National Security Retirement Month

Announcements

By Renee Garcia, Communications Director

Did you know October is National Security Retirement Month? What does that mean? It’s a perfect time to review your retirement goals and ensure they’re on the right track. Here are a few tips to consider:
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Understand your defined benefit plan
  • Check your work history to make sure all your time is counted. You don’t want to get close to retirement and find out you didn’t work long enough!
  • Use the benefit calculator in the member portal. It can show you how much you could get each month based on your retirement age and who you choose as a beneficiary. Check out our member self-service portal guide to help you understand the different features available to you: MyNMERB Tutorial
  • Understand the formula for calculating your final retirement benefit: Your Final Average Salary (FAS) is the average of your highest consecutive 60 months / 5 years, multiplied by your years of service, multiplied by a 2.35% pension factor for tiers 1, 2, and 3 or the graduated multiplier for tier 4.
  • Understand the vesting requirements. Be sure you know the length of time / service contributed you must have to be considered vested.
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Plan for the full picture
  • Don’t depend only on your pension. While it’s a great start, it won’t replace all the money you earn before you retire. Think about other ways to save, like an Individual Retirement Account (IRA) or a 403(b) plan. Speak with a financial advisor to consider your options and determine what will work best for your situation.
  • Social Security: review eligibility and age requirements. Use a social security calculator to estimate your benefit and see how it fits into your overall plan.
  • Consider healthcare costs. These can be a substantial cost, and your responsibility is to research, select, and set up. (Review New Mexico Retiree Health Care Authority’s requirements for those contributing.)
  • Taxes: Talk to a tax advisor to understand your options.
Making informed decisions
  • Pick your retirement date carefully. The age you retire can change how much you get each month. Age reductions can significantly reduce your monthly benefit amount permanently if you are considering retirement before the age minimum. For more information on the reduction, please review the Member Handbook to understand.
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2.Look at your different monthly payment options to see what you’ll receive. If you choose a beneficiary to get a lifetime benefit, know your choices:

Option A

  • Your highest monthly benefit amount
  • No lifetime benefit for a beneficiary, however, any unused contributions on file will be paid to the beneficiary listed
  • Only option for more than 1 beneficiary
  • Only option where the beneficiary can be charity, trust, or an organization.

Option B

  • Lowest monthly benefit amount
  • Only 1 beneficiary can be selected
  • Beneficiary will receive 100% survivor’s benefit
  • Age provision – For non-spouses, your beneficiary cannot be more than 10 years younger than you to get this benefit.

Option C

  • You get a smaller monthly amount so your beneficiary can get half of that amount after you pass away.
  • Only 1 beneficiary can be selected.
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Stay engaged and informed with ERB
  • Keep your information up to date with both ERB and your employer(s).
  • Sign up for the ERB Connect quarterly newsletter.
  • Visit our website for the most current information.
  • Check out our monthly webinars or ask for an onsite presentation at your school!