Seante Passes ERB Reform Bill

The New Mexico State Senate passed a bill to help make the Education Retirement Board retirement fund (ERB) for employees of public schools and universities solvent. Due to lack of funding and an unsustainable benefit structure the fund will be insolvent in less than 30 years without major changes. The substitute bill for SB 150- Educational Retirement Changes- makes primarily three adjustments.

Stuart Ingle

1) It requires both public schools and universities and their employees to gradually contribute more out of each paycheck to the retirement fund over the next seven years. On a graduating scale until 2020, employees will contribute 3.4% more of their salary into their retirement fund and the schools would contribute 2.5% more into the fund.
2) The bill will also create for the first time the minimum retirement age of 55 to receive retirement benefits for those starting to work after this July. Now, a person could start receiving retirement pay as early as age 45 if they had started working at age 20

3) The bill requires eight years of service to be vest compared to five years for employees who start after this July.

The legislation is sponsored by Senate Minority Leader Stuart Ingle (R-Portales) who said, “The changes have to be done for the good of our hard working school teachers and university personnel so they will receive the retirement they have worked so diligently for. Without these changes, the money will run out and won’t be there for the future.” The contribution changes will affect all public education employees. The bill passed 30 to 12.

Seante Passes ERB Reform Bill