WeVote
Log In

Bill

Bill

HB 96

PERA MEMBER TEMPORARY PAYMENT

2025 Regular Session Introduced by Cynthia Borrego and 2 co-sponsors

HB96 would pay PERA retirees a temporary 2% bonus in FY26–27, funded by a $66 million General Fund appropriation, not counted toward future COLAs.

action postponed indefinitely
#finance #public #seniorcitizens
0
WeVote Research Nonpartisan
Bill Summary · HB 96

Summary — HB 96: PERA Member Temporary Payment

Status: Action postponed indefinitely (bill not advancing)
Introduced: early 2025 (fiscal analyses dated Jan–Mar 2025)
Subject: Public finance; public employee retirement; senior citizens

Main purpose

HB 96 would provide a temporary, non‑compounding supplemental payment to beneficiaries of the Public Employees Retirement Association (PERA) to give retirees an additional one‑time boost in each of two fiscal years.

Key provisions

  • Authorizes supplemental payments to PERA pension beneficiaries in FY2026 and FY2027.
  • Payment amount: 2.0% of each beneficiary’s PERA benefit payment in the prior fiscal year (i.e., a “2% check” based on previous-year benefits).
  • Payments are expressly temporary (only FY26 and FY27) and are not to be included in calculations for future cost‑of‑living adjustments (COLAs).
  • Includes a nonrecurring appropriation of $66 million from the General Fund to PERA to cover the estimated cost of the two‑year supplemental payments.
  • No explicit effective date in the bill text; absent such a clause it would take effect 90 days after adjournment (the fiscal note cites June 20, 2025 as the presumptive effective date).

Fiscal impact

  • Estimated net cost: $66 million (nonrecurring) charged to the General Fund in the fiscal window covering the payments (dollar figure from Legislative Finance Committee analysis and PERA actuarial estimate).
  • The appropriation is intended to satisfy the New Mexico constitutional requirement (Article XX, Section 22) that any increase in PERA benefits be adequately funded.
  • LFC and PERA actuaries indicated the $66 million estimate reflects the expected actuarial cost; prior similar temporary “13th check” appropriations proved actuarially accurate.
  • Any unexpended balance would not revert to the General Fund; the bill does not specify reversion language, so unused funds would presumptively remain with PERA/trust.

Who is affected

  • Directly: retired public employees who receive PERA benefits (state, some local public employees covered by PERA).
  • Not affected: members/retirees whose pensions are paid by the Educational Retirement Board (ERB) — ERB covers school district and higher‑education employees.
  • Could create political/legislative pressure for comparable ERB relief or other COLA changes.

Implementation and issues

  • PERA reported the need for administrative system modifications to distribute payments but did not identify material implementation costs.
  • Background context: PERA has a long‑standing underfunding challenge (actuarial funded ratio ~67% with a funding period longer than board targets); ongoing debates over COLA structure (risk‑sharing COLA adopted previously) and contribution adequacy remain relevant.
  • Related proposals noted in analyses: other bills addressing PERA COLAs (e.g., changes targeted by House Bill 164, Senate Bill 117 in prior sessions).

Procedural / timeline note

Although analyzed in early 2025, the bill’s current status is “action postponed indefinitely,” indicating it is not moving forward in the legislative process at this time.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.