SB 4 proposes that any executive branch agency can be designated by the governor as a “charter agency”. The bill states any agency designated as a charter agency would operate under different rules and all employees of the agency would become unclassified and subject to removal at any time and presumably for any or no reason. There would no longer be civil service protections and this bill if it becomes law, would inject extreme politics into the operation of any or all state agencies.
For example, if you become an employee of a charter agency, you could be fired for being in a political party the governor or his executive director does not like.
The bill started its path last November. There is no name attached to the bill which is typical of a dishonest politician who craves secrecy over transparent democracy.
The following paragraphs give the reader some idea of what is being proposed:
Sec. 2. 1. The Governor, by executive order, may designate or rescind the designation of any department established by law within the Executive Department of the State Government as a charter agency. Such a designation or rescission must not become effective until the next following July 1. One year after the effective date of the designation of a department as a charter agency, all employees of the department become employees in the unclassified service of the State.
The Governor, by executive order, may designate or rescind the designation of any department established by law within the Executive Department of the State Government as a charter agency. Such a designation or rescission must not become effective until the next following July 1. One year after the effective date of the designation of a department as a charter agency, all employees of the department become employees in the unclassified service of the State.
Emphasis is mine.
|Attorney General’s Office||325||301|
|Business and Industry||595||581|
|Charter School Authority||–||11|
|Colorado River Commission||35||33|
|Conservation and Natural Resources||624||641|
|Economic Development Commission||24||40|
|Employment, Training and Rehabilitation||1,116||820|
|Gaming Control Board||342||290|
|Health and Human Services||4,670||5,536|
|Information Technology||122||Under Admin|
|Judicial Discipline Commission||3||5|
|Legislative Counsel Bureau||284||287|
|Lieutenant Governor’s Office||4||5|
|Military (National Guard)||118||124|
|Mineral Resources Commission||10||10|
|Peace Officer’s Standards and Training Commission (POST)||17||15|
|Public Employees Benefits Program (PEBP)||31||30|
|Public Employees Retirement Program (PERS)||65||65|
|Public Utilities Commission||91||88|
|Secretary of State||114||115|
|Silver State Insurance||–||13|
2007 there were 20,245 employees
PERS (Public Employee Retirement System) is still one of the best retirement plans in the nation. It is conservative, well run and gets great investment returns. This news will not be good for those politicians and conservatives who want to destroy the system. Watch for their posturing and proposals at the next Legislative session which begins February 6, 2017. NV Legislature.
The contribution rate for regular state employees will remain at 14 percent for the next Biennium. It will be 20% for police/fire employees. Social Security participants pay just 6.2 percent.
NOTE: Many counties pay the entire contribution for their employees such as teachers. State employees do not have that benefit because they do not have the right to collective bargain.
Further, the unfunded liability has is now 25.9 percent and the revenue for the past year increased to $35.9 billion year which is a 7.7 percent return on investment.
PERS has not only state employees contributing but also 190 government entities employing just over 105,000 employees. There are about 14,000 state employees.
The annual individual deductibles would change to $1,600 from $1,900.
The annual family deductibles would change to $3,200 from $3,800.
The co-insurance will stay at 80 percent.
The annual dental benefit would stay at $1,500.
The the hearing aid benefit would be $1,500 per ear.
Deferred decisions, pending Economic Forum projections are:
Changing the $25,000 life insurance benefit to $10,000 for employees. For retirees it would be $5,000 instead of $12,5,00.
They also deferred action on cutting the HSA contributions for both employees and dependents.
In January 2017, they will make their decisions relying on the Economic Forum‘s revenue projections. It’s not looking good.
The annualized return for PERS investments in the past 32 years has been 9.4 percent which is more than the 8 percent return needed to make the fund fully funded. The plan was 73.5 percent fully funded in 2015 compared to 71.5 percent in 2014.
For FY 2015,the investment return was 4.2 percent and for FY 2014, it was 15.6 percent.
PERS is at the top for well run retirement funds, so don’t let anyone tell you different.
If you have any questions about PERS,please call them. They are very helpful.
693 W. Nye Lane
Carson City, NV 89703
Toll Free: 1-866-473-7768
5820 S. Eastern Ave, Suite 220
Las Vegas, NV 89119
Toll Free: 1-866-473-7768
There are many legislators who would like to eliminate PERS.Their positions are based on ignorance and deep animosity toward public employees, especially state employees.
It is not surprising PERS foes are mostly Republicans who are unduly influenced by ALEC a conservative group hell-bent on destroying public sector jobs. Since many Nevada legislator can’t think clearly themselves, they get someone else to do it for them.
Recently, there was an article in the Wall Street Journal that described how PERS funds are managed. It turns out there is now only a single guy doing the managing and he does very little except invest in index funds. He eliminated 10 positions in his quest to keep things simple and profitable. consequently, the costs to manage about $35 billion is quite low, about $18 million a year versus about a $100 million more elsewhere.
Here is the link to the article:
“What Does Nevada’s $35 Billion Fund Manager Do All Day? Nothing”
http://www.wsj.com/articles/what-does-nevadas-35-billion-fund-manager-do-all-day-nothing-1476887420 (A subscription is required.)
The old news is that on March 2,2015, Governor Sandoval appointed Jim Wells the NV PEBP executive director as the “Interim Director” of the Department of Administration. That interim appointment was made permanent on April 27, 2015.
Wells was the Executive Director of NV Public Employee Benefits (4 1/2 years) and worked for PEBP for about 7 1/2 years. Unfortunately, he is now in charge of the Department of Administration. I feel for the agencies/offices now under him. These are: human resources/personnel, grant management, information technology, fleet services, purchasing, risk management, public works, buildings and grounds, internal audit, hearings and appeals, victims of crimes and library and archives.
As of July 16,2015, the PEBP Board unanimously selected Damon Haycock as its new Executive Director. The Interim Executive Director Kateri Carraher, said during Haycock’s review that the PEBP culture was not good at this time and the Board needed someone who would care about staff and provide leadership. Let’s hope so!
It seems the Board understood the incompetence of the old director.
Sandoval put him into an existing position (Director of the Department of Administration/Budget Director) with even more responsibility that is very troubling. Keeping him as the incompetent executive director of one agency and giving him a new job rewards incompetence. Who you hire reflects on what you are, Mr. Sandoval. Also, have you ever heard of the old maxim, “Past behavior predicts future behavior?”. You might check with personnel about that one.
What will Sandoval do when Wells fails at his new job? And he WILL fail. I heard he already has!