New Mexico PERA Retirement Calculator: How to Use It
New Mexico PERA split into Plan A (3.0% rate, graduated eligibility table, 3-year FAS) and Plan B (2.5% rate, strict Rule of 80, 5-year FAS) at a July 2013 cutoff. Both plans share a 100% cap and no Social Security coverage. Which plan you're in changes your benefit by a meaningful amount over a full career.
What this calculator does
The New Mexico PERA Retirement Calculator computes your Public Employees Retirement Association defined benefit pension under either Plan A (members enrolled before July 1, 2013) or Plan B (members enrolled on or after July 1, 2013). For Plan A, it applies the 3.0% accrual rate and a graduated eligibility table (more generous than a simple Rule of 80) along with the 25-years-any-age option. For Plan B, it applies the 2.5% accrual rate and the strict Rule of 80 (age plus service equals 80, minimum 5 years of service) or the 65/5+ threshold. The 100% of FAS benefit cap per HB 106 (2023) is enforced for both plans.
The calculator uses the correct FAS window for your plan: Plan A uses the three highest consecutive years, Plan B uses the five highest consecutive years. It shows your estimated annual and monthly gross pension before taxes. New Mexico PERA members are generally not covered by Social Security for their PERA service, so the pension is the primary retirement benefit from public employment in New Mexico.
What each input means
Plan (A or B)
Plan A applies to members who enrolled in PERA before July 1, 2013. Plan B applies to members who enrolled on or after that date. Check your PERA member statement to confirm. Plan A's 3.0% accrual rate is 20% higher than Plan B's 2.5% rate per year of service. On a 25-year career with a $70,000 FAS, the difference is $52,500 per year under Plan A versus $43,750 under Plan B: $8,750 annually for the same career.
Current age
Your age today. Used to determine whether you satisfy Plan A's graduated eligibility table (age 60 with 20 years through age 65 with 5 years, or 25 years at any age) or Plan B's Rule of 80 (age + service = 80, minimum 5 years) at your planned retirement date. Also used to check the 65/5+ threshold for Plan B members.
Years of PERA service
Your total creditable service with New Mexico PERA. Includes active service in covered state and local government positions, purchased service credit for prior public employment, and military service deposits. Your annual PERA member statement shows your confirmed credited service balance. Use only finalized credit; pending purchases should not be included until confirmed.
Final Average Salary
Plan A uses the average of your three highest consecutive years of earnable compensation. Plan B uses the five highest consecutive years. For most members near retirement, this is the final years of base salary. Earnable compensation is your regular base pay; it excludes lump-sum leave payouts, overtime beyond standard hours, and irregular bonuses. Enter the figure you expect this average to be at retirement. If you anticipate salary changes before you retire, adjust accordingly.
Planned retirement age
The age at which you plan to begin collecting your pension. The calculator checks this against your plan's eligibility rules. Plan A members who qualify at 25 years of service regardless of age will see that flagged if they hit that threshold before their planned age. Plan B members without the 25-year option must reach the Rule of 80 or 65/5+.
Understanding the outputs
Plan A pension: 3.0% times years of service times FAS, capped at 100% of FAS per HB 106 (2023). A member with 25 years and a $70,000 FAS gets 0.030 x 25 x $70,000 = $52,500 per year. At 30 years that's $63,000 (90% of FAS). The 100% cap is reached at approximately 33.3 years of service under Plan A.
Plan B pension: 2.5% times years of service times FAS, capped at 100% per HB 106 (2023). A member with 30 years and the same $70,000 FAS gets 0.025 x 30 x $70,000 = $52,500 per year. The 100% cap is reached at 40 years of service under Plan B.
The COLA of up to 2% when fund conditions allow provides some inflation protection, but it is not guaranteed. Most PERA-covered positions are not covered by Social Security. The pension is the primary retirement income from this employment. If you have Social Security credits from prior private-sector work, you can collect that benefit alongside your PERA pension. The Windfall Elimination Provision, which previously reduced Social Security for PERA members, was repealed in January 2025.
Related calculators
Nevada PERS Calculator
Compare New Mexico PERA with Nevada's 2.5% rate, Rule of 90, and compounding COLA
WEP Calculator
See the historical WEP reduction. WEP was repealed January 2025 for PERA members with prior SS credits.
Louisiana LASERS Calculator
Another Southwest-adjacent no-Social-Security pension with Rule of 80 and 90 tiers
Frequently asked questions
What is the difference between New Mexico PERA Plan A and Plan B?
Plan A (enrolled before July 2013): 3.0% accrual, graduated eligibility table, 25-years-any-age option, 3-year FAS. Plan B (enrolled July 2013+): 2.5% accrual, strict Rule of 80 (age + service = 80, min 5 years) or 65/5+, 5-year FAS. Both cap at 100% of FAS.
How is the Final Average Salary calculated for New Mexico PERA Plan A and Plan B?
Plan A uses the average of your three highest consecutive years. Plan B uses the five highest consecutive years. For most members near retirement, that is the final years of base salary. Lump-sum leave payouts and irregular bonuses are excluded.
How does the graduated eligibility table work for New Mexico PERA Plan A?
Plan A uses a graduated age-plus-service table: age 65 with 5 years, age 64 with 8, age 63 with 11, age 62 with 14, age 61 with 17, or age 60 with 20 years. Plan A members can also retire at any age with 25 years of service. This is more generous than a simple Rule of 80.
Does New Mexico PERA provide a COLA?
Up to 2% when fund conditions permit. It is not automatic or guaranteed in every year. Plan conservatively without assuming a full COLA annually.
Does New Mexico PERA coordinate with Social Security?
No. Most PERA-covered positions are not covered by Social Security. The pension is the primary retirement benefit from public employment. If you have Social Security credits from prior private-sector work, you can collect that benefit. WEP, which previously reduced it, was repealed in January 2025.