IRS delays rules of retiring
CARSON CITY -- The IRS has delayed the implementation of regulations that soon could have affected the early retirement plans of thousands of Nevada state and local government employees.
The federal agency issued a bulletin on Friday delaying the "normal retirement age" regulations for government pensions until fiscal year 2011-12.
The IRS initially planned to adopt the rules for public pension plans in 2009-10.
The proposed rule potentially could prohibit some public pension plans, including Nevada's plan, from allowing participants to retire and collect benefits earlier than age 55, with a preferred retirement age of 62.
The Nevada Public Employees' Retirement System, for example, allows most participants to retire and receive benefits at any age after 30 years of service.
The Nevada system has 104,000 participants and 40,000 retirees.
"I'm quite pleased by the decision to delay," said PERS Executive Officer Dana Bilyeu. "I think they intend in the next few years to take comment from the public sector folks and rework the regulation to accomplish what they want to do."
The apparent intent of the regulation is to make public and private pension plans more uniform as they relate to the tax code, but public pension benefits are a property right for participants that cannot be taken away, Bilyeu said.
Public pension officials and employee groups from across the country have challenged the proposed IRS rule.
Bilyeu said that pension officials from Nevada and other states will work with the agency during the next few years to come up with a regulation that achieves the IRS objectives while addressing public employee pension concerns.
Contact Capital Bureau reporter Sean Whaley at swhaley@reviewjournal.com or 775-687-3900.
