Nevada Newspaper: State Pension Needs Disability Reform

magnifying glass over twenty dollar bill

The editorial board of the Las Vegas Review-Journal called on lawmakers Tuesday to deal with the “outrageous abuses” it says are plaguing the state’s disability pension system.

From the Review-Journal:

We know the Public Employees Retirement System of Nevada provides retirement benefits to people who aren’t retired. But did you know the taxpayer-funded pension plan also provides disability benefits to former government workers who aren’t disabled?

[…]

The Review-Journal exposed the PERS disability giveaways last year in an investigation of the termination of Las Vegas police officer Jesus Arevalo. On Oct. 15, 2013, Mr. Arevalo became the first Metropolitan Police Department officer to be fired over an improper use of deadly force. In 2011, he killed Stanley Gibson, an unarmed, mentally ill Gulf War veteran who became lost while driving around an apartment complex parking lot. That tragedy, which followed a Review-Journal investigative series on police use of deadly force, led to major changes in department training, policies and oversight — and a $1.5 million settlement for Mr. Gibson’s widow.

Mr. Arevalo was on paid suspension for almost two years while termination proceedings played out. But weeks before his firing was finalized, Mr. Arevalo submitted disability retirement paperwork — for stress related to his firing and the shooting that prompted his firing. The “retirement” was approved by his immediate supervisor, a personal physician, the PERS board and the pension agency’s doctor.

Mr. Arevalo, who was 36 at the time of his firing, will collect about $2,500 per month for the rest of his life, plus cost of living increases. Over 35 years, he could collect more than $1 million.

Anyone who receives federal disability benefits or long-term disability benefits through a private insurer isn’t supposed to work. But Mr. Arevalo’s disability claim applies only to police work. He can collect his PERS disability benefits and work in another field.

Read the entire editorial here.

 

Photo by TaxRebate.org.uk

Probe of Petrobras Turns to Pension Fund

Brazil

An investigation into corruption at Petrobras, Brazil’s state-run oil company, has taken a new turn: investigators are now looking into the company’s pension fund, although details are unknown.

From Reuters:

Brazil’s state-run oil company Petrobras on Monday said a growing corruption scandal may implicate its employee pension fund and has led to a freeze on payments to 23 contractors allegedly involved in the scheme.

Petros, the 66 billion real ($24 billion) employee-pension fund of Petroleo Brasileiro SA, as Petrobras is formally known, was singled out by an internal investigation, Petrobras said in a statement.

The law firms that are conducting the internal investigation “have found possible links to the facts that have been investigated” regarding the pension fund, according to the statement.

It did not give details of any possible links.

The investigation was launched after Brazilian prosecutors alleged that Petrobras executives conspired with construction companies to inflate the cost of contracts and then kick back proceeds to executives, politicians and political parties as bribes and campaign contributions.

Last month, Petrobras was fined by Brazil’s security regulator for violating rules regarding the election of board members of Brazilian companies in which the pension fund is invested.

Video: Lawmaker Calls for Investigation into Jacksonville Police and Fire Pension

video platformvideo managementvideo solutionsvideo player

Florida State Representative Janet Adkins called this week for state Governor Rick Scott to consider launching an investigation into possible misconduct at the Jacksonville Police and Fire Pension Fund.

According to Rep. Adkins, the investigation would focus on:

– Why “a special pension plan…was designed for one or two beneficiaries”

– Whether rules and laws have been broken “in regards to the creation, management and regulation of the DROP accounts”

Watch the video for more.

 

Cover photo by pshab via Flickr CC License

Chart: How Much Are CalPERS’ Board Members Paid?

CalPERS graphic

The above graphic comes from a new Sacramento Bee investigation into CalPERS’ compensation policies, which at least one expert called “highly irregular”. The full investigation can be read here, but the above graphic gives an overview of the how much the pension fund’s board members get paid.