NM HB242

Qualified pension recipients age 65 and older receive a temporary 1.68% cost-of-living adjustment (COLA) to their pension benefits during fiscal years 2027 and 2028

$10 million appropriated from the general fund to the Public Employees Retirement Association to fund the temporary COLA increase, with unexpended funds not reverting at the end of fiscal year 2028

Normal retired members with 25+ years of service and annual pensions of $25,000 or less continue receiving 2.5% annual COLA increases

Disability retired members with annual pensions of $25,000 or less and normal retired members age 75+ (as of July 1, 2020) also receive 2.5% annual COLA increases

Qualified pension recipients may decline the increase by providing written notice to the association at least 30 days before the effective date