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. Chapter 286 of NRS is hereby amended by adding thereto a

1-2 new section to read as follows:

1-3 An employee who transfers, is promoted or otherwise moves from a

1-4 position covered by the public employees’ retirement fund to a position

1-5 covered by the police and firemen’s retirement fund may elect to remain

1-6 covered by the public employees’ retirement fund in lieu of transferring to

1-7 the police and firemen’s retirement fund. Notwithstanding any specific

1-8 statute to the contrary, if an employee makes such an election, the

1-9 employee shall be deemed not to be a police officer or fireman for all

1-10 purposes relating to retirement during the period that the election

1-11 remains effective.

1-12 Sec. 2. NRS 286.410 is hereby amended to read as follows:

1-13 286.410 1. The employee contribution rate must be:

1-15 actuarially determined for police officers and firemen and for regular

2-1 members, depending upon the retirement fund in which the member is

2-2 participating.

2-3 (b) Adjusted on the first monthly retirement reporting period

2-4 commencing on or after July 1 of each odd-numbered year based on the

2-5 actuarially determined contribution rate indicated in the biennial actuarial

2-6 valuation and report of the immediately preceding year. The adjusted rate

2-7 must be rounded to the nearest one-quarter of 1 percent.

2-8 2. The employee’s portion of the matching contribution rate for

2-9 employees and employers must not be adjusted in accordance with the

2-10 provisions of paragraph (b) of subsection 1 if the existing rate is within one-

2-11 quarter of 1 percent of the actuarially determined rate.

2-12 3. From each payroll during the period of his membership, the employer

2-13 shall deduct the amount of the member’s contributions and transmit the

2-14 deduction to the board at intervals designated and upon forms prescribed by

2-15 the board. The deduction must be made, to the extent authorized by

2-16 federal law and the consent of the member, in a manner that reduces the

2-17 taxable compensation of the member. The contributions must be paid on

2-18 compensation earned by a member from his first day of service.

2-19 4. [Any] Except as otherwise provided by section 1 of this act, an

2-20 employee whose position is determined after July 1, 1971, to be eligible

2-21 under the early retirement provisions for police officers and firemen shall

2-22 contribute the additional contributions required of police officers and

2-23 firemen from July 1, 1971, to the date of his enrollment under the police and

2-24 firemen’s retirement fund, if employment in this position occurred before

2-25 July 1, 1971, or from date of employment in this position to the date of his

2-26 enrollment under the police and firemen’s retirement fund, if employment

2-27 occurs later.

2-28 5. Except as otherwise provided in NRS 286.430, the system shall

2-29 guarantee to each member the return of at least the total employee

2-30 contributions which the member has made and which were credited to his

2-31 individual account. These contributions may be returned to the member, his

2-32 estate or beneficiary or a combination thereof in monthly benefits, a lump

2-33 sum refund or both.

2-34 6. Disabled members who are injured on the job and receive industrial

2-35 insurance benefits for temporary total disability remain contributing

2-36 members of the system for the duration of the benefits if and while the

2-37 public employer continues to pay the difference between these benefits and

2-38 his regular compensation. The public employer shall pay the employer

2-39 contributions on these benefits.

2-40 Sec. 3. NRS 286.421 is hereby amended to read as follows:

2-41 286.421 1. A public employer that elected to pay on behalf of its

2-43 before July 1, 1983, shall continue to do so, but a public employer may not

3-1 elect to pay those contributions on behalf of its employees on or after July 1,

3-2 1983.

3-3 2. An employee of a public employer that did not elect to pay on behalf

3-4 of its employees the contributions required by subsection 1 of NRS 286.410

3-5 before July 1, 1983, may elect to:

3-6 (a) Pay the contribution required by subsection 1 of NRS 286.410 on his

3-7 own behalf; or

3-8 (b) Have his portion of the contribution paid by his employer pursuant to

3-9 the provisions of NRS 286.425.

3-10 If an employee elects to pay the contribution on his own behalf in

3-11 accordance with paragraph (a), the employee may, to the extent

3-12 authorized by federal law, consent to have the contribution paid in a

3-13 manner that reduces his taxable compensation.

3-14 3. Except for any person chosen by election or appointment to serve in

3-15 an elective office of a political subdivision or as a district judge of this state:

3-16 (a) Payment of the employee’s portion of the contributions pursuant to

3-17 subsection 1 must be:

3-18 (1) Made in lieu of equivalent basic salary increases or cost-of-living

3-19 increases, or both; or

3-20 (2) Counterbalanced by equivalent reductions in employees’ salaries.

3-21 (b) The average compensation from which the amount of benefits

3-22 payable pursuant to this chapter is determined must be increased with

3-23 respect to each month beginning after June 30, 1975, by 50 percent of the

3-24 contribution made by the public employer, and must not be less than it

3-25 would have been if contributions had been made by the member and the

3-26 public employer separately. In the case of any officer or judge described in

3-27 this subsection, any contribution made by the public employer on his behalf

3-28 does not affect his compensation but is an added special payment.

3-29 4. Employee contributions made by a public employer must be

3-30 deposited in either the public employees’ retirement fund or the police and

3-31 firemen’s retirement fund as is appropriate. These contributions must not be

3-32 credited to the individual account of the member and may not be withdrawn

3-33 by the member upon his termination.

3-34 5. The membership of an employee who became a member on or after

3-35 July 1, 1975, and all contributions on whose behalf were made by his public

3-36 employer must not be canceled upon the termination of his service.

3-37 6. If an employer is paying the basic contribution on behalf of an

3-38 employee the total contribution rate, in lieu of the amounts required by

3-39 subsection 1 of NRS 286.410 and NRS 286.450, must be:

3-40 (a) The total contribution rate for employers that is actuarially

3-41 determined for police officers and firemen and for regular members,

3-42 depending upon the retirement fund in which the member is participating.

4-1 (b) Adjusted on the first monthly retirement reporting period

4-2 commencing on or after July 1 of each odd-numbered year based on the

4-3 actuarially determined contribution rate indicated in the biennial actuarial

4-4 valuation and report of the immediately preceding year. The adjusted rate

4-5 must be rounded to the nearest one-quarter of 1 percent.

4-6 7. The total contribution rate for employers must not be adjusted in

4-7 accordance with the provisions of paragraph (b) of subsection 6 if the

4-8 existing rate is within one-half of 1 percent of the actuarially determined

4-9 rate.

4-10 8. For the purposes of adjusting salary increases and cost-of-living

4-11 increases or of salary reduction, the total contribution must be equally

4-12 divided between employer and employee.

4-13 9. Public employers other than the State of Nevada shall pay the entire

4-14 employee contribution for those employees who contribute to the police and

4-15 firemen’s retirement fund on and after July 1, 1981.

4-16 Sec. 4. NRS 286.425 is hereby amended to read as follows:

4-17 286.425 At any time after January 1, 1984, an employee who is paying

4-22 may change his election at any time during his first year of employment.

4-23 Sec. 5. This act becomes effective on July 1, 1999.