Wednesday, March 26, 2003 | 11:28 a.m.
CARSON CITY -- A bill to sweeten the pension system for state legislators, allowing them to receive both a legislative retirement and salary, did not draw any opposition today at a hearing of the Assembly Government Affairs Committee.
Assembly Bill 360 would permit legislators who have served at least 10 years and reach the age of 60 to draw their retirement from the state and continue to collect their legislative pay.
Assemblyman John Carpenter, R-Elko, the bill sponsor, told the committee "When you serve that many years, getting a little retirement is not that far out of line."
Assemblyman Tom Collins, D-North Las Vegas, said some other states allow lawmakers to draw their pension and continue to serve in the Legislature.
A legislator now contributes 15 percent of his $7,800 salary for the session to the retirement system. The state kicks in about $175,000 a year to keep the system solvent.
Retired legislators get $25 a month for each year of service after completing at least 10 years. If they draw the pension before 60, the check is reduced.
Under the bill Carpenter, who is 73, would be able to draw $450 a month in retirement and continue to serve as an assemblyman. An estimated 10 lawmakers would qualify immediately for the extra benefit.
"I believe this will help the people to serve a little longer," said Carpenter, pointing out that term limits take effect in 2008 limiting a lawmaker to 12 years in each house.
Carpenter said he did not think the new benefit would have much of an impact on the legislators' pension fund.
George Pyne, executive officer of the State Public Employees Retirement System, testified his actuaries are examining the impact. But he said it would cost the system more.
The retirement board, he said is neutral on this bill, as it has been in the past on any bills involving the retirement system.
Pyne said officials of the retirement system have reviewed the IRS code and find there is no federal prohibition against the plan.
Under the bill, a legislator would receive his pension check but would not be credited with his additional service time until he retires. For instance a lawmaker with 10 years would qualify for a $250 a month pension, which he would receive.
His pension would not be increased until he left the Legislature. So if the lawmaker served 10 more years, he would qualify for $500 at the end of that period.
Assemblyman Pete Goicoechea, R-Eureka, suggested the bill be amended to allow the lawmaker to compound the time and receive an increased pension benefit for each year while he is still in the Legislature.
But Carpenter said he did not favor that. He said he wants to see the fiscal impact before agreeing to any amendment of his bill.
The 2001 Legislature approved a bill to allow public employees to retire and then be hired back in a critical position -- permitting them to draw their pensions and their full pay.
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