Voters approve base pay for New Mexico lawmakers, setting stage for pension overhaul
A constitutional amendment effective in 2029 requires legislators to accept a salary tied to median household income, a move that may force new members into a less generous retirement system.
By Scott Marshall ·
New Mexico voters approved a constitutional amendment last week that establishes a base salary for state legislators. The change takes effect in 2029 and marks a shift in how lawmakers are compensated. Until now, the General Assembly has relied on expense allowances rather than a standard wage.
The amendment sets the initial salary at the median income for a New Mexico household. That figure is currently estimated at nearly $68,000 per year. Officials expect the amount to rise by the time the pay scale begins in 2029. Lawmakers will have the option to accept or decline this compensation.
The decision to take the salary carries financial weight for current members of the legislature. If an incumbent accepts the pay, they may be designated as a state employee. This status could remove them from the Legislative Retirement Plan. That specific plan offers benefits distinct from the standard public employee system.
Sen. Natalie Figueroa, D-Albuquerque, has introduced a bill to formalize the new structure for incoming members. Her proposal would bar newly elected legislators from joining the existing Legislative Retirement Plan. Instead, these newcomers would enroll in the pension system used by other public employees in New Mexico.
The financial differences between the two systems are substantial. Under the current legislative plan, members need only ten years of service and a personal contribution of $1,000 per year to qualify. They may begin collecting benefits at any age after leaving office. A member with the minimum tenure can receive approximately $30,000 annually. Those with longer tenures are eligible for between $60,000 and more than $100,000 per year.
Figueroa’s bill proposes different terms for the new cohort. New legislators would need to contribute nearly 11% of their salary to the pension fund. This is a sharp increase from the $1,000 contribution required of current members. Additionally, newcomers would not qualify for pension payments until age 65, provided they have five years of service. They could collect at any age only after 25 years of service.
The legislative session to consider these changes begins on January 19. The General Assembly will meet for a 60-day session. Lawmakers face a decision on whether to proceed with Figueroa’s proposal. Some incumbents near vesting in the current plan may prefer to delay action. Others may seek to preserve the separate retirement program for themselves.
The amendment does not change daily expense allowances for legislators. These funds cover travel and lodging during sessions and interim hearings. The established allowances for next year are $209 per day in January and February. From March through September, the rate rises to $255 per day. The amendment also permits lawmakers to work full-time outside the Capitol while collecting the new salary.
