Nevada retirement plan offered as Social Security idea

Suzanne Struglinski

Monday, Feb. 28, 2005 | 8:46 a.m.

WASHINGTON -- Rep. Jon Porter, R-Nev., wants Washington to pay close attention to Nevada's government employee retirement system as the debate on Social Security reform takes shape.

Porter said he told President Bush during a White House meeting earlier this month that he wants to look at all options before taking a position on Social Security reform, including the president's idea of using personal savings accounts.

"I think we should look at how Nevada has been so successful," Porter said. "We need to find out why the structure works better."

Porter said the president agreed that all options should be considered.

"He was very interested and wanted to learn more about it (Nevada's retirement plan," Porter said. "Texas has something similar."

The Public Employees Retirement System in Nevada allows government employees to save for retirement backed by a series of investments. The system has approximately 87,500 active members and more than 27,000 benefit recipients, according to its statistics. The average monthly benefit for regular members of the system is more than $1,800, and the system maintains a strong financial standing with over $14 billion in assets.

Porter said he still wants the federal government to control Social Security but that certain aspects of Nevada's plan may work well nationally.

Porter said the key question is: "Why does a government employee in Nevada get more than someone on Social Security?"

Democrats have attacked Porter for inconsistencies in his position on Social Security, particularly when it comes to personal savings accounts, but Porter maintains he has always said he will consider all options, including the accounts, and see what he thinks is best.

"We have not seen an actual plan," Porter said. "I can't tell you how a personal savings account would solve any problem."

He said he is "appalled" by the Democrats' ad, running on a Web site, saying he has flip-flopped on the issue.

"We have to work together. So far that has not happened," Porter said. "The Democrats are running commercials before the debate has begun. It limits fair and open debate."

He said he is "adamantly opposed" to allowing a private company to take over the whole system. Porter said that under any reform current Social Security beneficiaries must be protected, the retirement age should not increase and Congress should not create new taxes or increase current ones, but that's where the certainty ends.

He said he is hesitant to take a position on what has been discussed so far because he does not know what would go against those beliefs.

He said personal accounts or any other idea on reform has to be looked at from how it would affect the whole system.