NEA-NM Retired CALL TO ACTION

NEA-NM RETIRED supports ERB’s (Educational Retirement Board) proposal for pursuing equity and parity in NM pensions for the UPCOMING 2027 legislative session, and WE NEED YOUR HELP NOW!

TO ALL members who receive or will receive a pension from the ERB!

Please help us by doing this NOW AND NO LATER THAN SEPTEMBER 30TH!

We’re asking each of you to contact your local NM legislators, this link will help get you to your legislators (https://www.nmlegis.gov/members/Find_By_Address)

Please ask them to support both short term and long-term solutions for retired ERB Members. Short term solution could be a 2-year agreement for an extra 13th check while we have a surplus of oil and gas revenues (which would be a non-recurring expense) to a long-term solution of a matched percentage COLA increase with PERA (the other public employee pension plan).

Please include your concerns regarding:

· Increases in gasoline prices at the pump

· Increases in food costs

· 3% annual property tax increase if you own a home

· Ever-increasing electric, gas and water utility costs

· Increasing health care and health insurance premium costs

· Increases in home and vehicle insurance

· Ever-increasing costs of goods and services with added gross receipts taxes on those amount

Please read article below for more detailed information!

The Growing Retirement Crisis

For ERB Members

PLEASE SEND US AN EMAIL STATING WHOM YOU CONTACTED AND WHEN TO neanmretired@gmail.com to be part of our drawing!

The Cost-of-Living Adjustment—COLA Helps 56,764 ERB Retirees

• Absorb increases in gasoline prices at the pump;

• Increases in food costs;

• The 3% annual property tax increases if you own a home or rent;

• Ever-increasing electric, gas and water utility costs;

• Increasing healthcare costs;

• Inflation and tariff costs of goods and services with an additional gross receipts tax;

Examples of additional increased costs in the last two years:

Medicare Part B premiums

increased almost 10 percent in 2026, up from $185 in 2025 to $209.90. This is the first time the premium has topped $200. The Medicare deductible is also increased in 2026 as well, with more than a 10 percent increase in the deductible from $257 in 2025 to $283 in 2026. That is $26 more, and the increases for both the premium and deductible are due to the projected increases in prices and beneficiaries’ use of medical services.

Any increase in the Social Security COLA

will be a wash to cover these monthly increases for most retirees. Because the Part B premium and deductible increases are far higher than inflation overall in the past year, they will further squeeze the finances of older ERB retirees who struggle with food, housing and energy costs.

How have retirees handled the COLA reduction since 2013 when the legislature

passed Senate Bill 115?

· Many ERB members retired from their positions with lower salaries affecting the pension annuity they receive.

· If they retired before or after 2013, they may not have received an increase in salary due to the New Mexico Great Recession – The Lost Decade, years 2008-2019.

· Average 2025 ERB pension is $26,063. Average annual PERA pension is $33,173.

The $25 they purchased for an item in 2010 with the cumulated rate of inflation would now cost them $37.24 in 2025. This is a 49.0% cumulative simple rate of inflation. This amount does not consider the extra costs companies are charging in all types of fees on services and items to reward their CEOs and stockholders.

ERB COLA

· The ERB COLA begins July 1 of the year following retirement or age 65 for an employee hired on or before July 1, 2013.

· For those ERB employees hired after June 30, 2013, the age is 67 before the COLA begins July 1 of the year following retirement.

IN 2013 language of Senate Bill 115 (SB 115)

· Immediately reduced COLA until 100% funded; a 10% COLA adjustment reduction for retirees at or below the median and with 25 or more years’ service receive an average 1.85% COLA,

· All other retirees have a 20% adjustment reduction with an average 1.64% COLA;

· COLA begins at 67 instead of 65; employee contribution rate from 7.9% to 10.1% then to 10.7%;

· Employer contribution rate from 11.65% to 13.9% and minimum retirement age of 55.

THE ERB IS PROJECTED TO BE FULLY FUNDED IN 19 YEARS – 2045.

ERB Tiers:

· Tier I – Membership prior to July 1, 2010;

· Tier II – Membership on or after July 1, 2010, but prior to July 1, 2013 - (HB 573);

· Tier III – Membership on or after July 1, 2013, but prior to July 1, 2019 - (SB 115) and

· Tier IV – Membership on or after July 1, 2019 - (HB 360).

ERB members hired before 2013 made retirement decisions based on knowing their COLA would not be adjusted downward. ERB members were not spared from this COLA cut as they did with Senate Bill 72 in 2020 for PERA retirees.

SOLUTIONS, short-term and long-term to provide relief for ERB retirees:

1. A 13th check for 2 years to provide temporary inflation relief for ERB retirees. We have a surplus of funds from Oil and Gas that can be used for a temporary fix. (HB 454 in 2025 and HB 40 in 2026 aimed to do just this but died in committees)

2. Create a trust fund to pay COLAs

3. Eliminate New Mexico income taxes on pensions for retirees living in NM.

4. Create safety nets for members receiving a pension under a certain amount,

because these are the retirees that are hurt the most by the current system.

13TH CHECKERS

WORKING TOWARDS THIS END IS THE 13TH CHECKERS COALITION with members from the American Federation of Teachers, National Education Association, New Mexico Association of Educational Retirees and University of New Mexico Retiree Association.