Members of the Defined Benefit Plan and participants in the Alternative Retirement Plan contribute a percentage of their salary (set by statute) to the retirement plans. ERB employers also contribute to the ERB retirement plans at a rate set by statute. Please see for current employee and employer contribution rates.

Earned Service Credit

Members of ERB’s Defined Benefit Plan accumulate service credit for each calendar quarter of employment by an ERB employer and make contributions to that plan. Members who take a paid sabbatical, or leave of absence, continue to make contributions and therefore continue to earn service credit. Members who take an unpaid sabbatical, or leave of absence, do not earn service

Allowed Service Credit

The ERA also allows certain types of service credit to be purchased and credited to an active member’s accumulated years of service. “Allowed” service credit will be included in the computation of retirement benefits. See the section entitled “Retirement Eligibility: Age and Benefits” for additional information. You may purchase up to five years of service credit if you have served in
the U.S. military, the Commissioned Corps of the Public Health Service, or worked for any of the following institutions:

• Public school or higher learning institution anywhere in the US
• U.S. Military dependents’ school
• federal educational program in New Mexico

• accredited private school or higher learning institution in New Mexico


Members eligible to combine military service or service in the Commissioned Corps of the Public Health Service with the other categories listed, may purchase a maximum of ten years of service credit. For additional information on military service, please see the section entitled “Military Service.” In order to purchase service credit, file an application with ERB; your former employer must verify your employment. Application forms are available on the ERB website. The cost to purchase allowed service credit is based on an actuarial cost that reflects your length of service and current earnings. Please contact the ERB for an estimated cost to purchase allowed service credit. There are two options for purchasing allowed service credit:

• A lump sum payment to the ERB, or
• A rollover, or transfer of retirement contributions from another retirement plan (such as a 401(a) plan, a tax-sheltered annuity 403(b) plan, or an IRA) to ERB’s Defined Benefit Plan to the extent allowed by the Internal Revenue Service.

A rollover, or transfer, from another retirement plan directly to the ERB plan should avoid adverse tax consequences that may result from withdrawing those funds and then paying them to the ERB plan. Consult with a tax advisor on the potential tax effects of a rollover or other transfer. The ERB cannot provide tax advice and is not responsible for adverse tax effects of the rollover or transfer method chosen by an individual.