Posted at: 03/29/2013 1:27 PM
Updated at: 03/29/2013 5:24 PM
By: BARRY MASSEY Associated Press
SANTA FE, N.M. (AP) - Gov. Susana Martinez has signed a measure into law to shore up the long-term finances of the state's pension system for teachers and other educational workers.
The new law takes effect in July and will require educators to pay more into their retirement system if they earn more than $20,000 a year.
It also will change benefits for educators hired in the future, including imposing a minimum retirement age of 55.
Cost-of-living increases for retirees will be lowered until the pension system is no longer underfunded.
For a teacher earning an average salary of $45,000, the payroll contribution increases over two years will mean a $1,260 reduction in take-home pay.
The pension program covers 98,000 educators and retirees, ranging from school principals and janitors to college faculty.
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