Existing law establishes a system of retirement, known as the Public Employees' Retirement System, to provide benefits for the retirement, disability or death of employees of certain public employers. (NRS 286.110) Generally, a consequence of a retired member of the System accepting employment or an independent contract with a public employer under the System is that the member is disqualified from receiving the member's retirement allowances under the System for the duration of the employment or contract. (NRS 286.520, 286.523) Existing law provides exemptions from this consequence for retired members who accept employment or enter into a contract with certain public employers or who fill positions for which there is a critical labor shortage. (NRS 286.520, 286.523, 286.525) This bill adds an additional exemption from this consequence for a retired member who accepts employment or an independent contract to fill a full-time position eligible for membership with a public employer under the System that is a city whose population is less than 25,000 (currently all cities other than Carson City, Henderson, Las Vegas, North Las Vegas, Reno and Sparks) or a county whose population is less than 100,000 (currently all counties other than Clark and Washoe Counties) if: (1) the retired member previously had not been employed by or entered into an independent contract with the public employer; (2) at the time that the retired member accepts the employment or contract, the public employer does not employ or have an independent contract with more than four retired members who hold the exemption authorized under this bill; and (3) the retired member does not reenroll in the System. This bill requires the public employer of such an exempt retired member to pay contributions to the System in relation to the exemption at the total contribution rate that the public employer would pay for a public employee participating in the System who is employed in a similar position and elected to have the employee's portion of the contribution paid by the public employer.

Statutes affected:
As Introduced: 286.520
BDR: 286.520