SM 31 New Mexico Senate · 2026 Regular Session

PERA WORK GROUP

This memorial requests the creation of a work group to study the Public Employees Retirement Association (PERA) fund's solvency, focusing on factors affecting retiree benefits and cost-of-living adjustments (COLAs). It directly affects approximately 30,000 New Mexico public retirees whose pensions have not kept pace with inflation since 2020 changes suspended COLAs and altered adjustment formulas. The work group will examine PERA's unfunded liability causes - such as investment underperformance and salary increases - evaluate COLA formulas tied to inflation, and recommend improvements to fund solvency without harming retiree benefits. The group, composed of finance experts and retirees, must report by December 2026. (Note: This is a procedural memorial requesting a study, not a policy change.)

Bill status signed all 4 stages cleared

Introduction

Feb 2026

Committee Review

Feb 2026

Senate Passage

Feb 2026

Signed into Law

Feb 2026

Introduced Feb 13, 2026 Signed Feb 27, 2026

Maddy AI version diff · 1 comparison

What changed between versions

introduced version → Final Version · 8 edits

MODERATE

The bill was substantially rewritten from a formal introduction format to a clean memorial format with clearer language. The core purpose remains the same: creating a work group to study the Public Employees Retirement Association Fund's solvency, cost-of-living adjustments, and unfunded liability. The new version adds more specific directives for the work group, including seeking outside expertise and defining the nine-member composition with specific appointment authorities.

Scope change

The bill's scope remains focused on the Public Employees Retirement Association Fund, but the work group's mandate was expanded to include seeking independent outside expertise and more detailed member composition requirements.

REQUIREMENT

Added requirement for the work group to seek assistance from an outside entity with pension fund expertise to independently evaluate solvency issues

Added specific composition requirements for the nine-member work group, including appointments from the Speaker of the House, Senate President Pro Tempore, Governor, and various officials

Changed the memorial format from a cluttered introduction style with line numbers and sponsor names to a clean, standard legislative memorial format

ADDED

Added specific directive to examine formulas for benefit calculation, rules governing benefits, and incentives for delaying retirement

Added directive to consider social security incremental pension formulas and changes that would improve solvency without negatively impacting retirees

Added specific directive to restore cost-of-living adjustments tied more closely to actual inflation changes

Added directive to develop recommendations that balance fund solvency with financial stability for retirees

MODIFIED

Reorganized and clarified the WHEREAS clauses to present arguments more logically, with specific focus on the impact of 2020 legislative changes on cost-of-living adjustments

Floor votes · Senate Feb 17, 2026

How they voted

38–0

Passed

Total votes 38

Feb 17, 2026

D Democratic22

22 Yea

100% Yea

R Republican16

16 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 27, 2026

Signed into law

Signed

executive

Feb 17, 2026

Upper · Passed

passed Senate

upper

Feb 15, 2026

Upper · Passed

DO PASS committee report adopted

upper

Feb 13, 2026

Introduced

Sent to Senate Rules Committee

upper

5 primary · 0 co-sponsors