Posts tagged Nevada Supreme Court
NEA Keeps Trying to Punish Las Vegas Union for Seceding, and Keeps Failing
April 4, 2023 // CCEA’s staffers belonged to the Employees’ Retirement Plan of the National Education Association, as do most NEA affiliate staffers. When CCEA disaffiliated, it had to also withdraw from NEA’s pension system. The national union then levied a charge for CCEA’s portion of the system’s unfunded liabilities. All of this is normal and proper operating procedure. Where NEA went rogue was in computing that charge. Without getting too far into the weeds, the plan’s actuaries must compute the discount rate — that is, as the U.S. District Court for the District of Columbia called it “the rate at which the plan’s assets will grow ‘by the miracle of compound interest’.” The higher the discount rate computed, the less the unfunded liability, and vice versa. The NEA staff pension actuaries computed a discount rate of 5%, and sent CCEA a bill for $3,246,349. The local union thought this excessive and, as required by law, brought the dispute to arbitration.