Jan Goodwin, executive director of New Mexico’s ERB aka Educational Retirement Board, needs to STEP UP for the people who have already retired after paying into ERB upwards of 30 years.
State newspapers report the state can trim pension benefits for retired government workers to improve the long-term finances of public employee retirement programs New Mexico’s highest court recently ruled!
Specifically the cost-of-living adjustment(COLA) is being reduced from previously promised levels. Judge Richard C. Bosson needs to take a course in ethics or logic because his erroneous reasoning is screwing with the well being of around 30,000 teachers who faithfully paid in to ERB via pretax deductions from their paychecks for countless years.
The judge’s ruling effectively helps state employees who will be retiring much later at the expense of folks who have paid much more into the retirement plan and should not be penalized for the financial mismanagement that sent out millions of dollars in overpayments to retirees a few years back. Hmmmm, are you thinking what I am thinking?
Goodwin flippantly brags that the legislature now has the power to arbitrarily lower the COLA claiming that will improve the sustainability of ERB. Jan apparently does not care so much about SUSTAINING the deserving retirees who funded the retirement program!! Reducing the COLA allows inflation to chip away at the value of the fixed income so many retirees are irreversibly dependent on.
New Mexico is not the only state that has having troubling issues with their pensions. Read about the pension woes in Virginia.