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AB 27 would let small Nevada jurisdictions hire retirees without suspending PERS benefits, with limits
Summary
AB 27 would let retirees collect their Public Employees' Retirement System allowances while working for certain small Nevada jurisdictions, subject to limits such as a five‑hire cap per employer and a ban on returning to the same prior position for the same employer, Boulder City representatives told the committee.
Boulder City officials told the Assembly Government Affairs Committee on Feb. 20 that AB 27 would create a narrow exception allowing retired PERS members to accept employment with small local jurisdictions while continuing to receive retirement allowances, subject to limits intended to prevent abuse.
Brittney Walker, Boulder City attorney, described the bill as tailored to small rural employers that struggle to recruit experienced workers for specialized municipal positions. Under the bill draft presented, eligible employers would be cities with populations under 25,000 and counties under 100,000. Protections would include a limit of five returning retirees per public employer, no return to the exact same position from which the retiree last collected benefits, and continued employer PERS contributions (the retiree would not re‑enroll in PERS while receiving retirement allowances).
Boulder City Mayor Joe Hardy and city representatives said the measure stemmed from repeated turnover in specialized positions (public works, finance, building official) and the county’s inability to competitively match valley salaries. “We believe AB 27 would provide smaller rural local governments an opportunity to hire qualified and experienced individuals from Nevada while keeping PERS whole and providing safeguards to prevent any abuse to the system,” Mayor Joe Hardy said.
Supporters and concerns raised - Support: The city of North Las Vegas and the Nevada Association of Counties testified in support, saying the bill strengthens smaller communities’ options to recruit experienced public employees. - PERS reaction: Tina Liss, executive officer of the Public Employees' Retirement System, told the committee staff recommended a neutral position to the PERS board. She said the system’s actuary concluded the bill — as narrowly drafted — would not have a measurable cost, but cautioned return‑to‑work exceptions carry operational and Internal Revenue Code compliance risks if broadened. - Opposition: The Professional Firefighters of Nevada testified in opposition, raising fairness and “double‑dipping” concerns and suggesting the existing critical‑shortage exemption may be a preferable tool.
Why it matters: The bill seeks to broaden hiring options for small jurisdictions and to ease staffing by allowing retired, experienced in‑state candidates to accept municipal jobs without forfeiting pension allowances. Legislators questioned fairness and asked whether an actuarial analysis had been completed; PERS staff said the actuary had issued an opinion that the bill’s limits produced no measurable cost under current drafting.
Ending: Sponsors offered to provide additional information to the committee and PERS will consider the bill at its board meeting; no committee vote was recorded at the hearing.
