• Carson Now on Facebook
  • Follow Carson Now on Twitter
  • Follow Carson Now by RSS
  • Follow Carson Now by Email

Nevada Tax Expert Questions If Public Pension Plan Reform Can Move Forward In Short Term

By Sean Whaley / Nevada News Bureau
CARSON CITY – Long-time Nevada tax expert Carole Vilardo said says she does not see how the state can move Nevada’s public employee retirement system to a defined contribution plan in the upcoming legislative session.
The change, which would eliminate any future unfunded liability for new state and local government hires, is favored by Gov.-elect Brian Sandoval and some lawmakers.
Others argue changes made by the Legislature in 2009 need time to work, and that a radical change to the public retirement plan is unnecessary.
Vilardo, president of the Nevada Taxpayers Association, said in order to create a defined contribution plan for newly hired public employees, the existing defined benefit plan has to be fully funded at an accelerated rate. When she looked at the idea a few years ago, Vilardo said the time frame was seven years.
“The first thing that has to be determined is whether we can afford, at this point in time, to go to defined contribution,” she said during an interview on the Nevada NewsMakers television program that aired Thursday. “Given the current economy, if that has not changed, if those requirements have not changed of government, then I don’t see how we look at that for at least another four years or so.”
Vilardo said she does not believe the change can be made now because of the costs to the state and local governments associated with fully funding the current plan over the much shorter time span. The state’s current budget problems make such a transition unfeasible right now, she said.
“Sooner or later we’re going to have to go there,” Vilardo said of a switch to a defined contribution plan.
Nevada’s Public Employees Retirement System covers 103,000 active public employees, including state workers, teachers and local government employees.
The plan had a long-term unfunded liability at $10 billion as of the end of the 2010 fiscal year on June 30.
The plan was 70.5 percent fully funded as of June 30, 2010, down from 72.5 percent in the previous year. At its high point in 2000 the plan was 85 percent funded. Public employees and government agencies contribute to the plan based on rates recommended by an independent consulting actuary with a goal of having the plan fully funded over the next 30 years.
An increase in contribution rates is being submitted to the 2011 Legislature to ensure the long-term financial health of the retirement plan. The hit to the state general fund will be just under $9 million a year in the next two years. State employees will have to make a similar contribution.
But the long-term unfunded liabilities of the PERS plan and for public employee pension plans nationwide are generating concern from policy makers.
Sandoval favors a change from a “defined benefit” plan where retirement payments are guaranteed based on salary and years worked, to a “defined contribution plan” where public employers contribute to employee retirement without any guarantees of pension amounts upon retirement.
The PERS board next week will review information on the financial cost of making such a change so that the information is available to the 2011 Legislature.
A change to a defined contribution plan would eliminate the unfunded liability for future hires. There is a legal prohibition for changing the plan for workers currently in the system.
Audio clips:
Taxpayers Association President Carole Vilardo says Nevada may not be able to afford to change the public pension plan in the 2011 legislative session:
120910Vilardo1 :25 within seven years.”
Vilardo says the plan needs to be changed, but that it probably can’t happen for at least four years:
120910Vilardo2 :14 years or so.”

No related posts.

Top Stories

... or see all stories

The Moving Wall, a half-size replica of the Vietnam Veterans Memorial Wall in Washington, D.C., will visit Douglas County for the second time this spring. The Moving Wall, which has been viewed around the country since 1984, will will be in Minden for the Memorial Day holiday weekend.

The Wall will be free to view for the duration of its display at the Eastside Memorial Park, 1600 Buckeye Rd, Minden from May 23-28, 2024. The building of the wall began at 10 a.m. Thursday.

As Memorial Day approaches, we take the time to reflect on the significance of this holiday and the sacrifices made by countless service members. One such veteran, Chuck Staley, offers a touching glimpse into his life and the traditions he upholds to honor those who have given their all for our freedom.

Fourth grade students in Ms. Allie Davis’ class at Bordewich Bray Elementary School in Carson City received a special treat Wednesday as actor Khleo Thomas, famously known for his role as Zero in the beloved film "Holes," made a guest appearance via Zoom.

Join the Carson City Parks, Recreation and Open Space Department for a celebratory hike at the Foothill Trailhead in honor of National Trails Day! National Trails Day allows us to recognize and appreciate all the benefits we have from our local trail systems and appreciate the ability to be in nature.

Since the passage of the Southern Nevada Public Land Management Act (SNPLMA) in 1998, more than $4 billion in revenue generated from Las Vegas area land sales has been directed to conservation, park improvement and wildfire prevention projects across Nevada and the Lake Tahoe Basin.

