SANTA FE, N.M. (AP) — New Mexico highest court will issue a decision later over whether the state can cut cost-of-living increases for retired educators to shore up the pension system’s finances.
The state Supreme Court heard from lawyers Wednesday in a case brought by four retirees, who contend the state Constitution protects their pensions from reductions such as those required under a law enacted this year. There’s no deadline for a ruling by the justices.
The retirees say they have a property right in their retirement benefits, but the attorney general’s office told the court that the cost-of-living adjustments can be changed to preserve the pension plan’s solvency.
The retirement system covers nearly 100,000 educators and retirees.
Retirees saw their pensions increase by just under 2 percent despite the cuts implemented in July.