The state assembly approved PERS’ budget last week. When asked for a comment about PERS, Randy Kirner, the ALEC shill as still arguing support for AB 190. NOTE: AB 190 would convert the PERS system to a hybrid one for new hires.
Kirner said he submitted an amendment to AB 190 to eliminate the PERS fiscal note. Apparently Kirner doesn’t like anyone stating the actual cost to implement his plan that is about $800 million dollars annually.
Kirner’s efforts to remove a fact-based fiscal note is unconscionable and politically lame but then we have Kirner.
After lying about PERS, Kirner ended his commentary by saying people who opposed AB 190 just “don’t get it“.
Oh, we “get it” alright. We get that Kirner is a political hack who tries to get what he desires one way or another. Pitiful we have people like this in the legislature.
The Economic Forum made its revenue predictions public May 1st. This the starting bell for completion of the current legislative session. From now until June 1st, legislators will be working furiously on the budget and other things. In this mayhem, many will insert a dead bill into one that is sure to pass. Think AB 190 the hybrid retirement nightmare. It could happen.
What to do? Not much. Mayhem momentum will take effect.
If this session is sane, that won’t happen but I have never personally seen a sane session. And have been looking at them since 1971.
State employees have not had longevity pay for many years, and now Sandoval wants to eliminate it.
State employees are still grappling with furloughs and stagnant pay and now face another permanent pay cut. Longevity pay was a type of bonus for long-term employees it was a way to reward long term service. It was also a way to acknowledge the value of long-term employees and how they save the state money because of their expertise. Merit pay varied from $150 (after eight years of service) to $2,350 per year after 30 years of service.
Apparently, no more.
What more do legislators expect from underpaid state employees? The state employee tax is alive and well and being permanently incorporated into our state budget system.
AB 190 introduced by Randy Kirner is still alive.Though it seems unlikely it will be heard anymore there is ALWAYS a chance it could make it all the way through the legislature ready for Sandoval’s signature. I have seen this happen .. a lot especially near the end of Session
I found the NV PERS document about the cost to implement Kirner’s ALEC bill. Here it is: AB 190 Fiscal impact for NV PERS.
NV PERS Fiscal cost summary:
FY 2015/2016: $808,804,566
FY 2016/2017: $790,173,006
All fiscal years after 2016/2017: $751,929,898
This seems like a lot of money to me. I don’t know how Assembyman Kirner can ignore this.
All fiscal notes for AB 190:
City of Reno (As Introduced)
Department of Administration (As Introduced)
Local Government (As Introduced)
Public Employees’ Retirement System (As Introduced)
White Pine County School District (As Introduced)
The NV PEBP Board called an emergency meeting after the IFC (Interim Finance Committee) refused to release funds for the state employee Wellness Program. The program would have saved each employee $50 a month if they complied with the program requirements.
Yesterday, April 15th, the NV Legislature’s Assembly Way and Means Committee, took up AB 190 submitted by Assemblyman Randy Kirner, (R-Reno). The bill would create a new hybrid retirement system for new state and public employees. Kirner said many things at the hearing and most if not all were from the ALEC playbook on how to attack then destroy public employees retirement systems. He is trying to solve a problem that does not exist.
At the meeting Kirner lied, or he is totally clueless about retirement systems and revels in ignorance and relies on ALEC for language. Both are bad. Here are some Kirner vs. Truth examples:
Kirner: He said the unfunded liability of NVPERS was five times what is was 15 years ago,$12.5 billion.
Truth: The unfunded liability has been lowered and will be eliminated by 2034. The unfunded liability has been reduced by about $13 billion to $10 billion now. Under Kirner’s plan, the unfunded liability would grow tremendously.
Kirner: He said NVPERS assumptions of an eith percent average return on investments is “Nuts”.
Truth: NVPERS average return was 9.5 percent for the past 30 years, and this was even accounting for the “Great Recession.”
Kirner: He said his new hybrid plan would not cost very much implying NVPERS is just exaggerating the fiscal impact.
Truth: Those in the old NVPERS would still get their retirement but to do that, there have to be contributions tokeep it solvent. The cost would be $700 million annually or 15 percent of the payroll during a two-year budget cycle. $700 million seens like a lot ofmoney to me.
Kirner: He said the hybrid system would somehow eliminate the costs of the current plan.
Truth: The unfunded liability would go up if Kirner’s plan becomes law. The plan would rely on fewer active employees in the old system to pay the bill, this would drastically increase retirement costs for them.
Kirner: He said the unfunded liability would be paid down by a six percent contribution from existing employers.
Truth: Currently NVPERS collects 11 percent toward the unfunded liability which is an amount needed to retire that debt. Kirner has his math wrong.
Kirner: He says his math is correct.
Truth: The NV PERS liability is over a five year average and on paper, shows it is about $12 billion when the actual dollar amount is $10 billion.
Kirner: His plan would cap the employer’s contribution at six percent, and that should be enough for plan solvency.
Truth: Solvency means that few and fewer active public employees in the “old” system would be required to make up the difference. The hybrid plan will result in significant contributions increases to retire the debt.
Kirner: He says the NVPERS is a financial mess.
Truth: NVPERS is funded for a total of 76 percent of its future obligations and assets have grown from $16.6 billion in 2005 to abouit $34 billion in 2015. NVPERS is one of the best retirement systems in the country. It is well run and quite solvent.
Kirner: He says his proposed hybrid retirement plan would meet Federal requirements.
Truth: His plan does not. The Federal government would take over the new hybrid retirement system.
Kirner: He says his witness experts are right, and their testimony that the new plan would be like Utah’s is correct.
Truth: His experts have little or no knowledge of retirement plans. Their comparisons to Utah are misleading. (lies) Utah has a much lower contribution rate and uses Social Security as its base. Nevada state employees have no Social Security and Kirner’s plan continues to leave them out of Social Security.
Randy Kirner is an ALEC shill and a liar. He needs to just to go away and take his witnesses with him. Fortunately, the committee did not act on his bill. This inaction means it is probably dead, but even hucksters get a fair hearing and sometimes a re-hearing in Nevada. Backroom shenanigans might see the bill revived especially during that waning days of the session. Watch for it!
Harry Reid, one of our senators has announced he will not run for re-election next year. I will miss his mean spirit and pragmatism. Exit Harry,enter Brian.
Like I said years ago, Brian Sandoval our current governor will quit like he always does for something better and this better will be a senate seat. He is always more interested in himself than the needs of those who re-elected him. He has always been this way, he will always be this way.
I wonder what kind of governor Mark Hutchison will be?