N.M. Stat. § 22-11-30 (2026)

A. Retirement benefits for a member retired pursuant to the Educational Retirement
Act on or before June 30, 1967 shall be paid monthly and shall be one-twelfth of a sum
equal to one and one-half percent of the first four thousand dollars ($4,000) of the
member's average annual salary and one percent of the remainder of the member's
average annual salary multiplied by the number of years of the member's total service
credit.

    B. Retirement benefits for a member retired pursuant to the Educational Retirement
Act on or after July 1, 1967 but on or before June 30, 1971 shall be paid monthly and
shall be one-twelfth of a sum equal to one and one-half percent of the first six thousand
six hundred dollars ($6,600) of the member's average annual salary and one percent of
the remainder of the member's average annual salary multiplied by the number of years
of the member's total service credit.

   C. Retirement benefits for a member retired pursuant to the Educational Retirement
Act on or after July 1, 1971 but on or before June 30, 1974 shall be paid monthly and
shall be one-twelfth of a sum equal to one and one-half percent of the member's
average annual salary multiplied by the number of years of the member's total service
credit.

    D. Retirement benefits for a member retired pursuant to the Educational Retirement
Act on or before June 30, 1974 but returning to employment on or after July 1, 1974 for
a cumulation of one or more years shall be computed pursuant to Subsection E of this
section. Retirement benefits for a member retired pursuant to the Educational
Retirement Act on or before June 30, 1974 but returning to employment on or after July
1, 1974 for a cumulation of less than one year shall be computed pursuant to
Subsection A of this section if the member's date of last retirement was on or before
June 30, 1967 or pursuant to Subsection B of this section if the member's date of last
retirement was on or after July 1, 1967 but not later than June 30, 1971 or pursuant to
Subsection C of this section if the member's date of last retirement was on or after July
1, 1971 but not later than June 30, 1974.

   E. Retirement benefits for a member age sixty or over, retired pursuant to the
Educational Retirement Act on or after July 1, 1974 but not later than June 30, 1987,
shall be paid monthly and shall be one-twelfth of a sum equal to:

       (1)     one and one-half percent of the member's average annual salary
multiplied by the number of years of service credit for:

          (a) prior employment; and

          (b) allowed service credit for service performed prior to July 1, 1957, except
United States military service credit purchased pursuant to Paragraph (3) of Subsection
A of Section 22-11-34 NMSA 1978; plus

     (2)    two percent of the member's average annual salary multiplied by the
number of years of service credit for:

          (a) contributory employment;

          (b) allowed service credit for service performed after July 1, 1957; and

         (c) United States military service credit for service performed prior to July 1,
1957 and purchased pursuant to Paragraph (3) of Subsection A of Section 22-11-34
NMSA 1978.

    F. Retirement benefits for a member age sixty or over, retired pursuant to the
Educational Retirement Act on or after July 1, 1987 but not later than June 30, 1991,
shall be paid monthly and shall be one-twelfth of a sum equal to two and fifteen-
hundredths percent of the member's average annual salary multiplied by the number of
years of the member's total service credit; provided that this subsection shall not apply
to any member who was retired in any of the four quarters ending on June 30, 1987
without having accumulated not less than 1.0 years earned service credit after June 30,
1987.

   G. Retirement benefits for a member who retires pursuant to Section 22-11-23
NMSA 1978 on or after July 1, 1991 shall be paid monthly and shall be one-twelfth of a
sum equal to two and thirty-five hundredths percent of the member's average annual
salary multiplied by the number of years of the member's total service credit; provided
that:

     (1)    the benefit for a member who retires pursuant to Paragraph (3) of
Subsection A of Section 22-11-23 NMSA 1978 shall be reduced by:

          (a) six-tenths percent for each one-fourth, or portion thereof, year that
retirement occurs prior to the member attaining the age of sixty years but after the
member attains the age of fifty-five years; and

           (b) one and eight-tenths percent for each one-fourth, or portion thereof, year
that retirement occurs prior to the member attaining the age of fifty-five years;

       (2)    the benefit formula provided in this subsection shall not apply to any
member who was retired in any of the four consecutive quarters ending on June 30,
1991 without having accumulated at least one year of earned service credit beginning
on or after July 1, 1991; and

      (3)     a member shall be subject to the provisions of Paragraph (1) of this
subsection as they existed at the beginning of the member's last cumulated four
quarters of earned service credit, regardless of later amendment.

