Public Employees Benefits Program adjusts reserves amid budget shortfall

The Public Employees Benefits Program (PEBP) Board convened on May 22, 2025, to address critical financial adjustments and updates on open enrollment that directly impact Nevada's public employees.

During the meeting, Executive Officer Celestina Glover reported a significant budget shortfall affecting the program's reserves. Over the past three years, PEBP has faced challenges with both expenditures and revenue, leading to a necessary reduction in reserves for incurred but not reported (IBNR) and catastrophic expenses. Glover explained that the adjustments were essential to balance the budget, as the program no longer has excess reserves to draw from. This decision reflects a broader trend of financial constraints that could affect the benefits available to public employees in the coming years.

The board unanimously approved the motion to adjust the reserves, indicating a collective acknowledgment of the financial realities facing the program. This decision is crucial as it sets the stage for how PEBP will manage its resources moving forward, particularly in light of the ongoing budgetary pressures.

In addition to financial discussions, Glover provided an update on the open enrollment period, which is currently underway and will close shortly. She noted a shift in enrollment patterns, with many members transitioning from traditional plans to lower deductible options. This trend suggests that public employees are actively seeking more affordable healthcare solutions, which could have lasting implications for the program's structure and funding.

As the meeting concluded, the board emphasized the importance of these decisions in ensuring that public employees continue to receive the benefits they rely on. The adjustments to reserves and the ongoing enrollment trends highlight the need for careful financial planning and responsiveness to the needs of Nevada's public workforce.