New Mexico – The New Mexico Educational Retirement Board voted to maintain the current retirement system rules at its meeting on Friday. However, members will have to pay an additional .5 percent in salary. Currently, members are paying an additional 1.5 percent, a temporary increase approved by the legislature. Today's vote means a two percent increase will become permanent, if approved by the legislature.
The new contribution will be 9.9 percent; 10.9 percent for members earning $100,000 dollars. Those earning less than $20,000 dollars will pay 8.4 percent. More information from the Associated Press: The state Educational Retirement Board has recommended that school employees pay an additional half percent of their salaries into the retirement fund, with the increase phased in over four years. The board also voted at its Friday meeting to increase the amount the state pays into the system over six years and not to change the number of years employees must work to receive a full pension. The Santa Fe New Mexican says the increases are designed to increase the ERB pension fund to an 80 percent funding level by 2040. Currently, it only has 67 percent of the amount it needs to pay for its pension obligations, a $5 billion shortfall. The plan now goes to the state Investment Oversight Committee and then to the Legislature for final approval. ___ Information from: The Santa Fe New Mexican, http://www.sfnewmexican.com Copyright 2010 The Associated Press.