Cost of Living Adjustment
General COLA Information
The first COLA to a retiree’s benefit will be made on July 1 of the year in which the retired member reaches age 65, or on July 1 of the year following the members retirement date, whichever is later. Thereafter, each July 1, a retiree’s annuity will be adjusted by either one-half the percent change in the Consumer Price Index of the preceding calendar year or four percent, whichever is less. The annual adjustment shall be no less than two percent unless the CPI is less than two percent. In this case, the COLA will be the same as the percent change in the CPI.
For those members who retired under a disability retirement or anyone who retired under a regular retirement who can provide evidence to the ERA medical review board that they were disabled at the time of retirement a cost-of-living adjustment is provided. The adjustment is calculated as described above and will occur on July 1 of the third year following retirement.
Updated February 20th, 2023
The statutory Cost Of Living Adjustment (COLA) for eligible retirees as of July 1, 2023 is:
- 3.60% for retirees with 25 or more years of service credit and whose monthly benefit is less than or equal to the median benefit of $1,720.56 as of June 30, 2022.
- 3.20% for all other eligible retirees.
- 4.0% for all disability retirees who have been retired for at least 3 years.
Tier 1 and Tier 2
If you joined NMERB prior to July 1, 2013, you may begin receiving a COLA on July 1 of the year in which you reach age 65 or July 1 of the year following your effective retirement date, whichever date is later.
Tier 3 and Tier 4
If you joined NMERB on or after July 1, 2013 you may begin receiving a COLA on July 1 of the year in which you reach age 67 or July 1 of the year following your effective retirement date, whichever date is later.
For a more a detailed explanation of the 2023 COLA, read the 2023 Cost of Living Adjustment for Retirees letter to NMERB.
Managing the retirement assets of New Mexico Educators since 1957.
701 Camino de los Marquez
Santa Fe, NM 87505
PO Box 26129
Santa Fe, NM 87502
Email or call ahead for an appointment.
8500 Menaul Blvd. NE, Suite B-450
Albuquerque, NM 87112