Public school and college employees in New Mexico are confronting a widening gap between promised pension benefits and the money currently available to pay for their retirements, the Associated Press reported on Friday. Managers of New Mexico's retirement fund for public education employees have acknowledged an $800 million increase in needs, after they lowered expectations for future investment returns. The New Mexico Educational Retirement Board that oversees $12 billion in retirement assets is following in the footsteps of public pension funds across the country by lowering expectations for future earnings on investments — acknowledging that more money will likely be needed to pay people as they retire. The new outlook shows $7.4 billion in unfunded liabilities — the difference between promised pension benefits and the assets currently on hand to pay them.
