The Pension Solvency Task Force Report

On November 14^th , New Mexico Fire Fighters met to discuss matters of concern to fire fighters across the state and direct the next year’s activities of the New Mexico Professional Fire Fighters Association. Top on the list was concern for our Defined Benefit pension plans as administered by PERA. During the summer and fall, the New Mexico State Legislature met frequently to discuss ways to revamp and renew the States various pension systems. The Pension Solvency Task Force, formed by legislative action last session, reviewed the two main systems, ERA and PERA as well as the Retiree Health program. President Emily Kane met four times with other union leaders as well as members of the legislature and representatives from the various systems. At the end of this year the consensus of the task force was, that although on the face of it, the pension systems need to have small steps taken to maintain their continued solvency, the need to do something quickly and reactively was not proven. Experts in investment and plan management agreed that the recent poor performance of investments is not enough to justify broad sweeping changes. The view of investment returns must be longer and look at the smoothing effect of the boom years upon the bust years. The Task Force will remain in place for another year, in order to properly investigate the continued future solvency of these important programs. The NMPFFA will be vigilant in guarding and supporting our current pension plan.