Assembly Bill No. 4–Joint Rules Committee

 

CHAPTER..........

 

AN ACT relating to the judiciary; establishing a judicial retirement system for certain justices of the supreme court and district court judges; providing a penalty; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

   Section 1. Title 1 of NRS is hereby amended by adding thereto a new

 chapter to consist of the provisions set forth as sections 2 to 68, inclusive,

 of this act.

   Sec. 2.  As used in this chapter, unless the context otherwise

 requires, the words and terms defined in sections 3 to 10, inclusive, of

 this act have the meanings ascribed to them in those sections.

   Sec. 3.  “Board” means the public employees’ retirement board.

   Sec. 4.  1.  “Compensation” means the salary paid to a justice of the

 supreme court or district judge by this state including:

   (a) Base pay, which is the monthly rate of pay excluding all fringe

 benefits;

   (b) Additional payment for longevity; and

   (c) Payment for extra duty assignments if it is the standard practice of

 this state to include such pay in the employment contract or official job

 description for the calendar year in which it is paid and such pay is

 specifically included in the justice’s or judge’s employment contract or

 official job description.

   2.  The term does not include any type of payment not specifically

 described in this section.

   Sec. 5.  “Disability retirement allowance” means monthly payments

 from the judicial retirement fund paid to disabled retired justices of the

 supreme court or district judges pursuant to the judicial retirement plan.

   Sec. 6.  “Judicial retirement plan” means the retirement plan

 established pursuant to section 25 of this act.

   Sec. 7.  “Retired justice or judge” means a justice of the supreme

 court or district judge who was a member of the judicial retirement plan

 at the time he retired or who decides, pursuant to section 23 or 24 of this

 act, to receive benefits for retirement pursuant to the judicial retirement

 plan.

   Sec. 8.  “Service” means all creditable employment which is

 validated pursuant to the provisions of this chapter and can be used in

 determining eligibility and scope of benefits for justices of the supreme

 court or district judges pursuant to the judicial retirement plan.

   Sec. 9.  “Service retirement allowance” means monthly payments

 from the judicial retirement fund paid to a retired justice of the supreme

 court or district judge pursuant to the judicial retirement plan for the

 remainder of his life.

   Sec. 10.  “System” means the judicial retirement system established

 pursuant to this chapter.

 

 


   Sec. 11.  1.  A system of retirement providing benefits for the

retirement, disability or death of all justices of the supreme court and

 district judges and funded on an actuarial reserve basis is hereby

 established and must be known as the judicial retirement system.

   2.  The system consists of the judicial retirement plan and the

 provisions set forth in NRS 2.060 to 2.075, inclusive, and section 70 of

 this act and NRS 3.090 to 3.097, inclusive, and section 75 of this act for

 providing benefits to justices of the supreme court or district judges who

 served either as a justice of the supreme court or district judge before

 November 5, 2002. Each justice of the supreme court or district judge

 who is not a member of the public employees’ retirement system is a

 member of the system.

   3.  The official correspondence and records, other than the files of

 individual members of the system or retired justices or judges, and the

 minutes and books of the system are public records and are available for

 public inspection.

   4.  The system must be administered exclusively by the board, which

 shall make all necessary rules and regulations for the administration of

 the system. The rules must include, without limitation, rules relating to

 the administration of the retirement plans in accordance with federal

 law. The legislature shall regularly review the system.

   Sec. 12.  All records maintained for a member of the system, retired

 justice or judge, justice or judge who retired pursuant to NRS 2.060 to

 2.075, inclusive, and section 70 of this act, or pursuant to NRS 3.090 to

 3.097, inclusive, and section 75 of this act, or his beneficiary may be

 reviewed and copied only by the system, the member, the court

 administrator, the spouse of the member, or the retired justice or judge

 or his spouse, or pursuant to a court order, or by a beneficiary after the

 death of the justice or judge on whose account benefits are received

 pursuant to the system. Any member, retired justice or judge, justice or

 judge who retired pursuant to NRS 2.060 to 2.075, inclusive, and section

 70 of this act, or pursuant to NRS 3.090 to 3.097, inclusive, and section

 75 of this act, or beneficiary may submit a written waiver to the system

 authorizing his representative to review or copy all such records.

   Sec. 13.  1.  The judicial retirement fund is hereby established as a

 trust fund.

   2.  It is hereby declared to be the policy of the legislature that the

 judicial retirement fund is established to afford a degree of security to

 long-time justices of the supreme court and district judges in this state.

 The money in the fund must not be used or appropriated for any purpose

 incompatible with the provisions of this chapter or NRS 2.060 to 2.075,

 inclusive, and section 70 of this act, or NRS 3.090 to 3.097, inclusive,

 and section 75 of this act. The fund must be invested and administered to

 ensure the highest return consistent with safety in accordance with

 accepted investment practices.

   3.  All money appropriated by the legislature to the judicial retirement

 fund, all money submitted to the system for deposit in the fund pursuant

 to section 14 of this act and all income accruing to the fund from all

 other sources must be deposited in the fund.


   4.  The interest and income earned on the money in the judicial

retirement fund, after deducting any applicable charges, must be credited

 to the fund.

   5.  The system must pay all retirement allowances, benefits, optional

 settlements and other obligations or payments payable by the system

 pursuant to this chapter and NRS 2.060 to 2.075, inclusive, and section

 70 of this act and NRS 3.090 to 3.097, inclusive, and section 75 of this

 act from the judicial retirement fund. The money in the fund must be

 expended by the board for the payment of expenses authorized by law to

 be paid from the fund.

   Sec. 14.  1.  Beginning July 1, 2003, the court administrator shall

 submit to the system for deposit in the judicial retirement fund on behalf

 of each member of the system the percentage of compensation of the

 member that is determined by the actuary of the system to be required to

 pay the normal cost incurred in making payments pursuant to

 subsection 5 of section 13 of this act and any administrative expenses of

 the system. Such payments must be:

    (a) Accompanied by payroll reports that include information deemed

 necessary by the board to carry out its duties; and

    (b) Received by the system not later than 15 days after the calendar

 month for which the compensation and service credits of members of the

 system are reported and certified by the court administrator. The

 compensation must be reported separately for each month that it is paid.

   2.  Beginning July 1, 2003, the court administrator shall pay to the

 system for deposit in the judicial retirement fund from any fund created

 for the purpose of paying pension benefits to justices of the supreme

 court or district judges an amount as the contribution of the State of

 Nevada as employer which is actuarially determined to be sufficient to

 provide the system with enough money to pay all benefits for which the

 system will be liable.

   Sec. 15.  1.  The board shall establish a fund known as the judicial

 retirement administrative fund in which must be deposited all

 administrative fees.

   2.  The board shall fix an administrative fee per capita sufficient to

 pay the expense of operating the judicial retirement system.

   Sec. 16.  1.  The board may establish a fund to pay the accrued

 benefits of a member of the system that are not payable because of the

 limitations set forth in section 27 of this act. The fund must be

 established in accordance with the provisions of section 415(m) of the

 Internal Revenue Code, 26 U.S.C. § 415(m), and must be separate from

 the judicial retirement fund.

   2.  If the board establishes a fund pursuant to subsection 1, the

 benefits that are required to be paid from the fund must be paid from

 money in the fund.

   Sec. 17.  The board has the exclusive control of the administration

 and investment of the judicial retirement fund, with the same powers

 and duties and subject to the same limitations and restrictions that are

 applicable to the administration and investment of the public employees’

 retirement fund.


   Sec. 18.  Except as specifically provided in this chapter, the accounts

of members of the system and recipients of benefits of the system must be

 administered in accordance with the provisions of chapter 286 of NRS

 as if the justice of the supreme court or the district judge were or had

 been a member of the public employees’ retirement system.

   Sec. 19.  1.  The board shall not change the actuarial assumptions

 used in computing the benefits provided to a member of the system.

   2.  The board shall make available to every member of the system

 upon request the actuarial assumptions used in computing the benefits

 provided to a member of the system.

   Sec. 20.  1.  The board, subject to the limitations of this chapter, is

 responsible for managing the system.

   2.  The board shall:

   (a) Arrange for a biennial actuarial valuation and report of the

 actuarial soundness of the system to be prepared by an independent

 actuary based upon data compiled and supplied by employees of the

 system, and shall adopt actuarial tables and formula prepared and

 recommended by the actuary;

   (b) Provide for a biennial audit of the system, including, without

 limitation, the judicial retirement administrative fund, by an

 independent certified public accountant; and

   (c) Provide an annual report concerning the judicial retirement

 system established pursuant to this chapter to the court administrator,

 the governor and each member of the legislature, and make the report

 available to all members of the judicial retirement system upon request.

 The report must contain, when available, a review of the actuarial

 valuation required by paragraph (a).

   3.  The board may:

   (a) Adjust the service or correct the records, allowance or benefits of

 any member of the system, retired justice or judge or beneficiary after an

 error or inequity has been determined, and require repayment of any

 money determined to have been paid by the system in error, if the money

 was paid within 6 years before demand for its repayment.

   (b) Examine and copy personnel and financial records of a justice of

 the supreme court or district judge that are maintained by the court

 administrator.

   (c) Require an annual notarized statement from a retired justice or

 judge or beneficiary that he is in fact receiving an allowance or benefits,

 and withhold the allowance or benefits if he fails to provide the

 statement.

   4.  As used in this section, “error or inequity” means the existence of

 extenuating circumstances, including, without limitation, a member’s

 reasonable and detrimental reliance on representations made by the

 system which prove to be erroneous, or the mental incapacity of the

 member.

   Sec. 21.  1.  No person may become a member of the judicial

 retirement system unless he is a justice of the supreme court or a district

 judge.

   2.  Except as otherwise provided in section 32 of this act, persons

 retired under the provisions of this chapter who are employed as a

 justice


of the supreme court or district judge in any judicial capacity, including,

without limitation, employment as a senior justice or senior judge of the

 Nevada court system, are not eligible to become members of the system.

   Sec. 22.  1.  Membership of a justice of the supreme court or a

 district judge in the system terminates upon:

   (a) The death of a member;

   (b) Receipt of retirement allowances by a member of the judicial

 retirement plan or retirement benefits pursuant to NRS 2.060 to 2.075,

 inclusive, and section 70 of this act, or pursuant to NRS 3.090 to 3.097,

 inclusive, and section 75 of this act; or

   (c) Receipt of disability allowances by a member of the judicial

 retirement plan or disability benefits pursuant to NRS 2.060 to 2.075,

 inclusive, and section 70 of this act, or pursuant to NRS 3.090 to 3.097,

 inclusive, and section 75 of this act.

   2.  A retired justice or judge is not entitled to any right conferred by

 this chapter upon a member of the system unless the provision

 conferring that right expressly states that it is conferred upon a retired

 justice or judge.

   3.  A justice or judge who retired pursuant to NRS 2.060 to 2.075,

 inclusive, and section 70 of this act, or pursuant to NRS 3.090 to 3.097,

 inclusive, and section 75 of this act, is not entitled to any right conferred

 by this chapter upon a member of the system unless the provision

 conferring that right expressly states that it is conferred upon a justice

 or judge who retired pursuant to NRS 2.060 to 2.075, inclusive, and

 section 70 of this act, or pursuant to NRS 3.090 to 3.097, inclusive, and

 section 75 of this act.

   Sec. 23.  1.  Each justice of the supreme court or district judge who

 is elected or appointed as a justice of the supreme court or a district

 judge on or after November 5, 2002, who takes office on or after

January 1, 2003, and who previously has not served as either a justice of

 the supreme court or a district judge must receive benefits for

 retirement, benefits for disability and survivor benefits under the judicial

 retirement plan, if eligible to receive such benefits under the judicial

 retirement plan, unless he is a member of the public employees’

 retirement system and elects to remain a member pursuant to section 24

 of this act if eligible to do so.

