PERS seeks broader tools to collect delinquent employer contributions

Senate Bill 418 would give the Nevada Public Employees' Retirement System (PERS) additional mechanisms to collect overdue contributions from public employers, PERS officials said at a Senate Government Affairs Committee hearing. Teresa Chalmers, Chief Administrative Analyst for PERS, and Ian Carr, general counsel, outlined how delayed employer payments harm employees' credited service and the retirement trust fund.

The bill would amend existing collection procedures so that when an employer is more than 90 days delinquent PERS would notify the agency that has statutory authority over that employer — for example, the State Board of Examiners for executive-branch entities, the Office of Court Administrator for the judicial branch, the Legislative Counsel Bureau director for the legislative branch, the Department of Taxation for local governments, and the Superintendent of Public Instruction for school districts and charter schools. The measure would also add statutory mechanisms allowing the superintendent to intercept per-pupil allocations to cover charter-school delinquencies and would clarify the State Board of Examiners’ authority to expend contingency funds for certain payments. PERS representatives said the changes aim to protect both employee accounts and the trust fund’s investment base.

PERS officials told the committee that most employers remit contributions on time but that some do not. "This bill is important for the protection of all public employees' retirement accounts and the trust fund," Teresa Chalmers said, explaining that payroll reports and contributions are needed before PERS can credit service or employee contributions. Ian Carr, PERS general counsel, told senators the Department of Taxation’s existing collection route is effective for many local governments but lacks jurisdiction over some employers — notably charter schools and other entities that draw funds from nontraditional sources.

PERS staff described recent delinquencies: over the past two years the system tracked nine public employers that were 90 days to one year late; two charter schools currently are on board‑approved payment plans with a combined balance due of $486,682 (one school: $231,425; the other: $255,257). PERS said late remittances delay employees’ ability to obtain service credit or to withdraw contributions and can reduce the trust fund’s investment opportunities, affecting cash‑flow management.

The bill would amend NRS provisions governing contributions and collections (PERS staff cited NRS chapter 286 provisions on employer and employee contributions and the requirement to report payroll and remit contributions on a monthly basis). PERS described section‑by‑section changes to require notification to the appropriate authority when an employer is delinquent more than 90 days and to authorize interception or other recovery procedures tailored to the employer type. PERS staff said the Department of Taxation has been responsive where it has jurisdiction but that alternative authorities are needed in cases the Department cannot reach.

Witnesses who testified in support included Todd Inglesby, president of Professional Firefighters Nevada and a PERS board member, who said the change is necessary to protect members’ retirement benefits; and Brian Wallace of the Nevada State Education Association, who noted the bill directs the superintendent to deduct delinquent PERS amounts from per‑pupil allocations for charter schools once notified by PERS. No opponent witnesses appeared during the hearing. Committee members asked PERS staff for clarification of current practice, examples of delinquent amounts, and whether payment plans have been honored; PERS said the two charter schools on plans have complied with their payment schedules.

The committee held the bill's public hearing; no committee vote was recorded during the session. PERS staff stood by for questions and indicated they had not received prehearing formal objections from employers. The bill as introduced would be effective on passage and approval.