PERS premium to increase again in coming biennium | NevadaAppeal.com

PERS premium to increase again in coming biennium

The retirement premium paid by state workers and other non-police/fire public employees will increase again this coming biennium.

Actuaries recommended and the Public Employees Retirement Board approved a 2.25 percent increase to a total of 28 percent of salary effective July 1.

The vote at last week's meeting was unanimous.

PERS Executive Officer Tina Leiss said that amount will be split 50-50 between the employee and employer. So, unless the governor finds a way to give state workers a small raise, it effectively reduces take home pay for state employees by 1.15 percent.

She said there were a number of factors that made the increase necessary including what they refer to as "mortality." That is a reference to the fact that state retirees are simply living longer, therefore collecting their retirement for a longer period than in the past.

The state's share of the 2.25 percent increase will cost state government about $10 million a year. But the increase also applies to the rest of the 88,700 regular employees in public service with governments throughout Nevada.

Recommended Stories For You

There are also about 11,300 public employees in the police/fire category who pay a much different rate for their pension benefits. Leiss said their rate will remain at 40.5 percent total for the coming two years.

Despite that increase she said PERS had a great year in its investment portfolio, growing the total amount of assets by a whopping 17.6 percent to $33.6 billion. She said that reduces the plan's unfunded liability from $12.9 to $12.5 billion.

Go back to article