NMERB Solvency Update

It is the New Mexico Educational Retirement Board’s responsibility to be ever vigilant, proactively addressing market and economic trends, inadequate contribution levels, or other issues that may impact the fund in the future.  As with any financial organization, we face important challenges as we ensure the long-term stability of the fund.  We want to assure you that your retirement is secure and that the fund will continue to provide retirement benefits for all of our members for many, many years to come.

Funding of pension plans is a long-term process.  At the beginning of a pension system, contributions from members and employers are collected and invested, and grow as time passes. However, older members who are covered when the pension system is created will retire long before their contributions plus interest are sufficient to pay for their retirement.  Even today, almost 50 years after the ERA was established, members will receive everything they have paid into the fund in contributions back in benefits during their first three years of retirement.  Continuing retirement payments are assured by money earned from investing the funds and contributions paid by younger members and their employers.  The ERA is an inter-generational system and it is important that our members and legislators who advocate on our behalf keep this in mind.

The Board and staff of the New Mexico Educational Retirement Board are committed to securing your future, and we look forward to continuing our work with the legislature and Governor to ensure the ongoing financial strength of the fund that members like you have earned the right to rely upon.

If you should have any questions or concern, please do not hesitate to contact Jeff Riggs, Deputy Director at (505) 827-8030.