New Mexico governor endorses increased pension contributions
SANTA FE, N.M. (AP) - New Mexico Gov. Michelle Lujan Grisham is throwing her political weight behind a public pension reform proposal that would increase retirement contributions by taxpayers and most state and local government workers.
In a statement Tuesday, Lujan Grisham announced her endorsement of a so-called profit-sharing model that links cost-of-living increases for retirement payouts to the performance of pension investments.
Unfunded pension obligations have climbed to $6.6 billion for state and local government employees.
Lujan Grisham says the proposal she backs would put the Public Employees Retirement Association on track to eliminate unfunded pension liabilities within 25 years.
Elderly, disabled and low-income retirees would be sheltered from major pension changes.
The exact scale of pension contribution increases was not immediately available. Taxpayer contributions would decrease as pension-fund finances improve.
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