National Association of State Retirement Administrators
New Mexico
The New Mexico Public Employees Retirement Association (PERA) administers pension and other benefits for substantially all public employees in the state except teachers, who belong to the Educational Retirement Board. PERA administers four plans: the Public Employees Retirement Fund, whose active members comprise more than 90 percent of all active members; and plans for judges, magistrates, and volunteer firefighters. The system also administers a 457 plan.
The Educational Retirement Board of New Mexico administers pension and other benefits for certificated employees of public school districts, state colleges and universities, and educational state agencies.
Authorizing Statutes
State Employees
Chapter 10, Article 11 of the New Mexico Statutes is known as the "Public Employees Retirement Act."
Section 10-11-130. describes the powers of the PERA retirement board:
The "retirement board" is created and is the trustee of the association and the funds created by the state retirement system acts and has all the powers necessary or convenient to carry out and effectuate the purposes and provisions of the state retirement system acts.
the secretary of state;
the state treasurer;
four members under a state coverage plan to be elected by the members under state coverage plans;
four members under a municipal coverage plan to be elected by the members under municipal coverage plans, provided one member shall be a municipal member employed by a county; and
two retired members to be elected by the retired members of the association.
Educational Employees
Chapter 10, Article 11 also covers educational employees.
Section 2.82.8.8 describes the composition and role of the ERB Investment Committee.
The investment committee shall be composed of the chairman who shall be an ex-officio member, two members of the board who shall be appointed by the chairman and approved by the board for a term of one year, and the director.
The investment committee shall have the following responsibilities:
to review all actions taken by the investment division in the management of the fund and recommend to the board specific action with regard to the continuation or change in the investment practices of the investment vision;
to review on a continuing basis the investment philosophy and investment guidelines of the fund, make policy recommendations to the board and generally oversee the investment activities of the fund;
to recommend the employment of the services of an investment advisory firm to assist and advise the board in the management of the fund;
to recommend the employment of the services of investment management firm(s) to manage a portion of the assets of the fund, either through separately managed accounts or through individual, common or collective trust funds;
to establish asset allocation guidelines, which shall define asset allocation targets and ranges, and to annually review/modify these guidelines; as set forth in the ERB investment objectives and guidelines which shall be approved by the investment committee and recommended for board approval.
Board Composition
|
Plan |
Board Size |
Appointed |
Elected |
Plan Members |
Ex Officio |
|
New Mexico Public Employees Retirement Association |
12 |
0 |
10 |
10 |
2 |
|
New Mexico Educational Retirement Board |
7 |
3 |
2 |
3 |
2 |
Contributions
Per the U.S. Census, in FY 2021, employer contributions to New Mexico state and local government pension plans were 3.18 percent of all state and local government direct general spending.
Constitutional Protections
Article XX, Section 220 of the New Mexico Constitution recognizes that public pensions give rise to vested property rights, protected by due process. Article XX, Section 220 provides that "Upon meeting the minimum service requirements of an applicable retirement plan created by law for employees of the state oo., a member of a plan shall acquire a vested property right with due process protections under the applicable provisions of the New Mexico and United States Constitutions." Pierce v. State, 910 P.2d 288 (determining that state retirement statutes created vested property rights, but not contract rights; "We decline to join those states that find a contractual relationship where one does not clearly and unambiguously exist and that proceed to justify how the legislature may nonetheless unilaterally modify this contract without the consent of the participants."); Whitely v. N.M. State Pers. Bd., 850 P.2d 1011(1993) (determining that public employees did not have the contractual right to unconstitutional impairment of contract). (NM CONST., Article XX, Section 22) Source: Robert Klausner, Esq., State Constitutional Protections for Public Sector Retirement Benefits |
|
|
Population (2023) 2,114,371 |
|
|---|---|
|
New Mexico public pension statistics, per U.S. Census Bureau as of FY 2023 ($ in 000s) |
|
|
Assets |
$33,048,792 |
|
Active Members |
116,308 |
|
Annuitants |
100,846 |
|
Benefits Paid |
$2,755,486 |
|
Employee Contributions |
$761,341 |
|
Employer Contributions |
$1,135,178 |
|
Systems |
5 |
More Data
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Roll Call (members-only)
Other Resources
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Defined Contribution Retirement Plan Study for the New Mexico Educational Retirement Board, Gabriel, Roeder, Smith & Co. (October 2005)