New Mexico Public Employees Retirement Association (PERA)

The PERA SmartSave Committee meeting included discussions on new business items. Key topics covered were a review of the PERA SmartSave Plan Self-Directed Brokerage Option, which was presented as an informational item. Additionally, reports were reviewed concerning the Q2 FY25 Investment Performance and the Q2 FY25 Plan Activity. The committee also reviewed general Plan Updates.

The board meeting began with the approval of the agenda, which involved a discussion and vote to amend the agenda by removing the segment concerning the 4 percent wage increase for exempt staff, deferring deliberation on that matter to a future Executive Session. The subsequent approval of the Consent Agenda excluded the approval of the March 28, 2019 minutes and Educational Conferences due to procedural concerns raised by a member regarding prior travel approvals and consistency in policy application. Under Current Business, the Board reviewed the 2019 Election Report, accepting the nominating petition counts and candidates for the State, County, and Retiree positions after momentarily losing quorum. Following this, the Board discussed the proposed Investment Procurement Policy, which aims to align the procurement process with the Investment Policy Statement approved in July 2018. Discussions centered on governance, oversight, and the scope of authority delegated to the Chair, Vice Chair, and Chief Investment Officer (CIO) concerning investment-related contracts and manager selections. The meeting adjourned due to a lack of quorum during the discussion of the Investment Procurement Policy.

This Investment Policy outlines the principles and objectives for the prudent management of the Public Employees Retirement Association of New Mexico's assets. Its primary purpose is to preserve the long-term principal of the Fund, maximize total return within defined risk parameters, and maintain sufficient liquidity to meet statutory obligations. The policy details strategic asset allocation targets, rebalancing strategies, and performance benchmarks, while providing guidelines for investments across various asset classes including global equity, core fixed income, credit, absolute return, and real assets. It emphasizes diversification, long-term perspective, and continuous monitoring to achieve the actuarially assumed rate of return.

The agenda for the Special Board Meeting included the presentation of Board Direction for Retirement Plan Structure Changes pursuant to Resolution No. 18-08. Current business focused on the final review and decision on administrative appeals for Sophie I. Cooper, Alan Green, and Brenda Van Asperen. The Board was scheduled to recess to Executive Session for a specific purpose under NMSA 1978, §10-15-1 (H) (3), before convening to Regular Session.

The meeting included the approval of the agenda. Unfinished business focused on PERA related legislation requiring Board action, primarily Senate Bill 90 concerning certain overtime pay as salary, which substituted a $30 million appropriation with a 1.5% increase in the employee contribution. The committee discussed the amortization implications of this change. Concerns were raised regarding the impact on the funding gap and the legislative process that bypassed prior Board review for amendments. The committee also monitored other bills, including SB 430 (a dummy bill), SB 315 (moving state police members to the state police plan), and HB 277. The committee voted unanimously to support the Senate Finance Committee's substitute for SB90 regarding the 1.5% contribution increase. Directions were given to staff and the contract lobbyist to oppose SB 430.