Inactive Members

This page provides information for those who are not ERB retirees (pensioners) but have worked for an ERB covered employer at some point in their career, and are thus entitled to some modicum of benefit or are affected by the plan in other ways.

Inactive Members Categories

1. Those who are vested: A member with at least five (5) years of credited service who has not withdrawn his/her contributions from the fund.
2. Those who are not vested: A member who has less than (5) years of credited service in the ERB fund.

A member’s active membership with NMERB terminates, and the member becomes an inactive member, when the member ceases to be employed in a position reportable to NMERB after a full calendar quarter.

Deferred Retirement

Note: This section is for Inactive Members who are vested.

If you are vested, having five or more years of service credit, or have reciprocity with PERA see “Reciprocity” you may leave your account in an inactive status until you reach retirement age and apply for your monthly benefit then.

If you are eligible to retire, there is no advantage in deferring retirement beyond age 60, as the benefit does not increase beyond that age. Furthermore, If you become eligible for benefits but delay applying for retirement, you will forgo those benefits you would have otherwise received between the date of eligibility to the date the retirement application is received by NMERB. The retirement date for inactive members is the first day of the month following date of receipt of the retirement application. For more information on how to retire see “Retiring From This Plan.”

If you are vested (five or more years of credited service) with NMERB you are eligible for a deferred lifetime retirement.

Refunding your contributions

Note: This section is for Inactive Members who are Vested and Members who are Non-vested

Upon termination of employment with an ERB covered employer you have the option to refund and/or rollover your contributions plus interest. The Refunding From This Plan page will provide more information on refunding your contributions.

For an account balance, you can log into your MyNMERB account and click on Statement of Account. For instructions on how to complete the Inactive Member Request for Refund and/or Rollover form and the form, visit the Forms page. You can also contact NMERB by using the Member Services Contact Form.

Required Minimum Distribution

As a qualified retirement plan under federal tax law, ERB must comply with minimum distribution requirements of Section 401(a)(9) of the Internal Revenue Code. Federal regulations require that ERB members, even Inactive, Non-vested Members, begin to receive “distributions” by a “required beginning date.” ERB members, who do not begin to take distributions by the federally mandated required beginning date, may owe a federal excise tax of 50 percent of the amount that you should have received as a required minimum distribution in a tax year.

Inactive, Non-vested Members, while not eligible for a pension benefit often do have “balances” contributed to the fund during their employment with the ERB affiliate.

Again, for an account balance, you can log into your MyNMERB account and click on Statement of Account. You can also contact NMERB by using the Member Services Contact Form.

For an ERB member, the federally mandated “required beginning date” to begin receiving distributions is April 1 of the year following the calendar year in which the member reaches age 72 (70 ½ for those who reach 70 ½ before January 1, 2020 prior rule applies) or terminate employment with a ERB-covered entity, whichever is later. For a beneficiary, the required beginning date is generally no later than one year after the death of the member.

Whether you are vested or not, if you leave your contributions on account and return to an NMERB covered entity in the future, you will retain your service credit and Tier status.