The House is debating the retirement swap

The House has just started debating a bill that would ask state worker and public teachers to contribute more into their retirement.

The legislation, HB628, would require state workers and public teachers to pay 3.25 percent more. By having employees paying that increased rate into the retirement funds, the state would save around $49 million for the budget year that starts July 1, lawmakers say.

The battle in the House today will be over how long to make state workers and public teachers pay the increased contribution rates. Some lawmakers want to make permanent 1.5 percent of that 3.25 percent increase. As the bill stands now, 1.5 percent of the increased rate would last for two years. The balance, or 1.75 percent increase, would last just one year.

“I think it needs to be permanent,” said House Minority Whip Donald Bratton, R-Hobbs, is telling his colleagues about the 1.5 percent portion of the increased contribution rate.

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About triptothecapitol

Trip Jennings is a Capitol reporter at the Santa Fe New Mexican.
This entry was posted in 2011 New Mexico Legislature, Education, New Mexico State Budget, State workers, Uncategorized and tagged , . Bookmark the permalink.

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