Effective Date of Retirement

The effective date of your retirement is the first day of the month following the last month in which you earned a salary. For example, if you worked through July 15, your retirement date is August 1. However, you must submit your retirement application to ERB by the last day of the month prior to your retirement date. If you plan on retiring as of August 1, you must submit your application by July 31. If your application is received by ERB after July 31, your effective retirement date is September 1.


The only exception to this rule is if you are employed on a nine or ten month contract based on the academic school year. In that case, your effective retirement date is set by state statute as July 1 if you terminate your employment in May. If you are planning a July 1 effective retirement date, you should submit your retirement application in January to ensure no interruption in income.

It is important to complete all required paper work well in advance of submitting the actual application to retire. An early start will help the process go smoothly.

If you miss a deadline, your application will be cancelled and you must begin the process again.

Calculating Retirement Benefits

Benefits are based on three components – your average annual salary (sometimes referred to as your final average salary or “FAS”) annualized by fiscal year, your earned and allowed service credit, and a 2.35% factor. Average Annual Salary x service credit x .0235 = annual benefit Your average annual salary is the higher of:


1. Your average annual earnings for the last 20 calendar quarters (60 months) prior to retirement, or
2. Your highest average fiscal annual earnings for any 20 consecutive calendar quarters.


The ERB Benefits Calculator – available on the ERB website at www. nmerb.org – may be used to calculate an “unofficial” estimate of your annual and monthly retirement benefits. Note that the online calculator does not annualize earnings; it only provides an “unofficial” estimate of your retirement benefit. For an official estimate, including annualized earnings, please contact ERB. We recommend that members contact ERB two years prior to your expected retirement date to make sure that your accumulated service credit information and salary history are accurate.


Remember, the age at which you retire can affect the benefits that you will receive. See “Retirement Eligibility: Age and Benefits.”
Under New Mexico law, benefits earned under the Educational Retirement Act are community property. As such, benefits may be subject to a division due to a legal separation or a divorce. See the section entitled “Community Property Rights.”

Retirement Timeline
July 1 Retirees
Step 1 Complete Section 1 of your application for retirement and give the
form to your employer to complete Section 2.
January
Step 2 Your employer mails the completed application to ERB. ERB audits
your application and mails you a retirement packet that includes: 1.
Post-Retirement Information and Instruction Sheet 2. Final Selection
of Benefit Form 3. Estimate of Retirement Benefit 4. Authorization
Agreement for Direct Deposit Services 5. State and Federal Tax
Deduction Form 6. Post-Retirement Employment Notice

February/March
Step 3 You complete the Final Selection of Benefit, Direct Deposit
Authorization, State and Federal Tax Deduction and Post Retirement
Employment Notice forms and return them to ERB.
April
Step 4 The ERB places you on its benefit payroll.
July
Step 5 Your first benefit payment is sent on the last working day of the month.
July