Nevada public employee retirement rate hike advances
CARSON CITY — The board of the state Public Employees Retirement System on Wednesday accepted a report that will result in contribution rates for regular workers increasing to 28 percent on July 1, 2015.
The retirement contribution rate, which is shared between the public employer and the employee, will increase by 2.25 points from the current 25.75 percent. Police and fire rates are expected to remain the same at 40.5 percent.
The rates recommended by the independent actuary Segal Consulting were adopted by the PERS board and will be forwarded to Gov. Brian Sandoval and the Legislature.
The contribution rates are set to help ensure the long-term health of the $33.5 billion retirement fund that covers about 100,000 current public employees around the state.
The actuarial evaluation from Segal also reported that the funded ratio of the plan improved to 71.5 percent in fiscal year 2014 compared to 69.3 percent in fiscal year 2013.
A big reason for the improvement is the return on the fund’s investments, which are primarily in stocks and bonds. The return totaled 17.6 percent in fiscal year 2014, well above the 8 percent average return sought for the fund.
Contact Capital Bureau reporter Sean Whaley at swhaley@reviewjournal.com or 775-687-3900. Find him on Twitter: @seanw801.
