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.

COLA Information

Updated January 17, 2024

The statutory Cost Of Living Adjustment (COLA) for eligible retirees as of July 1, 2024 is:

1.89% for retirees with 25 or more years of service credit and whose monthly benefit is less than or equal to the median benefit of $1,746.63 as of June 30, 2023.
1.68% for all other eligible retirees.
2.1% 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 2024 COLA, read the 2024 Cost of Living Adjustment for Retirees letter to NMERB.

Please see the Member Handbook for more information or contact us via the Member Services contact form.