Lawmakers want seats on the employee benefits board

Lawmakers studying problems with the Public Employee Benefits Program want control over nearly half the seats on the board.

That recommendation was one of several the study committee headed by Sen. Mark Amodei, R-Carson City, plans to take to the 2007 Legislature. Many of the recommendations were prompted by complaints particularly from retirees who say their premium rates have increased dramatically over the past few years.

Several recommendations demand the benefit program give Medicare-eligible retirees a break in premiums saying most of their costs are covered by the federal government and they should have to pay the state the same amount as non-Medicare retirees.

But the restructuring of the PEBP board is likely to be most controversial since it would insert direct legislative control into an executive branch agency.

Asked whether that would violate separation of powers between the executive and legislative branches, Amodei said, "no" because the legislature created the benefits program in the first place.

This isn't the first time Amodei and other lawmakers have attempted to move the Legislature into the executive branch's turf. At one point, he suggested legislation to require major gubernatorial appointments be approved by the Legislature. That proposal went nowhere.

In 2001, Guinn vetoed a bill by Sen. Bill O'Donnell, R-Las Vegas, creating a legislative committee to oversee the Nevada Department of Transportation. The reason given was the separation of powers.

The proposal by Amodei and committee members including Assemblywoman Bonnie Parnell, D-Carson City, would have the governor appoint five of the nine PEBP board members and legislative leadership the remaining four - one each by the majority and minority leaders in each legislative house.

At present, the governor names all nine.

The legislative committee also voted to draft legislation which would require Medicare eligible retirees get a premium break based on how much of their health costs the federal government covers and, therefore, saves the state plan from paying. The proposal would require that reduction to be verified by the state Insurance Commission.

Another key recommendation would require that local governments either cover their own active and retired employees or have both actives and retirees join the state plan.

Some locals and school districts now have an outside plan for their active workers but send their retirees to the state plan. State officials including PEBP officials say that hurts overall rates at the state plan because it covers a disproportionate percentage of retirees.

The committee also wants to mandate that local governments and entities provide coverage for their retirees similar to that offered their active workers.

"If you do not participate in our plan, that's fine," said Amodei. "But you will cover active and retirees in your plan in a manner similar to what the state does."

Assemblywoman Chris Giunchigliani, D-Las Vegas, Parnell and other members of the panel agreed that's not only fair to the state plan but to the retirees so they don't end up without insurance or with very limited health coverage.

And Parnell urged a recommendation to the upcoming legislature which would provide a cafeteria plan for retirees - allowing them to pick and choose the different areas of coverage they want to purchase instead of having them pay for a standard, comprehensive set of health benefits.

The recommendations will be prepared either as bill drafts or letters of recommendation to the money committees and presented at the 2007 Legislature.

• Contact reporter Geoff Dornan at gdornan@nevadaappeal.com or 687-8750.