Assembly committee approves revamped benefits committee

SB544 would expand membership from five to nine members. And it would take away the power of the State of Nevada Employee's Association to name two members.

Instead, there would be a number of members from different groups in the plan including some one from the university system, some one recommended by state employee unions, a retired public employee and two from outside the public benefits system - hopefully with some expertise in insurance or another subject related to managing benefits plans.

And all of the members would serve four year terms at the pleasure of the governor - who could remove them for cause.

The committee made a series of amendments to the original bill passed by the Senate. Key changes include to prohibit groups of employees from pulling out of the plan until at least January 2001 and allowing the governor to name the head of the Public Employees Retirement Union or another management expert from his administration if he chooses.

Amendments would also combine the interim legislative committee on retirement with the bill's original proposed interim benefits committee since they would deal with many similar issues.

The existing benefits committee, consisting of two SNEA appointed members, two by the governor and the head of the Department of Administration, has been suspended from operation while a governor's task force works on repairing administration of the employee health benefits program.

That committee has been blamed at least in part for the financial difficulties suffered by the benefits plan. That plan went from a $26 million surplus two years ago to practically bankrupt.

L&H Administrators, the company contracted to pay employee benefit claims, collapsed, leaving upwards of 100,000 claims unprocessed. And criminal fraud charges were filed against one of that company's employees.

The governor and lawmakers have agreed they must financially restore the plan. They appropriated $10 million to that cause earlier in the session and the money committees approved the remaining $16 million needed for the bailout earlier this week.

At the same time, premiums paid by the state and by retired workers went up more than 20 percent in January to ensure there is enough money coming into the plan to support its expenses.

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