Final enaction of pension reform a milestone for PERA

July 1, 2016 marked an important milestone in the 69 year history of the Public Employees Retirement Association of New Mexico. That is when the final provision of pension reform legislation passed in 2013 took effect. On behalf of the PERA Board, I want to thank the Legislature and Governor for working with us to […]

July 1, 2016 marked an important milestone in the 69 year history of the Public Employees Retirement Association of New Mexico. That is when the final provision of pension reform legislation passed in 2013 took effect. On behalf of the PERA Board, I want to thank the Legislature and Governor for working with us to pass the reforms.

Patricia “Patty” French is the board chair of PERA.

Asking for shared sacrifice in 2013 from all of our members wasn’t easy. However, without reform, our ability to provide one of the best public pensions in the country would have been at risk.

Thanks to pension reform, we have seen a steady improvement in our solvency forecasts. As of our last valuation, PERA was projected to meet our goal of being 100% funded by 2043. Recent market volatility will likely impact FY16 results but there is no question that reform has had a significant, positive impact on PERA’s outlook.

Despite this progress, we will continue to stress caution going forward. Unfortunately, in each of the last three legislative sessions there have been efforts to change the PERA benefit, often under the guise of solving problems that are not the responsibility of the retirement system like employee retention, that would potentially roll back some of the progress we’ve made. We appreciate the Legislature resisting these efforts.

Now that PERA is on a more stable footing, we are focused on making sound, long term decisions to ensure that we pay the future benefits we’ve promised just as we’ve done for the past 69 years.

We recently adopted a new strategy for investing PERA’s $14 billion Fund that prioritizes lessening risk in the portfolio. The Board will also look at reducing our investment return projection from the current 7.75% to what we believe is a more realistic future rate.

Reducing the investment return assumption may impact our funding levels in the short term. However, it reflects market outlook for the foreseeable future, thereby helping the Board more prudently administer the Fund and the benefit we offer.

Pension reform was hard work and we are pleased that the law has now been fully implemented. Thanks in large part to the changes made in 2013, PERA continues to provide a solid retirement benefit to 38,000 current retirees and we will be able to do so for many years come.

We're ad free

That means that we rely on support from readers like you. Help us keep reporting on the most important New Mexico Stories by donating today.

Related

Senators throw support to embattled Ivey-Soto

Senators throw support to embattled Ivey-Soto

By Justin Horwath, New Mexico In Dept Sen. Daniel Ivey-Soto is running for a fourth term despite the state Democratic Party’s decision to censure…
AG announces legislative priorities for upcoming special session

AG announces legislative priorities for upcoming special session

Attorney General Raúl Torrez announced on Thursday his legislative priorities for July’s special legislative session, including the creation of a crime victim’s unit to…
Correa Hemphill to step down from legislature

Correa Hemphill to step down from legislature

State Sen. Siah Correa Hemphill, a Democrat from Silver City, won’t seek reelection in the general election in November, leaving SD 28, a swing…
EPA announces $18.9M in funding to address PFAS contamination in New Mexico

EPA announces $18.9M in funding to address PFAS contamination in New Mexico

The U.S. Environmental Protection Agency awarded the New Mexico Environment Department nearly $19 million to address PFAS and other emerging contaminants in drinking water.…
Environmental historian reflects on the legacies of Aldo Leopold and the Gila Wilderness

Environmental historian reflects on the legacies of Aldo Leopold and the Gila Wilderness

One hundred years ago, conservationist Aldo Leopold proposed designating 500,000 acres of land in the Gila National Forest as an area where no roads…

A rare NM lizard is now listed as endangered

The U.S. Fish and Wildlife Service added the dunes sagebrush lizard to the list of endangered species on Friday and is expected to designate…
Amid new graduation requirements, what do high schoolers want to learn?

Amid new graduation requirements, what do high schoolers want to learn?

