A JOINT MEMORIAL

REQUESTING THE EDUCATIONAL RETIREMENT BOARD TO REPORT YEARLY TO MEMBERS AND TO THE LEGISLATIVE EDUCATION STUDY COMMITTEE ON THE STATUS OF SOLVENCY OF THE EDUCATIONAL RETIREMENT FUND.

     WHEREAS, the Education Retirement Act currently covers more than sixty-five thousand active employees working in approximately one hundred fifty public institutions in the state of New Mexico; and

     WHEREAS, these members will be entitled to benefits under the act and will be, in whole or in part, dependent upon the payments from the educational retirement fund for their livelihood and well-being after they reach retirement age; and

     WHEREAS, more than twenty-five thousand educational retirement members are currently retired and receiving benefits under provisions of the Educational Retirement Act; and

     WHEREAS, these members are, in whole or in part, currently dependent upon the payments to which they are entitled from the educational retirement fund for their livelihood and well-being; and

     WHEREAS, the state is currently experiencing a shortage of qualified educational employees to provide vital services to the citizens of the state; and

     WHEREAS, the ability of public institutions to attract qualified employees in these positions depends in part on the ability of the state to ensure secure and attractive retirement benefits; and

     WHEREAS, according to the actuarial valuation of the educational retirement fund for fiscal year 2004, the financial stability of the fund has deteriorated dramatically since the fiscal year 2002 and 2003 valuations; and

     WHEREAS, projections for fiscal year 2005 of the fiscal health of the fund show a continued decline unless action is taken immediately; and

     WHEREAS, it is in the public interest that members covered under the terms of the educational retirement system, and the legislature, be fully informed in a timely manner of the status of the solvency of the fund; and

     WHEREAS, the educational retirement board is the public entity made responsible by the legislature for the enforcement of the Educational Retirement Act;

     NOW, THEREFORE, BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO that the educational retirement board be required to report yearly on the status of the solvency of the educational retirement fund to members and to the legislative education study committee; and

     BE IT FURTHER RESOLVED that copies of this memorial be transmitted to the educational retirement board and the legislative education study committee.