NM Supreme Court upholds legislative decision to rein in retirees' COLA payments

The teacher retirement system has more than 61,000 active members, including 40,000 retirees. The retirement plan has been struggling with issues attributable in large measure to investment losses and a growing number of retirees. Similar issues are being faced by the state's other retirement system, the Public Employees Retirement Association, which is facing billions of dollars in unfunded liabilities. In late December 2013, the New Mexico Supreme Court validated the New Mexico Legislature's reduction of the cost of living adjustment (COLA) to retirement income from the Educational Retirement Board Plan, finding the adjustments weren't constitutionally guaranteed as property rights in the basic retirement income but instead are add-ons to earned retirement. Read More...