A new state law will take a big bite out of the paychecks of educators who retired and then returned to work in New Mexico schools while continuing to receive their pensions. The practice, known as double-dipping, has drawn attention nationwide as states cut school spending to balance their budgets.
About 1,300 New Mexico educators will have to make payroll contributions—as much as 11 percent of their salaries next year—to the state’s educational pension fund starting next month.
The employee contributions are expected to save nearly $5 million a year, because employers, such as school districts, have been covering the pension costs. The payments wont improve educators’ future retirement benefits.
