SB 63 PUBLIC EMPLOYEE COST-OF-LIVING ADJUSTMENTS

Sen Michael Padilla

Actions: [1] SCC/SHPAC/SFC-SCC

Scheduled: Not Scheduled

 Senate Bill 63 (SB 63) This Bill establishes criteria for qualified pension recipients, outlines the process for determining cost-of-living adjustments based on federal social security administration figures, and appropriates funds to ensure adequate funding for these adjustments in subsequent fiscal years. 

 Senate Bill 63 (SB 63):  Section 1: Repeal and Enactment of New Section 10-11-118 NMSA 1978.  This section repeals and replaces Section 10-11-118 NMSA 1978, which relates to cost-of-living adjustment provisions for qualified pension recipients. The new section introduces eligibility criteria for qualified pension recipients and establishes guidelines for cost-of-living adjustments.  Subsection A: defines a qualified pension recipient as a normal retired member, a retired member with disabilities, or a survivor beneficiary meeting specific criteria based on retirement duration, age, or survivorship.  Subsection B: mandates that the retirement board shall certify to the association the social security and supplemental security income cost-of-living adjustment determined by the federal social security administration each January 1, starting from January 1, 2025.  Subsection C: outlines that, starting from July 1, 2025, the cost-of-living adjustment to a qualified pension recipient shall be in an amount equal to the certified adjustment mentioned in Subsection B. The adjustment amount is determined by multiplying the pension amount, including 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.  Subsection D: allows a qualified pension recipient to decline an increase in pension by providing written notice to the association at least thirty days before the increase would take effect.  Section 2: Appropriation - This section appropriates fifty million dollars ($50,000,000) from the general fund to the public employee’s retirement association for fiscal year 2025 and subsequent fiscal years. The funds are allocated to provide adequate funding for cost-of-living adjustments to qualified pension recipients. Any unexpended or unencumbered balance at the end of a fiscal year does not revert to the general fund.  The effective date of the provisions of this act is 
December 1, 2024.