Assembly Bill No. 138–Committee on Ways and Means

February 14, 2001

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Referred to Committee on Government Affairs

SUMMARY—Clarifies formula for determining amount payable by State of Nevada toward cost of insurance for certain retired employees. (BDR 23‑1065)

FISCAL NOTE: Effect on Local Government: No.

Effect on the State: 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; clarifying the formula for determining the amount payable by the State of Nevada toward the cost of insurance for certain retired employees; 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 287.046 is hereby amended to read as follows:

1-2 287.046 1. Except as otherwise provided in subsection 6, any state or

1-3 other participating officer or employee who elects to participate in the

1-4 program may participate, and the department, agency, commission or

1-5 public agency that employs the officer or employee shall pay the state’s

1-6 share of the cost of the premiums or contributions for the program from

1-7 money appropriated or authorized as provided in NRS 287.044. Employees

1-8 who elect to participate in the program must authorize deductions from

1-9 their compensation for the payment of premiums or contributions for the

1-10 program.

1-11 2. The department of personnel shall pay a percentage of the base

1-12 amount provided by law for that fiscal year toward the cost of the

1-13 premiums or contributions for the program for persons retired from the

1-14 service of the state who have continued to participate in the program.

1-15 Except as otherwise provided in subsection 3, the percentage to be paid

1-16 must be calculated as follows:

1-17 (a) For those persons who retire before January 1, 1994, 100 percent of

1-18 the base amount provided by law for that fiscal year.

1-19 (b) For those persons who retire on or after January 1, 1994, with at

1-20 least 5 years of state service, 25 percent plus an additional 7.5 percent for

1-21 each year of state service in excess of 5 years to a maximum of 137.5

1-22 percent, excluding service purchased pursuant to NRS 286.300, of the base

1-23 amount provided by law for that fiscal year.

2-1 3. If the amount calculated pursuant to subsection 2 exceeds the actual

2-2 premium or contribution for the plan of the program that the retired

2-3 participant selects, the balance must be credited to the fund for the public

2-4 employees’ benefits program created pursuant to NRS 287.0435.

2-5 4. For the purposes of subsection 2:

2-6 (a) Credit for service must be calculated in the manner provided by

2-7 chapter 286 of NRS [.] , but must not include service with any public

2-8 employer other than the State of Nevada.

2-9 (b) No proration may be made for a partial year of service.

2-10 5. The department shall agree through the board with the insurer for

2-11 billing of remaining premiums or contributions for the retired participant

2-12 and his dependents to the retired participant and to his dependents who

2-13 elect to continue coverage under the program after his death.

2-14 6. A senator or assemblyman who elects to participate in the program

2-15 shall pay the entire premium or contribution for his insurance.

2-16 Sec. 2. This act becomes effective on July 1, 2001.

2-17 H