AB27 - Revises provisions relating to the Public Employees' Retirement System. (BDR 23-436)

A.B. 27 - *AB27* ASSEMBLY BILL NO. 27–COMMITTEE ON GOVERNMENT AFFAIRS (ON BEHALF OF BOULDER CITY) PREFILED NOVEMBER 13, 2024 ____________ Referred to Committee on Government Affairs SUMMARY—Revises provisions relating to the Public Employees’ Retirement System. (BDR 23-436) FISCAL NOTE: Effect on Local Government: May have Fiscal Impact. Effect on the State: Yes. ~ EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. AN ACT relating to the Public Employees’ Retirement System; exempting, in certain circumstances, retired members of the System who accept employment or an independent contract with certain public employers from certain provisions governing the employment of such retired members; and providing other matters properly relating thereto. Legislative Counsel’s Digest: Existing law establishes a system of retirement, known as the Public 1 Employees’ Retirement System, to provide benefits for the retirement, disability or 2 death of employees of certain public employers. (NRS 286.110) Generally, a 3 consequence of a retired member of the System accepting employment or an 4 independent contract with a public employer under the System is that the member is 5 disqualified from receiving the member’s retirement allowances under the System 6 for the duration of the employment or contract. (NRS 286.520, 286.523) Existing 7 law provides exemptions from this consequence for retired members who accept 8 employment or enter into a contract with certain public employers or who fill 9 positions for which there is a critical labor shortage. (NRS 286.520, 286.523, 10 286.525) This bill adds an additional exemption from this consequence for a retired 11 member who accepts employment or an independent contract to fill a full-time 12 position eligible for membership with a public employer under the System that is a 13 city whose population is less than 25,000 (currently all cities other than Carson 14 City, Henderson, Las Vegas, North Las Vegas, Reno and Sparks) or a county 15 whose population is less than 100,000 (currently all counties other than Clark and 16 Washoe Counties) if: (1) the retired member previously had not been employed by 17 or entered into an independent contract with the public employer; (2) at the time 18 – 2 – - *AB27* that the retired member accepts the employment or contract, the public employer 19 does not employ or have an independent contract with more than four retired 20 members who hold the exemption authorized under this bill; and (3) the retired 21 member does not reenroll in the System. This bill requires the public employer of 22 such an exempt retired member to pay contributions to the System in relation to the 23 exemption at the total contribution rate that the public employer would pay for a 24 public employee participating in the System who is employed in a similar position 25 and elected to have the employee’s portion of the contribution paid by the public 26 employer. 27 THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS: Section 1. NRS 286.520 is hereby amended to read as follows: 1 286.520 1. Except as otherwise provided in this section and 2 NRS 286.525, the consequences of the employment of a retired 3 employee are: 4 (a) A retired employee who accepts employment or an 5 independent contract with a public employer under this System is 6 disqualified from receiving any allowances under this System for 7 the duration of that employment or contract if: 8 (1) The retired employee accepted the employment or 9 contract within 90 calendar days after the effective date of the 10 employee’s retirement; or 11 (2) The retired employee is employed in a position which is 12 eligible to participate in this System. 13 (b) If a retired employee accepts employment or an independent 14 contract with a public employer under this System more than 90 15 calendar days after the effective date of the employee’s retirement in 16 a position which is not eligible to participate in this System, the 17 employee’s allowance under this System terminates upon the 18 employee’s earning an amount equal to one-half of the average 19 salary for participating public employees who are not police officers 20 or firefighters in any fiscal year, for the duration of that employment 21 or contract. 22 (c) If a retired employee accepts employment with an employer 23 who is not a public employer under this System, the employee is 24 entitled to the same allowances as a retired employee who has no 25 employment. 26 2. The retired employee and the public employer shall notify 27 the System: 28 (a) Within 10 days after the first day of an employment or 29 contract governed by paragraph (a) of subsection 1. 30 (b) Within 30 days after the first day of an employment or 31 contract governed by paragraph (b) of subsection 1. 32 – 3 – - *AB27* (c) Within 10 days after a retired employee earns more than one- 1 half of the average salary for participating public employees who 2 are not police officers or firefighters in any fiscal year from an 3 employment or contract governed by paragraph (b) of subsection 1. 4 3. For the purposes of this section, the average salary for 5 participating public employees who are not police officers or 6 firefighters must be computed on the basis of the most recent 7 actuarial valuation of the System. 8 4. If a retired employee who accepts employment or an 9 independent contract with a public employer under this System 10 pursuant to this section elects not to reenroll in the System pursuant 11 to subsection 1 of NRS 286.525, the public employer with which the 12 retired employee accepted employment or an independent contract 13 may pay contributions on behalf of the retired employee to a 14 retirement fund which is not a part of the System in an amount not 15 to exceed the amount of the contributions that the public employer 16 would pay to the System on behalf of a participating public 17 employee who is employed in a similar position. 18 5. If a retired employee is chosen by election or appointment to 19 fill an elective public office, the retired employee is entitled to the 20 same allowances as a retired employee who has no employment, 21 unless the retired employee is serving in the same office in which 22 the retired employee served and for which the retired employee 23 received service credit as a member. A public employer may pay 24 contributions on behalf of such a retired employee to a retirement 25 fund which is not a part of the System in an amount not to exceed 26 the amount of the contributions that the public employer would pay 27 to the System on behalf of a participating public employee who 28 serves in the same office. 29 6. The System may waive for one period of 30 days or less a 30 retired employee’s disqualification under this section if the public 31 employer certifies in writing, in advance, that the retired employee 32 is recalled to meet an emergency and that no other qualified person 33 is immediately available. 34 7. A person who accepts employment or an independent 35 contract with: 36 (a) Either house of the Legislature or the Legislative Counsel 37 Bureau; 38 (b) The Nevada Gaming Commission as a Commissioner 39 appointed by the Governor; or 40 (c) The Nevada Court System as a senior justice, senior judge, 41 senior justice of the peace or senior municipal judge, 42  is exempt from the provisions of subsections 1 and 2 for the 43 duration of that employment or contract. 44 – 4 – - *AB27* 8. A person who accepts employment with a volunteer fire 1 department of which all the volunteers have become members of the 2 System pursuant to NRS 286.367 is exempt from the provisions of 3 subsections 1 and 2 for the duration of that employment. 4 9. A person who accepts employment or an independent 5 contract to fill a full-time position that is eligible for membership 6 with a public employer under this System that is a city whose 7 population is less than 25,000 or a county whose population is less 8 than 100,000 is exempt from the provisions of subsections 1 and 2 9 for the duration of that employment or contract if: 10 (a) The person previously had not been employed by or entered 11 into an independent contract with the public employer; 12 (b) At the time at which the person accepts the employment or 13 contract with the public employer, the public employer does not 14 employ or have an independent contract with more than four 15 persons who are exempt from the provisions of subsections 1 and 16 2 pursuant to this subsection; and 17 (c) The person does not reenroll in the System. 18  The public employer of a person who is exempt from the 19 provisions of subsections 1 and 2 pursuant to this subsection shall 20 pay contributions to the System in relation to the exemption for 21 the duration of the person’s employment or contract at the total 22 contribution rate that the public employer would pay for a 23 participating public employee who is employed in a similar 24 position and elected to have the employee’s portion of the 25 contribution paid by the public employer. 26 H