TEMPORARY ERB MEMBER PAYMENT

HB 40 provides a temporary 2% additional payment to retired members receiving annuities under New Mexico's Educational Retirement Act for fiscal years 2027 and 2028. This payment, calculated as 2% of each retiree's current annual benefit amount (including prior cost-of-living adjustments), is non-compounding and separate from standard annual adjustments. It applies to all retired educators under the Act, excluding those on disability status or under specific retirement provisions. The bill does not alter existing cost-of-living adjustment rules but adds this short-term benefit for two years.