Lawmakers’ generous retirement fund bulges

RE MAY 24 op-ed “Fund Surplus Can Be Tapped” by Reps. Jim Dines and Paul Bandy:

It is rare, refreshing and encouraging to see two New Mexico legislators introducing a bill authorizing the transfer of excess funds from the Legislative Retirement Plan to the operating reserve of the state general fund. How often do you see politicians willing to sponsor such a proposal for our cash-strapped state? Even more surprising is the elaboration given by these two representatives on the very generous, cash-rich legislative retirement plan, which provides a retiring legislator with 10 years of service an immediate annual benefit of $10,824 regardless of age. Not bad at all for an annual contribution by the legislator of $600. That annual donation is immediately recouped with the first year retirement pay and goes on for the lifetime of the legislator. Since the average retirement length is 18 years, and often much longer, a 10-year legislator could expect to receive well over $200,000 for his/ her $6,000 investment.

It is not surprising that this retirement fund is currently funded at 145 percent, which is more than double that of other state employee retirement plans. The fund reportedly now holds $12.5 million more than needed to meet obligations.

I sincerely hope that Reps. Dines and Bandy are successful with their initiative, but I doubt that their proposed legislation will be greeted warmly by their peers. That said, I commend them for trying to aid the state’s financial dilemma.

Learning more about this most generous retirement plan for legislators adds more fuel to the fire for term limits. Our state, even more than others, does not need “professional” long-term politicians. Two terms for senators and four for representatives should be more than enough. DAVE COULIE Albuquerque