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August 3, 2010 / jimnv

State Employee Pension System Is Paid For and Financially Well

There has been criticism of NV PERS sometimes stating they get too much or they don’t pay their share. This is all nonsense. State employees pay over 11 percent of their salaries into the system and are not part of Social Security. NV PERS is all we have.

Further, the fund will never run out of money and though it should and will be reviewed for financial stability, it must not be changed to a 401 k plan or any other scheme. To do that would be like saying to a social security recipient that Social Security will be privatized.

For the latest information from NV PERS:

June 28, 2010 – Letter to the Editor: Response to LV Review Journal Editorial on 6/24/10

June 24, 2010 – Fact Check:  Counterpoints on Las Vegas Review Journal Editorial 6/24/10

May 26th, 2010 – PERS’ Retirement Secure – Information Regarding Retirement Board Study of Defined Contribution Plan

See also:

PERS Retirement is All We Have, May 28, 2010

PERS is Okay, April 25, 2010

Leave PERS alone… it works, February 1, 2009

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5 Comments

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  1. Victor / Aug 4 2010 12:12 pm

    You say state employees pay 11 percent of their salaries to their retirements, but this is less than private sector workers pay for social security — 6.2 % out of each paycheck and 6.2% matched the employer = 12.4% — and doesn’t include how much extra we need to save on our own.

    Now I don’t blame state workers (or anyone) from getting out of Social Security, but please don’t pretend you’re making an enormous sacrifice compared to private sector employees.

    If I was a gov’t worker I’d be leading the way on pension reform — gov’t workers are just one bankruptcy or court decision away from having their benefits dramatically reduced. And while that’s not going to happen now, with a $33.5 billion unfunded liability in Nevada PERS, that’s a realistic scenario in the next 10-15 years (without fundamental reform).

    I know you’d claim that Nevada’s PERS “will never run out of money,” but two things:

    1. The report PERS cites assumes an unrealistic 8 percent rate of return,
    2. If that’s true why does the Pew Center say PERS has a $9.1 billion liability (using higher rate of return than previously cited study) – http://www.npri.org/publications/could-pers-be-a-silver-bullet

    “According to a new report from the Pew Center on the States, ‘Nevada’s management of its long-term pension liability is cause for serious concern and the state needs to improve how it handles its retiree health care and other benefit obligations.’ The report shows a $7.3 billion unfunded liability for PERS as well as a completely unfunded $2.2 billion liability for retiree health benefits.”

    Also, the federal government has its workers on a 401K type plan. If even federal workers can do it (to say nothing about private sector employees), Nevada state employees could do it as well.

    • jimnv / Aug 4 2010 4:29 pm

      A summary of what PERS says about the pension plan:

      2009 Nevada Reforms– Senate Bill 427
      The Legislature passed significant reforms to Nevada PERS in 2009. The Legislature raised the retirement age to match the earliest Social Security retirement age; limited the salary for benefit calculation (anti-spiking); reduced the service time multiplier; removed certain early retirement provisions for public safety members; provided a greater penalty for early retirement; capped cost of living adjustments for retirees and accelerated payment on the unfunded liability of the System- when financial conditions improve.

      http://www.nvpers.org/public/documentation/062410-Fact%20Check-RJ%20Editorial%20Response.pdf

Trackbacks

  1. NPRI Dishonest — Again! « Nevada State Employee Focus
  2. Las Vegas Review Journal Lies About PERS – – Again! « Nevada State Employee Focus
  3. Attacks and More Whining « Nevada State Employee Focus

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