Senate Bill No. 111–Committee on Finance

(On Behalf of Department of Administration)

February 4, 1999

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Referred to Committee on Finance

 

SUMMARY—Clarifies provisions governing purchase by state agency of service credit in public employees’ retirement system on behalf of certain employees under certain circumstances. (BDR 23-758)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State or on Industrial Insurance: No.

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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).

 

AN ACT relating to public employees’ retirement; clarifying provisions governing the purchase by a state agency of service credit in the public employees’ retirement system on behalf of certain employees under certain circumstances; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. NRS 286.3007 is hereby amended to read as follows:

1-2 286.3007 Except as otherwise required as a result of NRS 286.537:

1-3 1. A state agency [shall] may enter into an agreement to pay the cost

1-4 of purchasing credit for service pursuant to NRS 286.300 on behalf of a

1-5 member if:

1-6 (a) The agency [entered into an agreement with the member under which

1-7 the member was employed] enters into the agreement before the member

1-8 is employed;

1-9 (b) The member is employed upon the condition that the employer pay

1-10 the cost of purchasing the credit; and

1-11 [(b)] (c) The agreement to [purchase] pay the cost of purchasing the

1-12 credit is in writing, becomes part of the personnel records of the employee

1-13 and is approved in advance by the state board of examiners.

2-1 2. If a state agency is [required] authorized to purchase credit pursuant

2-2 to subsection 1, it shall not do so until the member has completed 1 year of

2-3 service in its employ.

2-4 3. If a state agency is required to reduce the number of its employees, it

2-5 shall purchase credit for service pursuant to NRS 286.300 for any member

2-6 who:

2-7 (a) Is eligible to purchase credit;

2-8 (b) Is eligible to retire or will be made eligible by the purchase of the

2-9 credit;

2-10 (c) Agrees to retire upon completion of the purchase; and

2-11 (d) Has been employed by the agency for 5 or more years.

2-12 4. If a state agency is required to purchase credit pursuant to subsection

2-13 3, it shall pay 5 percent of the cost of purchasing the credit and an

2-14 additional 5 percent of the cost for each year that the person has been

2-15 employed by the agency in excess of the minimum requirement of 5 years.

2-16 Sec. 2. This act becomes effective upon passage and approval.

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