Opinion: Governor should veto pension hike

Two news stories last week proved New Mexico has a working class and a ruling class.

One was about Santa Fe’s minimum wage, which will increase to $14.60 an hour March 1. That’s a bump of 57 cents an hour.

The second story mentioned New Mexico lawmakers approving a bill titled “Legislative Retirement Changes.”

A more accurate heading would be: “50% pension increase for sitting legislators.”

Our citizen legislators do not receive a salary, so you might wonder how they qualify for pensions.

They make the laws, and they have created a Cadillac pension plan for themselves, especially if Gov. Michelle Lujan Grisham signs their bill into law.

Legislators receive a daily expense allowance when they are in session or working on interim committees. Those who serve at least 10 years qualify for a pension based on 14% of the expense allowance that’s in effect when they retire. The current rate is $231 a day.

That formula is multiplied by 60 for every year a lawmaker served. The pension of a legislator who retired today would be about $1,940 for each year of service, according to a legislative staff analysis.

If Lujan Grisham signs Senate Bill 165, the multiplier jumps to 90. Pensions for new legislative retirees would increase to $2,911 for each year of service. Some pensions could top $100,000 per year.

Lawmakers say the higher rate for their pensions was mistakenly omitted from previous legislation setting the multiplier at 60. They failed to account for New Mexico alternating between 30-day and 60-day legislative sessions, said Rep. Harry Garcia, D-Grants.

“Senate Bill 165 is a technical fix to the bill that was passed in 2022,” he said to fellow House members. “The accounting was supposed to be for 60 days and 30 days for a total of 90. But 30 days was dropped, and this bill just makes a correction.”

Sen. Bobby Gonzales is a sponsor of the latest bill to increase legislators’ pensions.

Is it fair for legislators to receive another increase in retirement pay?

“I would say it is fair. Put yourself in our shoes,” said Gonzales, a state lawmaker for 29 years. “We’ve reached a point where being a legislator doesn’t stop. We deserve something for the loss of personal time and also for the sacrifices of our families.”

Gonzales acknowledged running for the office is a choice. But, he said, lawmakers are under more financial pressure than ever.

“Santa Fe has really become unfriendly to legislators as far as hotel accommodations and other lodging. The hotels study our per diem and set their rates by it,” he said.

Gonzales can only imagine how rising rents have negatively affected people working two or three jobs at minimum wage.

Lujan Grisham should not sign the legislators’ self-serving proposal.

I’m happy to assist with a draft veto message she should send to lawmakers.

“Honorable legislators: You hold powerful positions. They should not come with expectations of privilege or financial reward.

“Think of a way to explain to your constituents why the statewide minimum wage is $12 an hour, but you wanted to increase your pension benefits for the second time in two years.”

— Milan Simonich

The Santa Fe New Mexican