   2.  Each justice of the supreme court or district judge who is elected

 or appointed as a justice of the supreme court or district judge on or

 after November 5, 2002, and who previously has served as either a

 justice of the supreme court or a district judge must receive benefits for

 retirement, benefits for disability and survivor benefits pursuant to

 either:

   (a) NRS 2.060 to 2.075, inclusive, and section 70 of this act or NRS

 3.090 to 3.097, inclusive, and section 75 of this act, as those sections

 existed on November 5, 2002, if eligible to receive such benefits under

 such provisions; or

   (b) The judicial retirement plan, if eligible to receive such benefits

 under the judicial retirement plan,

whichever is most beneficial to the justice or judge or his survivor, as

 determined by the justice or judge at the time of his retirement or the

 time at which he becomes disabled, or as determined by his survivor at


the time of his death, unless he is a member of the public employees’

retirement system and elects to remain a member pursuant to section 24

 of this act if eligible to do so. A survivor may not change a determination

 that affects the survivor and which was made by a justice or judge

 pursuant to this section while the justice or judge was alive.

   3.  A determination made pursuant to subsection 2 is final and if a

 justice or judge or his survivor determines pursuant to subsection 2:

   (a) To receive benefits pursuant to the judicial retirement plan, the

 justice, judge or survivor may not receive benefits pursuant to NRS

 2.060 to 2.075, inclusive, and section 70 of this act or pursuant to NRS

 3.090 to 3.097, inclusive, and section 75 of this act; or

   (b) To receive benefits pursuant to NRS 2.060 to 2.075, inclusive, and

 section 70 of this act or pursuant to NRS 3.090 to 3.097, inclusive, and

 section 75 of this act, the justice, judge or survivor may not receive

 benefits pursuant to the judicial retirement plan.

   4.  No justice of the supreme court or district judge or survivor of a

 justice of the supreme court or district judge may receive benefits under

 both this chapter and:

   (a) NRS 2.060 to 2.075, inclusive, and section 70 of this act; or

   (b) NRS 3.090 to 3.097, inclusive, and section 75 of this act.

   5.  A justice of the supreme court or district judge or a survivor of a

 justice of the supreme court or district judge who is receiving retirement

 allowances pursuant to NRS 2.060 to 2.075, inclusive, and section 70 of

 this act, or pursuant to NRS 3.090 to 3.097, inclusive, and section 75 of

 this act, on January 1, 2003, is not eligible for transfer to the judicial

 retirement plan.

    Sec. 24.  1.  A person who is elected or appointed as a justice of the

 supreme court or district judge on or after November 5, 2002, and takes

 office on or after January 1, 2003, who is a member of the public

 employees’ retirement system established pursuant to chapter 286 of

 NRS on the date that he is elected or appointed may withdraw from the

 public employees’ retirement system and become a member of the

 judicial retirement plan if he gives written notice to the board of his

 intention to withdraw from the public employees’ retirement system and

 to become a member of the judicial retirement plan. Such notice must be

 given to the board within the time set forth in subsection 3 and must be

 given the first time that the justice or judge is elected or appointed while

 he is a member of the public employees’ retirement system.

   2.  A justice or judge may not become a member of the judicial

 retirement plan pursuant to subsection 1 if he has previously been

 elected or appointed on or after November 5, 2002, and taken office on

 or after January 1, 2003, while he was a member of the public

 employees’ retirement system and he did not give notice of his intention

 to withdraw from the public employees’ retirement system and to become

 a member of the judicial retirement plan in the manner set forth in this

 section.

   3.  Written notice given pursuant to subsection 1 must be received by

 the board:

   (a) If the justice or judge is elected, by March 31 of the year

 immediately following the year in which he was elected; or


   (b) If the justice or judge is appointed, within 90 days after his

appointment.

   4.  If the board receives notice pursuant to this section that a justice

 or judge intends to withdraw from the public employees’ retirement

 system, it shall transfer from the public employees’ retirement fund to

 the judicial retirement plan the accrued actuarial liability and credit for

 service earned by the justice or judge while a member of the public

 employees’ retirement system as determined by an actuary of the judicial

 retirement system. The service so transferred must be accredited under

 the judicial retirement plan as if performed in the public employees’

 retirement system.

   5.  A justice or judge who exercises the option granted by this section

 may not reestablish the service for which the liabilities were transferred.

   6.  No justice of the supreme court or district judge or survivor of a

 justice of the supreme court or district judge may receive benefits under

 both this chapter and chapter 286 of NRS.

   7.  A justice of the supreme court or district judge or survivor of a

 justice of the supreme court or district judge who is receiving a

 retirement allowance from the public employees’ retirement system on

 January 1, 2003, is not eligible for transfer to the judicial retirement

 plan.

   Sec. 25.  1.  A plan under which all justices of the supreme court

 and district judges who are elected or appointed for the first time as

 either a justice of the supreme court or district judge on or after

 November 5, 2002, and who take office on or after January 1, 2003, and

 who do not elect to remain in the public employees’ retirement system, if

 eligible to do so, must receive benefits for retirement, disability and

 death is hereby established and must be known as the judicial retirement

 plan.

   2.  Each justice of the supreme court or district judge elected or

 appointed for the first time as either a justice of the supreme court or

 district judge on or after November 5, 2002, and who takes office on or

 after January 1, 2003, and who does not elect pursuant to section 24 of

 this act to remain in the public employees’ retirement system, if eligible

 to do so, is a member of the judicial retirement plan.

   3.  Benefits are earned pursuant to the judicial retirement plan in the

 manner set forth in sections 26 to 68, inclusive, of this act.

   Sec. 26.  Except as otherwise required as a result of section 27 of this

 act:

   1.  A member of the judicial retirement plan who has 5 years of

 creditable service may, except as otherwise provided in subsection 2,

 purchase up to 5 years of service. The member must pay the full

 actuarial cost of the service as determined by an actuary of the system.

   2.  A justice or judge may purchase creditable service pursuant to

 subsection 1 only if, at the time of the purchase, he is employed in a

 position whose occupant is eligible for membership in the judicial

 retirement plan.

   3.  A member of the judicial retirement plan may use:

   (a) All or any portion of the balance of his interest in a qualified trust

 pursuant to section 401(a) of the Internal Revenue Code, 26 U.S.C. §

 401(a); or


   (b) The money contained in an individual retirement account or in an

individual retirement annuity of a member, the entire amount of which

 is:

     (1) Attributable to a qualified distribution from a qualified trust

 pursuant to section 401(a) of the Internal Revenue Code, 26 U.S.C. §

 401(a); and

     (2) Qualified as an eligible rollover distribution pursuant to section

 402 of the Internal Revenue Code, 26 U.S.C. § 402,

to purchase creditable service pursuant to subsection 1.

   4.  If a member of the judicial retirement plan enters into an

 agreement whereby he agrees to pay for the purchase of service credit in

 installments and he defaults on that agreement, the member is entitled to

 receive service credit in the proportion that the principal paid bears to

 the principal due under the agreement.

   Sec. 27.  Notwithstanding any other provision of law, the benefits

 payable to and the contributions made for the benefit of a member of the

 judicial retirement plan are limited pursuant to the provisions of sections

 415(b) and 415(c) of the Internal Revenue Code, 26 U.S.C. §§ 415(b)

 and 415(c), that apply to governmental plans.

   Sec. 28.  Service credit for a member of the judicial retirement plan

 begins on the day his term of office begins and terminates on the day his

 term of office expires, unless sooner terminated on the day of his death,

 resignation or removal from office.

   Sec. 29.  Except as otherwise provided in this chapter, a member of

 the judicial retirement plan must not receive credit in the plan for

 service that entitled the member to credit for retirement purposes in any

 other retirement system operated by the federal or a state government, or

 any of their agencies or political subdivisions, including, without

 limitation, the Social Security Act.

   Sec. 30.  1.  A member of the judicial retirement plan is eligible to

 retire at the age of 65 years if he has at least 5 years of service, at the age

 of 60 years if he has at least 10 years of service and at any age if he has

 at least 30 years of service.

   2.  Any member of the judicial retirement plan who has the years of

 creditable service necessary to retire, but has not attained the required

 age, if any, may retire at any age with a benefit actuarially reduced to

 the required retirement age. Except as otherwise required as a result of

 section 27 of this act, a retirement benefit pursuant to this subsection

 must be reduced by 4 percent of the unmodified benefit for each full year

 that the member is under the appropriate retirement age, and an

 additional 0.33 percent for each additional month that the member is

 under the appropriate retirement age. Any option selected pursuant to

 this subsection must be reduced by an amount proportionate to the

 reduction provided in this subsection for the unmodified benefit. The

 board may adjust the actuarial reduction based upon an experience

 study of the system and recommendation by the actuary.

   Sec. 31.  1.  Except as otherwise provided in subsection 4 and

 sections 32 and 33 of this act, if a retired justice or judge accepts

 employment as a justice of the supreme court or district judge in any

 judicial capacity, including, without limitation, employment as a senior


justice or senior judge of the Nevada court system, he is disqualified from

receiving any allowances under the judicial retirement plan for the

 duration of his active service.

   2.  If a retired justice or judge accepts any employment other than

 that described in subsection 1, the justice or judge is entitled to the same

 allowances as a retired justice or judge who has no employment.

    3.  If a retired justice or judge who accepts employment as a justice

 of the supreme court or district judge in a judicial capacity pursuant to

 this section elects not to reenroll in the judicial retirement plan pursuant

 to subsection 1 of section 32 of this act, the court administrator may pay

 contributions on behalf of the retired justice or judge to a retirement

 fund which is not a part of the judicial retirement plan in an amount not

 to exceed the amount of the contributions that the court administrator

 would pay to the system on behalf of a participating justice or judge who

 is employed in a similar position.

   4.  The system may waive for one period of 30 days or less a retired

 justice’s or judge’s disqualification under this section if the chief justice

 of the supreme court certifies in writing, in advance, that the retired

 justice or judge is recalled to meet an emergency and that no other

 qualified person is immediately available.

   Sec. 32.  1.  A retired justice or judge who accepts employment as a

 justice of the supreme court or district judge in any judicial capacity,

 including, without limitation, employment as a senior justice or senior

 judge of the Nevada court system, may enroll in the judicial retirement

 plan as of the effective date of that employment. As of the date of

 enrollment:

   (a) He forfeits all retirement allowances for the duration of that

 employment; and

   (b) Except as otherwise required as a result of section 27 or 35 of this

 act, if the duration of the employment is at least 6 months, he gains

 additional service credit for that employment and is entitled to have a

 separate service retirement allowance calculated based on his

 compensation and service, effective upon the termination of that

 employment. If the duration of the employment is:

     (1) Less than 5 years, the additional allowance must be added to his

 original allowance and must be under the same option and designated

 the same beneficiary as the original allowance; or

     (2) Five years or more, the additional allowance may be under any

 option and designate any beneficiary in accordance with section 38 of

 this act.

   2.  The original service retirement allowance of such a retired justice

 or judge must not be recalculated based upon the additional service

 credit, nor is he entitled to any of the rights of membership that were not

 in effect at the time of his original retirement. The accrual of service

 credit pursuant to this section is subject to the limits imposed by:

   (a) Section 39 of this act; and

   (b) Section 415 of the Internal Revenue Code, 26 U.S.C. § 415.

   3.  Except as otherwise required as a result of section 27 or 35 of this

 act, a retired justice or judge who has been receiving a retirement

 allowance pursuant to the judicial retirement plan and who is


reemployed and is enrolled in the plan for at least 5 years may have his

additional credit for service added to his previous credit for service. This

 additional credit for service must not apply to more than one period of

 employment after the original retirement.

   4.  The survivor of a deceased member of the judicial retirement plan

 who had previously retired and was reemployed and enrolled in the plan,

 who qualifies for benefits pursuant to sections 52 to 67, inclusive, of this

 act, is eligible for the benefits based on the service accrued through the

 second period of employment.

   Sec. 33.  1.  The provisions of subsection 1 of section 31 of this act

 do not apply to a retired justice or judge who accepts employment as a

 justice of the supreme court or district judge in a judicial capacity if:

   (a) He fills a position for which there is a critical labor shortage; and

   (b) At the time of his reemployment, he is receiving:

     (1) An unmodified benefit; or

     (2) A benefit actuarially reduced pursuant to subsection 2 of section

 30 of this act and has reached the required age at which he could have

 retired with an unmodified benefit.

