(REPRINTED WITH ADOPTED AMENDMENTS)

 

Assembly Bill No. 563–Committee on Government Affairs

 

March 26, 2001

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Authorizes additional deferred compensation plan for state employees and employees of political subdivisions. (BDR 23‑1345)

 

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.

 

AN ACT relating to public employees; authorizing an additional deferred compensation plan for state employees and employees of political subdivisions; 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 287.270 is hereby amended to read as follows:

1-2    287.270  “Deferred compensation” means income which a state

1-3  employee or employee of the University and Community College System

1-4  of Nevada may legally set aside under the program, which may consist of

1-5  one or more plans authorized by 26 U.S.C. § 401(a), 401(k), 403(b) or

1-6  457 and which[,] income, while invested under the program, is exempt

1-7  from federal income taxes on the employee’s contributions and interest,

1-8  dividends and capital gains.

1-9    Sec. 2.  NRS 287.320 is hereby amended to read as follows:

1-10    287.320  1.  The state may agree with any of its employees, and the

1-11  board of regents of the University of Nevada may agree with any of its

1-12  employees, to defer the compensation due to them in accordance with a

1-13  program approved by the committee [andas] which may consist of one or

1-14  more plans authorized by 26 U.S.C. § 401(a), 401(k), 403(b) or 457. The

1-15  board of regents may agree with any of its employees to defer the

1-16  compensation due to them as authorized by 26 U.S.C. § 403(b) without

1-17  submitting the program to the committee for its approval. An employee

1-18  may defer compensation under one or more plans in the program.

1-19    2.  The employer shall withhold the amount of compensation which an

1-20  employee has, by such an agreement, directed the employer to defer.

1-21    3.  The employer may invest the withheld money in any investment

1-22  approved by the committee or, in the case of deferred compensation under

1-23  26 U.S.C. § 403(b) for employees of the University and Community

2-1  College System of Nevada , by the board of regents of the University of

2-2  Nevada.

2-3    4.  The investments must be underwritten and offered in compliance

2-4  with all applicable federal and state laws and regulations, and may be

2-5  offered only by persons who are authorized and licensed under all

2-6  applicable state and federal regulations.

2-7    5.  All amounts of compensation deferred pursuant to the program, all

2-8  property and all rights purchased with those amounts and all income

2-9  attributable to those amounts, property or rights must, in accordance with

2-10  26 U.S.C. § 401(a) or 457(g), as applicable, be held in trust for the

2-11  exclusive benefit of the participants in the program and their beneficiaries.

2-12    Sec. 3.  NRS 287.340 is hereby amended to read as follows:

2-13    287.340  1.  Deferrals of compensation may be withheld as deductions

2-14  from the payroll in accordance with the agreement between the employer

2-15  and a participating employee.

2-16    2.  The amount of deferred compensation set aside by the employer to a

2-17  plan under the program during any calendar year may not exceed the

2-18  amount authorized by 26 U.S.C. § 401(a), 401(k), 403(b) or 457 [.] , as

2-19  applicable.

2-20    Sec. 4.  NRS 287.350 is hereby amended to read as follows:

2-21    287.350  1.  No plan in the program becomes effective and no

2-22  deferral may be made until the [program] plan meets the requirements of

2-23  26 U.S.C. § 401(a), 401(k), 403(b) or 457 , as applicable, for eligibility.

2-24    2.  Income deferred during a period in which no income tax is imposed

2-25  by the state or a political subdivision may not be taxed when paid to the

2-26  employee.

2-27    Sec. 5.  NRS 287.401 is hereby amended to read as follows:

2-28    287.401  “Deferred compensation” means income which an employee

2-29  of a political subdivision may legally set aside under the program, which

2-30  may consist of one or more plans authorized by 26 U.S.C. § 401(a),

2-31  401(k) or 457 and which [,] income, while invested under the program, is

2-32  exempt from federal income taxes on the employee’s contributions and

2-33  interest, dividends and capital gains.

2-34    Sec. 6.  NRS 287.420 is hereby amended to read as follows:

2-35    287.420  1.  A political subdivision may agree with any of its

2-36  employees to defer the compensation due to them in accordance with a

2-37  program approved by the committee [and as] which may consist of one or

2-38  more plans authorized by 26 U.S.C. § 401(a) or 457. An employee may

2-39  defer compensation under one or more plans in the program.

2-40    2.  The political subdivision shall withhold the amount of compensation

2-41  which an employee has, by such an agreement, directed the political

2-42  subdivision to defer.

2-43    3.  The political subdivision may invest the withheld money in any

2-44  investment permitted by law and approved by the committee.

2-45    4.  The investments must be underwritten and offered in compliance

2-46  with all applicable federal and state laws and regulations, and may be

2-47  offered only by persons who are authorized and licensed under all

2-48  applicable state and federal regulations.

 

3-1    Sec. 7.  NRS 287.430 is hereby amended to read as follows:

3-2    287.430  1.  The governing body of a political subdivision may create

3-3  an appropriate fund for administration of money and other assets resulting

3-4  from compensation deferred under the program.

3-5    2.  All amounts of compensation deferred pursuant to the program, all

3-6  property and rights purchased with those amounts, and all income

3-7  attributable to those amounts, property or rights must, in accordance with

3-8  26 U.S.C. § 401(a) or 457(g), as applicable, be held in trust for the

3-9  exclusive benefit of the participants in the program and their beneficiaries.

3-10    Sec. 8.  NRS 287.450 is hereby amended to read as follows:

3-11    287.450  1.  Deferrals of compensation may be withheld as payroll

3-12  deductions in accordance with the agreement between the political

3-13  subdivision and a participating employee.

3-14    2.  The amount of deferred compensation set aside by the political

3-15  subdivision to a plan under the program during any calendar year may not

3-16  exceed the amount authorized by 26 U.S.C. § 401(a) or 457 [.] , as

3-17  applicable.

3-18    Sec. 9.  NRS 287.460 is hereby amended to read as follows:

3-19    287.460  1.  No plan in the program becomes effective and no

3-20  deferral may be made until the [program] plan meets the requirements of

3-21  26 U.S.C. § 401(a) or 457 , as applicable, for eligibility.

3-22    2.  Income deferred during a period in which no income tax is imposed

3-23  by the state or a political subdivision may not be taxed when paid to the

3-24  employee.

3-25    Sec. 10.  This act becomes effective upon passage and approval.

 

3-26  H