    H. Retirement benefits for a member who retires pursuant to Section 22-11-23.1
NMSA 1978 shall be paid monthly and shall be one-twelfth of a sum equal to two and
thirty-five hundredths percent of the member's average annual salary multiplied by the
number of years of the member's total service credit; provided that:

     (1)    the benefit for a member who retires pursuant to Paragraph (3) of
Subsection A of Section 22-11-23.1 NMSA 1978 shall be reduced by:

          (a) six-tenths percent for each one-fourth, or portion thereof, year that
retirement occurs prior to the member attaining the age of sixty-five years but after the
member attains the age of sixty years; and

           (b) one and eight-tenths percent for each one-fourth, or portion thereof, year
that retirement occurs prior to the member attaining the age of sixty years; and

      (2)     a member shall be subject to the provisions of Paragraph (1) of this
subsection as they existed at the beginning of the member's last cumulated four
quarters of earned service credit, regardless of later amendment.
    I. Retirement benefits for a member who retires pursuant to Section 22-11-23.2
NMSA 1978 shall be paid monthly and shall be one-twelfth of a sum equal to two and
thirty-five hundredths percent of the member's average annual salary multiplied by the
number of years of the member's total service credit; provided that:

      (1)     the benefit for a member retiring pursuant to Paragraph (3) of Subsection
A of Section 22-11-23.2 NMSA 1978 shall be reduced by:

          (a) six-tenths percent for each one-fourth, or portion thereof, year that
retirement occurs prior to the member attaining the age of sixty-five years but after the
member attains the age of sixty years; and

           (b) one and eight-tenths percent for each one-fourth, or portion thereof, year
that retirement occurs prior to the member attaining the age of sixty years; and

      (2)     a member shall be subject to the provisions of Paragraph (1) of this
subsection as they existed at the beginning of the member's last cumulated four
quarters of earned service credit, regardless of later amendment.

   J. Retirement benefits for a member who retires in accordance with Section 22-11-
23.3 NMSA 1978 shall be paid monthly and:

       (1)    in an amount equal to one-twelfth of the sum of the following:

          (a) for the first ten years of the member's service credit, one and thirty-five
hundredths percent of the member's average annual salary multiplied by the member's
years of service credit between one-fourth of a year and ten years;

          (b) for that portion of the member's service credit earned after ten years of
service credit and through twenty years of service credit, two and thirty-five hundredths
percent of the member's average annual salary multiplied by the member's years of
service credit between ten and twenty years;

          (c) for that portion of the member's service credit earned after twenty years of
service credit and through thirty years of service credit, three and thirty-five hundredths
percent of the member's average annual salary multiplied by the member's years of
service credit between twenty and thirty years; and

           (d) for that portion of the member's service credit earned after thirty years of
service credit, two and four-tenths percent of the member's average annual salary
multiplied by the member's years of service credit over thirty years; or

       (2)    if the member retires in accordance with:

          (a) Subsection A of Section 22-11-23.3 NMSA 1978 and is under fifty-eight
years of age, in an amount equal to the result determined under Paragraph (1) of this
subsection, but reduced to the actuarial equivalent, based on what is at the time of the
member's retirement the most current set of actuarial factors determined by the board,
of the benefit the member would receive if the member had retired at fifty-eight years of
age;

           (b) Subsection C of Section 22-11-23.3 NMSA 1978 and is sixty years of age
or older and under sixty-five, in an amount equal to the result determined under
Paragraph (1) of this subsection, but reduced by six-tenths percent for each one-fourth,
or portion thereof, year before the member reaches age sixty-five; or

           (c) Subsection C of Section 22-11-23.3 NMSA 1978 and is younger than sixty
years of age, in an amount equal to one and eight-tenths percent for each one-fourth, or
portion thereof, year before the member reaches sixty years of age.

