Pension boost for legislators passes quietly
Sponsors say a ‘technical fix’ was necessary for second increase in last three sessions
New Mexico still has the only unsalaried legislature in the nation. But lawmakers this year quietly voted to sweeten future retirement payouts by a hefty 50%. On Thursday, the governor signed the pension pay boost into law.
With no debate or fanfare, the measure slipped through both the Senate and House in a matter of five days during the recent 30-day session. The Senate voted 36-3 in favor. The House approved it on a 46-18 vote.
Sponsors of SB165 described the bill as a “technical fix” to a measure that increased pension benefits 27% just two years ago. The new raise goes into effect by May 15, according to the bill. The new calculation only applies to future retirees on or after the effective date of the bill.
Co-sponsor Sen. Roberto “Bobby Gonzales, D-Rancho de Taos, told a House committee on Feb. 13 that the legislative retirement bill in 2022 should have included multipliers of 30 and 60 but “based on drafting or whatever, the 30 was left out. It’s just a technical fix.” The new law changes the multiplier to 90.
Asked whether the proposal had been discussed at the Legislature’s interim Investments and Pension Oversight Committee, Gonzales told committee members it didn’t, “being that it came to us late when it was noted to us it was going to be a technical cleanup.”
Neither Gonzales nor the other co-sponsor Sen. Craig Brandt, R-Rio Rancho, returned calls for comment on Friday.
The bill changed how pension benefits are calculated, based on a unique formula linked to a percentage of the IRS per diem rate.
For FY 24, according to a legislative analysis, that rate would be $231, so a legislator retiring in 2024 would see about a $1,000 a year raise for each year of service. The annual payment will go from $1,940 to $2,911 for each year of service for new retirees.
Under the formula, a legislator who retires with 20 years of service would receive $58,220 a year.
State Rep. Christine Chandler, D-Los Alamos, opposed the measure.
“My thinking on it was that we’re looking at the wrong thing. That instead of focusing on enhancing our benefits, when we leave the Legislature, we should be focusing on legislative compensation.”
She said there’s been a movement, particularly in the House, “to try to what we refer to as modernize the Legislature. And we are the only Legislature in the country that is populated with volunteers. And I think that is a handicap and that it is a disadvantage to working folks and to younger people with families who should be able to participate in process.”
“Instead of focusing on ways to improve our lot in life when we’re retired,” Chandler said, “maybe we should be focusing on ways to improve our ability to recruit people to run for office and be able to serve without a significant financial hardship.”
Efforts failed this session to pass a joint resolution to change the state Constitution and create a citizens commission to set and establish legislative salaries by 2026.
The Public Employees Retirement Association, or PERA, says 210 legislative retirees currently collect a pension, while the average retirement age of a legislator receiving a pension is 76.39 years of age. One retiree younger than 50 is among the recipients. The highest pension paid is a gross $5,733 a month, according to the PERA. The average annual legislative pension is $11,774. A member of the Legislature must have at least 10 years of service before becoming eligible for a pension. And members must pay $1,000 to a pension fund for each year of service to be eligible.
Lawmakers in New Mexico can collect mileage reimbursement for travel and a daily stipend toward expenses such as room and board during the annual legislative session.