Nevada trustees approve core NEST design: 5% default, Roth default and auto‑escalation

The Nevada Employee Savings Trust (NEST) board voted Jan. 24 to approve several core program design recommendations aimed at launching the state’s auto‑IRA program. The board approved staff proposals for a 5% default contribution rate, a Roth IRA as the default account type, automatic annual escalation of contributions after six months in the program, and a $4 state dollar‑based fee to help sustain operations.

Deputy Treasurer Lesley Mohlenkamp outlined staff’s rationale and said the recommended 5% default balances asset accumulation against participant burden: "Five percent is our recommendation," she told the board. Vestwell representative Courtney Eccles and AKF consultant Andrea Feirstein added that other state programs commonly use a 5% default and that opt‑out rates have been similar across programs with different defaults.

The board approved the bundle of staff recommendations by voice vote after Member William H. Palmer III moved the motion; Treasurer Zach Conine declared the motion "passed unanimously." Members noted that many of the design choices can be adjusted as Nevada gathers participant data during rollout. Deputy Mohlenkamp emphasized the board retains the authority to revisit any elements: staff said the board can change design choices based on real‑world participation and demographic data before or after launch.

The board deferred two items — the maximum cap on auto escalation and whether to enable self‑enrollment for individuals — for further study and to collect additional Nevada‑specific data. Treasurer Conine said the deferral is intended to allow staff time to provide more detail and to ensure a smoother employer‑facing rollout.

Board members and staff agreed the decisions provide a workable baseline to meet the program’s implementation timeline while reserving flexibility to refine parameters as Nevada begins enrollment and a pilot.