Important Update for Reciprocity Retirees

Announcements

BY RENEE GARCIA, DIRECTOR OF COMMUNICATIONS AND OUTREACH

Please note: This update applies specifically to reciprocity members who retired prior to July 1, 2017, and recently received a notice in the mail.

Starting January 1, 2027, the New Mexico Educational Retirement Board (NMERB) and the Public Employees Retirement Association (PERA) are updating how reciprocity pension benefits are distributed.

Your total monthly pension benefit is NOT changing.

Key Changes at a Glance
  • Two Deposits Instead of One: You  will still receive your full monthly benefit amount, but it will arrive as two separate direct deposits on the last business day of the month (one portion from NMERB and one from PERA).
  • Two Tax Forms at Year-End: For the 2027 tax year and beyond, you will receive two separate 1099-R forms
  • (one from each system).

Action Required: Complete and Return the Forms sent by mail, by October 31, 2026.

Because each system will now pay you directly, both NMERB and PERA require updated direct deposit and tax withholding preferences on file.

Please complete the mailed forms:

1. Direct Deposit Authorization (one for NMERB, one for PERA)
2. Federal Tax Withholding (W-4P) (one for each system)
3. New Mexico State Tax Withholding (one for each system)

Where to Send Everything

Mail all completed forms together in the provided envelope to:

New Mexico Educational Retirement Board
5211 Camino Las Soleras
Santa Fe, NM 87507
(NMERB will coordinate directly with PERA on your behalf.)

Frequently Asked Questions
    • Will my total monthly payment decrease?
      No. The sum of both deposits will equal your exact monthly benefit.
    • Can I deposit both payments into the same bank account?
      Yes. Simply list the same banking details on both direct deposit forms.
    • Why is this change happening?
      NMERB and PERA are transitioning to independent disbursement to improve reporting accuracy and streamline administrative processing.
    • When will I be paid?
      The last working day of the month.

If you need assistance completing your forms, please reach out to us:

    • NMERB: 1-800-663-1919
    • PERA: 1-866-678-0670