SANTA FE – Gov. Michelle Lujan Grisham is backing a complex proposal to overhaul New Mexico’s chronically underfunded pension system for public employees.
The proposal – set for debate this session – builds on the work of a task force established by the governor last year, but with changes.
The legislation would establish a “profit-sharing” model for the annual cost-of-living adjustments that most retirees now receive. Rather than an automatic 2% increase in their pensions each year, the actual amount would fluctuate – from 0.5% to 3% – depending on investment returns.