   2.  A retired justice or judge who is reemployed under the

 circumstances set forth in subsection 1 may reenroll in the judicial

 retirement plan as provided in section 32 of this act.

   3.  The supreme court shall designate positions in the judicial branch

 of state government for which there are critical labor shortages.

   Sec. 34.  Notwithstanding any other provision of law, every

 distribution to a member of the judicial retirement plan must be made

 pursuant to the provisions of section 401(a)(9) of the Internal Revenue

 Code, 26 U.S.C. § 401(a)(9), that apply to governmental plans.

   Sec. 35.  Notwithstanding any other provision of law, the amount of

 compensation used to determine the retirement benefit of a member of

 the judicial retirement plan must not exceed the limitation provided by

 section 401(a)(17) of the Internal Revenue Code, 26 U.S.C. § 401(a)(17).

   Sec. 36.  Forfeitures must not be applied to increase the benefits any

 member of the judicial retirement plan would otherwise receive pursuant

 to the provisions governing the plan as provided by section 401(a)(8) of

 the Internal Revenue Code, 26 U.S.C. § 401(a)(8).

   Sec. 37.  1.  Applications for service retirement allowances or

 disability retirement allowances must be submitted to the offices of the

 system on forms approved by the executive officer of the board. The

 form must not be deemed filed unless it contains:

   (a) The member of the judicial retirement plan’s selection of the

 retirement plan contained in section 39 of this act or one of the optional

 plans provided in section 40 of this act;

   (b) A notarized statement of the marital status of the member of the

 judicial retirement plan; and

   (c) If the member of the system is married, a statement of the spouse’s

 consent or objection to the chosen retirement plan, signed by the spouse

 and notarized.

   2.  Except as otherwise required by section 34 of this act, retirement

 becomes effective on whichever of the following days is the later:


   (a) The day immediately following the applicant’s last day of

employment;

   (b) The day the completed application form is filed with the system;

   (c) The day immediately following the applicant’s last day of

 creditable service; or

   (d) The effective date of retirement specified on the application form.

   3.  The selection of a retirement plan by a member of the judicial

 retirement plan and consent or objection to that plan by the spouse

 pursuant to this section does not affect the responsibility of the member

 concerning the rights of any present or former spouse.

   4.  The system is not liable for any damages resulting from the false

 designation of marital status by a member of the system or a retired

 justice or judge, or a justice of the supreme court or district judge who

 retires pursuant to NRS 2.060 to 2.075, inclusive, and section 70 of this

 act, or pursuant to NRS 3.090 to 3.097, inclusive, and section 75 of this

 act.

   Sec. 38.  1.  If the spouse of the member of the judicial retirement

 plan does not consent to the retirement plan chosen by the member

 before the date on which the retirement becomes effective pursuant to

 section 37 of this act the system must:

   (a) Notify the spouse that he has 90 days to consent or have the

 member change his selection; and

   (b) Pay the retirement at the amount calculated for Option 2 provided

 in section 40 of this act until the spouse consents or for 90 days,

 whichever is less.

   2.  Upon consent of the spouse or at the end of the 90 days, the

 retirement benefit must be recalculated and paid under the terms of the

 option originally selected by the member retroactively to the date on

 which the retirement became effective.

   Sec. 39.  Except as otherwise required as a result of section 27 or 35

 of this act:

   1.  Except as otherwise provided in this subsection, a monthly service

 retirement allowance must be determined by multiplying a member of

 the judicial retirement plan’s average compensation by 3.4091 percent

 for each year of service, except that a member of the plan is entitled to a

 benefit of not more than 75 percent of his average compensation with

 his eligibility for service credit ceasing at 22 years of service.

   2.  For the purposes of this section, “average compensation” means

 the average of a member of the plan’s 36 consecutive months of highest

 compensation as certified by the court administrator.

   Sec. 40.  1.  The alternatives to an unmodified service retirement

 allowance are as follows:

   (a) Option 2 consists of a reduced service retirement allowance

 payable monthly during the retired justice’s or judge’s life, with the

 provision that it continue after his death for the life of the beneficiary

 whom he nominates by written designation acknowledged and filed with

 the board at the time of retirement should the beneficiary survive him.

   (b) Option 3 consists of a reduced service retirement allowance

 payable monthly during the retired justice’s or judge’s life, with the

 provision that it continue after his death at one-half the rate paid to him


and be paid for the life of the beneficiary whom he nominates by written

designation acknowledged and filed with the board at the time of

 retirement should the beneficiary survive him.

   (c) Option 4 consists of a reduced service retirement allowance

 payable monthly during the retired justice’s or judge’s life, with the

 provision that it continue after his death for the life of his beneficiary,

 whom he nominates by written designation acknowledged and filed with

 the board at the time of the election, should his beneficiary survive him,

 beginning on the attainment by the surviving beneficiary of age 60

 years.

   (d) Option 5 consists of a reduced service retirement allowance

 payable monthly during the retired justice’s or judge’s life, with the

 provision that it continue after his death at one-half the rate paid to him

 and be paid for the life of his beneficiary whom he nominates by written

 designation acknowledged and filed with the board at the time of the

 election, should his beneficiary survive him, beginning on the

 attainment by the surviving beneficiary of age 60 years.

   (e) Option 6 consists of a reduced service retirement allowance

 payable monthly during the retired justice’s or judge’s life, with the

 provision that a specific sum per month, which cannot exceed the

 monthly allowance paid to the retired justice or judge, be paid after his

 death to the beneficiary for the life of the beneficiary whom he

 nominates by written designation acknowledged and filed with the board

 at the time of retirement, should the beneficiary survive him.

   (f) Option 7 consists of a reduced service retirement allowance

 payable monthly during the retired justice’s or judge’s life, with the

 provision that a specific sum per month, which cannot exceed the

 monthly allowance paid to the retired justice or judge, be paid after his

 death to the beneficiary for the life of the beneficiary whom he

 nominates by written designation acknowledged and filed with the board

 at the time of election, should the beneficiary survive him, beginning on

 the attainment by the surviving beneficiary of age 60 years.

   2.  Post-retirement allowances must be considered a part of a retired

 justice’s or judge’s monthly benefit and included in the allowance paid

 to a beneficiary under one of the optional plans set forth in this section.

   Sec. 41.  1.  If a member of the judicial retirement plan enters

 retirement status under one of the optional plans described in section 40

 of this act and the designated beneficiary predeceases the retired justice

 or judge, the monthly retirement allowance must be automatically

 adjusted to the unmodified retirement allowance provided in section 39

 of this act.

   2.  A retired justice or judge may not change the selected option or

 designated beneficiary after the effective date of retirement except as

 otherwise provided in subsection 3 and subsection 3 of section 32 of this

 act.

   3.  A retired justice or judge may cancel his selected option and

 designation of beneficiary and revert to the unmodified retirement

 allowance. He shall make this election by written designation,

 acknowledged and filed with the board. The written election must be

 accompanied by a written, notarized acknowledgment of the change by

 the beneficiary if the beneficiary is the spouse of the retired justice or


judge. The election to cancel a selected option and revert to the

unmodified allowance does not abrogate any obligation of the retired

 justice or judge respecting community property.

   4.  The termination or adjustment of a monthly retirement allowance

 resulting from the death of a justice or judge or beneficiary must not

 become effective until the first day of the month immediately following

 the death of the retired justice or judge or beneficiary.

   Sec. 42.  Each person who receives benefits from the judicial

 retirement fund pursuant to the system is entitled to receive cost-of

-living increases equivalent to those provided for retirees and

 beneficiaries of the public employees’ retirement system.

   Sec. 43.  1.  In addition to the options provided in NRS 287.023 and

 subject to the requirements of that section, any justice of the supreme

 court or district judge who retires under the conditions set forth in

 section 30 of this act and, at the time of his retirement, was covered or

 had his dependents covered by any group insurance or medical and

 hospital service established pursuant to NRS 287.010 and 287.020, has

 the option of having the executive officer of the board deduct and pay

 his premium or contribution for that group insurance or medical and

 hospital service coverage, as well as the amount due or to become due

 upon any obligation designated by the board pursuant to subsection 2,

 from his monthly retirement allowance until:

   (a) He notifies the executive officer of the board to discontinue the

 deduction; or

   (b) Any of his dependents elect to assume the premium or contribution

 applicable to the dependent’s coverage before the death of such a retired

 justice or judge and continue coverage pursuant to NRS 287.023 after

 his death.

   2.  The board may adopt regulations to carry out the provisions of

 subsection 1, including, without limitation, regulations governing the

 number and types of obligations, amounts for the payment of which may

 be deducted and paid by the board at the option of the retired justice or

 judge pursuant to this section.

   3.  The executive officer of the board, the board and the system are

 not liable for any damages resulting from errors or omissions

 concerning the deductions and payment of premiums or contributions

 authorized pursuant to this section unless willful neglect or gross

 negligence is proven.

   Sec. 44.  1.  A member of the judicial retirement plan who has 5

 years or more of service credit and who becomes totally unable to

 perform his current job or any comparable job for which he is qualified

 by his training and experience, because of injury or mental or physical

 illness of a permanent nature is eligible to apply for disability retirement

 if:

   (a) Except as otherwise provided in subsection 5, his employment as a

 justice of the supreme court or district judge will be terminated because

 of the disability;

   (b) He is employed as a justice of the supreme court or a district judge

 at the time of application for disability retirement;


   (c) He proves that his disability renders him unable to perform the

duties of his present position and of any other position he has held within

 the past year;

   (d) He files a notarized application for disability retirement with the

 system which indicates a selection of option and to which is attached a

 personal statement by the member of the judicial retirement plan,

 describing the disability, the duties which he can and cannot perform,

 and any benefits he is entitled to receive for disability from any other

 public source; and

   (e) The court administrator files an official statement certifying the

 member’s employment record, record of disability, absences that have

 occurred because of the disability, the effect upon the work of the

 member after the disability, and job functions that can and cannot be

 performed because of the disability.

   2.  Except as otherwise required as a result of section 27 of this act,

 the amount of the disability retirement allowance must be calculated in

 the same manner as provided for service retirement calculations in

 section 39 of this act, except that no reduction for the age of a member

 of the judicial retirement plan may be made and that the allowance must

 be reduced by the amount of any other benefit received from any source

 on account of the same disability:

   (a) If the benefit is provided or was purchased by the expenditure of

 money by a Nevada public employer; and

   (b) To the extent that the total of the unmodified benefit and the other

 benefit would otherwise exceed his average compensation.

   3.  A member of the judicial retirement plan may apply for disability

 retirement even if he is eligible for service retirement.

   4.  Each child of a deceased recipient of a disability retirement

 allowance is entitled to receive the benefits provided by section 57 of this

 act only if the decedent had not reached the age and completed the

 service required to be eligible for a service retirement allowance, except

 that these benefits must not be paid to anyone who is named as a

 beneficiary under one of the options to an unmodified allowance.

   5.  If a member of the judicial retirement plan whose application for

 disability retirement has been:

   (a) Approved, dies before his employment is terminated, but within 60

 days after his application was approved; or

   (b) Mailed before his death as indicated by the date of the postmark

 dated by the post office on the envelope in which it was mailed, dies

 before the board has acted upon his application and the board approves

 thereafter his application,

his beneficiary is entitled to receive an allowance under the option

 selected rather than the benefit otherwise provided for a survivor.

   6.  The termination or adjustment of a disability retirement allowance

 resulting from the death of a recipient of an allowance pursuant to this

 section must not become effective until the first day of the month

 immediately following the death of the recipient.

   7.  As used in this section, “public employer” has the meaning

 ascribed to it in NRS 286.070.


   Sec. 45.  The provisions of NRS 286.630, 286.634 and 286.637,

concerning disability retirement, apply to a member of the judicial

 retirement plan who is receiving a disability retirement allowance

 pursuant to section 44 of this act.

   Sec. 46.  1.  When the recipient of a disability retirement allowance

 is determined by the board to be no longer disabled, his allowance must

 be canceled.

   2.  A retired justice or judge who retired on account of disability

 whose benefit is canceled may:

   (a) Suspend his monthly benefit until eligible for service retirement;

 or

   (b) Elect a service retirement reduced for his age if he has the service

 credit necessary to retire.

