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Education Retirement Board details $30M system rollout, new office, rule changes and funding progress
Summary
ERB Executive Director David Archuleta told a legislative committee that ERB is building a 19,000 sq ft office in Santa Fe, implementing a $30 million pension administration system (partners: TELUS Health, NTT DATA, MBS, Segal), adopted return‑to‑work rule changes with grace periods, and reported improved funding metrics though full funding remains decades away.
David Archuleta, executive director of the Education Retirement Board, briefed a legislative committee on ERB operations, modernization efforts and the system’s funding outlook. He said construction of a 19,000‑square‑foot office on Santa Fe’s south side is underway and that ERB expects substantial completion in January with a planned move in March.
Archuleta said ERB is replacing its pension administration platform with a project funded at about $30 million and involving several partners. “We’re purchasing the system from TELUS Health,” he said, adding that NTT DATA is responsible for independent verification, Segal is serving as a project consultant and MBS is handling data cleansing for more than 450,000 member records. Archuleta told the committee the rollout is slightly ahead of schedule with substantial completion of the implementation targeted by October.
ERB also described recent rule changes to its return‑to‑work programs. After an uptick in violations — instances where retirees returned to work without required approvals — the board adopted procedures that give members notice and a grace period to cure paperwork errors before imposing suspensions or recouping payments, except in cases where statute clearly makes a member ineligible (for example failing the 90‑day waiting period).
On investments and funding, Archuleta reported a one‑year return of 8.64% (below the policy index of 9.56%) but said the system’s long‑term returns continue to meet targets above 7%. He said the trust fund grew from just over $8 billion in 2010 to roughly $17.1 billion as of the most recent reporting period and reiterated ERB’s funding objective to reach an asset level that would fully cover liabilities over a multi‑decade horizon.
Archuleta summarized recent statutory and contribution changes since 2013 that have moved the plan toward sustainability — including phased employer and employee contribution increases and Senate Bill 42 (2021) — and described results of an experience study that reduced the unfunded actuarial accrued liability to about $9.2 billion under current assumptions. He also explained GASB reporting (statements 67 and 68) and provided employer‑level liability examples used in those disclosures.
Archuleta closed by saying ERB will propose technical, clarifying statutory language this session to align statute with business practice and federal rules, and that the measures are not expected to have fiscal impact. The committee paused for further presenters after a short question period.
