Retirement Eligibility
When am I eligible to retire?
Your hire date or plan entry date is what determines your retirement eligibility and how your pension benefit is calculated. NMERB has four tiers for retirement eligibility based on your hire date.
The NMERB Defined Benefit Plan for Tiers 1, 2, and 3 consists of annual lifetime allowance equal to:
Final Average Salary (FAS) (x) years (X) 2.35% (=) Annual benefit
Tier 1: Membership Prior to July 1, 2010
If your ERB membership began before July 1, 2010, and you have not withdrawn your contributions, you are eligible to retire on the earliest date you meet any of the following criteria:
Keep this item as it keep the other toggles closed.
“25 and Out”
Earned service credits + allowed service credits = 25 or more years. There is no minimum age requirement.
“Rule of 75”
Your age + earned service credits = 75 or more. Under the Rule of 75, allowed service credits are used to calculate your retirement benefit but do not count toward eligibility. If you retire under this rule, are under age 60, and have less than 25 years of earned service credit, your retirement benefit will be reduced by:
•0.6% for each ¼ year, or portion thereof, that retirement occurs prior to age 60 but after the 55th birthday (equal to 2.4% per year), plus
•1.8% for each ¼ year, or portion thereof, that retirement occurs prior to age 55 (equal to 7.2% for each year under age 55). For example, if you are six months past your 59th birthday, the reduction in benefits is 1.2%.
“65 and 5”
If you are at least 65 years old and have five or more years of earned service credit, you are eligible for retirement.
COLA
COLA begins at age 65.
Tier 2: Membership on or after July 1, 2010, but prior to July 1, 2013
If you are first employed by an ERB employer on or after July 1, 2010, but prior to July 1, 2013 or if you were employed before July 1, 2010, terminated your employment and subsequently withdrew all of your contributions, you must meet one of the following requirements to be eligible for retirement:
Keep this item as it keeps the others closed.
“30 and Out”
Earned service credits = 30 or more years. There is no minimum age required. Under Tier 2 “30 and Out,” allowed service credit is not used to determine eligibility for retirement but is used to calculate retirement benefits.
“Rule of 80”
Your age + earned service credits = 80 or more. As in the Rule of 75, allowed service credits are used to calculate your retirement benefit but do not count toward eligibility. If retire under this rule, are under age 65, and have less than 30 years of earned service credit, your retirement benefit will be reduced by:
•0.6% for each ¼ year, or portion thereof, that retirement occurs prior to age 65 but after the 60th birthday (equal to 2.4% per year), plus
•1.8% for each ¼ year, or portion thereof, that the retirement occurs prior to age 60 (equal to 7.2% per year).
“67 and 5”
If you are at least 67 years old and have five or more years of earned service credit, you are eligible for retirement.
COLA
COLA begins at age 65.
TIER 3: Membership beginning on or after July 1, 2013 but prior to July 1, 2019.
If your ERB membership began on or after July 1, 2013, or you were employed before July 1, 2013, terminated your employment and subsequently withdrew all of your contributions and returned to work for an ERB employer on or after July 1, 2013, you must meet one of the following requirements to be eligible for retirement:
Keep this item as it keeps the other items closed.
“30 and Out”
Earned service credits = 30 or more years. Soft minimum retirement age of 55: those who retire younger than age 55 with 30 years of service credit will have a reduction in benefits to the actuarial equivalent of the member retiring at age 55. Under Tier 3 “30 and Out,” allowed service credit is not used to determine eligibility for retirement but is used to calculate retirement benefits.
“Rule of 80”
Your age + earned service credits = 80 or more. As in the Rule of 75, allowed service credits are used to calculate your retirement benefit but do not count toward eligibility. If you retire under this rule, are under age 65, and have less than 30 years of earned service credit, your retirement benefit will be reduced by:
•0.6% for each ¼ year, or portion thereof, that retirement occurs prior to the member’s 65th birthday but after the 60th birthday (equal to 2.4% per year), plus
•1.8% for each ¼ year, or portion thereof, that retirement occurs prior to the member’s 60th birthday (equal to 7.2% per year).
“67 and 5”
If you are at least 67 years old and have five or more years of earned service credit, you are eligible for retirement.
COLA
COLA begins at age 67.
Tier 4: Tiered Multipliers – Membership Beginning on or after July 1, 2019
The NMERB Defined Benefit Plan for Tier 4 consists of annual lifetime allowance equal to:
Final Average Salary (FAS) (x) graduated multiplier (=) Annual benefit
A pension is calculated using a graduated multiplier. The pension factor changes every ten years up to year 30 and then remains at 2.4% thereafter.
Four tiered multipliers – calculation is dependent on years of service
If your ERB membership began on or after July 1, 2019, or you were employed before July 1, 2019, terminated your employment and subsequently withdrew all of your contributions and returned to work for an ERB employer on or after July 1, 2019, you must meet one of the following requirements to be eligible for retirement:
Keep this item as it keeps the other items closed.
“30 and Out”
Earned service credits = 30 or more years. Soft minimum retirement age of 58: those who retire younger than age 58 with 30 years of service credit will have a reduction in benefits to the actuarial equivalent of the member retiring at age 58. Under Tier 4 “30 and Out,” allowed service credit is not used to determine eligibility for retirement but is used to calculate retirement benefits.
“Rule of 80”
Your age + earned service credits = 80 or more. As in the Rule of 75, allowed service credits are used to calculate your retirement benefit but do not count toward eligibility. If you retire under this rule, are under age 65, and have less than 30 years of earned service credit, your retirement benefit will be reduced by:
- 0.6% for each ¼ year, or portion thereof, that retirement occurs prior to the member’s 65th birthday but after the 60th birthday (equal to 2.4% per year), plus
- 1.8% for each ¼ year, or portion thereof, that retirement occurs prior to the member’s 60th birthday (equal to 7.2% per year).
“67 and 5”
If you are at least 67 years old and have five or more years of earned service credit, you are eligible for retirement.
COLA
COLA begins at age 67.
Managing the retirement assets of New Mexico Educators since 1957.
Contact Information
Santa Fe
(Main Office)
8am-5pm
Physical Address
701 Camino de los Marquez
Santa Fe, NM 87505
Mailing Address
PO Box 26129
Santa Fe, NM 87502
Toll-Free
1(866) 691-2345
Main Office
(505) 827-8030
Fax
(505) 827-1855
Albuquerque Office
8am-5pm
Email or call ahead for an appointment.
Physical Address
8500 Menaul Blvd. NE, Suite B-450
Albuquerque, NM 87112
Phone
(505) 888-1560
Fax
(505) 830-2976