SANTA FE, N.M. (AP) — A major credit ratings agency says that pension obligations are outpacing contributions at an unusually fast rate for school districts and local governments across New Mexico when compared with nationwide averages.
Analysts with Moody's Investors Service told a panel of state lawmakers on Thursday that most local governments and their workers in the U.S. are not contributing enough to "treat water" and avoid increases in unfunded pension burdens. They say the difficulties are much worse than average in New Mexico.
New Mexico lawmakers this year increased taxpayer contributions to two major pension plans by 0.25% of annual salaries and delayed the accrual of pension benefits for new school workers.
Moody's analyst Heather Correia says truly tackling pension problems requires significant increases in contributions, reduced benefits or both.
