According to a newly-published report from Pew Center on the States New Mexico’s pension systems are among the worst funded in the US.
You can find the full report here. RGF president Paul Gessing offered comments on the issue for The Center Square here. You can see how New Mexico’s pension obligations stack up below:
One quick note, in 2020 Rio Grande Foundation worked with a bipartisan coalition in support of GOOD PERA reforms. In 2021 the Legislature decided to prop up ERB with more tax dollars. Regardless, it would seem that with record levels of oil and gas revenues putting our pension systems on firm footing and making them work for taxpayers and educators/public employees who might want to manage their own retirement $$ would be a wise thing to do.
The Democrat controlled state legislature has known since the 1990’s that ERB & PERA were woefully underfunded but has refused fundamental reform. Starting 20 years ago, new hires should have been given 401ks instead of defined benefit plans. Defined benefit plans are so exorbitantly expensive that even Sandia Labs had to drop its in 2010. What happens if taxpayers have had enough and just leave the state?