Las Vegas Sun

March 29, 2024

Committee sidesteps decision on controversial retirement plan

CARSON CITY — The Assembly Government Affairs Committee today sidestepped taking a stand on a controversial bill to launch a slimmed-down retirement system for future state and local government employees.

The committee agreed to send AB 190 without recommendation to the Ways and Means Committee to examine how much the alternate system would cost.

“There are a lot of scared people out there,” Government Affairs Committee Chairman John Ellison, R-Elko, said. “All these questions will come out in Ways and Means...I don’t want to do anything to hurt people."

The measure is sponsored by Reno Republican Assemblyman Randy Kirner and would add a defined contribution option that would limit pension payouts based on how much money public employees contribute.

The existing Nevada Public Employees’ Retirement System — PERS — promises employees a specific payout upon retirement.

The bill aims to tackle a multibillion-dollar unfunded liability in the system.

PERS officials estimate it will cost $800 million a year to implement the new system, a figure challenged by Kirner.

PERS chief Tina Leiss questioned whether the proposed plan would violate the Nevada Constitution and if there would be higher costs to local governments. If approved, the proposed system would not start until next year with newly hired employees.

The Associated Press contributed to this report.

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