The Nevada Legislature is once again considering potential changes to the Public Employees’ Retirement System (PERS), and public service employees across the state, and their spouses, should be keeping a close watch. While no immediate decisions have been made, legislation surrounding benefits could impact both current and future retirees.
What’s on the Table?
Although details remain fluid, some key points being discussed include:
- Possible Benefit Freezes – A possible major change in the way PERS benefits are divided in divorce was brought before the Senate Legislative Committee. A number of family lawyers from Reno and Las Vegas, including Silverman Kattelman Springgate partner John Springgate testified to the Committee on the way in which PERS benefits are divided on divorce now, and how the proposed legislation would severely impact spouses in the event of divorce, causing greatly increased litigation costs, and unfair results.
What This Means for Public Service Employees
For those currently paying into the system or planning for retirement, the method of division of retirement in divorce remains the “time rule,” and the “wait and see” approach, where the marital portion is divided based upon the amount of time in the system while married, but the exact payout has to wait until the amount of retired pay is known. Protection of these interests is governed by a Qualified Domestic Relations Order, which is ordered in the divorce, and then held by PERS.
Stay Informed and Engaged
A public employee retirement plan can be one of the largest assets in a marriage, so make sure that your attorneys are experienced in helping plan for division and protection of those assets in a possible divorce, with some nuances that make them different from other assets. The attorneys at Silverman Kattelman Springgate, Chtd. look forward to helping you with these matters.