Nevada will lower assumption for public pension plans

CARSON CITY — A state panel overseeing the $38 billion Nevada public employee pension plan voted Thursday to lower its decades-old assumption about the return on its investments.

The change from a projected 8 percent return to 7.5 percent over the next several years could mean higher contribution rates from public employees and employers — from state workers to school teachers — to offset the lower expectations.

The vote from the board of the Public Employees’ Retirement System was unanimous, although state Controller Ron Knecht recommended a much lower rate of return for the plan’s investments of 5 percent. He also said the inflation rate should be lower as well, at 1.75 percent.

“It’s clear to me that adopting the assumptions I have recommended will show the funding levels of PERS are not as bright as they appear to be in current and recent past PERS accounts,” he said in an analysis presented to the board.

New contribution rates for public employees and their government employers will be determined in November 2018. But higher contribution rates could mean less money for public agencies to spend on other budget priorities.

“Doing so will probably require increases in contribution rates by PERS member employees and taxpayers,” Knecht said. “My recommendations will greatly clarify the risk issues facing employees, retirees, state creditworthiness and taxpayers.”

The changes approved by the board will take effect to the start when the 2018 fiscal year begins July 1.

PERS has used an 8 percent return assumption since 1984, and it has exceeded that target, hitting just over 9 percent.

One reason for the lower rate of return recommended in the Actuarial Experience Study by Segal Consulting is a lower rate of anticipated inflation, from 3.5 percent to 2.75 percent. A lower inflation rate will benefit the plan’s overall returns and offset, to some extent, the lower rate of return.

But a lower return on investments could lead to higher contribution rates to ensure the plan remains actuarially sound for the approximately 105,000 active members and 54,000 retired and disabled members. Because the public retirement plan is a defined benefit plan where retirees get a fixed monthly pension, taxpayers are ultimately responsible for its fiscal health.

The assumptions used in the plan typically are maintained for at least four- to six-years.

Other public pension plans, notably the massive $300 billion-plus CalPERS plan in California, have been lowering their assumptions as critics have suggested that prior expectations were unrealistic.

Survey results in the Segal study show that more than half of the public retirement systems have an investment return assumption in the range of 6.75 percent to 7.75 percent, and over half of those systems have used an assumption of 7.5 percent.

Follow @seanw801 on Twitter.

