Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Gallegos/Maestas/Hernandez
LAST UPDATED
ORIGINAL DATE 2/20/2025
SHORT TITLE Telecommunicators As Police In PERA
BILL
NUMBER Senate Bill 173
ANALYST Hanika-Ortiz
REVENUE*
(dollars in thousands)
Type FY25 FY26 FY27 FY28 FY29
Recurring or
Nonrecurring
Fund
Affected
PERA
(Indeterminate,
see fiscal
impact)
(Indeterminate,
see fiscal
impact)
(Indeterminate,
see fiscal
impact)
(Indeterminate,
see fiscal
impact)
Recurring Trust Fund
Parentheses ( ) indicate revenue decreases.
*Amounts reflect most recent analysis of this legislation.
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
DPS (employer
contributions)
$26.0 $26.0 $52.0 Recurring General Fund
Municipalities
Indeterminate
but minimal
Indeterminate
but minimal
Indeterminate
but minimal
Recurring
Other State
Funds
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Public Employees Retirement Association (PERA)
Department of Finance and Administration (DFA)
Department of Public Safety (DPS)
Department of Homeland Security & Emergency Management (DHSEM)
SUMMARY
Synopsis of Senate Bill 173
Senate Bill 173 (SB173) amends Chapter 10, Article 11 (Public Employees Retirement Act) to
include public safety telecommunicators (dispatchers) currently employed by a municipality or
the state within the definition of “municipal police member” and “state police member”. These
employee groups are both currently covered under a 25-year retirement plan, either Municipal
General Coverage Plan 1-5, or State General Member Coverage Plan 3, respectively.
Senate Bill 173 – Page 2
SB173 also requires that by December 30, 2025, the Public Employees Retirement Association
(PERA) will conduct an election for members covered under Municipal General Coverage Plan
1-5 to move into Municipal Police Coverage Plan 5; and a second election for members covered
under State General Member Coverage Plan 3 to move to State Public Safety Member Coverage
Plan 1. The PERA board will certify those results.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns if enacted, or June 20, 2025.
FISCAL IMPLICATIONS
If members elect coverage, these positions will transition to enhanced plans for police/public
safety, with higher contribution rates for pensions and retiree health care. It’s unknown what the
fiscal impact would be for municipal employers. However, the Department of Public Safety
(DPS) projects the additional operating budget cost to bring 80 dispatchers under the public
safety plan at $26 thousand, increasing each year with payroll growth. As of June 30, 2024,
PERA reported
the Municipal Police plan has a funded ratio of 71 percent and the State Public
Safety Plan has a funded ratio of 124 percent. However, contributions, no matter the source,
accumulate for the benefit of all PERA members. As of June 30, 2024, the funded status of the
entire system was 67 percent. This means the plan is underfunded; assets may not be sufficient to
cover all the benefits promised over the long term.
PERA notes it is waiting for a list of the affected personnel before it can perform an actuarial
analysis. The Department of Finance and Administration (DFA) was able to identify 1,037
potentially affected members; however, DFA notes that this list includes
individuals from various
entities, including some not under PERA, such as tribes or agencies with alternate retirement plans.
This FIR may be updated once that actuarial analysis is completed.
Article XX, Section 22 of the New Mexico Constitution prohibits the Legislature from enacting
any law that increases the benefits paid by PERA or ERB unless adequate funding is provided.
SIGNIFICANT ISSUES
The State General Member Coverage Plan 3 is structured for state employees who have longer
service periods before retirement than police/public safety. Plans geared toward police/public
safety allow an earlier retirement, due to the physically demanding and higher risks of the work.
As benefits increase, the incentive to retire earlier may also further increase costs.
DPS identified potential consequences with regards to overtime and social security benefits. For
instance, dispatchers would operate on eighty-three hours at straight time over a fourteen day pay
period. The 84th hour onward is overtime. Dispatchers are currently on a 40-hour week and are
eligible for overtime starting with the 41st hour. In addition, at retirement they would rely solely
on their PERA enhanced pension, which replaces social security for those years of service.
Senate Bill 173 – Page 3
PERFORMANCE IMPLICATIONS
DPS does not support this legislation:
While the bill seeks to align telecommunicator benefits with those of other public
safety personnel, it does not account for the disparity in job duties, training, and
physical risks faced by sworn officers compared to telecommunicators. This
creates an equity imbalance that could impact workforce morale and operational
cohesion…
Conflict, Duplication, Companionship, Relationship
This bill relates to House Bill 299 State Law Enforcement Instructor in PERA which would
make those instructors eligible to join a public safety plan under PERA for an increased benefit.
AHO/rl/SL2