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Nevada board sets 10% auto‑escalation cap for NEST retirement program
Summary
The Board of Trustees for the Nevada Employee Savings Trust voted Feb. 26 to set a 10% auto‑escalation cap for the NEST program after staff recommended aligning with most other states; the motion passed unanimously.
The Board of Trustees of the Nevada Employee Savings Trust voted Feb. 26 to set the program's automatic contribution escalation cap at 10 percent.
Michael Pelham of the State Treasurer's Office told the board that a survey of other states' auto‑escalation caps showed most programs use a 10 percent limit and that early adopter states such as Oregon currently average saver rates above 7 percent. "So we recommend ten percent," Pelham said during the meeting.
Member Joe Caldera moved to adopt the 10 percent cap; Members Mary Beth Sewald and Andy Kao and Treasurer Zach Conine voted aye and the motion passed unanimously. Treasurer Conine noted that, unlike some states where caps are set in statute, this board can adjust the cap in the future if new information warrants a change.
The board's decision sets a ceiling for how high annual automatic increases can raise a worker's contribution rate. Implementation details for when escalations begin and the default step amount remain part of program design materials being finalized by staff and the program administrator, Vestwell.
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