
TH LEGISLATURE
-
STATE
OF
NEW
MEXICO
-
FIRST SESSION
,
2025
INTRODUCED BY
Michael Padilla and Elizabeth "Liz" Stefanics
AN ACT
RELATING TO PUBLIC EMPLOYEE RETIREMENT; REPEALING AND
REENACTING A NEW SECTION 10-11-118 NMSA 1978 (BEING LAWS 2020,
CHAPTER 11, SECTION 61) 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Chapter 11, Section 61) is repealed and a new Section 10-11-118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. A qualified pension recipient is eligible for a
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cost-of-living pension adjustment. A qualified pension
recipient is:
(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. Beginning January 1, 2026, and no later than
each January 1 thereafter, the retirement board shall certify
to the association the social security and supplemental
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security income cost-of-living adjustment determined by the
federal social security administration for that calendar year.
C. Beginning July 1, 2026, 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 B 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.
D. 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 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 2026 and subsequent fiscal years to provide
adequate funding for cost-of-living adjustments to qualified
pension recipients. Any unexpended or unencumbered 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
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provisions of this act is December 1, 2025.
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