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AB 232

Makes changes to the computation of credit for service for certain members of the Public Employees' Retirement System. (BDR 23-402)

2025 Regular Session

AB 232 bills full-year PERS service credits for school district employees who work at least 900 hours over 8 months, with proportional credits for shorter terms.

Approved by the Governor. Chapter 116.
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Bill Summary · AB 232

AB 232 — Summary (BDR 23-402)

Status: Approved by the Governor (Chapter 116). Enrolled 5/27/2025; Approved 5/29/2025. Effective date: July 1, 2025.

Purpose / Intent

AB 232 revises how members of the Nevada Public Employees’ Retirement System (PERS) who work for school districts (and certain NSHE employees) are credited for a “year” of service. The change is intended to provide equitable retirement service credit to Education Support Professionals (ESPs) and other part‑year school employees who perform substantial work during the school year but historically did not receive full-year PERS credit.

Key provisions

  • Amends NRS 286.501 and makes a conforming change to NRS 286.481.
  • Establishes that a member employed by a school district (and professional NSHE staff employed less than 12 months) is credited with a full year of service if the member works:
    • At least 900 hours, and
    • Over the course of not less than 8 calendar months in a school year.
  • Employment below that threshold is credited proportionally (statute continues to provide a ratio — e.g., one and one‑third days of credit per day worked, per existing law).
  • A full year of service is not actually credited until the full 12‑month period has expired; overlapping contracts are handled per existing certification rules.
  • Preserves the rule that no member may receive less credit than was available under prior law.
  • Effective July 1, 2025.

Who is affected

  • Primary beneficiaries: school district employees who are members of PERS and work part‑year schedules — commonly described as Education Support Professionals (paraprofessionals, bus drivers, custodians, nutrition staff, clinical aides, library aides, IT and maintenance staff, etc.).
  • Also affects certain professional staff at the Nevada System of Higher Education employed for academic (less‑than‑12‑month) terms.
  • Local governments/school districts: may experience fiscal impacts through changes in employer retirement liabilities and contribution calculations.

Fiscal and procedural notes

  • Fiscal note: “May have fiscal impact” on local government; no fiscal effect on the State was reported.
  • Support: Nevada State Education Association and multiple ESPs argued the change is equitable and helps recruitment/retention; proponents often describe it as cost‑neutral for districts because contributions are salary‑based.
  • Opposition/concern: Some policy groups and commenters warned it could increase long‑term PERS liabilities and fiscal risk for local taxpayers.
  • Legislative actions: Passed both houses, amended during session (including language specifying the 8‑month minimum), enrolled and delivered to the Governor; effective July 1, 2025.

Compiled from official sources — confirm details with the bill’s official record.

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