The New Mexico Legislature on Tuesday passed a bill that would increase employer contributions to the New Mexico Educational Retirement Board, shortening the time it will take the plan to reach 100% funding to 33 years from 42 years, said David Archuleta, executive director of the $16.7 billion pension fund, in an email.
The legislation, Senate Bill 36, would increase employer contributions to 17.15% in fiscal year 2023 from 15.15% in the current fiscal year and further increases the contribution to 18.15% percent in fiscal year 2024. The fiscal begins on July 1.
"This bill will serve to pre-fund existing liabilities, safeguard against market volatility in the future and make good on goals specified in our strategic plan," Mr. Archuleta said.
The bill awaits the signature of Gov. Michelle Lujan Grisham.
Separately, the New Mexico Educational Retirement Board earned 21.42% for the calendar year 2021, outperforming its 15.48% benchmark. The pension plan returned 11.13% over the five-year period and 9.79% for 10 years, outperforming the respective benchmarks of 10.72% and 9.19%.
