Gubernatorial candidate Sam Bregman

From the Sam Bregman for Governor Campaign:

ALBUQUERQUE — Gubernatorial candidate Sam Bregman announced a comprehensive plan to restore compounding Cost-of-Living Adjustments (COLAs) for the state’s 35,000 public retirees. Bregman’s proposal addresses a growing financial crisis created by 2020’s Senate Bill 72, which has left thousands of former public employees struggling against record-breaking prices.

Since the passage of SB 72, the purchasing power of PERA (Public Employees Retirement Association) retirees has plummeted. While the cost of living has surged by 26% since 2020, PERA pensions have crawled upward by a mere 1.6% during that same period.

“Our public employees, the police officers who kept us safe, the teachers who shaped our children, and the state and local workers who kept New Mexico moving, earned a secure retirement with COLAs that protected them from inflation,” Bregman said. “In 2020, the state broke its word and left retirees falling further behind every single year. That betrayal ends when I’m governor. We will restore what was promised, protect our seniors from economic ruin, and make sure New Mexico keeps its commitments.”

Current data highlights a startling disparity between retirees and the active workforce. While active public employee salaries have increased by 54.5% between 2019 and 2025, retirees have seen their income stagnate, falling 24.2% below the actual change in cost of living.

At a time when gas prices, groceries and housing costs have surged, 35,000 retirees have lost 20% of their purchasing power. With the current variable COLA of roughly 0.5%, pensions are projected to lose nearly 50% of their value over a 30-year retirement. By 2049, an average retiree with a $45,000 pension will have foregone nearly $400,000 in total adjustments compared to the previous 2% compounding COLA. By 2049, a $45,000 pension will carry the spending power of just $24,300.

In addition to restoring the compounding COLA guaranteed under state law, Bregman will eliminate state income taxes for every New Mexican age 65 and older. These bold reforms will protect seniors from being priced out of retirement, strengthen household budgets, and keep retirement dollars flowing through New Mexico’s economy.

“We cannot force our seniors to survive on 1990s dollars in a 2026 economy,” Bregman said. “For years, politicians looked the other way while costs skyrocketed and retirees fell behind. That ends now. Restoring these adjustments is not just smart policy, it is a promise kept to the people who worked, served, and built this state. ”

For more information on Sam Bregman’s vision for New Mexico’s retirees, visit BregmanforNM.com.