Thursday, Sept. 12, 2002 | 11 a.m.
CARSON CITY -- Secretary of State Dean Heller and Assemblywoman Marcia deBraga, R-Fallon, who pushed for a constitutional amendment to protect the state Public Employees Retirement System, said today they oppose a plan by Sen. Randolph Townsend to use some of that money to invest in Nevada companies.
The amendment was approved by 73 percent of voters in 1996, Heller noted, to keep the fund from being raided by politicians. Townsend's plan to use up to $200 million of the $12 billion fund "would be a bald-faced end run around the will of the people," he said.
DeBraga added, "I find it hard to believe that any elected official in the state of Nevada would attempt in any way to divert funds from PERS for any pet project, or to gamble the hard-earned money of these employees who rely upon PERS for their retirement on businesses that do not meet the requirements established by PERS.
Townsend said Heller and deBraga apparently do not understand his plan. He said the retirement system is currently putting $200 million in an out-of-state management company that then invests in firms in California and the East Coast.
Townsend said his plan is not to take any money away from the retirement system. He wants the system to hire a management firm that will look at investing in Nevada firms that meet the same strict criteria.
"They should have called me to find out about the plan instead of relying on newspaper articles," Townsend said. He added that his plan would help rural Nevada with economic development, where deBraga lives.
But Heller said information from the retirement systems shows millions of dollars are invested in Nevada corporations. These included International Game Technology, Harrah's Entertainment and Newmont Mining. In addition, he said venture capital of some $12 million is invested in companies having operations in Nevada, including franchise operations, health care and other businesses.
"Nevada businesses that approach PERS are given the highest priority," Heller said. "Those businesses are put in direct contact with senior management at Pathways, the investment manager."
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