Outrage over a proposal that would affect many UNM employees’ retirement plans has died down, and state officials claim the lull is a result of weeks of compromise.
Jan Goodwin, N.M. Educational Retirement Board executive director, said the board’s final recommendations quelled uprising against the proposed ERB policy changes.
“Our volume of e-mails has diminished substantially,” Goodwin said. “All along many members have said they would rather see an increase in contributions.”
In November, the NMERB drafted a proposal to increase both the number of years members have to work before retiring as well as contribution rates. The proposal being presented to the Legislature only increases members’ rates, not years before retirement.
The current plan, unanimously approved by the board Dec. 17, increases member contributions by 0.5 percent. Members earning more than $20,000 would contribute 9.9 percent of their wages, and members earning less than $20,000 would contribute 8.4 percent.
Merle Kennedy, UNM Staff Council president, said he supports the proposal.
“The staff was very happy with the ERB recommendations, and we are proud to step up to the plate and contribute some more,” Kennedy said. “We felt they responded to the membership very well. … I sure hope it flies through the Legislature.”
The ERB’s proposal was presented to the New Mexico Legislature, which will pass final changes to the plan.
“We’ll be testifying at all the committees when the bill is discussed and trying to provide as much helpful input as the Legislature would like,” Goodwin said. “It’s hard to say (what will happen). They have a lot of
competing needs right now, especially with the state’s budget.”
The Executive Budget Recommendation, submitted by Gov. Susana Martinez, includes higher retirement contributions for all public employees, with the exception of grade-school classroom teachers.
Kennedy said he would not support further changes to the retirement plan, particularly an increase in member contributions.
“We understand the problem,” Kennedy said. “We understand that there’s not much money, but taking it out of our pockets is not fair.”
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University College employee Mary Thomas said she is relieved about the ERB proposal, and she would be willing to contribute more to her retirement plan.
“They made it very unattractive to be an employee at an educational institution,” Thomas said. “It’s very stressful when you see your future just fall apart.”
