Font ResizeLAS CRUCES -- The state Education Retirement Board voted unanimously Friday to recommend that retirement eligibility for public education employees remain unchanged, but that workers contribute an additional 0.5 percent in membership contributions.
The retirement issue set off a storm of protest by workers worried about the prospect of having to work years longer than planned in order to receive their pension.
The board received about 3,000 e-mails and more than hundred people spoke at different public comment sessions regarding the proposal to delay retirement eligibility by as much as 10 years for some, according to ERB executive director Jan Goodwin.
The recommendations now will be sent to the state Legislature for consideration during its 2011 session beginning in January.
The increase in contributions would be phased in over four years, with some 63,000 public education employees in New Mexico contributing an additional .0125 percent per year.
The changes seek to address losses suffered by the retirement fund in recent years and to ensure its long-term sustainability, Goodwin said. The goal is to achieve 80 percent funding for the ERB plan and gradually pay off unfunded liability within 30 years, projected to be $9 billion in 2039, Goodwin said.
Over the past 10 years, the ERB saw around a 5 percent increase in membership, while public education payroll has increased by 60 percent. The number of retirees has increased by 59 percent over that same time
Goodwin said the additional contributions will create approximately $13 million in new annual revenue over four years.
Christine Rogel can be reached at (575) 541-5424.
