New Mexico – The House has approved a proposal requiring public employees and educators to pay more for their pension programs while government lowers its contributions.
The measure will cut government costs by nearly $111 million in the upcoming fiscal year to help the state balance the budget.
The bill passed the House on Monday on a 43-26 vote and goes to the Senate.
The measure requires public employees to contribute an extra 1.75 percent into their pensions next year while the state reduces its payments by a similar amount. The state did a similar 1.5 percent pension swap two years ago and that will be continued for two additional years, saving $42 million annually.
The bill also postpones government pension contribution increases mandated by a 2005 law for an educational retirement program.
Copyright 2011 The Associated Press.