ad-high_impact_4
News
1 dead after shooting near Sahara and the Strip in Las Vegas
Lt. Ray Spencer briefs the news media on a shooting at Sahara Avenue and Las Vegas Boulevard South that left one dead. (K.M. Cannon/Las Vegas Review-Journal)
Family remembers deceased mother
Family members of Adriann Gallegos remember her. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
2 in custody after chase
Two people were in custody after a chase involving Nevada Highway Patrol and Nye County Sheriff"s office deputies ended in southwest Las Vegas. Las Vegas police blocked off Rainbow Boulevard north of Tropicana Avenue around 1 a.m. Wednesday. Law enforcement personnel prepared to tow a black sedan as part of their investigation. It's not certain what precipitated the chase or where and when it started. Check back for updates.
Police Officer's Vehicle Was Taken During Shooting
Video from body worn camera footage released by the Las Vegas Metropolitan Police Department Wednesday shows an officer realizing his police vehicle has been taken during the chaos of the Route 91 shooting. It was later recovered at Sunrise hospital with the keys in the ignition and nothing removed. (Madelyn Reese/ Las Vegas Review-Journal)
See Kitty Hawk’s flying car cruise over Lake Las Vegas
Kitty Hawk takes their flying car for a ride in the company’s hidden test facility in Lake Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Watch Las Vegas police wild pursuit through busy Las Vegas streets
An intense chase near Downtown Las Vegas ends after gunfire is exchanged as the suspect flees on busy streets and ends up near an elementary school. (Las Vegas Metropolitan Police Department)
Man shot strolling through park
A man was hospitalized early Tuesday morning after being shot while walking in a central Las Vegas park. Las Vegas police say the man and a woman were in Molasky Park just after midnight when the man was shot. The pair ran to a nearby supermarket where a security guard called for help. The man was hospitalized and as of 3 a.m. was in stable condition. Police have yet to identify the shooter and no suspects are in custody.
Police investigating shooting at east valley apartment complex
No one was injured late Monday night after someone fired shots at a vehicle at an east valley apartment complex. Police responded just before midnight to the Hamptons Apartments, 3070 S. Nellis Blvd. Someone fired shots at a vehicle that was leaving the complex, and struck the vehicle. Another bullet struck a nearby apartment building. The shooter or shooters remain at-large.
Suspect fires at Las Vegas police before officers shoot, end wild pursuit
An intense chase near Downtown Las Vegas ends after gunfire is exchanged as the suspect flees on busy streets and ends up near an elementary school. (Las Vegas Metropolitan Police Department)
Hundreds Attend Slides, Rides and Rock and Roll in North Las Vegas
Hundreds attended the inaugural slides, rides and rock and roll event in North Las Vegas Saturday. The event featured a car show, water slide park and live music. (Madelyn Reese/ Las Vegas Review-Journal)
It's All Rainbows At The Center's New Cafe
The Gay and Lesbian Center of Southern Nevada (The Center) introduced its new coffeeshop, Little Rainbow Cafe, in June. Rainbows are everywhere, even in the lattes and toast, and employees wear t-shirts with the quote "Be a rainbow in someone's cloud." Owner Ben Sabouri said the concept is "built around the idea of, you know, be kind and treat everybody the same." (Madelyn Reese/Las Vegas Review-Journal)
Get a Rainbow Latte at the The Center's Little Rainbow Cafe
The Center, a community center for the LGBTQ community of Southern Nevada, has a new cafe. Little Rainbow Cafe serves up a pride-inspired signature "Rainbow Latte." (Madelyn Reese/Las Vegas Review-Journal)
Pedestrian killed trying to cross Sahara
A pedestrian was killed Friday trying to cross Sahara Avenue near Maryland Parkway about 5 a.m. A sedan struck the pedestrian while the person was outside the crosswalk between Maryland Parkway and Pardee Place, according to Las Vegas police. Police also said the driver of the sedan remained at the site of the crash. The pedestrian was pronounced dead at the scene. This is the 75th fatal crash that Las Vegas police have investigated in 2018.
Man shot multiple times
Las Vegas police are investigating after a man was shot multiple times early Friday morning. The shooting was called in about 3:20 a.m. at the Harbor Island Apartments, 370 E. Harmon Ave., near Koval Lane. The man was hospitalized and is expected to survive, but police are still searching for the shooter.
Former Military Police Corps Officer Celebrates 100th Birthday
Summerlin resident Gene Stephens, who served as a military policeman in WWII and escorted then-Gen. Dwight Eisenhower and President Roosevelt during the war, turned 100 on July 13, 2018. He credits his longevity to living a normal life, exercising regularly and eating three square meals a day. (Madelyn Reese/Las Vegas Review-Journal)
Motorcyclist suffers serious injuries
A motorcycle rider was seriously injured Tuesday night after a crash on Charleston Boulevard. The crash was reported just before 10 p.m. near Durango Drive, according to Las Vegas police. The motorcyclist was hospitalized with unknown injuries but is expected to survive. Las Vegas police are investigating the cause of the accident.
CCSD Superintendent Jesus Jara Has Lunch With Students
New Clark County School District superintendent Jesus Jara continued his listening tour by having lunch with students at Red Rock Elementary School as part of the district's summer lunch program. In conjunction with the U.S. Department of Agriculture, children under the age of 18 can find a free lunch at 104 different locations across the valley through the summer months. Jara highlighted the free program and the importance of eating healthy during his visit. (Madelyn Reese/ Las Vegas Review-Journal)
Timeline Leading Up to Scott Dozier's Execution
