Understanding New Mexico’s Unfunded Retiree Liabilities

New Mexico’s defined benefit retirement system is massively underfunded. The pension system reports an unfunded liability of $4.6 billion; however, new analysis finds that the pension system is underfunded by at least $7.5 billion and may be as high as $22.9 billion—or three times greater than the state’s general obligation bond debt. The state’s Other Post Employment Benefits (OPEB) system, which includes health insurance, is underfunded by at least $2.9 billion.