N.M. pension finances to improve under new law
Fri, 01 Nov 2013 15:20:03 GMT —
SANTA FE, N.M. (AP) - A retirement system for New Mexico's state and local government workers reports its long-term financial outlook has improved in large part because of a recently enacted pension overhaul.
The Public Employees Retirement Association said Thursday the projected cost of future pension benefits was $4.6 billion more than the retirement fund's assets in the 2013 fiscal year. That's down from an unfunded liability of $6.2 billion the previous year.
PERA has almost 73 percent of the assets needed to cover future benefits. That's up from 65 percent in 2012, but a new law aims to improve the retirement system so it has 90 percent of necessary assets within three decades.
Reduced cost-of-living adjustments for pension benefits are among the changes in a state law approved this year.
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