   Sec. 47.  1.  Except as otherwise provided in subsection 2, whenever

 a recipient of a disability retirement allowance pursuant to section 44 of

 this act returns to employment as a justice of the supreme court or

 district judge, the allowance must be discontinued and his service credit

 at the time of disability retirement must be restored. The member shall

 retire under the same retirement plan previously selected for retirement

 on account of disability if he returns to disability retirement or elects

 service retirement within 1 year after his return to employment.

   2.  A recipient of a disability retirement allowance may be employed

 and continue to receive his allowance if he applies to the board for

 approval of the employment before he begins to work and the board

 approves his application. The application must include:

   (a) A full description of the proposed employment; and

   (b) A statement written by the member of the system declaring the

 reasons why the proposed employment should not be found to conflict

 with his disability.

   Sec. 48.  Any person convicted of the murder or voluntary

 manslaughter of a member of the system is ineligible to receive any

 benefit conferred by any provision of this chapter or NRS 2.060 to 2.075,

 inclusive, and section 70 of this act, or NRS 3.090 to 3.097, inclusive,

 and section 75 of this act, by reason of the death of that member. The

 system may withhold the payment of any benefit otherwise payable

 under this chapter by reason of the death of any member of the system

 from any person charged with the murder or voluntary manslaughter of

 that member, pending final determination of those charges.

   Sec. 49.  1.  Except as otherwise provided in NRS 31A.150 and

 section 50 of this act and as limited by subsection 2, the right of a person

 to a pension, an annuity, a retirement allowance, the pension, annuity or

 retirement allowance itself, any optional benefit or death benefit or any

 other right accrued or accruing to any person under the provisions of

 this chapter, and the money in the judicial retirement fund, is:

   (a) Exempt from all state, county and municipal taxes;

   (b) Not subject to execution, garnishment, attachment or any other

 process;

   (c) Not subject to the operation of any bankruptcy or insolvency law;

   (d) Not assignable, by power of attorney or otherwise; and


   (e) Exempt from assessment for the impairment or insolvency of any

life or health insurance company.

   2.  The system may withhold money from a benefit when the person

 applying for or receiving the benefit owes money to the system.

   Sec. 50.  1.  A person may submit a judgment, decree or order of a

 district court or the supreme court of the State of Nevada relating to

 child support, alimony or the disposition of community property to the

 executive officer of the board or his designee for a determination of

 whether the judgment, decree or order entitles an alternate payee to

 receive from the system all or a portion of the allowance or benefit of a

 member of the judicial retirement plan or a retired justice or judge.

   2.  The judgment, decree or order submitted to the executive officer of

 the board or his designee must be signed by a district judge or by the

 justices of the supreme court and entered and certified by the clerk of the

 district court or the clerk of the supreme court.

   3.  The executive officer of the board or his designee shall, in

 accordance with rules prescribed by the board, determine whether the

 judgment, decree or order entitles the alternate payee to receive an

 allowance or benefit from the system. An alternate payee is entitled to

 receive an allowance or benefit from the judicial retirement plan if the

 judgment, decree or order:

   (a) Specifies clearly the names, social security numbers and last

 known mailing addresses, if any, of the member of the judicial

 retirement plan or retired justice or judge and the alternate payee;

   (b) Specifies clearly the amount, percentage or manner of determining

 the amount of the allowance or benefit of the member of the judicial

 retirement plan or retired justice or judge that must be paid by the

 system to each alternate payee;

   (c) Specifically directs the system to pay an allowance or benefit to the

 alternate payee;

   (d) Does not require the system to provide an allowance or benefit or

 any option not otherwise provided under this chapter; and

   (e) Does not require the payment of an allowance or benefit to an

 alternate payee before the retirement of a member of the judicial

 retirement plan.

   4.  For the purposes of this subsection, “alternate payee” means a

 spouse, former spouse, child or other dependent of a member of the

 judicial retirement plan or retired justice or judge who, pursuant to a

 judgment, decree or order relating to child support, alimony or the

 disposition of community property, is entitled to receive all or a portion

 of the allowance or benefit of a member or retired justice or judge from

 the system.

   Sec. 51.  1.  Any check for benefits which has not been paid within

 5 years after being transferred to the account for unclaimed benefits

 must be transferred to the judicial retirement fund.

   2.  If, within 6 years after a check for benefits has been transferred

 pursuant to subsection 1, any person appears and claims the money, the

 claimant may file a petition in the district court for Carson City stating

 the nature of his claim, with an appropriate prayer for the relief

 demanded. A copy of the petition must be served upon the attorney


general before or at the time it is filed. Within 20 days after service, the

attorney general shall appear in the proceeding and respond to the

 petition. If, after examining all the facts, the attorney general is

 convinced that the system has no legal defense against the petition, he

 may, with the consent of the court, confess judgment on behalf of the

 system.

   3.  If judgment is not confessed, the petition must be considered at

 issue on the 20th day after its filing, and may be heard by the court on

 that day, or at such future day as the court may order. Upon the hearing,

 the court shall examine into the claim and hear the allegations and

 proofs. If the court finds that the claimant is entitled to any money

 transferred pursuant to subsection 1 to the judicial retirement fund, it

 shall order the board to pay the money forthwith to the claimant, but

 without interest or cost to the board.

   4.  All persons, except minors and persons of unsound mind, who fail

 to appear and file their petitions within the time limited in subsection 1

 are forever barred. Minors and persons of unsound mind may appear

 and file their petitions at any time within 5 years after their respective

 disabilities are removed.

   Sec. 52.  As used in sections 52 to 66, inclusive, of this act, unless the

 context otherwise requires, the words and terms defined in sections 53,

 54 and 55 of this act have the meanings ascribed to them in those

 sections.

   Sec. 53.  “Child” means an unmarried person under 18 years of age

 who is the issue or legally adopted child of a deceased member of the

 judicial retirement plan. As used in this section, “issue” means the

 progeny or biological offspring of the deceased member.

   Sec. 54.  “Dependent parent” means the surviving parent of a

 deceased member of the judicial retirement plan who was dependent

 upon the deceased member for at least 50 percent of his support for at

 least 6 months immediately preceding the death of the deceased member.

   Sec. 55.  “Spouse” means the surviving husband or wife of a

 deceased member of the judicial retirement plan.

   Sec. 56.  1.  Except as otherwise provided in subsection 3, if a

 deceased member of the judicial retirement plan had 2 years of

 creditable service in the 2 1/2 years immediately preceding his death, or

 if the employee had 10 or more years of creditable service, certain of his

 dependents are eligible for payments as provided in sections 52 to 66,

 inclusive, of this act. If the death of the member resulted from a mental

 or physical condition which required him to leave his position as a

 justice of the supreme court or district judge or go on leave without pay,

 eligibility pursuant to the provisions of this section extends for 18

 months after his termination or commencement of leave without pay.

   2.  If the death of a member of the judicial retirement plan occurs

 while he is on leave of absence for further training and if he met the

 requirements of subsection 1 at the time his leave began, certain of his

 dependents are eligible for payments as provided in subsection 1.

   3.  If the death of a member of the judicial retirement plan is caused

 by an occupational disease or an accident arising out of and in the

 course of his employment, no prior creditable service is required to make


his dependents eligible for payments pursuant to sections 52 to 66,

inclusive, of this act, except that this subsection does not apply to an

 accident occurring while the member is traveling between his home and

 his principal place of employment.

   4.  As used in this section, “dependent” includes a survivor

 beneficiary designated pursuant to section 60 of this act.

   Sec. 57.  1.  Each child of a deceased member of the judicial

 retirement plan is entitled to receive a cumulative benefit of at least $400

 per month, beginning on the first day of the month following the

 member’s death.

   2.  Except as otherwise provided in subsections 3 and 4, payments to

 any child cease on the last day of the month of:

   (a) His adoption;

   (b) His death;

   (c) His marriage; or

   (d) His attaining the age of 18 years.

   3.  These benefits may be paid to the child of a deceased member of

 the judicial retirement plan until the last day of the month of his 23rd

 birthday if he was, at the time of the member’s death, and continues

 thereafter to be, a full-time student in any accredited:

   (a) High school;

   (b) Vocational or technical school; or

   (c) College or university.

   4.  These benefits may be commenced or extended indefinitely beyond

 a child’s 18th birthday if and so long as he is determined by the system

 to be:

   (a) Financially dependent; and

   (b) Physically or mentally incompetent.

   5.  All benefits under this section may be paid by the system to the

 child’s:

   (a) Surviving parent; or

   (b) Legal guardian.

   6.  The board shall establish uniform standards and procedures for

 determining whether a child is:

   (a) A full-time student;

   (b) Financially dependent; and

   (c) Physically or mentally incompetent.

   Sec. 58. 1.  The spouse of a deceased member of the judicial

 retirement plan is entitled to receive a cumulative benefit of at least $450

 per month. The payments must begin on the first day of the month

 immediately following the death of the member and must cease on the

 last day of the month in which the spouse dies.

   2.  The benefits paid pursuant to this section are in addition to any

 benefits paid pursuant to section 57 of this act.

   Sec. 59.  1.  The spouse of a deceased member of the judicial

 retirement plan who had 10 or more years of creditable service is entitled

 to receive a monthly allowance equivalent to that provided by:

   (a) Option 3 in section 40 of this act, if the deceased member had less

 than 15 years of service on the date of his death; or


   (b) Option 2 in section 40 of this act, if the deceased member had

more than 15 or more years of service on the date of his death.

To apply the provisions of Options 2 and 3, the deceased member shall be

 deemed to have retired on the date of his death immediately after having

 named the spouse as beneficiary under the applicable option. This

 benefit must be computed without any reduction for age for the deceased

 member. The benefits provided by this subsection must be paid to the

 spouse for the remainder of the spouse’s life.

   2.  The spouse may elect to receive the benefits provided by any one of

 the following only:

   (a) This section; or

   (b) Section 58 of this act.

   Sec. 60.  An unmarried member of the judicial retirement plan may

 designate, in writing, a survivor beneficiary to receive the payments

 provided pursuant to section 61, 62 or 63 of this act if the member is

 unmarried on the date of his death. A designation pursuant to this

 section must be made on a form approved by the executive officer of the

 board.

   Sec. 61.  1.  The survivor beneficiary of a deceased member of the

 judicial retirement plan is entitled to receive a cumulative benefit of at

 least $450 per month. The payments must begin on the first day of the

 month immediately following the death of the member and must cease

 on the last day of the month in which the survivor beneficiary dies.

   2.  The benefits paid pursuant to this section are in addition to any

 benefits paid pursuant to section 57 of this act.

   3.  As used in this section, “survivor beneficiary” means a person

 designated pursuant to section 60 of this act.

   Sec. 62.  1.  The survivor beneficiary of a deceased member of the

 judicial retirement plan who had 10 or more years of creditable service

 is entitled to receive a monthly allowance equivalent to that provided by:

   (a) Option 3 in section 40 of this act, if the deceased member had less

 than 15 years of service on the date of his death; or

   (b) Option 2 in section 40 of this act, if the deceased member had 15

 or more years of service on the date of his death.

To apply the provisions of Options 2 and 3, the deceased member shall be

 deemed to have retired on the date of his death immediately after having

 named the survivor beneficiary as beneficiary pursuant to the applicable

 option. This benefit must be computed without any reduction for age for

 the deceased member. The benefits provided by this subsection must be

 paid to the survivor beneficiary for the remainder of the life of the

 survivor beneficiary.

   2.  The survivor beneficiary may elect to receive the benefits provided

 by any one of the following only:

   (a) This section; or

   (b) Section 61 of this act.

   3.  As used in this section, “survivor beneficiary” means a person

 designated pursuant to section 60 of this act.

   Sec. 63.  1.  The survivor beneficiary of a deceased member of the

 judicial retirement plan who was fully eligible to retire, both as to service

 and age, is entitled to receive a monthly allowance equivalent to that


provided by Option 2 in section 40 of this act. This section does not apply

to the survivor beneficiary of a member who was eligible to retire only

 pursuant to subsection 2 of section 30 of this act. For the purposes of

 applying the provisions of Option 2, the deceased member shall be

 deemed to have retired on the date of his death immediately after having

 named the survivor beneficiary as beneficiary pursuant to Option 2. The

 benefits provided by this section must be paid to the survivor beneficiary

 for the remainder of the life of the survivor beneficiary. The survivor

 beneficiary may elect to receive the benefits provided by any one of the

 following only:

   (a) This section;

   (b) Section 61 of this act; or

   (c) Section 62 of this act.

