Nevada retirement reform bill reaches Assembly

CARSON CITY — Little opposition was raised Monday to a bill the sponsor says would save Nevada’s Public Employee Retirement System $1 billion per decade.

Senate Bill 406, sponsored by Senate Majority Leader Michael Roberson, has the broadest support among several bills targeting PERS reform this legislative session.

Roberson, R-Henderson, told members of the Assembly Government Affairs Committee that the goal of the bill is to “bend the cost curve down over time to increase the solvency of the system.”

SB406 was passed unanimously by the Senate last month and is now winding its way through the Assembly.

Among other things, the measure reduces the multiplier used to calculate monthly retirement benefits and disallows from calculations any time purchased by the employee.

It also provides a new option for survivors of public employees killed on the job, giving a surviving spouse or beneficiary either 50 percent of the public employee’s salary or 100 percent of retirement allowance earned at the time of death.

One big change is a provision stripping public employees who are convicted of felonies related to their jobs from receiving benefits, though they would get back any contributions they made out of their own pocket.

That provision is a response to former Steven Jones, a former Clark County family court judge who was sentenced in February to 26 months in federal prison for his role in an investment scheme that bilked dozens of investors out of millions of dollars.

“He will still, even though he will be serving time in prison … he is still eligible to receive his six-figure pension the rest of his life,” Roberson said. “Going forward … that will not happen.”

Some committee members questioned whether the punishment of losing retirement benefits was too harsh or lead to legal challenges.

“Are we saying that when somebody’s convicted of a crime, they pay their dues … are we saying the court system isn’t sufficient?” asked Assemblyman Edgar Flores, D-Las Vegas.

Roberson said the crimes would have to be tied to the public official’s job, offenses like accepting or offering a bribe.

“If a public employee of this state does this, no, I do not believe they should be the benefit of taxpayer contributions to their retirement,” Roberson said.

Provisions of the bill would only apply to new employees hired after July 1.

Judges, who are under the Judicial Retirement Plan, would have to contribute 50 percent of their retirement contribution if the bill passes and is signed into law. Currently, judicial contributions are borne by taxpayers.

No immediate action was taken by the Assembly Government Affairs.

Contact Sandra Chereb at schereb@reviewjournal.com or 775-687-3901. Find her on Twitter: @SandraChereb.