Join us for our spring Science & Nature Speaker Series at TNC's River Fork Ranch Preserve the fourth Thursday of each month! Experts from The Nature Conservancy in Nevada and partner organizations will share their expertise on a variety of topics. We hope to see you there!

YERINGTON — Lyon County and the Nevada Secretary of State are aware of the error on the 2024 Lyon County primary ballot regarding the number of candidates to vote for in the Fernley City Council Ward 5 and the Stagecoach General Improvement District Trustees races. Lyon County and the Secretary of State's Office are working through these issues and will have additional information for the candidates and voters by the end of this week.

This June, a group of over 100 denizens of Carson City will depart for a 10-day educational exploration of Japan.

On Tuesday, June 4, 2024, the Carson City Sheriff’s Office, in collaboration with the Carson City School District and the Carson City Fire Department, will conduct a comprehensive active shooter Full-Scale Exercise at Carson High School.

On Friday, Carson City Supervisors will be discussing potential salary increases for classified and unclassified city workers. The meeting takes place beginning at 8 a.m. in the Bob Crowell Board Room of the Community Center, located at 851 E. William St.

The raises are a part of the planned 2025 city budget, which was first approved in April.

Timbers Saloon will be hosting The Bette M. Larsen Second Annual Memorial Golf Tournament on June 22, 2024 to continue providing scholarships for our local students.

The Nevada National Guard is set to host its 26th annual Flag Day Ceremony and the U.S. Army’s 249th Birthday celebration at 10 a.m. on Friday, June 14, at the Veterans Memorial on the Capitol Grounds, 101 N. Carson St. in Carson City.

The Carson City Sheriff's office reports four arrests since Monday.

During their hours-long meeting Tuesday evening, the Douglas County School Board chose three of the six superintendent candidates to move forward into the interview process.

The application deadline for Mile High Band Association’s 2024 Jazz & Beyond Festival art contest is Friday, May 31, 2024. Northern Nevada artists, including teachers and students are invited to apply, and participation is free.

A new state-of-the-art storage center especially designed for boats and recreational vehicles is now open for business in Dayton.

Carson City Fire Department and sheriff's deputies were called Tuesday evening to a vehicle crash involving a motorcycle in the area of East 5th Street and Saliman Road.

Traffic was slow going in Carson City along Highway 50 East following two crashes Tuesday, according to Nevada State Police. There was a crash reported at around 3:50 p.m. on US-50 East and Nye Lane. There was a second crash at 5:18 p.m. reportedly near US-50 and Brown Street.
Injuries are unknown at this time. Motorists can expect delays.

CARSON CITY — Gov. Joe Lombardo and the Nevada Governor’s Office of Science, Innovation and Technology announced Tuesday the creation of the Nevada Middle Mile Network.

Sound bath with cool lighting
Why is Restorative Yoga with Sound so incredible? Restorative yoga promotes stress reduction and support for healing by balancing the nervous system.

The Douglas County Sheriff's Office says a Sparks man died Sunday of an apparent drowning at Topaz Lake.

Carson City Fire Department and sheriff's deputies responded Tuesday afternoon to a vehicle crash in the area of Hot Springs Road and East Nye Lane.

The Nevada Commission on Peace Officer Standards and Training, also known as POST, is pleased to announce 23 graduates, from 13 agencies, accepted their peace officers’ oath as POST Academy Class 2024-01.

Seven Pioneer National Honors Society students received cardiopulmonary resuscitation training from Regional Emergency Medical Services Authority, also known as REMSA. Kathleen Bobula-Salazar, Brooklynn Case, Ashley Ellis, William Houk, Kylee Krause-Mays, Vanessa Tran and Maggie Uzzell all earned CPR certification through a class in Reno.

Carson City is in the process of updating its 2006 Master Plan, which provided the framework for future growth and development.

Help keep graduates safe by volunteering for Safe Grad Night

Carson High Safe Grad runs on volunteers, like you! Help us celebrate The Class of 2024 while also helping to prevent fatalities related to grad night intoxication.

When Maria Villanueva emigrated to the United States from Mexico City 20 years ago, she left behind her whole world: Family, friends, a career and cultural traditions.

A 32-year-old woman was arrested Sunday for suspicion of possessing a firearm by a prohibited person, child endangerment and other alleged offenses, according to a Carson City Sheriff's Office booking report.

The Capital City Community Band will present a “You Asked For It” concert on Wednesday, May 29, 2024, 7 p.m. in the Carson High School gym.

The Fourth Annual Educational Kids’ Fair returns to the Historic Fourth Ward School Museum in Virginia City! Join us for an interactive day of exploration, fun crafts and interesting activities provided by local businesses & organizations in our Victorian Era school house museum on the Saturday of Fathers’ Day weekend.