PERS Must Count Negotiated Holiday Pay for Contributions

Legal Update: Public Employees’ Retirement System v. Las Vegas Police Managers and Supervisors Association, 579 P.3d 551, 141 Nev. Adv. Op. 55 (Nov. 13, 2025).

Background

Las Vegas law-enforcement associations negotiated paid holidays—including Christmas Eve, New Year’s Eve, and Juneteenth—and corresponding holiday-pay rates. PERS refused to collect increased retirement contributions on that pay because some dates were not included in Nevada’s statutory holiday list and PERS was not a party to the collective bargaining agreements.

The Court’s Decision

On en banc reconsideration, the Supreme Court affirmed judgment for the associations. The Court held that “holiday” in the relevant PERS and collective-bargaining statutes is not limited to statutory “legal holidays.” Public-employee associations have authority under NRS 288.150 to negotiate holidays, and qualifying holiday pay falls within statutory compensation for PERS purposes.

PERS therefore had to collect contributions on pay for the negotiated Christmas Eve and New Year’s Eve holidays. The Court also concluded that Juneteenth qualified as a legal holiday before Nevada expressly added it to the state list in 2023, requiring contributions under the agreements at issue.

Limits of the Holding

The decision does not allow collective bargaining to redefine every category of PERS compensation. Negotiated compensation must still fall within the categories identified by NRS 286.025. The Court concluded holiday pay did so and that the agreements used a sufficiently definite formula for federal tax purposes.

Practical Takeaway

Public employers, employee associations, and PERS participants should evaluate whether negotiated holiday-pay provisions are being included in retirement contributions. The controlling 2025 en banc opinion withdrew and replaced the Court’s earlier 2024 opinion.

This update is for general informational purposes and is not legal advice. Legal rights, procedures, and deadlines depend on the facts of each matter.