   K. In determining a member's average annual salary for purposes of this section:

       (1)   the data set shall consist of the annual salary of each of the last five years,
or any consecutive five years, for which contribution was made by the member,
whichever produces a higher result; and

      (2)    lump-sum payments made after July 1, 2010 of accrued sick leave or
annual leave shall be excluded from the calculation.

    L. On and after July 1, 2019, if the member's average annual salary is greater than
sixty thousand dollars ($60,000):

       (1)     the salary in a first twelve-month interval that occurs beginning July 1,
2019 or thereafter of the five-year period used to determine the average annual salary
shall be adjusted to exclude any increase in salary in excess of thirty percent of the
salary in the twelve consecutive months of service credit preceding the five-year period;
and

        (2)     the salary in each of the four succeeding twelve-month intervals that occur
beginning July 1, 2019 or thereafter of the five-year period, as adjusted to exclude any
increase in salary in the twelve months preceding each such succeeding twelve-month
interval that is in excess of the thirty-percent limitation provided in this subsection, shall
be used to determine if the salary in that succeeding twelve-month interval exceeds the
thirty-percent limitation and to adjust the salary to exclude any increase in excess of that
limitation in determining the average annual salary.

    M. On July 1, 2020 and on each July 1 thereafter, the salary threshold for applying
the thirty-percent limitation provided for in Subsection L of this section shall be adjusted
by applying an adjustment factor equal to the change in the consumer price index
between the next preceding calendar year and the preceding calendar year if there is an
increase in the consumer price index between the next preceding calendar year and the
preceding calendar year.
   N. Notwithstanding any provision of the Educational Retirement Act, retirement
benefits shall be distributed in accordance with Section 401(a)(9) of the federal Internal
Revenue Code of 1986, as amended, and the regulations thereunder, including the
minimum incidental death benefit restrictions of Section 401(a)(9)(G) of the Internal
Revenue Code of 1986, as amended.

History: 1953 Comp., § 77-9-29, enacted by Laws 1967, ch. 16, § 153; 1971, ch. 12, §
4; 1974, ch. 5, § 4; 1985, ch. 170, § 1; 1987, ch. 86, § 2; 1991, ch. 140, § 2; 1993, ch.
69, § 9; 2003, ch. 39, § 8; 2009, ch. 286, § 3; 2009, ch. 288, § 17; 2013, ch. 61, § 6;
2019, ch. 258, § 5; 2023, ch. 87, § 2.

                                     ANNOTATIONS

Cross references. — For the Internal Revenue Code of 1986, see 26 U.S.C.

The 2023 amendment, effective June 16, 2023, conformed the required minimum
distribution age to the federal internal revenue code; and in Subsection N, deleted
"Unless otherwise required by the Internal Revenue Code of 1986, a member shall
begin receiving retirement benefits by age seventy years and six months, or upon
termination of employment, whichever occurs later" and added "Notwithstanding any
provision of the Educational Retirement Act, retirement benefits shall be distributed in
accordance with Section 401(a)(9) of the federal Internal Revenue Code of 1986, as
amended, and the regulations thereunder, including the minimum incidental death
benefit restrictions of Section 401(a)(9)(G) of the Internal Revenue Code of 1986, as
amended".

The 2019 amendment, effective July 1, 2019, added retirement eligibility provisions for
employees who begin employment on or after July 1, 2019; added a new Subsection J
and redesignated former Subsection J as Subsection K; in Subsection K, added new
paragraph designations "(1)" and "(2)", in Paragraph K(1), after "shall", deleted "be
computed on the basis" and added "consist of the annual salary of each", and in
Paragraph K(2), after "calculation", deleted "of salary"; and added Subsections L and M
and redesignated former Subsection K as Subsection N.

