Posted at: 03/06/2013 1:38 PM
By: BARRY MASSEY Associated Press
SANTA FE, N.M. (AP) - Current and future public employee retirees would see smaller cost-of-living adjustments under a proposal before New Mexico lawmakers to rebuild the long-term finances of a pension plan for more than 55,000 state and municipal workers.
The Senate is expected to debate the proposal on Wednesday to resolve one of the largest financial problems confronting the state.
The Public Employees Retirement Association pension system has an unfunded liability of about $6 billion.
That's the gap between current assets and what's owed for expected future retirement benefits.
The legislation also would require larger payroll contributions by workers and taxpayers to help shore up the pension fund, and starting in July new employees would need to remain in their jobs longer before they could collect retirement benefits.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)