Nevada’s pension funding level is below the norm for the 50 states, and it faces a fairly significant liability for non-pension benefits. These costs, principally for retiree health care, were projected to rise 20% from 2008 to 2009, according to information presented to the Nevada legislature in early 2007. If the state moves toward pre-funding its non-pension liability, the required annual contribution would be about four times the pay-as-you-go cost. But moving toward full funding would be smart fiscal practice because it would reduce the long-term bill considerably, from $4.1 billion to $1.6 billion. This is because the interest the state is likely to earn when it invests more money over the long term can be applied to paying down the bill.