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Most APS Employees Are Contributing More to Their Pension
The increase for employees earning $20,000 a year went into effect July 1.
APS employees who earn $20,000 a year or more are contributing a little more of each paycheck to their retirement fund as of July 1.
The annual employee contribution for those making $20,000 a year went from 9.4 percent to 10.1 percent. That amounts to $10.77 per paycheck for employees making $40,000 a year.
Employees who make less than $20,000 a year stayed at their current contribution rate of 7.9 percent.
The increase is part of an effort to improve the sustainability of the retirement fund for New Mexico educators. The employee contribution for those making $20,000 or more is scheduled to increase again next year to 10.7 percent.
The state Legislature provided funding for 1 percent pay raises for school district employees this year, which may help offset the increased retirement contribution. Employee pay is discussed as part of negotiations with the district’s six collective bargaining units.
For more information on retirement contributions, go to the New Mexico Educational Retirement Board website at www.nmerb.org.