Retire and get a consulting contract

A funny thing happens when you give employees a financial incentive to quit: They quit.

That partly explains why the state has rehired so many former employees as consultants over the years. Two months ago, a legislative audit of such contracts revealed some potential sweetheart deals.

While such contracts are no doubt enabled by cozy relationships and dubious oversight from our elected officials, the deals are also driven by employee retirements. Even though certain personnel might remain highly valuable, once they're eligible to collect pension payments that will support a comfortable lifestyle, many call it a career.

The choice between working the long hours of full weeks and not working at all for a little less is a no-brainer. But, if the right people are willing to pay the right price to keep you around, "retirement" can instead turn into a pay raise or a lucrative part-time job. A pension check plus consulting fees equals a mighty fine standard of living.

A review of the contracts by the Review-Journal found James H. Davenport, a former manager for the Colorado River Commission, was given a deal to represent the board for up to $350 per hour for legal advice and water law issues, not to exceed $500,000 over three years. Roland Westergard, who retired in 1990 as state engineer for the Nevada Division of Water Resources, landed a contract with the Nevada Department of Conservation and Natural Resources. The contract paid him $200 an hour as chief negotiator on the Truckee River Operating Agreement. He collected $48,161 over two years.

These men are highly specialized professionals. But when every state agency knows that every employee is headed out the door in as soon as 20 years, how is it that adequate replacements can't be trained? The idea that so many people are irreplaceable within an organization as large as a state government seems far-fetched.

And call us crazy for not buying the argument that such deals save taxpayers money. When the work isn't put out to bid and the contracts are rubber-stamped by the state Board of Examiners, that's not a procedure that puts the public's interests first.

This situation highlights why Nevada needs pension reform. The current, defined-benefit system practically shoves productive workers out the door. A defined-contribution, 401(k)-style system, in which workers manage their own retirement savings -- and taxpayers are off the hook -- lets employees decide when they're ready to retire, and when it makes sense to keep working. Gov. Brian Sandoval proposed such a switch in his State of the State address.

When the Legislature is scraping for every dollar and considering tax increases to balance the budget, someone must take accountability for a questionable process that is getting mighty expensive.