The president of the organization that represents state workers says his organization is watching a Legislative interim study of state employee benefits – especially in the light of the Legislature’s decision to end the “defined benefit” retirement plan, and replace it with a “defined contribution” plan.
That new plan started January first. And those employees who retired under the “defined benefit” plan are still to receive pension under that plan.
"I think what the Legislature is finding out is that it's expensive to run two separate systems," said Nick Archuleta. He said when the Legislature adopted the "defined contribution" plan, similar to a 401-K plan, lawmakers thought it would be less expensive than it turned out to be, with two separate plans to fund.
"Fortunately, last session, the legislature did come up with the money to make sure all the bases were covered," Archuleta said. "But that's not to say that we will have that same money available in the next session, or the session after that."
Archuleta said that's because one legislative session cannot bind subsequent sessions.
"We are very concerned that, if the state is unable to continue to fund adequately both of these systems, then it could, in fact, end up impacting people already in the system," Archuleta said. He said he'll be closely monitoring the interim study.