   2.  As used in this section, “survivor beneficiary” means a person

 designated pursuant to section 60 of this act.

   Sec. 64. The spouse of a deceased member of the judicial retirement

 plan who was fully eligible to retire, both as to service and age, is

 entitled to receive a monthly allowance equivalent to that provided by

 Option 2 in section 40 of this act. This section does not apply to the

 spouse of a member who was eligible to retire only under subsection 2 of

 section 30 of this act. For the purposes of applying the provisions of

 Option 2, the deceased member shall be deemed to have retired on the

 date of his death immediately after having named the spouse as

 beneficiary under Option 2. The benefits provided by this section must

 be paid to the spouse for the remainder of the spouse’s life. The spouse

 may elect to receive the benefits provided by any one of the following

 only:

   1.  This section;

   2.  Section 58 of this act; or

   3.  Section 59 of this act.

   Sec. 65. If payments are not made pursuant to the provisions of

 section 57, 58, 59, 61 or 62 of this act, the dependent parent of a

 deceased member of the judicial retirement plan is entitled to receive a

 cumulative benefit of at least $400 per month, and if there are two

 dependent parents, each is entitled to receive a cumulative benefit of at

 least $400 per month. Payments to any parent pursuant to this section

 must cease upon the death of that parent.

   Sec. 66.  The amount of each monthly allowance paid as specified in

 sections 57 to 65, inclusive, of this act must not exceed the deceased

 member of the judicial retirement plan’s average compensation and

 must be reduced by the amount of any other benefit received from any

 source:

   1.  If that benefit was provided or purchased by the expenditure of

 money by this state, except for lump-sum payments under a group

 insurance program; and

   2.  To the extent that the total of the allowance and the other benefit

 would otherwise exceed the deceased member’s average compensation.

   Sec. 67. 1.  The retirement allowance for a member of the judicial

 retirement plan becomes vested on the date that the member completes 5

 years of creditable service.

   2.  Benefits for survivors offered pursuant to this chapter become

 vested on the date that the member of the judicial retirement plan


completes 10 years of creditable service or becomes entitled to begin

receiving benefits or on the date of his death, whichever event occurs

 first.

   3.  Unless otherwise specifically provided by law, any change in the

 provisions of this chapter is retroactive for all service of any member of

 the judicial retirement plan before the date of vesting, but no change

 may impair any vested allowance or benefit.

   4.  Upon the termination or partial termination of the system, all

 accrued benefits that are funded become 100 percent vested and

 nonforfeitable.

   Sec. 68.  A person who knowingly makes a false statement, certifies

 to an incorrect document or withholds information for the purpose of

 receiving or assisting another person in receiving benefits under this

 chapter to which he is not entitled is guilty of a gross misdemeanor.

   Sec. 69.  NRS 1.365 is hereby amended to read as follows:

   1.365  1.  All of the following claims must be submitted to the [court

 administrator,] executive officer of the public employees’ retirement

 board who shall [act as administrative officer in processing] process the

 claims:

   [1.] (a) Claims of justices of the supreme court pursuant to NRS [2.050

 and 2.060.

   2.] 2.060.

   (b) Claims pursuant to NRS 2.070 and section 15 of [this act.

   3.] Senate Bill No. 349 of the 71st session of the Nevada Legislature.

   (c) Claims of judges of the district courts pursuant to NRS [3.030 and

 3.090.

   4.] 3.090.

   (d) Claims pursuant to NRS 3.095 and section 16 of [this act.] Senate

 Bill No. 349 of the 71st session of the Nevada Legislature.

   2.  The following claims must be submitted to the court administrator,

 who shall act as administrative officer in processing the claims:

   (a) Claims of justices of the supreme court under NRS 2.050.

   (b) Claims of judges of the district courts under NRS 3.030.

   Sec. 70.  Chapter 2 of NRS is hereby amended by adding thereto a new

 section to read as follows:

   The provisions of NRS 2.060 to 2.075, inclusive, and section 15 of

 Senate Bill No. 349 of the 71st session of the Nevada Legislature:

   1.  Apply only to a justice of the supreme court or a surviving spouse

 or surviving child of a justice of the supreme court who served as a

 justice of the supreme court or district judge before November 5, 2002;

   2.  Are administered by the public employees’ retirement board

 pursuant to section 11 of this act; and

   3.  Are part of the judicial retirement system established pursuant to

 section 11 of this act.

   Sec. 71.  NRS 2.060 is hereby amended to read as follows:

   2.060  1.  Any justice of the supreme court who has served as a justice

 or judge of a district court in any one or more of those courts for a period

 or periods aggregating 22 years and has ended such service is, after

 reaching the age of 60 years, entitled to receive annually from the State of

 Nevada, as a pension during the remainder of his life, a sum of money


equal in amount to three-fourths the sum received as a salary for his

judicial services during the last year thereof, payable [every 2 weeks from

 money provided by direct legislative appropriation.] monthly from the

 judicial retirement fund established pursuant to section 13 of this act.

   2.  Any justice of the supreme court who has served as a justice or

 judge of a district court in any one or more of those courts for a period or

 periods aggregating 5 years and has ended such service is, after reaching

 the age of 60 years, entitled to receive annually from the State of Nevada,

 as a pension during the remainder of his life, a sum of money equal in

 amount to 4.1666 percent of the sum received as a salary for his judicial

 services during the last year thereof, payable [every 2 weeks from money

 provided by direct legislative appropriation.] monthly from the judicial

 retirement fund established pursuant to section 13 of this act.

   3.  Any justice of the supreme court who qualifies for a pension under

 the provisions of subsection 2 is entitled to receive, for each year served

 beyond 5 years up to a maximum of 22 years, an additional 4.1666 percent

 of the sum received as a salary for his judicial services during the last year

 thereof, payable as provided in subsection 2.

   4.  Any justice who has retired pursuant to subsection 3 and is

 thereafter recalled to additional active service in the court system is

 entitled to receive credit toward accumulating 22 years’ service for the

 maximum pension based upon the time he actually spends in the additional

 active service.

   5.  Any justice who has the years of service necessary to retire but has

 not attained the required age may retire at any age with a benefit

 actuarially reduced to the required retirement age. A benefit under this

 subsection must be reduced in the same manner as benefits are reduced for

 persons retired under the public employees’ retirement system.

   6.  Any person receiving a pension pursuant to the provisions of this

 section is entitled to receive post-retirement increases equal to those

 provided for persons retired under the public employees’ retirement

 system.

   7.  Any justice who desires to receive the benefits of this section must

 file with the [state controller and the state treasurer] executive officer of

 the public employees’ retirement board an affidavit setting forth the fact

 that he is ending his service, the date and place of his birth, and the years

 he has served in any district court or the supreme court.

   8.  [Upon such notice and filing of the affidavit, the state controller

 shall draw his warrant, payable to the justice who has thus ended his

 service, upon the state treasurer for the sum due to him, and the state

 treasurer shall pay the sum out of money provided by direct legislative

 appropriation.

   9.] The faith of the State of Nevada is hereby pledged that this section

 shall not be repealed or amended so as to affect any justice who may have

 ended his service pursuant to it.

   Sec. 72.  NRS 2.065 is hereby amended to read as follows:

   2.065  1.  A justice of the supreme court who has served as a justice or

 as a district judge in any one or more courts for a period or periods

 aggregating 5 years or more and who becomes permanently incapacitated,


physically or mentally, to perform the duties of his office may retire from

office regardless of age.

   2.  Any justice who retires pursuant to the provisions of subsection 1 or

 who is retired because of advanced age or mental or physical disability

 pursuant to section 21 of article 6 of the constitution of the State of

 Nevada is entitled to receive annually from the State of Nevada, as a

 pension during the remainder of his life, the same pension he would

 receive under NRS 2.060 based on his years of service, but without regard

 to his age.

   3.  Any justice, or his guardian on his behalf if he is unable to act, who

 desires to retire voluntarily must give notice in writing to the governor.

 The governor shall appoint three physicians licensed to practice medicine

 in the State of Nevada to examine the justice and report the results to the

 governor in writing. If a majority of the physicians is of the opinion that

 the justice is permanently incapacitated, physically or mentally, the

 governor shall approve the retirement. The justice or his guardian must file

 with the [state controller and state treasurer] executive officer of the

 public employees’ retirement board an affidavit setting forth the fact of

 his retirement and the years he has served in either or both of such courts.

   4.  Pensions payable pursuant to this section must be paid in the same

 manner as pensions are payable under NRS 2.060. Fees and expenses of

 physicians appointed pursuant to this section must be paid out of funds

 [provided by direct legislative appropriation.] from the judicial retirement

 administrative fund established pursuant to section 15 of this act.

   5.  The faith of the State of Nevada is hereby pledged that this section

 will not be repealed or amended so as to affect adversely any justice who

 may have retired or been retired pursuant to its provisions.

   Sec. 73.  NRS 2.070 is hereby amended to read as follows:

   2.070  1.  If a justice of the supreme court at the time of his death had

 retired and was then receiving a pension under the provisions of NRS

 2.060, or if at the time of his death the justice had not retired but had

 performed sufficient service for retirement under the provisions of NRS

 2.060, the surviving spouse, if the spouse has attained the age of 60 years,

 is entitled, until his death or remarriage, to receive monthly payments of

 $2,500 per month.

   2.  If a surviving spouse of a justice is not eligible to receive benefits

 pursuant to subsection 1, he is entitled, until his death or remarriage or

 until he becomes eligible to receive those benefits, to receive payments

 equal in amount to the payment provided in subsection 1 of NRS 286.674

 for the spouse of a deceased member of the public employees’ retirement

 system.

   3.  To obtain these benefits, the surviving spouse must make

 application to the [board, commission or authority entrusted with the

 administration of the judges’ pensions] executive officer of the public

 employees’ retirement board and furnish such information as may be

 required pursuant to reasonable regulations adopted for the purpose of

 carrying out the intent of this section.

   4.  Any person receiving a benefit pursuant to the provisions of this

 section is entitled to receive post-retirement increases equal to those

 provided for persons retired under the public employees’ retirement

 system.


   5.  It is the intent of this section that no special fund be created for the

purpose of paying these benefits, and all payments made under the

 provisions of this section are to be made out of and charged to [any fund

 created for the purpose of paying pension benefits to justices of the

 supreme court.] the judicial retirement fund established pursuant to

 section 13 of this act.

   Sec. 74.  NRS 2.075 is hereby amended to read as follows:

   2.075  1.  Each child of a deceased justice of the supreme court is

 entitled to receive payments equal in amount to the payments provided in

 NRS 286.673 for the child of a deceased member of the public employees’

 retirement system.

   2.  In determining whether a child is a full-time student or financially

 dependent and physically or mentally incompetent, as provided in NRS

 286.673, the [court administrator] executive officer of the public

 employees’ retirement board shall use any applicable standards and

 procedures established by the public employees’ retirement board.

   3.  It is the intent of this section that no special fund be created for the

 payment of benefits, and all payments made under the provisions of this

 section are to be made out of and charged to [any fund created for the

 purpose of paying pension benefits to justices of the supreme court.] the

 judicial retirement fund established pursuant to section 13 of this act.

   Sec. 75.  Chapter 3 of NRS is hereby amended by adding thereto a new

 section to read as follows:

   The provisions of NRS 3.090 to 3.097, inclusive, and section 16 of

 Senate Bill No. 349 of the 71st session of the Nevada Legislature.

   1.  Apply only to a district judge or a surviving spouse or surviving

 child of a district judge who served as a justice of the supreme court or

 district judge before November 5, 2002;

   2.  Are administered by the public employees’ retirement board

 pursuant to section 11 of this act; and

   3.  Are part of the judicial retirement system established pursuant to

 section 11 of this act.

