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MPO affiliates with PERA and authorizes pre‑tax treatment of PERA contributions
Summary
The MPO governing board approved two related resolutions affiliating the MPO with New Mexico PERA and authorizing pre‑tax treatment of PERA contributions for staff; staff said affiliation takes effect June 1 and PERA participation is irreversible under state law.
The Mesilla Valley MPO governing board on May 14 approved two linked resolutions to affiliate the MPO with the Public Employees Retirement Association (PERA) and to authorize the pickup of member contributions for federal tax treatment.
Andrew Ray presented background: MPO staff previously participated in PERA under the City of Las Cruces affiliation. With the MPO now independent, the MPO must affiliate directly with PERA to continue retirement benefits. Ray said PERA and City of Las Cruces staff reviewed the resolution language and that PERA confirmed the affiliation text was acceptable. He noted the affiliation is irreversible under state law once completed. MPO staff proposed an effective affiliation date of June 1.
Ray also said the city’s PERA contribution levels are scheduled to increase by 0.5 percentage points on July 1 (start of the city’s FY 2026); the resolution reflects the current and upcoming contribution levels as drafted and staff are seeking clarification from PERA and the city on whether the MPO must revisit the board if the city changes levels in the future. The second resolution (25‑12) authorizes that PERA withholdings be treated prior to federal income tax assessment, matching the city’s long‑standing practice.
Both measures passed by roll call.
Why it matters: Direct PERA affiliation preserves retirement benefits for MPO employees as the MPO becomes an independent entity; the tax‑treatment resolution maintains pay‑and‑benefit continuity for staff.
