Breaking: Pension solvency bill endorsed by Senate on 38-4 vote

One of the heftiest bills facing the Legislature this session just passed a major hurdle, with the Senate voting 38-4 to approve legislation aimed at shoring up the New Mexico Public Employees Retirement Association.

The vote on Senate Bill 27 came after Senate Democratic floor leader Michael Sanchez of Belen tried unsuccessfully to amend the legislation. His amendment would have restored higher taxpayer contribution levels to the pension fund that had been trimmed in a committee.

However, seven Democrats joined with the Senate’s 17 Republican members to vote down the proposed amendment.

The proposed PERA solvency fix would reduce retirement benefits for current employees, retirees and future government workers. It would also impose stricter retirement eligibility guidelines on future employees.

The public retirement system has roughly 86,000 members, including about 55,000 active workers.

In his closing remarks, the bill’s sponsor, Sen. George Munoz, D-Gallup, said changes need to be made soon in order to keep the pension fund viable.

“If we don’t start making pension fund changes now, we may not have a pension fund,” Munoz told his colleagues.

The bill now moves on to the House. Check back later for more updates.