   Sec. 76.  NRS 3.090 is hereby amended to read as follows:

   3.090  1.  Any judge of the district court who has served as a justice of

 the supreme court or judge of a district court in any one or more of those

 courts for a period or periods aggregating 22 years and has ended such

 service is, after reaching the age of 60 years, entitled to receive annually

 from the State of Nevada, as a pension during the remainder of his life, a

 sum of money equal in amount to three-fourths the sum received as a

 salary for his judicial services during the last year thereof, payable [every

 2 weeks from money provided by direct legislative appropriation.]

 monthly from the judicial retirement fund established pursuant to

 section 13 of this act.

   2.  Any judge of the district court who has served as a justice of the

 supreme court or judge of a district court in any one or more of those

 courts for a period or periods aggregating 5 years and has ended such

 service is, after reaching the age of 60 years, entitled to receive annually

 from the State of Nevada, as a pension during the remainder of his life, a

 sum of money equal in amount to 4.1666 percent of the sum received as a

 salary for his judicial services during the last year thereof, payable [every

 2


weeks from money provided by direct legislative appropriation.] monthly

from the judicial retirement fund established pursuant to section 13 of

 this act.

   3.  Any judge of the district court who qualifies for a pension under the

 provisions of subsection 2 is entitled to receive, for each year served

 beyond 5 years up to a maximum of 22 years, an additional 4.1666 percent

 of the sum received as a salary for his judicial services during the last year

 thereof, payable as provided in subsection 2.

   4.  Any judge who has retired pursuant to subsection 3 and is thereafter

 recalled to additional active service in the court system is entitled to

 receive credit toward accumulating 22 years’ service for the maximum

 pension based upon the time he actually spends in the additional active

 service.

   5.  Any district judge who has the years of service necessary to retire

 but has not attained the required age may retire at any age with a benefit

 actuarially reduced to the required retirement age. A retirement benefit

 under this subsection must be reduced in the same manner as benefits are

 reduced for persons retired under the public employees’ retirement system.

   6.  Any person receiving a pension pursuant to the provisions of this

 section is entitled to receive post-retirement increases equal to those

 provided for persons retired in the public employees’ retirement system.

   7.  Any judge of the district court who desires to receive the benefits of

 this section must file with the [state controller and the state treasurer]

 executive officer of the public employees’ retirement board an affidavit

 setting forth the fact that he is ending his service, the date and place of his

 birth, and the years he has served in any district court or the supreme

 court.

   8.  [Upon such notice and filing of the affidavit, the state controller

 shall draw his warrant, payable to the judge who has thus ended his

 service, upon the state treasurer for the sum due to him, and the state

 treasurer shall pay the sum out of money provided by direct legislative

 appropriation.

   9.] The faith of the State of Nevada is hereby pledged that this section

 shall not be repealed or amended so as to affect any judge of the district

 court who may have ended his service pursuant to it.

   Sec. 77.  NRS 3.092 is hereby amended to read as follows:

   3.092  1.  A district judge who has served as a district judge or as a

 justice of the supreme court in any one or more courts for a period or

 periods aggregating 5 years or more and who becomes permanently

 incapacitated, physically or mentally, to perform the duties of his office

 may retire from office regardless of age.

   2.  Any district judge who retires pursuant to the provisions of

 subsection 1 or who is retired because of advanced age or physical or

 mental disability pursuant to section 21 of article 6 of the constitution of

 the State of Nevada is entitled to receive annually from the State of

 Nevada, a pension for the remainder of his life, the same pension he would

 receive under NRS 3.090 based on his years of service but without regard

 to his age.

   3.  Any judge, or his guardian on his behalf if he is unable to act, who

 desires to retire voluntarily must give notice in writing to the governor.

 The governor shall appoint three physicians licensed to practice medicine

 in the


State of Nevada to examine the judge and report the results to the governor

in writing. If a majority of the physicians is of the opinion that the judge is

 permanently incapacitated, physically or mentally, the governor shall

 approve the retirement. The judge or his guardian must file with the [state

 controller and the state treasurer] executive officer of the public

 employees’ retirement board an affidavit setting forth the fact of his

 retirement and the years he has served in either or both of such courts.

   4.  Pensions payable pursuant to this section must be paid in the same

 manner as pensions payable under NRS 3.090. Fees and expenses of

 physicians appointed pursuant to this section must be paid [out of funds

 provided by direct legislative appropriation.] from the judicial retirement

 administrative fund established pursuant to section 15 of this act.

   5.  The faith of the State of Nevada is hereby pledged that this section

 will not be repealed or amended so as to affect adversely any judge who

 may have retired or been retired pursuant to its provisions.

   Sec. 78.  NRS 3.095 is hereby amended to read as follows:

   3.095  1.  If a district judge at the time of his death had retired and

 was then receiving a pension under the provisions of NRS 3.090, or if at

 the time of his death the judge had not retired but had performed sufficient

 service for retirement under the provisions of NRS 3.090, the surviving

 spouse, if the spouse has attained the age of 60 years, is entitled, until his

 death or remarriage, to receive monthly payments of $2,500 per month.

   2.  If a surviving spouse of a judge is not eligible to receive benefits

 pursuant to subsection 1, he is entitled, until his death or remarriage or

 until he becomes eligible to receive those benefits, to receive payments

 equal in amount to the payment provided in subsection 1 of NRS 286.674

 for the spouse of a deceased member of the public employees’ retirement

 system.

   3.  To obtain these benefits, the surviving spouse must make

 application to the [board, commission or authority entrusted with the

 administration of the judges’ pensions] executive officer of the public

 employees’ retirement fund and furnish such information as may be

 required pursuant to reasonable regulations adopted for the purpose of

 carrying out the intent of this section.

   4.  Any person receiving a benefit pursuant to the provisions of this

 section is entitled to receive post-retirement increases equal to those

 provided for persons retired under the public employees’ retirement

 system.

   5.  It is the intent of this section that no special fund be created for the

 purpose of paying these benefits, and all payments made under the

 provisions of this section are to be made out of and charged to [any fund

 created for the purpose of paying pension benefits to district judges.] the

 judicial retirement fund established pursuant to section 13 of this act.

   Sec. 79.  NRS 3.097 is hereby amended to read as follows:

   3.097  1.  Each child of a deceased district judge is entitled to receive

 payments equal in amount to the payments provided in NRS 286.673 for

 the child of a deceased member of the public employees’ retirement

 system.

   2.  In determining whether a child is a full-time student or financially

 dependent and physically or mentally incompetent, as provided in NRS


286.673, the [court administrator] executive officer of the public

employees’ retirement board shall use any applicable standards and

 procedures established by the public employees’ retirement board.

   3.  It is the intent of this section that no special fund be created for the

 payment of benefits, and all payments made under the provisions of this

 section are to be made out of and charged to [any fund created for the

 purpose of paying pension benefits to district judges.] the judicial

 retirement fund established pursuant to section 13 of this act.

   Sec. 80.  NRS 125.155 is hereby amended to read as follows:

   125.155  Unless the action is contrary to a premarital agreement

 between the parties which is enforceable pursuant to chapter 123A of NRS

 or is prohibited by specific statute:

   1.  In determining the value of an interest in or entitlement to a pension

 or retirement benefit provided by the public employees’ retirement system

 pursuant to chapter 286 of NRS[,] or the judicial retirement plan

 established pursuant to section 25 of this act, the court:

   (a) Shall base its determination upon the number of years or portion

 thereof that the contributing party was employed and received the interest

 or entitlement, beginning on the date of the marriage and ending on the

 date on which a decree of legal separation or divorce is entered; and

   (b) Shall not base its determination upon any estimated increase in the

 value of the interest or entitlement resulting from a promotion, raise or any

 other efforts made by the party who contributed to the interest or

 entitlement as a result of his continued employment after the date of a

 decree of legal separation or divorce.

   2.  The court may, in making a disposition of a pension or retirement

 benefit provided by the public employees’ retirement system[,] or the

 judicial retirement plan, order that the benefit not be paid before the date

 on which the participating party retires. To ensure that the party who is not

 a participant will receive payment for the benefits, the court may:

   (a) On its own motion or pursuant to an agreement of the parties,

 require the participating party to furnish a performance or surety bond,

 executed by the participating party as principal and by a corporation

 qualified under the laws of this state as surety, made payable to the party

 who is not a participant under the plan, and conditioned upon the payment

 of the pension or retirement benefits. The bond must be in a principal sum

 equal to the amount of the determined interest of the nonparticipating

 party in the pension or retirement benefits and must be in a form

 prescribed by the court.

   (b) On its own motion or pursuant to an agreement of the parties,

 require the participating party to purchase a policy of life insurance. The

 amount payable under the policy must be equal to the determined interest

 of the nonparticipating party in the pension or retirement benefits. The

 nonparticipating party must be named as a beneficiary under the policy

 and must remain a named beneficiary until the participating party retires.

   (c) Pursuant to an agreement of the parties, increase the value of the

 determined interest of the nonparticipating party in the pension or

 retirement benefit as compensation for the delay in payment of the benefit

 to that party.


   (d) On its own motion or pursuant to an agreement of the parties, allow

the participating party to provide any other form of security which ensures

 the payment of the determined interest of the nonparticipating party in the

 pension or retirement benefit.

   3.  If a party receives an interest in or an entitlement to a pension or

 retirement benefit which the party would not otherwise have an interest in

 or be entitled to if not for a disposition made pursuant to this section, the

 interest or entitlement and any related obligation to pay that interest or

 entitlement terminates upon the death of either party unless pursuant to:

   (a) An agreement of the parties; or

   (b) An order of the court,

a party who is a participant in the public employees’ retirement system or

 the judicial retirement plan provides an alternative to an unmodified

 service retirement allowance pursuant to NRS 286.590[.] or section 40 of

 this act.

   Sec. 81.  NRS 154.010 is hereby amended to read as follows:

   154.010  An estate escheats to and is vested in the State of Nevada for

 educational purposes if any person dies or has died, within this state,

 seised of any real or personal estate, and leaving no heirs, representatives

 or devisees capable of inheriting or holding the estate, and in all cases

 where there is no owner of the estate capable of holding it. Any balance

 remaining in a retired employee’s or beneficiary’s individual account

 under the public employees’ retirement system or the judicial retirement

 system established pursuant to sections 2 to 68, inclusive, of this act is

 not an estate within the meaning of this chapter.

   Sec. 82.  NRS 218.5373 is hereby amended to read as follows:

   218.5373  1.  There is hereby created an interim retirement and

 benefits committee of the legislature to review the operation of the public

 employees’ retirement system , the judicial retirement system established

 pursuant to sections 2 to 68, inclusive, of this act and the public

 employees’ benefits program and to make recommendations to the public

 employees’ retirement board and the board of the public employees’

 benefits program, the legislative commission and the legislature. The

 interim retirement and benefits committee consists of six members

 appointed as follows:

   (a) Three members of the senate, one of whom is the chairman of the

 committee on finance during the preceding session and two of whom are

 appointed by the majority leader of the senate.

   (b) Three members of the assembly, one of whom is the chairman of the

 committee on ways and means and two of whom are appointed by the

 speaker of the assembly.

   2.  The immediate past chairman of the senate standing committee on

 finance is the chairman of the interim retirement and benefits committee

 for the period ending with the convening of each odd-numbered session of

 the legislature. The immediate past chairman of the assembly standing

 committee on ways and means is the chairman of the interim retirement

 and benefits committee during the next legislative interim, and the

 chairmanship alternates between the houses of the legislature according to

 this pattern.


   3.  The interim retirement and benefits committee may exercise the

powers conferred on it by law only when the legislature is not in regular or

 special session and shall meet at the call of the chairman.

   4.  The director of the legislative counsel bureau shall provide a

 secretary for the interim retirement and benefits committee.

   5.  The members of the interim retirement and benefits committee are

 entitled to receive the compensation provided for a majority of the

 members of the legislature during the first 60 days of the preceding

 session, the per diem allowance provided for state officers and employees

 generally and the travel expenses provided by NRS 218.2207 for each day

 of attendance at a meeting of the committee and while engaged in the

 business of the committee. Per diem allowances, compensation and travel

 expenses of the members of the committee must be paid from the

 legislative fund.