Scott Dozier is set to be executed by lethal injection the night of July 11 at Ely State Prison. Dozier was convicted of the April 2002 killing of 22-year-old Jeremiah Miller and was given the death penalty in Oct. 2007. In 2016 Dozier asked in a letter to District Judge Jennifer Togliatti requesting that he “be put to death.” A three-drug cocktail of midazolam, a sedative; the painkiller fentanyl; and cisatracurium, a paralytic, is expected to end his life. (Madelyn Reese/Las Vegas Review-Journal)
New Program Helps Mothers Battling Addiction
Jennifer Stanert has battled drug addiction on and off for the last 21 years. It caused her to lose custody of one of her children, Alec, after she gave birth while high. A new program at Dignity Health St. Rose Dominican Hospitals aims to connect mothers like Stanert with community resources and provide case management services while still pregnant to get connected to lactation and parenting classes, group peer support and education on neonatal abstinence syndrome. (Madelyn Reese/ Las Vegas Review-Journal)
Felon caught with guns in Mandalay Bay room 3 years before Las Vegas shooting
A felon was caught with guns in a Mandalay Bay hotel room three years before the October 1st mass shooting. Six weapons were found inside Kye Aaron Dunbar’s 24th floor room in November 2014. Four were semi-automatic. One was a scoped rifle pointing toward the Strip, according to court documents. Dunbar was sentenced to 40 months in federal prison for unlawful possession. The case just came to light in a lawsuit accusing Mandalay Bay of negligence in connection with the Oct. 1st shooting.
Illegal fireworks in the Las Vegas area garner complaints
Clark County received nearly 25,000 complaints over the Independence Day holiday on a new illegal fireworks site. Reports from the site led to at least 10 illegal fireworks busts across the valley overnight. As of Thursday morning, the county is still compiling the total number of citations issued.
House fire displaces 2 people
Two people were displaced after a house fire early Thursday morning. The fire, at 963 Temple Drive in east Las Vegas, was reported just after midnight, according to a battalion chief from the Clark County Fire Department. Crews from the North Las Vegas and Las Vegas fire departments also were called in to help. The cause of the fire is still under investigation.
"Red White and Boom" July 4 Fireworks at the Stratosphere
Full video of the Fourth of July "Red White and Boom" fireworks show at the Stratosphere as seen from the 8th floor Elation Pool. (Madelyn Reese/ Las Vegas Review-Journal)
July 4th fireworks at the Eureka Casino Resort in Mesquite
July 4th fireworks at the Eureka Casino Resort in Mesquite. (7-04-18) (Bizuayehu Tesfaye/Las Vegas Review-Journal)
Las Vegas Crowds Enjoy Fireworks at the Stratosphere
Revelers enjoyed watching fireworks displays from the Stratosphere's 8th floor Elation pool on July 4. (Madelyn Reese/Las Vegas Review-Journal)
Pedestrian killed in Henderson
A pedestrian trying to cross St. Rose Parkway at Bermuda was hit by a vehicle on Tuesday night and later died. The crash was reported around 11:30 p.m. Las Vegas police responded initially, but handed over the investigation to Henderson police once it was determined the accident happened in their jurisdiction. Las Vegas police did respond to a report of a pedestrian being hit by a vehicle on the Strip. The person, who was hit by a BMW near Fashion Show mall, suffered serious but not life-threatening injuries.
USPS owes $3.5 million for using Vegas Statue of Liberty on stamp
The United States Postal Service has been ordered to pay $3.5 million to a sculptor after using the Las Vegas replica of the Statue of Liberty in a stamp. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
What to expect at Station Casinos' Fourth of July celebration
Station Casinos' is hosting its annual 4th of July celebration with Fireworks by Grucci. Fireworks scheduled to go off on Wednesday, July 4 around 9 p.m. at Green Valley Ranch Resort, Red Rock Resort, Fiesta Rancho and Texas Station. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Officer Brent Horlacher shoots at Jessie Murillo
Las Vegas police video of an officer-involved shooting on June 29, 2018. Officer Brent Horlacher, 28, fired a single shot at suspect Jessie Murillo. Murillo was not injured. The radio audio is of the officer who fired the gun and the body camera video is from a different officer. Radio audio excerpts are added to the video and are not the precise times the audio was spoken.
Pawn Stars' Richard Harrison honored at memorial service
A memorial service was conducted for Richard "Old Man" Harrison at Palm Mortuary in Las Vegas on Sunday, July 1, 2018. (Marcus Villagran/Review-Journal) @brokejournalist
Politics
Nevada Politics Today: Jammal Lemy
The call by March for Our Lives to ban semi-automatic assault weapons is a conversation starter, not a defined policy proposal. The country needs to talk about finding ways to end gun violence, but the NRA has blood on its hands for opposing gun-control legislation. That’s according to March for Our Lives creative director Jammal Lemy.
The Right Take: Why is CCSD out of money?
Nevada’s education establishment hopes you’re bad at history. Otherwise, you’ll identify what’s missing in its push for more funding.
Nevada Politics Today: Thomas Jipping
Nevada Politics Today video host Victor Joecks talks with Senior legal fellow at Heritage Foundation, Thomas Jipping.
The Right Take: Clark County residents love illegal fireworks
If you were here last Wednesday, you saw, heard or felt some of the tens of thousands of illegal fireworks set off in the Vegas Valley.
Heller speaks during an interview with the RJ
U.S. Sen. Dean Heller, R-Nev., speaks during an interview with the Las Vegas-Review-Journal
Nevada Politics Today: Hardeep “Dee” Sull
Nevada Politics Today video host Victor Joecks sits down with Hardeep Sull to discuss immigration and the border wall.
The Right Take: Teachers can leave union from July 1-15
