EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

1-1 Section 1. NRS 286.421 is hereby amended to read as follows:

1-2 286.421 1. A public employer that elected to pay on behalf of its

1-16 of the supreme court of this state:

2-1 (a) Payment of the employee’s portion of the contributions pursuant to

2-2 subsection 1 must be:

2-3 (1) Made in lieu of equivalent basic salary increases or cost-of-living

2-4 increases, or both; or

2-5 (2) Counterbalanced by equivalent reductions in employees’ salaries.

2-6 (b) The average compensation from which the amount of benefits

2-7 payable pursuant to this chapter is determined must be increased with

2-8 respect to each month beginning after June 30, 1975, by 50 percent of the

2-9 contribution made by the public employer, and must not be less than it

2-10 would have been if contributions had been made by the member and the

2-11 public employer separately. In the case of any officer or judge described in

2-12 this subsection, any contribution made by the public employer on his

2-13 behalf does not affect his compensation but is an added special payment.

2-14 4. Employee contributions made by a public employer must be

2-15 deposited in either the public employees’ retirement fund or the police and

2-16 firemen’s retirement fund as is appropriate. These contributions must not

2-17 be credited to the individual account of the member and may not be

2-18 withdrawn by the member upon his termination.

2-19 5. The membership of an employee who became a member on or after

2-20 July 1, 1975, and all contributions on whose behalf were made by his

2-21 public employer must not be canceled upon the termination of his service.

2-22 6. If an employer is paying the basic contribution on behalf of an

2-23 employee , the total contribution rate, in lieu of the amounts required by

2-24 subsection 1 of NRS 286.410 and NRS 286.450, must be:

2-25 (a) The total contribution rate for employers that is actuarially

2-26 determined for police officers and firemen and for regular members,

2-27 depending upon the retirement fund in which the member is participating.

2-28 (b) Adjusted on the first monthly retirement reporting period

2-29 commencing on or after July 1 of each odd-numbered year based on the

2-30 actuarially determined contribution rate indicated in the biennial actuarial

2-31 valuation and report of the immediately preceding year. The adjusted rate

2-32 must be rounded to the nearest one-quarter of 1 percent.

2-33 7. The total contribution rate for employers must not be adjusted in

2-34 accordance with the provisions of paragraph (b) of subsection 6 if the

2-35 existing rate is within one-half of 1 percent of the actuarially determined

2-36 rate.

2-37 8. For the purposes of adjusting salary increases and cost-of-living

2-38 increases or of salary reduction, the total contribution must be equally

2-39 divided between employer and employee.

2-40 9. Public employers other than the State of Nevada shall pay the entire

2-41 employee contribution for those employees who contribute to the police

2-42 and firemen’s retirement fund on and after July 1, 1981.

3-1 Sec. 2. The amendatory provisions of this act apply to contributions

3-2 made on or after January 1, 1999.

3-3 Sec. 3. This act becomes effective upon passage and approval.