   Sec. 83.  NRS 286.230 is hereby amended to read as follows:

   286.230  1.  The board shall establish a fund known as the public

 employees’ retirement administrative fund in which must be deposited all

 administrative fees.

   2.  The board shall fix an administrative fee per capita sufficient to pay

 the operating expense of the system. Except as otherwise provided by

 NRS 218.23745[,] and section 15 of this act, the system shall transfer

 monthly from the respective retirement funds to the public employees’

 retirement administrative fund the amount of the per capita fee multiplied

 by the combined number of members and persons receiving allowances

 from that fund.

   3.  The board may establish a separate and additional administrative fee

 for police officers and firemen and their public employers to pay the

 additional expense of maintaining a separate fund and to pay the actual

 and necessary travel expenses and other expenses, within the limits

 established by the board, for meetings of the police and firemen’s

 retirement fund advisory committee.

   Sec. 84.  NRS 287.023 is hereby amended to read as follows:

   287.023  1.  Whenever an officer or employee of the governing body

 of any county, school district, municipal corporation, political subdivision,

 public corporation or other public agency of the State of Nevada retires

 under the conditions set forth in NRS 286.510 or 286.620 or section 30 or

 44 of this act and, at the time of his retirement, was covered or had his

 dependents covered by any group insurance or medical and hospital

 service established pursuant to NRS 287.010 and 287.020, the officer or

 employee has the option upon retirement to cancel or continue any such

 group insurance or medical and hospital service coverage or join the

 public employees’ benefits program to the extent that such coverage is not

 provided to him or a dependent by the Health Insurance for the Aged Act,

 42 U.S.C. §§ 1395 et seq.

   2.  A retired person who continues coverage under the public

 employees’ benefits program shall assume the portion of the premium or

 membership costs for the coverage continued which the governing body

 does not pay on behalf of retired officers or employees. A person who

 joins the public employees’ benefits program for the first time upon

 retirement shall assume all costs for the coverage. A dependent of such a

 retired


person has the option, which may be exercised to the same extent and in

the same manner as the retired person, to cancel or continue coverage in

 effect on the date the retired person dies. The dependent is not required to

 continue to receive retirement payments from the public employees’

 retirement system to continue coverage.

   3.  Except as otherwise provided in NRS 287.0235, notice of the

 selection of the option must be given in writing to the last public employer

 of the officer or employee within 60 days after the date of retirement or

 death, as the case may be. If no notice is given by that date, the retired

 employee and his dependents shall be deemed to have selected the option

 to cancel the coverage or not to join the public employees’ benefits

 program, as the case may be.

   4.  The governing body of any county, school district, municipal

 corporation, political subdivision, public corporation or other public

 agency of this state may pay the cost, or any part of the cost, of group

 insurance and medical and hospital service coverage for persons eligible

 for that coverage pursuant to subsection 1, but it must not pay a greater

 portion than it does for its current officers and employees.

   Sec. 85.  NRS 287.0235 is hereby amended to read as follows:

   287.0235  1.  Notwithstanding the provisions of NRS 287.023 and

 287.045, a person or the surviving spouse of a person who did not, at the

 time of his retirement pursuant to the conditions set forth in NRS 286.510

 or 286.620, or section 30 or 44 of this act, have the option to participate in

 the public employees’ benefits program may join the public employees’

 benefits program, to the extent that such coverage is not provided to him

 or a dependent by the Health Insurance for the Aged Act, 42 U.S.C. §§

 1395 et seq., by:

   (a) Providing the public employees’ retirement board with written

 notice of his intention to enroll in the public employees’ benefits program

 during a period of open enrollment;

   (b) Showing evidence of his good health as a condition of enrollment;

   (c) Accepting the current plan of insurance of the public employees’

 benefits program and any subsequent changes to the plan; and

   (d) Paying any portion of the premiums or contributions for the program

 in the manner set forth in NRS 286.615[,] or section 43 of this act, which

 are due after the date of enrollment.

The public employees’ retirement board shall, beginning on September 1,

 1997, have a biennial period of open enrollment between September 1 of

 each odd-numbered year and January 31 of each even-numbered year

 during which eligible retired persons may join the public employees’

 benefits program pursuant to this section.

   2.  The public employees’ retirement board shall, on or before

 September 1, 1997, and every September 1 of each odd-numbered year

 thereafter, notify eligible retired persons described in subsection 1 of the

 period of open enrollment by:

   (a) Mailing a notice regarding the period of open enrollment to all

 retired persons who are, according to its records, eligible to join the public

 employees’ benefits program;


   (b) Posting a notice of the period of open enrollment at its principal

office and at least three other separate prominent places, such as a library,

 community center or courthouse; and

   (c) Publicizing the period of open enrollment in any other manner

 reasonably calculated to inform additional eligible retired persons.

   3.  The public employees’ retirement board shall notify the board of the

 public employees’ benefits program of the enrollment of any person on or

 before March 1 immediately following the period of open enrollment. The

 board of the public employees’ benefits program shall approve or

 disapprove the request for enrollment within 90 days after receipt of the

 request. Enrollment shall be deemed to occur on the day the request is

 approved.

   4.  Enrollment in the public employees’ benefits program pursuant to

 this section excludes claims for expenses for any condition for which

 medical advice, treatment or consultation was rendered within 12 months

 before enrollment unless:

   (a) The person has not received any medical advice, treatment or

 consultation for a period of 6 consecutive months after enrollment; or

   (b) The insurance coverage has been in effect more than 12 consecutive

 months.

   Sec. 86.  NRS 287.045 is hereby amended to read as follows:

   287.045  1.  Except as otherwise provided in this section, every officer

 or employee of the state is eligible to participate in the program on the first

 day of the month following the completion of 90 days of full-time

 employment.

   2.  Professional employees of the University and Community College

 System of Nevada who have annual employment contracts are eligible to

 participate in the program on:

   (a) The effective dates of their respective employment contracts, if

 those dates are on the first day of a month; or

   (b) The first day of the month following the effective dates of their

 respective employment contracts, if those dates are not on the first day of a

 month.

   3.  Every officer or employee who is employed by a participating

 public agency on a permanent and full-time basis on the date the agency

 enters into an agreement to participate in the program, and every officer or

 employee who commences his employment after that date, is eligible to

 participate in the program on the first day of the month following the

 completion of 90 days of full-time employment.

   4.  Every senator and assemblyman is eligible to participate in the

 program on the first day of the month following the 90th day after his

 initial term of office begins.

   5.  An officer or employee of the governing body of any county, school

 district, municipal corporation, political subdivision, public corporation or

 other public agency of the State of Nevada who retires under the

 conditions set forth in NRS 286.510 or 286.620 or section 30 or 44 of this

 act and was not participating in the program at the time of his retirement is

 eligible to participate in the program 60 days after notice of the selection

 to participate is given pursuant to NRS 287.023 or 287.0235. The board

 shall make a separate accounting for these retired persons. For the first

 year


following enrollment, the rates charged must be the full actuarial costs

determined by the actuary based upon the expected claims experience with

 these retired persons. The claims experience of these retired persons must

 not be commingled with the retired persons who were members of the

 program before their retirement, nor with active employees of the state.

 After the first year following enrollment, the rates charged must be the full

 actuarial costs determined by the actuary based upon the past claims

 experience of these retired persons since enrolling.

   6.  Notwithstanding the provisions of subsections 1, 3 and 4, if the

 board does not, pursuant to NRS 689B.580, elect to exclude the program

 from compliance with NRS 689B.340 to 689B.600, inclusive, and section

 3 of [this act] Assembly Bill No. 452 of the 71st session of the Nevada

 Legislature and if the coverage under the program is provided by a health

 maintenance organization authorized to transact insurance in this state

 pursuant to chapter 695C of NRS, any affiliation period imposed by the

 program may not exceed the statutory limit for an affiliation period set

 forth in NRS 689B.500.

   Sec. 87.  NRS 287.046 is hereby amended to read as follows:

   287.046  1.  Except as otherwise provided in subsection 6, any state or

 other participating officer or employee who elects to participate in the

 program may participate, and the department, agency, commission or

 public agency that employs the officer or employee shall pay the state’s

 share of the cost of the premiums or contributions for the program from

 money appropriated or authorized as provided in NRS 287.044.

 Employees who elect to participate in the program must authorize

 deductions from their compensation for the payment of premiums or

 contributions for the program.

   2.  The department of personnel shall pay a percentage of the base

 amount provided by law for that fiscal year toward the cost of the

 premiums or contributions for the program for persons retired from the

 service of the state who have continued to participate in the program.

 Except as otherwise provided in subsection 3, the percentage to be paid

 must be calculated as follows:

   (a) For those persons who retire before January 1, 1994, 100 percent of

 the base amount provided by law for that fiscal year.

   (b) For those persons who retire on or after January 1, 1994, with at

 least 5 years of state service, 25 percent plus an additional 7.5 percent for

 each year of service in excess of 5 years to a maximum of 137.5 percent,

 excluding service purchased pursuant to NRS 286.300[,] or section 26 of

 this act, of the base amount provided by law for that fiscal year.

   3.  If the amount calculated pursuant to subsection 2 exceeds the actual

 premium or contribution for the plan of the program that the retired

 participant selects, the balance must be credited to the fund for the public

 employees’ benefits program created pursuant to NRS 287.0435.

   4.  For the purposes of subsection 2:

   (a) Credit for service must be calculated in the manner provided by

 chapter 286 of NRS.

   (b) No proration may be made for a partial year of service.

   5.  The department shall agree through the board with the insurer for

 billing of remaining premiums or contributions for the retired participant


and his dependents to the retired participant and to his dependents who

elect to continue coverage under the program after his death.

   6.  A senator or assemblyman who elects to participate in the program

 shall pay the entire premium or contribution for his insurance.

   Sec. 88.  NRS 287.0475 is hereby amended to read as follows:

   287.0475  1.  A public employee who has retired pursuant to NRS

 286.510 or 286.620 or section 30 or 44 of this act, or a retirement

 program provided pursuant to NRS 286.802, or the surviving spouse of

 such a retired public employee who is deceased may, in any even

-numbered year, reinstate any insurance, except life insurance, which was

 provided to him and his dependents at the time of his retirement pursuant

 to NRS 287.010 or 287.020 or the program as a public employee by:

   (a) Giving written notice of his intent to reinstate the insurance to the

 employee’s last public employer not later than January 31, of an even

-numbered year;

   (b) Accepting the public employer’s current program or plan of

 insurance and any subsequent changes thereto; and

   (c) Paying any portion of the premiums or contributions of the public

 employer’s program or plan of insurance, in the manner set forth in NRS

 286.615[,] or section 43 of this act, which are due from the date of

 reinstatement and not paid by the public employer.

The last public employer shall give the insurer notice of the reinstatement

 no later than March 31, of the year in which the public employee or

 surviving spouse gives notice of his intent to reinstate the insurance. The

 insurer shall approve or disapprove the request for reinstatement within 90

 days after the date of the request.

   2.  Reinstatement of insurance excludes claims for expenses for any

 condition for which medical advice, treatment or consultation was

 rendered within 6 months before reinstatement unless:

   (a) The person has not received any medical advice, treatment or

 consultation for a period of 6 consecutive months after the reinstatement;

 or

   (b) The reinstated insurance has been in effect more than 12 consecutive

 months.

   Sec. 89.  Section 31 of this act is hereby amended to read as follows:

   Sec. 31.  1.  Except as otherwise provided in subsection 4 and

 [sections 32 and 33] section 32 of this act, if a retired justice or judge

 accepts employment as a justice of the supreme court or district judge

 in any judicial capacity, including, without limitation, employment as

 a senior justice or senior judge of the Nevada court system, he is

 disqualified from receiving any allowances under the judicial

 retirement plan for the duration of his active service.

   2.  If a retired justice or judge accepts any employment other than

 that described in subsection 1, the justice or judge is entitled to the

 same allowances as a retired justice or judge who has no

 employment.

