Wikimedia Commons
Wikimedia Commons
New Mexico's biggest asset owners will be affected by three bills advanced by the State Legislature.
One bill, the New Mexico Public Employees Retirement Association, would supply increases and decreases of contributions for employer and employees. They would have to be based on the Santa Fe $15.6 billion pension plan. Those with a $25,000 or less salary cannot receive increases.
The cost of living pension increases will also be limited for the fiscal years 2021, 2022 and 2023. They will be limited to 2% of the total annual pension. The cost of living adjustments, which are given through June 30, 2021, will be included in this 2%.
A $76 million sum or the pension pan isn't part of the final bill.
The second bill passed by the Legislature will increase the legal cap for investments in private equity funds and businesses from 9% to 11%. Last year the cap was increased from 5% to 9% by the Legislature for the $5.6 billion Severance Tax Permanent Fund.
Council spokesman Charles Wollmann said in an email this legislation gives the council some additional flexibility to deploy additional investment capital if we see attractive opportunities. It also sends a message to investors outside our state that New Mexico is committed to putting hundreds of millions of dollars to work by investing in the human capital that's driving a blossoming entrepreneurial ecosystem here."
New Mexico Gov. Michelle Grisham is expected to sign both of these bills.
The third bill passed by the legislature creates a $320 million Early Childhood Trust Fund.
Investment in the fund will begin July 1, 2020, and will make "a consistent and sustainable endowment specifically for early childhood education and well-being, as part of New Mexico's efforts to support a pre-cradle through college plan for all the kids in our state," Wollmann said.
New Mexico has planned a budget to spend over $500 million in early childhood education, which doesn't include the new bill.
Lujan Grisham signed the early childhood bill on Feb. 18.
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