Former lawmakers’ pension increase means more cash needed in state fund

Wednesday, Feb. 2, 2000 | 12:13 p.m.

George Pyne, executive officer for the Public Employees Retirement System of Nevada, says the court ruling will mean anywhere from $350,000 to $450,000 in back retirement benefits for former Assemblymen Robert Craddock of North Las Vegas and David Nicholas of Reno.

The pension fund for legislators has $4.8 million in assets, and the state kicks in $166,000 a year to help support the system.

The court ruling adds another $70,000 a year to maintain the pension program, Pyne said Tuesday in testifying before the Legislative Committee on Interim Retirement and Benefits.

Lawmakers now pay 15 percent of their salaries into the pension plan in addition to the state's contribution.

The Supreme Court, in a 4-2 ruling last month, held that Craddock and Nicholas were entitled to the controversial pension increase approved in 1989.

The Legislature approved a 300 percent hike in retirement benefits, but it was vetoed by Gov. Bob Miller. The lawmakers overrode the veto.

Craddock and Nicholas were not members of the Legislature in 1989, but after the pension was increased, they filed for their higher benefits.

There was a public uproar over the pension increase and the lawmakers asked Miller to call them into special session to repeal the law. But by that time, Craddock and Nicholas were getting the higher amount. The Supreme Court ruled their benefits couldn't be reduced.