The sky is falling again in Santa Fe. The Governor's Public Employees Retirement Association Solvency Task Force bought into the argument that the PERA fund is destined to go broke and make homeless thousands of retired state workers. But many of those retirees, fighting the more austere proposals to "shore up" the retirement fund, are pushing back, calling the task force recommendations "fake news." Among them is retired APD sergeant and PERA watchdog Dan Klein:

PERA was only 70% solvent during the 2007 fiscal collapse and we survived it just fine. The  proposal to make the fund 100% solvent in 25 years is unnecessary. How do we know this? Because pension experts have studied the issue and told us. This report, The Sustainability of State and Local Government Pensions, by Lenny (bank of England), Lutz (Federal Reserve Board of Governors) and Sheiner (Brookings institute) destroys the PERA argument that the sky is falling and we must be 100% solvent.

PERA has a myriad of funds under one umbrella for a variety of local and state government workers. The funds for state government workers and firefighters need adjusting because the benefits going out don't match what's going in. However, 72 percent of PERA's anticipated needs over the next several decades is currently covered. Not exactly a crisis. There is no current threat to anyone's retirement check and you are hard-pressed to see a time there would be.

Task force proposals to eliminate or reduce the 2 percent COLA--the annual cost of living adjustment that doesn't kick in until a retiree is retired for seven years--and raising employee contributions to the funds--already in double digits--would discourage superior candidates from joining the government and are fiscally unnecessary.

THE BEST FIX?

The best fix? Setting a minimum retirement age as they do in other states is prudent but it isn't an option mentioned by the Governor's task force.

Currently most new state workers must put in 30 years to get a full retirement check. But there is no age requirement to retire. If the Legislature set a minimum age of 58, it would do much to strengthen PERA. Firefighters, police and corrections officers could have a minimum of 52 before being allowed to collect. That means no more fortysomethings collecting checks for forty years.

In Colorado state workers who began employment after January 1, 2011 can retire at age 58 with 30 years service but not before. They can retire at any age with 35 years of service. NM state employees can retire at any age with 30 years of service. Police and firefighters can exit once they have 25 years on the job. In the age of longer lifespans, that is no longer realistic.

After enacting age reform for new hires, the Legislature could then authorize a cash infusion into PERA from the huge surpluses accumulating from the oil and gas boom. That money will compound over the decades giving the funds even more breathing room.

BAD TIMING

In an era of extreme income inequality and record NM surpluses is it really time to force state employees--most of them modestly paid--to fork over even more of their paychecks to make a fund 100 percent solvent for a generation not even working yet?

The bottom lines: House Speaker Egolf needs to kill ill-advised retirement austerity measures. As for the task force, can they please stop yelling "Boo!"? Save the fake theatrics for Halloween.

RUNNING RULES 

Several readers asked about the state senate candidacy of David Wilkinson, the chief information officer for the state court system, questioning whether he can keep that job while running for the Dem primary nomination for the senate seat held by Republican Senator Greg Baca of Valencia County. Artie Pepin, director of the Administrative Office of the Courts, responded:

Management of the Administrative Office of the Courts is aware of Mr. Wilkinson's interest in running for a legislative seat. Mr. Wilkinson also is aware of a requirement under the Judiciary's personnel rules to resign from his job if he is elected in 2020, and that he must use annual leave if campaigning requires him to be absent from his job during working hours. 

Belen businessman Paul Baca is also seeking the Dem nomination for the Greg Baca seat.

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(c)NM POLITICS WITH JOE MONAHAN 2019