ARP

ERA

Type of Plan

This is a Defined CONTRIBUTION plan which means that benefits are based on what you have contributed to the plan.

This is a Defined BENEFIT plan which means that benefits are based on a formula of service and salary (commonly called a PENSION plan).

Eligibility

Only specified ARP eligible positions may participate by selecting the ARP within the first 90 days of employment.  If you elect ARP and later accept a non-ARP eligible position, you will no longer be able to participate in ARP.

You are automatically enrolled in the ERA unless you are eligible and elect to participate in the ARP.

Portability of benefits

Upon separation from UNM, you may apply for a full distribution, partial distribution, or a lifetime annuity distribution of your ARP investments balance.

In addition, you can opt to transfer, rollover, or withdraw the balance in your ARP accounts in accordance with IRS regulations.

If you have 5 or more years of service, you will qualify for a lifetime benefit. You cannot rollover other retirement plan benefits into ERA.  The only exception is the State of New Mexico’s Public Employees Retirement Act pension (PERA), which can be combined with ERA service.
You can refund or rollover YOUR contributions plus a pre-determined interest if you terminate employment.

You CANNOT refund or rollover the employer contributions.

Access to investments

You work with your financial advisor to choose various investment options.

ERA invests contributions to provide benefits for all ERA members.

Long-term relative benefits

You will have your contributions and your employer’s contributions (minus 3% that goes to ERA to help fund the unfunded actuarial liability of the plan), plus earnings or losses.
NOTE: You could have a large amount of money for retirement or a small amount depending on your earnings or losses on the investments chosen.

If you qualify to retire, you will get a lifetime benefit based on the final average salary of your highest 5 years of employment and years of service.

UNM retiree benefit options

Upon application for distribution of benefits from your provider at retirement, you may be eligible to retain UNM retiree benefits, such as healthcare, dental, and life insurance benefits.

Upon application for retirement to ERA, you are eligible to retain UNM retiree benefits, such as healthcare, dental, and life insurance benefits.