4 Trends in Pension Reform

Gov. Brian Sandoval (R-NV) and the Nevada Legislature have been battling budget shortfalls which go hand in hand with pension issues.  

Pension ideas from the very libertarian-like Nevada:

• Assembly Bill 387, by Minority Leader Marilyn Kirkpatrick, D-North Las Vegas, would allow public employees to purchase up to 5 years of retirement credits.
  • Purchased retirement credits could not be used to calculate an earlier retirement date
  • Purchased retirement credits could be used to increase annuity payments
  • Applies to only new employees
• Another bill aligns the state retirement age with social security eligibility
  • Police and firefighter retirement age would be social security eligibility minus 10 years
• Assembly Bill 312 by Assemblyman Glenn Trowbridge, R-Las Vegas, would require a pension to be calculated using 5 years of the highest annual earnings instead of 3.
  • The change could lower pension amounts  upon retirement.
  • Applies to only new employees
• A defined contribution plan to replace the current NV pension system appears DOA due to the large fiscal note.

Las Vegas Review Journal