The NM Educational Retirement Plan is provided by the New Mexico Educational Retirement Board (NMERB).

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Eligibility

Employees working more than 10 hours per week (.25 FTE) (excludes graduate assistants and student employees). Eligible employees automatically become a member of the Educational Retirement Board (ERB) plan when they begin employment with any entity covered by the Educational Retirement Act (ERA). Membership in the ERB is a condition of employment. Upon employment, the ERB creates an individual account for the employee. Contributions toward retirement are deducted from the employee's earnings each pay period automatically. All new hires are required to complete an ERB Beneficiary form and the Employee Data form.

• Employees earning $24K or less contribute 7.9% of gross salary by payroll deduction and the university contributes 18.15%.
• Employees earning more than $24K contribute 10.7% and the university contributes 18.15%.

Individuals who work more than 0.25 of FTE (25% of Full Time Equivalent) for the following entities are covered by the ERB's retirement programs:

• Public schools (including public charter schools, i.e: chartered by the local school board or the New Mexico Secretary of Education)
• Universities
• Junior or community colleges
• Public technical and vocational institutions
• New Mexico School for the Deaf
• New Mexico School for the Visually Handicapped
• Regional educational cooperatives
• New Mexico Activities Association

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Retirement Eligibility

Employees hired before July 1, 2010 may retire when ONE of the following conditions are met:

1. age 65 with 5 or more years of service; or
2. when age plus years of service equal 75 (penalties apply for retirees under age 60); or
3. any age with 25 years of service.

Employees hired on or after July 1, 2010 may retire when ONE of the following conditions are met:

1. age 67 with 5 or more years of service; or
2. when age plus years of service equal 80 (penalties apply for retirees under age 65); or
3. any age with 30 years of service.

Employees hired on or after July 1, 2013 may retire when ONE of the following conditions are met:

1. age 67 with 5 or more years of service; or
2. when age plus years of service equal 80 (penalties apply for retirees under age 65); or
3. 30 years of service; permanent actuarial reduction of benefit if begin receiving benefit before age 55.

Employees hired on or after July 1, 2019 may retire when ONE of the following conditions are met:

1. age 67 with 5 or more years of service; or
2. when age plus years of service equal 80 (penalties apply for retirees under age 65); or
3. 30 years of service; permanent actuarial reduction of benefit if begin receiving benefit before age 58.

Benefits are based on three components - your Final Average Salaryy (FAS), your years of both earned and allowed service credits, and the 2.35% Multiplier. (Tiered Multipliers for employees hired on or after July 1, 2019)

FAS x service credit x .0235 = gross annual benefit

Your final average salary is the higher of:

1. Your average annual earnings for the last 20 calendar quarters (60 months) prior to retirement, or
2. Your highest average annual earnings for any 20 consecutive calendar quarters.

As part of the FAS calculation, your average annual earnings are based on quarterly earnings but will be annualized by fiscal year. Request an official estimate of retirement benefits from the NMERB at least 6 months prior to retirement, but no more than 1 year before retirement. The request for estimate form can be found on the NMERB website.

Individuals planning for retirement before 55 years of age should consult with their tax advisor as additional penalties may apply.

The plan has special provisions for out-of-state credit and military credit. Please contact the New Mexico Educational Retirement Board for plan details. For updated ERB News, please visit the Employer Library.

Forms/Handouts/Info

• NMERB Beneficiary Designation
• ERB Handbook
• ERB Downloadable Forms - Including beneficiary designation, change of address and request for refund/rollover
• NMERB Employee Data Form- required by all new hires, re-hired temporary employees and employees who experience a change in job title, FTE or salary.

Newsletters:

• ERB Newsletters

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Termination Before Retirement

If an employee terminates employment prior to retirement eligibility, the following options are available:

• Do nothing. Contributions will remain with the NMERB.
  • You will retain your service credit and tier status. Additional service credit will be added if the employee resumes eligible employment with an ERB employer.
  • Retire from the ERB when the employee meets retirement eligibility requirements. (Minimum 5 years of service required)
• Refund/rollover the employee contributions. Employer contributions are not part of the member’s account and are not refundable to a member.
  • Within 90 days of termination, submit request through NMSU Benefit Services:
    • Docusign Authorized Employer Signer: Celeste Uzueta, Email: benefits@nmsu.edu
    • PDF mail to Benefit Services, PO Box 30001, MSC 3HRS, Las Cruces, NM 88003
  • After 90 days of termination, submit request directly to NMERB https://www.erb.nm.gov/forms/.
  • Once employee contributions are refunded, employee service credit is zeroed out.
  • If the employee is re-hired with an NMERB employer, service credit begins at zero and membership is established under the tier in effect at the time of re-employment.

NMSU Policy Reference: ARP 8.12 – Retirement, Educational (ERB)