Nevada gov. wants to scrap retiree health benefits

Aiming to save Nevada $500 million over the next 30 years, Gov. Kenny Guinn plans to press lawmakers to cut retirement health benefits for new state employees, an aide said on Thursday.

Guinn’s plan would not affect current or retired state employees, but would discontinue retirement health benefits for new hires, said spokesman Greg Bortolin.

A date for the plan to go into effect would be set during negotiations with lawmakers, Bortolin said.

Both houses of Nevada’s legislature, which opens its session on February 7, must endorse the Republican governor’s plan. Democrats control the state Assembly and Republicans control the state Senate.

Retirement costs for state workers are of growing concern to governors and lawmakers across the United States.

In neighboring California, Gov. Arnold Schwarzenegger has borrowed a page from White House plans to privatize Social Security partially by proposing to put new public employees in defined-contribution retirement plans with private accounts.

The accounts would be similar to private-sector 401(k) retirement plans. By requiring state workers to fund their retirement, California could save billions of dollars.

Public employee unions have vowed to fight Schwarzenegger’s plan, which he may put to voters as a ballot measure.

Groups representing Nevada’s public employees are not impressed by Guinn’s proposal. “Obviously, this isn’t something we would be behind,” said Claudia Briggs, a spokeswoman for the Nevada State Education Association, a teachers’ union.

Provided by ArmMed Media
Revision date: July 5, 2011
Last revised: by Andrew G. Epstein, M.D.