The 2013 amendment, effective July 1, 2013, provided for the reduction of retirement
benefits; in the title of the section, added "reductions"; in Subsection G, in the
introductory sentence, after "benefits for a member", deleted "age sixty or over, retired"
and added "who retires"; added Paragraphs (1) and (3) of Subsection G; in Paragraph
(2) of Subsection G, at the beginning of the sentence, added "the benefit formula
provided in"; in Subparagraph (a) of Paragraph (1) of Subsection H, after the word "six-
tenths", deleted "of one", after "retirement occurs prior to the", deleted "member’s sixty-
fifth birthday" and added "member attaining the age of sixty-five years", and after "but
after the", deleted "sixtieth birthday" and added "member attains the age of sixty years";
in Subparagraph (b) of Paragraph (1) of Subsection H, after "retirement occurs prior to
the", deleted "member’s sixtieth birthday" and added "member attaining the age of sixty
years; and"; added Paragraph (2) of Subsection H; and added Subsection I.
The 2009 amendment, effective July 1, 2011, in Subsection D, replaced each
occurrence of "his" with "the member's"; in Subsection G, after "retired pursuant to",
deleted "the Educational Retirement Act" and added "Section 22-11-23 NMSA 1978";
added Subsection H; and in Subsection I, after "whichever is higher", added the
remainder of the sentence.

The 2003 amendment, effective June 20, 2003, inserted "credit" following "years
earned service" near the end of Subsection F; and inserted "Unless otherwise required
by the provisions of the Internal Revenue Code of 1986," at the beginning of the second
sentence of Subsection H.

The 1993 amendment, effective June 18, 1993, added the second sentence of
Subsection H.

The 1991 amendment, effective June 14, 1991, inserted "but not later than June 30,
1991" near the beginning of Subsection F; added Subsection G; redesignated former
Subsection G as Subsection H; and made a minor stylistic change in Subsection D.

Exemption from income tax permitted. — The legislature may grant a special income
tax exemption to one kind of public employee, teachers, yet deny the same exemption
to other public employees. Vaughn v. State Taxation & Revenue Dep't, 1982-NMCA-
112, 98 N.M. 362, 648 P.2d 820, superseded by statute, Pierce v. State, 1996-NMSC-
001, 121 N.M. 212, 910 P.2d 288.

Repeal of tax exemption. — Because no private contractual rights were granted by the
retirement plan, there was no impairment or breach of contract resulting from the 1990
repeal of the tax exemption provision and, although the plan conferred property rights
that vested upon accumulating minimum earned service credits, those rights did not
include the right to receive pension benefits exempt from tax. Pierce v. State, 1996-
NMSC-001, 121 N.M. 212, 910 P.2d 288.

Because the retirement plan provided no contractual or vested right to receive an
irrevocable tax exemption, there was no constitutionally protected private interest in the
tax exemption and there was no due process violation when the exemption was
repealed. Pierce v. State, 1996-NMSC-001, 121 N.M. 212, 910 P.2d 288.

"Trading" tax exemptions for health care. — Repeal of the state income tax
exemptions for teacher pensions and public employee pensions does not remedy
constitutional defects of the proposed retiree health care act under a theory that those
exemptions would be "traded" for retiree health care. Those exemptions are not
property rights, irrepealable contractual entitlements, or pension benefits. Hence,
elimination of the favorable tax treatment for current retirees is not consideration for a
multi-million dollar health care plan that the state proposes to provide them. 1990 Op.
Att'y Gen. No. 90-03.
Am. Jur. 2d, A.L.R. and C.J.S. references. — What constitutes "salary," "wages,"
"pay," or the like, within pension law basing benefits thereon, 14 A.L.R.2d 634.