You become an ERB member when you begin employment with an ERA covered employer. When you become a member of the ERB, an account is established in your name with your Social Security number as the account reference. Upon employment you are required to complete a Beneficiary Designation Form (ERB Form 42). The information requested on the form is required in setting up your retirement account. Contributions are deducted each pay period from your check and credited to your account quarterly.
Membership in the ERB is a condition of employment. Employees covered under the ERB are referred to as members. Employers are referred to as local administrative units or employers. If you are a substitute teacher, an intern, or work .25 or less than a full time equivalent (FTE) employee you are NOT eligible to participate in the ERB. Employees of the following local administrative units who are employed more than twenty-five percent of a Full Time Equivalent (.25 FTE) are required to be members of the ERA:
- public schools (including charter schools)
- universities
- junior colleges
- technical and vocational institutions
- New Mexico Boys’ and Girls’ Schools
- New Mexico School for the Deaf
- New Mexico School for the Visually Handicapped
- Youth Diagnostic Center
- Regional Co-Operatives
- New Mexico Activities Association
- State agencies providing an educational program (i.e. Department of Health, Public
Education Department, Division of Vocational Rehabilitation, Educational Retirement
Board, Department of Corrections). If you are a certified educator (teacher,
administrator) you will participate in the Educational Retirement Board pension plan. If
you are not a certified educator you will participate in the Public Employees Retirement
Association pension plan.
For a list of specific local administrative units see the ERB website and the Annual Financial report.
Alternative Retirement Plan
An Alternative Retirement Plan (ARP) is available to faculty and professionals with one of the six four-year institutions of higher education who were initially employed after July 1, 1991 or eight community college and technical schools who were initially employed after July 1, 1999. The election must be made within ninety days of employment and is irrevocable. The ARP is a defined contribution plan in which the employee contributes 7.825% of their income to their ARP. This deduction amount will increase by .075% on July 1, 2008 when the employee contribution will be 7.9%. The employer matches with a contribution of 10.9%. The employer contribution will increase by .75% each year until 2011 when the employer contributes 13.9% of salary. Three percent of the employer match goes to the ERB to help pay for the unfunded liability incurred by the plan.
Click on the links below for more information:
TIAA-Cref
AIG VALIC
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