Nevada Supreme Court Upholds Rights of State Employees to Additional Pension When Privatized
In a suit assisted by the State of Nevada Employees Association (AFSCME), DCB recently obtained a state supreme court ruling holding that state employees are entitled under state statute to obtain additional pension service credit when their agencies are privatized, even if at the time they are only eligible for early retirement. This ruling will mean that several million dollars are owed by the private company which took over the operation from the state. In Cable v. EICON, 122 Nev. Adv. Op. No. 12 (2/9/06), the Nevada Supreme Court held that these privatized workers were entitled to receive 5 years additional pension service credit under a statute making such a benefit available when a state agency “reduces the number of employees”. The dissenters contended the statute not applicable when the entire agency is privatized. The decision for the 4-3 majority was written by Justice Michael Douglas.