New pension plan details unveiled for judges under Judicial Retirement Act

House Bill 182, introduced by the New Mexico House of Representatives on March 19, 2025, aims to reform the pension structure for judges and justices in the state. The bill proposes adjustments to the calculation of monthly pensions based on the years of service and the timing of service credit earned.

The primary focus of House Bill 182 is to modify the pension formula for judges who began their service before July 1, 2005. For those who served after July 1, 1980, the bill outlines a tiered approach to pension calculations. Specifically, it establishes different percentages for service credit earned before and after July 1, 2014, and introduces a new rate for service credit earned after July 1, 2025.

Key provisions include:
1. For service credit earned before June 30, 2014, judges will receive a pension calculated at 75 percent of their last year's salary for up to 15 years of service, plus an additional five years.
2. For service credit earned between July 1, 2014, and July 1, 2025, the pension will be calculated at one-sixtieth of the highest salary received over any 60 months of service, multiplied by 3.5 percent for each year of service.
3. For service credit earned after July 1, 2025, the calculation will increase to four percent for each year of service under the same salary conditions.

The bill has sparked discussions among lawmakers regarding its potential impact on the state's budget and the long-term sustainability of the judicial pension system. Some legislators express concern that increasing pension benefits could strain public resources, while others argue that the changes are necessary to attract and retain qualified judges in New Mexico.

As the bill progresses through the legislative process, it is expected to undergo further scrutiny and possible amendments. The implications of House Bill 182 could significantly affect the financial landscape of the state's judicial system, influencing both current and future judges' retirement benefits. Stakeholders are closely monitoring the developments, as the outcome may set a precedent for judicial compensation in New Mexico.