The solvency proposal for education retirement that was crafted over many months by Education Retirement Board stakeholder groups has passed its first committee hearing of the 2013 legislative session by a 5-4 vote.

HB 64, sponsored by Rep. Mimi Stewart (D-Albuquerque), calls for an increase in employee contributions to 10.7 percent and establishes a minimum retirement age and new COLA requirements for future employees.

On the same 5-4 vote this afternoon, the House Labor and Human Relations committee rejected an amendment from Rep. Candy Spence Ezzell (R-Roswell) that would tie the COLA to solvency success as well as the CPI. There was also concern, expressed by Reps Youngblood and Pacheco, both Albuquerque Rs, that the rate of return on investment built into the proposal is too high.

Details of the ERB stakeholder proposal will be presented to a joint meeting of House Education and Senate Education at 8 a.m. tomorrow morning.

Susan McKinsey, Office of Government and Community Relations