Nevada is a right-to-work state so teachers don’t have to join the Clark County Education Association. If they do join, however, they can only leave by submitting written notice to the union between July 1 and 15. Support staffers and education employees throughout Nevada have the same opt-out window.
Donald Trump Speaks At The Nevada Republican Party State Convention
President Donald Trump speaks at the Nevada Republican Party State Convention at the Suncoast Station.
The Right Take: Democrats Care More About Politics Than Immigrant Families
Democrats are already positioning themselves to vote down a law that would stop the separation of illegal immigrant parents and children. Remember this the next time you see liberals compare President Donald Trump and his administration to Nazis on this issue.
Nevada Politics Today: Dan Hart
Nevada Politics Today video host Victor Joecks sits down with political consultant, Dan Hart.
Nevada Primaries: Congressional Races
Review-Journal Political reporter Ramona Giwargis goes over the election night primary results for the congressional races.
The Right Take: Rosen lied about getting a degree in computers
Two weeks ago Sen. Dean Heller’s campaign released video evidence that Rep. Jacky Rosen lied about her resume. The media couldn’t care less.
Nevada Politics Today: Zac Moyle
Nevada Politics Today video host Victor Joecks sits down with political consultant, Zac Moyle to discuss the 2018 primary election results.
Debra Saunders reports from Singapore
Las Vegas Review-Journal White House correspondent talks about the historic summit between President Donald Trump and North Korea's leader Kim Jong Un.
Nevada Primaries: Governor Races
Review-Journal Political reporter Colton Lochhead goes over the election night primary results for the Governor races.
Election Night: Polls Close At 7 p.m.
Review-Journal political reporter Ramona Giwargis goes over what to expect from the Nevada primaries.
Kim Jong Un visits Marina Bay Sands in Singapore
North Korean leader Kim Jong Un and his entourage visited the Marina Bay Sands in Singapore briefly Monday night, local time. (Video by Philip Chope)
The Right Take: Transgender regulations are radical and one-sided
Despite months of parental and student opposition, the regulations are radical and one-sided. Under the proposal, which Trustees will vote on Thursday, students get to pick their own gender identity and which locker rooms to change in.
Nevada Races Full of Women From Both Sides
It's already been a historic election season for women in politics. Record numbers of women are running for political office all over the country - including Nevada. (Madelyn Reese/ Las Vegas Review-Journal) @MadelynGReese
The Right Take: Tax Cuts Boosted Rosen's Staffs Pay
In February, the campaign team of Democrat U.S. Senate candidate Jacky Rosen saw a pay bump thanks to the Republican tax plan.
Nevada Politics Today: Dan Rodimer
Nevada Politics Today host Victor Joecks sits down with Republican candidate for Senate District 8, Dan Rodimer.
Nevada Politics Today: Dan Rodimer
Nevada Politics Today host Victor Joecks sits down with Republican candidate for Senate District 8, Dan Rodimer.
The Right Take: To fix CCSD start in Carson City
State government has created the collective bargaining laws that have put the district on the brink of financial insolvency. Here are three ways to fix that.
The Right Take: Kids claim to be concerned about budget cuts
Ryan was one of six students Wednesday supposedly upset about budget cuts. Be real. Adults — be they parents, teachers or union officials — turned these kids into human shields and media props.
Nevada Politics Today: Bryce Henderson
Nevada Politics Today video host Victor Joecks sits down with Democrat candidate for Senate District 10, Bryce Henderson.
The Right Take: Trump calls MS-13 members 'animals'
Last week, President Donald Trump hosted a summit with California law enforcement officers to discuss the dangers the state’s “sanctuary” policies. During Q&A, Fresno County sheriff Margaret Mims worried about the sanctuary law preventing her from telling federal officials that she had a MS-13 gang member in custody.
The Right Take: 3 questions Sisolak, Chris G. won't answer
Consider Democrat gubernatorial frontrunners Steve Sisolak and Chris Giunchigliani. Guns and education have been major campaign themes. Yet neither candidates will provide basic information about their policies, despite my requests.
Nevada Politics Today: CD3 GOP Candidates Debate
Victor Joecks moderates a debate with the three Republican candidates for Nevada's 3rd Congressional District 3. Candidates are Danny Tarkanian, Sen. Scott Hammond and Michelle Mortensen.
Nevada Politics Today: Allison Stephens
Victor Joecks sits down with candidate for CD4, Allison Stephens.
The Right Take: Hogg is wrong about Question 1
Victor Joecks talks about the errors David Hogg made in a recent tweet.
The Right Take: Student accused teacher of kicking, yanking him
Jayden Zelaya-Ramos is a fifth-grade student at George E. Harris Elementary School. That’s where he says Jason Wright, husband of school board president Deanna Wright, kicked and yanked him in early March.
The Right Take: Trustees call for a special session
Victor Joecks talks about a special session about teacher pay raises.
The Right Take: Three things to know about CCSD's next superintendent
Victor Joecks talks about things to know about CCSD's next superintendent.
Nevada Politics Today: Craig Mueller
Las Vegas Review-Journal's Victor Joecks sits down with Republican candidate for Attorney General, Craig Mueller and discusses his position on crime in Nevada.
The Right Take: Rosen attended fundraiser hosted by Jane Fonda
Last Friday, Rosen attended a fundraiser hosted by Jane Fonda and other Hollywood elites. Yes, that’s the same Jane Fonda that Vietnam War veterans call “Hanoi Jane” for smiling while sitting on a North Vietnamese anti-aircraft gun.
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like