By Margaret O’Hara, The Santa Fe New Mexican The main things that bring Brayan Chavez to school every day: Seeing, talking to and engaging with…
Special ed teachers hope lawmakers OK pay raises, admin changes

Special ed teachers hope lawmakers OK pay raises, admin changes

By Margaret O’Hara, The Santa Fe New Mexican Brittany Behenna Griffith has a laundry list of adjectives to describe the ideal special education teacher:…
Lawmakers must find consensus on competing education spending plans

Lawmakers must find consensus on competing education spending plans

By Margaret O’Hara, The Santa Fe New Mexican A challenging task awaits New Mexico lawmakers in the next 30 days: Reconciling three very different…
Heinrich questions FDA leadership on baby formula safety, mifepristone

Heinrich questions FDA leadership on baby formula safety, mifepristone

U.S. Food and Drug Administration Commissioner Dr. Robert Califf answered questions about the safety of human milk formula and mifepristone on Wednesday. Sen. Martin…
Health workers fear it’s profits before protection as CDC revisits airborne transmission

Health workers fear it’s profits before protection as CDC revisits airborne transmission

Amy Maxmen, KFF Health News Four years after hospitals in New York City overflowed with covid-19 patients, emergency physician Sonya Stokes remains shaken by…
Lujan Grisham, Biden admin announce $10 million in federal funds for tribes, pueblos

Lujan Grisham, Biden admin announce $10 million in federal funds for tribes, pueblos

Gov. Michelle Lujan Grisham announced Friday $10 million in funding from the federal American Rescue Plan Act was awarded to six tribal nations and…
Lujan Grisham talks reproductive healthcare with CNN host

Lujan Grisham talks reproductive healthcare with CNN host

Gov. Michelle Lujan Grisham warned that banning contraceptives “could be next” when talking to a CNN host about New Mexico’s border and abortion issues.…
UNM approves land acquisition for Las Cruces reproductive health center

UNM approves land acquisition for Las Cruces reproductive health center

Thursday, the University of New Mexico Board of Regents approved a land acquisition for a full-spectrum reproductive healthcare center, that will include abortion care,…
Heinrich questions FDA leadership on baby formula safety, mifepristone

Heinrich questions FDA leadership on baby formula safety, mifepristone

U.S. Food and Drug Administration Commissioner Dr. Robert Califf answered questions about the safety of human milk formula and mifepristone on Wednesday. Sen. Martin…
Lujan Grisham talks reproductive healthcare with CNN host

Lujan Grisham talks reproductive healthcare with CNN host

Gov. Michelle Lujan Grisham warned that banning contraceptives “could be next” when talking to a CNN host about New Mexico’s border and abortion issues.…
Study: Marriage equality has had a positive impact

Study: Marriage equality has had a positive impact

A recent study found that in the 20 years since Massachusetts became the first state in the U.S. to grant same-sex marriage licenses, same-sex…
UNM approves land acquisition for Las Cruces reproductive health center

UNM approves land acquisition for Las Cruces reproductive health center

Thursday, the University of New Mexico Board of Regents approved a land acquisition for a full-spectrum reproductive healthcare center, that will include abortion care,…
State Ethics Commission sues Apodacas dark money operation

State Ethics Commission sues Apodacas dark money operation

By Marjorie Childress, New Mexico In Depth The State Ethics Commission on Friday sued a dark money group and its president, Jeff Apodaca, to force disclosure…
Lujan Grisham talks reproductive healthcare with CNN host

Lujan Grisham talks reproductive healthcare with CNN host

Gov. Michelle Lujan Grisham warned that banning contraceptives “could be next” when talking to a CNN host about New Mexico’s border and abortion issues.…
Senators throw support to embattled Ivey-Soto

Senators throw support to embattled Ivey-Soto

By Justin Horwath, New Mexico In Dept Sen. Daniel Ivey-Soto is running for a fourth term despite the state Democratic Party’s decision to censure…
State Ethics Commission sues Apodacas dark money operation

State Ethics Commission sues Apodacas dark money operation

By Marjorie Childress, New Mexico In Depth The State Ethics Commission on Friday sued a dark money group and its president, Jeff Apodaca, to force disclosure…
EPA announces $18.9M in funding to address PFAS contamination in New Mexico

EPA announces $18.9M in funding to address PFAS contamination in New Mexico

The U.S. Environmental Protection Agency awarded the New Mexico Environment Department nearly $19 million to address PFAS and other emerging contaminants in drinking water.…
State putting pressure on firms that manage Medicaid to help solve behavioral health access problems

State putting pressure on firms that manage Medicaid to help solve behavioral health access problems

By Gabrielle Porter, The Santa Fe New Mexican New Mexico’s Medicaid middlemen need more skin in the game. That’s the message from Human Services…

GET INVOLVED

© 2023 New Mexico Political Report