By David Archuleta, Executive Director
Dear Educational Retirement Act Plan Participants,
As the new school year is well underway, I am reminded of challenges teachers and school staff face to support the learning process for students spanning a broad range of needs. These challenges include growing demands related to class sizes, staff shortages, and parental expectations. Therefore, on behalf of the Educational Retirement Board (ERB) and its staff, please allow me to express my sincerest appreciation for all the hard work and effort that goes into ensuring students across New Mexico are prepared for life’s journey.
In terms of ERB specific updates, I would like to share the following:
Investment Performance
As of June 30, 2025, the Educational Retirement Board Trust Fund reached a new watermark with a reported $18.5 billion ending asset value. This represents a $1.4 billion, or 7.9 percent increase in value compared to June 30, 2024. Overall, this increase was supported by a 9.88 percent 1-year return on investment (net of fees), following our 3-year (8.03 percent), 5-year (10.38 percent), and 10-year (8.02 percent) performance. The reported performance exceeds our actuarial target of 7 percent in each period and exceeds our policy index in all periods except for the 3-year reporting period.
ERB’s ability to meet its investment targets and outperform its benchmarks remains critical to our ability to meet current and future pension obligations. This involves developing a strategic asset allocation that diversifies investments across different asset classes, supports our funding goals, and minimizes risk. By diversifying our investments we minimize the trust fund’s volatility, support our consistency and increase the probability of achieving our long-term funding goals.
New Office Building
I am absolutely delighted to share that our multi-year and 21-month construction journey for the development of a new office complex is finally complete. As this message was being written, ERB’s contractor (Enterprise Builders) was connecting to the City of Santa Fe’s utility lines and preparing to test the water lines and fire suppression system. The new building will provide convenient access to ERB services and close proximity to our sister agency, the New Mexico Retiree Health Care Authority.
In conclusion, I would like to recognize and appreciate the hardworking staff at the ERB. Similar to my gratitude for educators and support staff across the state, I am thankful for their ongoing efforts. They work to process applications and refunds, devise strategies to ensure the financial integrity of the trust fund, and protect members’ personal data. They also recruit and retain talent and travel to communities to communicate important information about ERB and the benefits we provide. It is truly an honor to work alongside a group of talented individuals dedicated to achieving our mission.
Until the Winter message, I hope everyone enjoys the fall foliage, the smell of green chile, and the sight of hot air balloons.
Sincerely,
David Archuleta