A proposal to improve the long-term finances of a pension plan for state and local government workers has cleared the Legislature and heads to Republican Gov. Susana Martinez. The legislation would change benefits offered by the Public Employees Retirement Association, which has a $6 billion gap between its assets and the cost of future retirement benefits.
The pension system covers nearly 90,000 state and local government workers and retirees.
If signed into law by the governor, the legislation would lower yearly cost-of-living adjustments for pension benefits.
The measure also would establish new retirement eligibility and benefits for employees hired after July 1, including requiring them to work longer before they could receive pension benefits.
The legislation won final approval Wednesday when it passed the House on a 48-17 vote.
Copyright 2013 The Associated Press.