New Mexico PERA Retirement Calculator
Estimate your pension from New Mexico PERA's State General Member Coverage Plan 3. Pick your tier, enter your service and final average salary, and see your monthly benefit and when you can retire.
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The formula
State General Member Coverage Plan 3 pays pension factor x service credit x final average salary. Tier 1 members get 3.0% with FAS based on the highest 36 consecutive months. Tier 2 members, generally those first hired on or after July 1, 2013, get 2.5% with a 60-month FAS. Since 2023 the cap is 100% of FAS. Service earned before July 1, 2023 counts only up to 90%; the 100% cap applies through service earned after that date.
Twenty-five years on a $70,000 FAS pays a Tier 1 member $52,500 a year and a Tier 2 member $43,750.
Tier 1 eligibility
Tier 1 can retire at any age with 25 years. Short of that, a sliding table applies: 60 with 20 years, 61 with 17, 62 with 14, 63 with 11, 64 with 8, or 65 with 5. A member who started at 22 can retire at 47 with a full pension.
Tier 2 eligibility
Tier 2 State General members who aren't peace officers retire at 65 with 5 years or under the Rule of 85. A 58-year-old with 27 years qualifies. A 55-year-old with 25 years has 80 points and doesn't, so it's 85, not 80. Tier 2 peace officers have different rules (60 with 5, or 25 years) that this calculator doesn't cover.
No reduced early retirement
PERA's published eligibility rules for these plans list normal retirement only. There's no option to start a reduced pension early. Vested members (5 years) who leave can start the pension later once they meet the age and service rules.
The COLA
Since July 1, 2023, under Senate Bill 72 (2020), the COLA follows a profit-share formula tied to investment returns and the funded ratio. The floor is 0.5%. The ceiling is 3% while the plan is under 100% funded and 5% above that. For July 1, 2026, most retirees got 0.5%. Retirees with 25 or more years whose pension is $25,000 or less, disability retirees and a closed group who were 75 before July 1, 2020 got 2.5%.
The first COLA waits two full calendar years after retirement, or one if you retire on disability or turn 65 before your first eligibility date.
What this calculator leaves out
It shows Form of Payment A, the single-life pension, and assumes you work full time until your retirement age. It covers State General Plan 3 only, not municipal, police, fire, detention, peace officer, judicial or magistrate plans, and not service split across tiers or reciprocity with ERB.
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Frequently asked questions
How is a New Mexico PERA State General pension calculated?
Pension factor x service credit x final average salary. Tier 1 uses 3.0% and the highest 36 consecutive months. Tier 2 uses 2.5% and the highest 60. The pension can't exceed 100% of FAS. A Tier 2 member with 25 years and a $70,000 FAS gets 2.5% x 25 x $70,000 = $43,750 a year.
Which tier am I in?
Tier 1 if you were first hired on or before June 30, 2013 and had contributions on account then (or were retired). Tier 2 if you were first hired on or after July 1, 2013, or took a refund by June 30, 2013 and came back after.
When can a Tier 1 member retire?
At any age with 25 years. Or at 60 with 20 years, 61 with 17, 62 with 14, 63 with 11, 64 with 8, or 65 with 5.
When can a Tier 2 member retire?
At 65 with 5 years, or under the Rule of 85, when age plus service reaches 85 with at least 5 years. Tier 2 State General members who aren't peace officers don't have the Rule of 80.
Can I retire early with a reduced pension?
PERA's eligibility rules for these plans list only normal retirement. If you leave before you qualify, a vested member (5 years) can wait and start the pension once the age and service rules are met.
What is the PERA COLA?
Senate Bill 72 (2020) set a formula, effective July 1, 2023: the return on actuarial assets minus a hurdle rate, times the funded ratio, with a 0.5% floor and a 3% ceiling while the plan is under 100% funded. For July 1, 2026 PERA paid 0.5% to most retirees and 2.5% to retirees with 25 or more years and a pension of $25,000 or less, disability retirees, and a closed group who were 75 before July 1, 2020.
When does the first COLA arrive?
After two full calendar years of retirement, or one if you retire on disability or are 65 before your first eligibility date. It's paid at the end of July.