At the January 20th meeting of the Nevada Public Employees’ Benefits Program (PEBP) Board, the Nevada Faculty Alliance highlighted several concerns about the program’s long‑term financial outlook based on new data from PEBP's actuary, the Segal Group.

The Segal report shows that PEBP’s reserves are tens of millions of dollars lower than recommended, as has previously pointed out by NFA. Future revenue projections for FY2028–29 appear flat while healthcare costs continue to rise, anticipating a potential funding crisis at PEBP if trends continue.

Segal also outlined an employee premium increase of 84% that would be needed to rebuild reserves in a single year in FY 2027. The NFA suggested that a gradual, multi‑year approach would help avoid large swings in participant premiums.

The report further noted long‑standing pricing inconsistencies among PEBP’s three health plan options. Recent enrollment shifts should have been revenue‑neutral under Board policy, but the report indicates they were not. The NFA encouraged a closer look at how these discrepancies developed.

Other trends—such as enrollment growth influencing revenue figures—indicate that more time is needed to fully understand the program’s current trajectory. Comparisons with other Western states show Nevada’s benefits are generally middle‑of‑the‑pack, though family‑tier premiums remain notably high.

The NFA emphasized that rebuilding reserves and realigning plan pricing will likely require coordination with the Governor and Legislature and recommended continued discussion in upcoming committee meetings.

PEBP will report to the legislature at the Interim Retirement and Benefits Committee on January 27 and a special PEBP Board meeting to consider additional changes in plan benefits is tentatively scheduled for February 18. Public comments from members are encouraged at both meetings.

Contacts for additional information: Kent Ervin, kent.ervin@nevadafacultyalliance.org; Doug Unger, doug.unger@nevadafacultyalliance.org