LVCVA

Important Update from Carson City: Info. on PERS

After months of discussion and days of fiery debate, the Legislature has reached consensus on a tax bill that is heading to Gov. Gibbon’s desk for approval. The tax bill will address the massive state budget deficit and also contains some minor but notable modifications to the Public Employee Retirement System.

Note: No changes to PERS for current employees. These proposed changes to PERS will only apply to new hires beginning on or after January 1, 2010.

The changes include the following:

1. Employees with an effective date of employment on or after 1/1/2010 will determine retirement allowance by multiplying average compensation by 2.5% (prior 2.67%).

2.Increase the age at which an employee can retire (beginning 1/1/2010), with 10 years of service, from 60 to 62 years of age.

3. Increase the reduction of unmodified benefits for each year to 6% (from 4%) and each month to 0.5% (from 0.33%), that the employee is under the appropriate retirement age. *Note: This will only increase the penalty for those who choose to retire early.*

4. In calculating the average compensation, the following limits must be observed:

-Compensation for the 13th through the 24th months may not exceed the actual compensated amount for the 1st through the 12th months by more than 10%.

-Compensation for the 25th through the 36th months may not exceed by more
than 10% the lesser of:

-The maximum amount allowed (on or after July 1, 1985 = not more than 75% of average compensation with eligibility for credits ceasing after 30 years. (Prior to July 1, 1985 = not more than 90% of average compensation with eligibility for credits ceasing after 36 years.)

- The actual compensated amount for the 13th through the 24th month.

* Compensation attributable to a promotion and assignment related compensation must be excluded when calculating the limits.*

*Employees whose retirement allowances are so limited will be eligible to receive a refund for a portion of their contribution to the system.*

5. Post retirement increases capped at 4%.

6. PERS must post on its website any document that a public employer is required to submit to the System on or after January 1, 2010 relating to the contribution mechanism used by the public employer.

Again, no changes to PERS for current employees. These proposed changes to PERS will only apply to new hires beginning on or after January 1, 2010. Though there have been some small modifications, these in no way mirror the Chamber of Commerce’s goal to completely dismantle the Public Sector Retirement System.

We will share more information as it becomes available.

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LVCVA Members Overwhelmingly Vote YES to Ratify Contract!

Our goals from the beginning of negotiations were to maintain our economic structure, accept no takebacks and improve contract language.

Now, after months of hard fought negotiations, LVCVA members overwhelmingly ratified our contract.

Contract Highlights:

• No Takeaways!
• Wages: Total COLA: 3.5% : 1/09 – 1%, 7/09 – 1.5%, 1/10 – 1%
• Maintain Step Increases – 4%
• Maintain Longevity
• Maintain 100% Employer Paid Health Coverage
• Maintain Holidays/ PTO
• Creation of a committee to discuss alternate work schedule.
• Greater Flexibility for PTO Buy Back
• Wage reopener in 2010, 2011 and 2012. 

Congratulations!
For more info. contact a Bargaining Team Member or Javier Cabrera at 210-3706.

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