NM public employee pension plan changes proposed
Posted at: 06/22/2012 1:56 PM
By: BARRY MASSEY Associated Press
SANTA FE, N.M. (AP) - The board of a government workers pension plan is recommending lower cost-of-living adjustments for retirees and higher payroll contributions by employees and taxpayers to shore up the retirement system's finances.
The Public Employees Retirement Association board endorsed the proposed changes on Friday during a meeting in Alamogordo.
Approval of the Legislature and Gov. Susana Martinez is needed before any pension changes can take effect.
The board proposes reducing annual cost-of-living adjustments for pension benefits to 2 percent from 3 percent.
Those currently become available two years after retirement but the board recommends a seven-year waiting period or until age 65, whichever is sooner.
Another proposal calls for workers to pay an extra 1.5 percent of their salaries into the pension fund and a 1.5 percent contribution increase by taxpayers.
(Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)