EDITORIAL: Don’t miss pension factor in Fire Department retirements

The brouhaha at the Las Vegas Fire Department offers a revealing insight into the cause of the persistent financial woes of Nevada’s pension system.

As the Review-Journal’s Shea Johnson reported this month, the department is undergoing a leadership transition. Chief Jeff Buchanan is leaving in May. Deputy Chief Dina Dalessio retired at the end of February. There had been an investigation into the pair stemming from allegations made in a letter by former assistant fire chief Jon Stevenson, who retired late last year after 27 years with the department.

It’s unclear what, if anything, the investigation will find. The pair have their defenders and detractors. Those passed over for promotion or upset about higher standards sometimes seek revenge through complaints or undermining morale. Turns out the Fire Department isn’t immune from office politics.

But buried deep in the story is the detail that should raise the eyebrows of every Nevada taxpayer. Mr. Buchanan was 48 when he was appointed chief in December 2020. He will turn 50 before he retires in May. That means he qualifies for benefits from the Public Employees’ Retirement System of Nevada. Ms. Dalessio, who is 50 and had more than 20 years of service, also qualifies.

That’s right. Police and fire employees are eligible to retire with 20 years of service at age 50. That means these employees can start drawing retirement benefits at an age most workers could only dream about.

For high-ranking employees, these payouts can be six figures or more. When he was named chief, Mr. Buchanan’s salary was $178,900 a year, plus benefits. It’s impossible to know precisely what he will collect, but it likely will be more than $100,000 a year — for life. That amount will only grow in future years after cost of living adjustments kick in three years after this retirement.

In addition, many people in Mr. Buchanan’s position often don’t retire in the usual sense. They take their sterling resumes and land a top job out of state. Or they become consultants. This allows them to earn a full-time paycheck while banking their “retirement” payouts. Their PERS checks are guaranteed by Nevada taxpayers.

It’s a great deal for a lucky few. Not so much for state taxpayers. The current retirement contribution for police officers and firefighters is 44 percent. In 2002, it was 28.5 percent. The rate has gone up so much because PERS doesn’t have the money to meet its future obligations.

Many people in the private sector can’t afford to retire until they’re 70 or older. They shouldn’t be backstopping the payouts for “retired” government employees in their 50s.