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March 14, 2015 / jimnv

An Enemy Drone With Pennies from Heaven

AB 190 is advancing through committees this session. It is a bill to change Nevada PERS from a defined benefit to a hybrid plan that is mostly a defined contribution plan.

Assemblyman Randy Kirner who proposed the legislation thinks the bill would save taxpayers a lot of money. He is wrong and 35 states have already visited this and concluded changing their plans in this manner would cost their taxpayers too much.

Kirner’s plan will cost Nevadans an extra $750 million a year after two years. He thinks this money will “just appear” to help Nevada taxpayers pay the bill like pennies from heaven.

NV PERS executive director Tina Leiss said the annual costs for the first two years starting July 1,2016 would be $790 million. Plus there would be an extra $18 million setup costs in the first year. Then the annual cost would be $750 million. NV PERS says these figures are from an independent actuary they use.

Further, state employees would be expected to pay about 7.5 percent more for their retirement that is already 14 percent of their annual salary. In contrast, Social Security participants pay just 6.2 percent of their income for their retirement.

Still, Kirner does not believe his plan will cost as much as NV PERS says it will though he admits that two years ago additional annual costs for a hybrid plan were about $700 million.

No matter, the costs will be enormous, and no pennies from anywhere will be palatable to anyone, except Kirner who was obviously absent from basic math while in elementary school.

Kirner is simply an ALEC drone. His proposal is from their playbook that seeks to punish and destroy public employees with this and other proposals.

I am confident that this bill will die as it should. Though Kirner has been a legislator for many years and he still does not understand the real problems in Nevada. Incredibly, he he uses language from a conservative think tank and presents it as his own. This proves his ignorance and underscores his hatred of public service employeesespecially state employees.

If he is unwilling or unable to understand the issues then what he does is not a mistake but premeditated assault on all public employees.

The costs are much too high for his hybrid retirement system. Hopefully, Kirner will understand that pennies from heaven is a fairy tale. He also needs to stop being an ALEC drone.

 

 

 

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