   3.  If a retired justice or judge who accepts employment as a

 justice of the supreme court or district judge in a judicial capacity

 pursuant to this section elects not to reenroll in the judicial retirement

 plan pursuant to subsection 1 of section 32 of this act, the court

 administrator may pay contributions on behalf of the retired justice or


judge to a retirement fund which is not a part of the judicial retirement

plan in an amount not to exceed the amount of the contributions that

 the court administrator would pay to the system on behalf of a

 participating justice or judge who is employed in a similar position.

   4.  The system may waive for one period of 30 days or less a

 retired justice’s or judge’s disqualification under this section if the

 chief justice of the supreme court certifies in writing, in advance, that

 the retired justice or judge is recalled to meet an emergency and that

 no other qualified person is immediately available.

   Sec. 90.  Section 4 of Senate Bill No. 349 of the 71st session of the

 Nevada Legislature is hereby amended to read as follows:

   Sec. 4. 1.  Except as limited by subsection 3, the survivor

 beneficiary of a deceased member who had 10 or more years of

 accredited contributing service is entitled to receive a monthly

 allowance equivalent to that provided by:

   (a) Option 3 in NRS 286.590, if the deceased member had less

 than 15 years of service on the date of his death; or

   (b) Option 2 in NRS 286.590, if the deceased member had 15 or

 more years of service on the date of his death.

To apply the provisions of Options 2 and 3, the deceased member

 shall be deemed to have retired on the date of his death immediately

 after having named the survivor beneficiary as beneficiary

 pursuant to the applicable option. This benefit must be computed

 without any reduction for age for the deceased member. The

 benefits provided by this subsection must be paid to the survivor

 beneficiary for the remainder of the life of the survivor beneficiary.

   2.  The survivor beneficiary may elect to receive the benefits

 provided by any one of the following only:

   (a) This section;

   (b) Section 3 of this act; or

   (c) Section 6 of this act.

   3.  The benefits provided by paragraph (a) of subsection 1 may

 only be paid to the survivor beneficiary of a member who died on or

 after January 1, 2002.

   4.  As used in this section, “survivor beneficiary” means a

 person designated pursuant to section 2 of this act.

   Sec. 91.  Section 15 of Senate Bill No. 349 of the 71st session of the

 Nevada Legislature is hereby amended to read as follows:

   Sec. 15. Chapter 2 of NRS is hereby amended by adding thereto

 a new section to read as follows:

   1.  An unmarried justice of the supreme court may designate, in

 writing, a survivor beneficiary to receive the payments provided

 pursuant to this section if the justice is unmarried on the date of his

 death. A designation pursuant to this section must be made on a

 form approved by the court administrator.

   2.  If a justice of the supreme court at the time of his death had

 retired and was then receiving a pension pursuant to the provisions

 of NRS 2.060, or if at the time of his death the justice had not

 retired but had performed sufficient service for retirement pursuant

 to the provisions of NRS 2.060, the survivor beneficiary designated


pursuant to subsection 1, if the survivor beneficiary has attained the

age of 60 years, is entitled, until his death, to receive monthly

 payments of $2,500 per month.

   3.  If a survivor beneficiary of a justice is not eligible to receive

 benefits pursuant to subsection 2, he is entitled, until his death or

 until he becomes eligible to receive those benefits, to receive

 payments equal in amount to the payment provided in subsection 1

 of section 3 of this act for the survivor beneficiary of a deceased

 member of the public employees’ retirement system.

   4.  To obtain these benefits, the survivor beneficiary must make

 application to the board, commission or authority entrusted with the

 administration of the judges’ pensions and furnish such

 information as may be required pursuant to reasonable regulations

 adopted for the purpose of carrying out the intent of this section.

   5.  Any person receiving a benefit pursuant to the provisions of

 this section is entitled to receive post-retirement increases equal to

 those provided for persons retired pursuant to the public employees’

 retirement system.

   6.  It is the intent of this section that no special fund be created

 for the purpose of paying these benefits, and all payments made

 pursuant to the provisions of this section are to be made out of and

 charged to any fund created for the purpose of paying pension

 benefits to justices of the supreme court.

   Sec. 92.  Section 15 of Senate Bill No. 349 of the 71st session of the

 Nevada Legislature is hereby amended to read as follows:

   Sec. 15.  Chapter 2 of NRS is hereby amended by adding thereto

 a new section to read as follows:

   1.  An unmarried justice of the supreme court may designate, in

 writing, a survivor beneficiary to receive the payments provided

 pursuant to this section if the justice is unmarried on the date of his

 death. A designation pursuant to this section must be made on a form

 approved by the court administrator.

   2.  If a justice of the supreme court at the time of his death had

 retired and was then receiving a pension pursuant to the provisions of

 NRS 2.060, or if at the time of his death the justice had not retired but

 had performed sufficient service for retirement pursuant to the

 provisions of NRS 2.060, the survivor beneficiary designated

 pursuant to subsection 1, if the survivor beneficiary has attained the

 age of 60 years, is entitled, until his death, to receive monthly

 payments of $2,500 per month.

   3.  If a survivor beneficiary of a justice is not eligible to receive

 benefits pursuant to subsection 2, he is entitled, until his death or

 until he becomes eligible to receive those benefits, to receive

 payments equal in amount to the payment provided in subsection 1 of

 section 3 of this act for the survivor beneficiary of a deceased

 member of the public employees’ retirement system.

   4.  To obtain these benefits, the survivor beneficiary must make

 application to the [board, commission or authority entrusted with the

 administration of the judges’ pensions] executive officer of the

 public employees’ retirement board and furnish such information as

 may be


required pursuant to reasonable regulations adopted for the purpose of

carrying out the intent of this section.

   5.  Any person receiving a benefit pursuant to the provisions of

 this section is entitled to receive post-retirement increases equal to

 those provided for persons retired pursuant to the public employees’

 retirement system.

   6.  It is the intent of this section that no special fund be created for

 the purpose of paying these benefits, and all payments made pursuant

 to the provisions of this section are to be made out of and charged to

 [any fund created for the purpose of paying pension benefits to

 justices of the supreme court.] the judicial retirement fund

 established pursuant to section 13 of Assembly Bill No. 4 of the

 17th special session of the Nevada Legislature.

   Sec. 93.  Section 16 of Senate Bill No. 349 of the 71st session of the

 Nevada Legislature is hereby amended to read as follows:

   Sec. 16. Chapter 3 of NRS is hereby amended by adding thereto

 a new section to read as follows:

   1.  An unmarried district judge may designate, in writing, a

 survivor beneficiary to receive the payments provided pursuant to

 this section if the judge is unmarried on the date of his death. A

 designation pursuant to this section must be made on a form

 approved by the court administrator.

   2.  If a district judge at the time of his death had retired and was

 then receiving a pension pursuant to the provisions of NRS 3.090,

 or if at the time of his death the judge had not retired but had

 performed sufficient service for retirement pursuant to the

 provisions of NRS 3.090, the survivor beneficiary designated

 pursuant to subsection 1, if the survivor beneficiary has attained

 the age of 60 years, is entitled, until his death, to receive monthly

 payments of $2,500 per month.

   3.  If a survivor beneficiary of a judge is not eligible to receive

 benefits pursuant to subsection 2, he is entitled, until his death or

 until he becomes eligible to receive those benefits, to receive

 payments equal in amount to the payment provided in subsection 1

 of section 3 of this act for the survivor beneficiary of a deceased

 member of the public employees’ retirement system.

   4.  To obtain these benefits, the survivor beneficiary must make

 application to the board, commission or authority entrusted with the

 administration of the judges’ pensions and furnish such

 information as may be required pursuant to reasonable regulations

 adopted for the purpose of carrying out the intent of this section.

   5.  Any person receiving a benefit pursuant to the provisions of

 this section is entitled to receive post-retirement increases equal to

 those provided for persons retired pursuant to the public employees’

 retirement system.

   6.  It is the intent of this section that no special fund be created

 for the purpose of paying these benefits, and all payments made

 pursuant to the provisions of this section are to be made out of and

 charged to any fund created for the purpose of paying pension

 benefits to district judges.


   Sec. 94.  Section 16 of Senate Bill No. 349 of the 71st session of the

Nevada Legislature is hereby amended to read as follows:

   Sec. 16. Chapter 3 of NRS is hereby amended by adding thereto

 a new section to read as follows:

   1.  An unmarried district judge may designate, in writing, a

 survivor beneficiary to receive the payments provided pursuant to

 this section if the judge is unmarried on the date of his death. A

 designation pursuant to this section must be made on a form

 approved by the court administrator.

   2.  If a district judge at the time of his death had retired and was

 then receiving a pension pursuant to the provisions of NRS 3.090, or

 if at the time of his death the judge had not retired but had performed

 sufficient service for retirement pursuant to the provisions of NRS

 3.090, the survivor beneficiary designated pursuant to subsection 1, if

 the survivor beneficiary has attained the age of 60 years, is entitled,

 until his death, to receive monthly payments of $2,500 per month.

   3.  If a survivor beneficiary of a judge is not eligible to receive

 benefits pursuant to subsection 2, he is entitled, until his death or

 until he becomes eligible to receive those benefits, to receive

 payments equal in amount to the payment provided in subsection 1 of

 section 3 of this act for the survivor beneficiary of a deceased

 member of the public employees’ retirement system.

   4.  To obtain these benefits, the survivor beneficiary must make

 application to the [board, commission or authority entrusted with the

 administration of the judges’ pensions] executive officer of the

 public employees’ retirement fund and furnish such information as

 may be required pursuant to reasonable regulations adopted for the

 purpose of carrying out the intent of this section.

   5.  Any person receiving a benefit pursuant to the provisions of

 this section is entitled to receive post-retirement increases equal to

 those provided for persons retired pursuant to the public employees’

 retirement system.

   6.  It is the intent of this section that no special fund be created for

 the purpose of paying these benefits, and all payments made pursuant

 to the provisions of this section are to be made out of and charged to

 [any fund created for the purpose of paying pension benefits to

 district judges.] the judicial retirement fund established pursuant to

 section 13 of Assembly Bill No. 4 of the 17th special session of the

 Nevada Legislature.

   Sec. 95.  NRS 286.305 and 286.307 are hereby repealed.

   Sec. 96.  The amendatory provisions of this act do not apply to

 offenses committed in violation of section 68 of this act before January 1,

 2003.

   Sec. 97.  1.  From January 1, 2003, through June 30, 2003, the court

 administrator shall submit to the judicial retirement system for deposit in

 the judicial retirement fund created pursuant to section 13 of this act on

 behalf of each member of the judicial retirement system 25.6 percent of

 the compensation of the member. Such payments must be:

   (a) Deposited in the fund;


   (b) Accompanied by payroll reports that include information deemed

necessary by the public employees’ retirement board to carry out its duties;

 and

   (c) Received by the judicial retirement system not later than 15 days

 after the calendar month for which the compensation and service credits of

 members of the judicial retirement system are reported and certified by the

 court administrator. The compensation must be reported separately for

 each month that it is paid.

   2.  As used in this section, “compensation” means the salary paid to a

 justice of the supreme court or district judge by this state including:

   (a) Base pay, which is the monthly rate of pay excluding all fringe

 benefits;

   (b) Additional payment for longevity; and

   (c) Payment for extra duty assignments if it is the standard practice of

 this state to include such pay in the employment contract or official job

 description for the calendar year in which it is paid and such pay is

 specifically included in the justice’s or judge’s employment contract or

 official job description.

   3.  The term “compensation” does not include any type of payment not

 specifically described in subsection 2.

   Sec. 98.  There is hereby appropriated from the state general fund to

 the judicial retirement fund created pursuant to section 13 of this act the

 sum of $5,000,000 for funding the unfunded accrued liability for active

 members of the judicial retirement system and for partial payments needed

 to fund the unfunded liability for the inactive justices of the supreme court

 and district judges.

   Sec. 99.  1.  This section and sections 13, 90, 91, 93 and 98 of this act

 become effective upon passage and approval.

   2.  Sections 1 to 12, inclusive, 14 to 88, inclusive, 92, and 94 to 97,

 inclusive, of this act become effective on January 1, 2003.

   3.  Section 33 of this act expires by limitation on June 30, 2005.

   4.  Section 89 of this act becomes effective on July 1, 2005.

 

20~~~~~01