Military Summary
Effective July 1, 2009 purchase of Active Military service will be allowed after five years of active service. The cost will be the employee plus employer contribution rate in effect the year in which the member purchases the service multiplied by the five consecutive years average earnings in the years before the request to purchase service.
When purchasing any allowed service, Military or Allowed, the member must also make a contribution to the NM Retiree Healthcare Authority that is equal to the present value of benefits as determined by NMRHCA. read the brochure
Alternative Retirement Plan
The Alternative Retirement Plan is a defined contribution plan option for certain higher educational institution professional employees. This option has been available since 1991. House Bill 525, sponsored by Rep. Gail Chasey, allows more flexibility in investment payout, the ability to switch to ERB’s defined benefit retirement plan after 7 years, and increases the number of plan up to five different plan sponsors. The Alternative Retirement Plan brochure describes the option to switch.
read the information sheet
Five Simple Steps to NMERB Retirement
NMERB Members who are approaching retirement eligibility requirements should submit their retirement application within 60 to 90 days prior to their effective date of retirement.
Effective dates of retirement are typically on the first day of the month following the last day of employment or when NMERB is in receipt of your application, whichever is later. Those employees on a nine or ten month contract who terminate employment in May will automatically be considered a July 1 retiree.
The following step by step instructions are provided to help the member's retirement process run as smoothly as possible to ensure an initial benefit payment without any lapse in income.
Step One:
Member completes the NMERB Application for Retirement then gives the form and an NMERB acceptable proof of age document to the member's employer. Currently employed members may get the application from their Human Resources Office; those not currently employed may access the application at the "Download Forms" link on the top right section of this page.
Step Two:
Employer completes the Employer Certification then mails both forms, along with proof of age, to the NMERB.
Step Three:
NMERB staff audits the member's account and then mails the member a retirement packet which includes:
- Post-Retirement Information and Instruction Sheet
- Final Selection of Benefit Form
- Estimate of Retirement Benefit
- Authorization Agreement for Direct Deposit Services
- State and Federal Tax Deduction Form
- Post-Retirement Employment Notice
Step Four:
Member completes the following forms and returns them to the NMERB Office:
- Final Selection of Benefit form, notarized*
- Authorization of Direct Deposit Services*
- State and Federal Tax Deduction Form*
- Post-Retirement Employment Notice
*see notes below
Step Five:
NMERB places member on payroll and sends first benefit payment on the last working day of the member's retirement month.
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*The Final Selection of Benefit form must be signed in the presence of a notary public. Notary publics are available at the NMERB Office from 8 am to 5 pm.
*Direct Deposit Services are mandatory. The first retirement benefit check is a mailed, physical check while the pre-note is sent to the member's banking institution; benefit checks are directly deposited into the member's bank account from that point thereafter.
*NMERB retirement benefits are taxable and it is the responsibility of the member to advise the NMERB on how much, if any, should be withheld from the member's monthly payment for tax purposes. |
