Under a defined benefit plan, retirees are guaranteed a monthly amount based on their salary and how long they've worked. Monthly benefits under a contribution plan are based on how much is put into an individual retirement account, but the benefits are portable, meaning an employee can take that money with them if they leave public service.
Kirner estimated his proposal would save $30 million in the last half of the two-year budget cycle because the state's contribution rate would be lower. He also said it would help reduce the Public Employee Retirement System's $11.2 billion unfunded liability.
On public works projects, Assistant Assembly Minority Leader Crescent Hardy, R-Mesquite, said he's sponsoring a bill that would exempt school projects from prevailing wage laws â¿¿ a requirement Republicans argue are inflated by union wages and not reflective of the overall labor market.