CARSON CITY — The 103,000 State and local government workers and teachers who are members of the State Pension Fund will be hit with more monthly prizes starting next July.
On Wednesday, the Board of Directors of the insurance system of the Nevada State employees approved an increase of 2.25% in premiums to be shared by Governments and their employees.
Around 16.4% of 103,000 members are employees of the State. Are facing an increasing percentage of 1.125 to bring their contribution rate to 11.87%, based on the estimated pension system, says Dana Bilyeu, his delegate.
The State and its employees share the cost of the pensions system. Bilyeu said that premiums higher means that the State will have to chip in a further € 8.7 million in each of the next two fiscal years. The prize highest load State workers will yield a similar additional amount.
Employees of local government and school teachers will have to forego an increase in the cost of living or take a salary reduction to achieve the total increase of 2.25%, said Bilyeu.
The cost is shared also by local governments, which negotiate contracts, a benefit not enjoyed by workers of the State.
Police officers and firefighters have a separate system, and their rates will be generated from 2.75% from its current 37 percent.
Nevada Policy Research Institute, a nonprofit advocacy, calls 10 billion unfunded liability a "time bomb" that threatens the taxpayers.
The system, according to the Institute, promises benefits to its members, but money can't be there in the future.
There are currently around 40,000 people, drawing pensions.
The Institute offers the objective of an 8% return on investment is unrealistic and complains that the unfunded liability continues to grow.
Bilyeu said, however, that the market value of assets is 23.7 billion, compared to $ 10 billion unfunded liability. The system is funded 70 percent. "The variation of unfunded liabilities means nothing in itself," said Bilyeu.
He also said that there was a gain of 372 million in system, because the salaries of civil servants or were reduced or did not grow as fast as expected. This means that the benefits will be adjusted.
Bilyeu said that the system has averaged a return for 25 years of 9.3%. The last fiscal year, has achieved a return 11 percent. For the first quarter of this fiscal year, the system has already exceeded the goal of return 8%, he said.
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