Local government – New Mexico – Pension burdens will continue to weigh on credit quality, prompting potential reform

Source: Heather Correia, Roger S Brown, Naomi Richman, Alexandra S. Parker, Moody’s Investors Service, Sector In-Depth, Local government – New Mexico, December 18, 2018
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Without changes to New Mexico’s two statewide cost-sharing pension plans, municipalities’ elevated pension burdens will intensify. Although pension contribution rates are set by state statute, if rates increase through legislative reform, local governments will likely be responsible for these cost hikes.