EDITORIAL: How pensions encourage state dysfunction

A cash award program for state employees who propose money-saving ideas has also made a powerful case for pension reform. During the 2015 session, lawmakers should consider the deeply troubling story of Theron Huntamer, a Division of Public and Behavioral Health analyst.

As reported this month by the Review-Journal’s Sean Whaley, Mr. Huntamer accepted a $25,000 cash award for making a suggestion that has saved the state $266,000 and will save even more money in the years ahead. But in accepting the award, Mr. Huntamer told the Interim Finance Committee this month that he regrets taking the initiative to make government more efficient, that he wouldn’t recommend the incentive program to other state workers, and that he is seeking whistleblower status to protect himself against retaliation stemming from his idea.

Mr. Huntamer suggested requiring counties to submit records to the state in a digital format, instead of the paper copies that create data entry work for state employees. In proposing common-sense savings that could net him a fat bonus to pay off college debt, Mr. Huntamer was threatening state jobs. And suddenly, his job was threatened as well.

“I truly believe the only reason I am here is because I have filed a grievance,” Mr. Huntamer said in a prepared statement to lawmakers on the committee. “Had I known then what I know now, I never would have put myself into a position of compromising my future with the state of Nevada.”

So why wouldn’t Mr. Huntamer collect his bonus, then tell his colleagues to take his job and shove it? For that matter, why would any of his colleagues be so ferociously protective of low-skill positions within a clearly dysfunctional environment? Why wouldn’t any of them go out and find a better job anywhere else?

The answer is simple: their pensions. Defined-benefit pensions don’t exist in the private sector. Anyone who has logged even a few years with a Nevada government agency has a powerful incentive to remain in public employment, even if it forces workers to remain in hostile and unhappy environments. As Mr. Huntamer made clear when he spoke of “compromising my future with the state of Nevada,” government work is not a stopping point for other opportunities. It’s a career. The countdown to retirement starts the day you’re hired. And nobody on the inside is supposed to mess it up for everyone else.

So almost no one takes advantage of the state incentive program. So we overpay for government.

Mr. Huntamer offered to provide documentation of his concerns. Fortunately, lawmakers expressed interest in reviewing his circumstances.

They can honor his efforts by passing major pension reforms that move future hires into a defined-contribution, 401(k)-style retirement plan. Besides saving taxpayers billions of dollars in future unfunded liabilities — to say nothing of restoring some balance between public- and private-sector pay — government workers wouldn’t be anchored to their jobs. They could take their retirement savings with them when they move on.

And they’ll be more likely to suggest ways to save the public money.