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PEP staff report reserves below actuarial targets; board approves Q4 budget report
Summary
Staff told the board PEBB reserves were below recommended levels as of June 30, 2025, and that planned legislative budget adjustments would help; Michelle Whelan said the program is about $37 million over budget authority for the year. The board approved the quarter‑4 budget report after Q&A.
At the July 31 meeting of the Public Employees Benefits Program board, staff reported that PEBB reserves as of June 30, 2025, were below actuarial recommended levels and that medical, dental and prescription claims accounted for higher than budgeted expenditures.
Michelle Whelan told the board that the program is approximately $37,000,000 over its budgeted authority for the fiscal year because medical, dental and Rx expenses were higher than anticipated; she said some legislative budget changes in the recent biennium were intended to restore reserves. Board members asked for actuary‑recommended reserve targets and mitigation strategies; Whelan said she would provide the actuaries’ recommended reserve numbers before the end of the day and that longer‑term mitigation will need discussion with Nevada Health Authority leadership, the actuaries and the governor’s office.
After discussion, the board moved to approve the quarter‑4 budget report (agenda item 6.2.0.1) and adopted it by voice vote.
What this means: The board acknowledged a near‑term reserve shortfall and approved the report; staff will bring more detailed reserve targets and mitigation proposals, including actuarial analyses and potential premium or plan design responses, to future meetings.
