Senate Bill No. 132–Senators Shaffer, Coffin,
Care,
Neal and Wiener
February 14, 2001
____________
Referred to Committee on Finance
SUMMARY—Provides for matching contributions by
state to public employees’ deferred compensation program for state employees. (BDR 23‑606)
FISCAL NOTE: Effect on Local Government: 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 state employees; requiring the committee established to administer the
public employees’ deferred compensation program to establish a plan for monthly
contributions to the program by the state on behalf of certain employees;
requiring the state to make monthly contributions to the public employees’
deferred compensation program under certain circumstances; prohibiting the
state from making such contributions 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. Chapter 287
of NRS is hereby amended by adding thereto a
1-2 new section to read as
follows:
1-3 1. The committee shall adopt regulations to
establish, as part of the
1-4 program, a plan for monthly contributions to the program by the
1-5 employer of an employee of the state or the University and
Community
1-6 College System of Nevada who defers compensation pursuant to the
1-7 program on behalf of that employee.
1-8 2. Except as otherwise provided in subsection 4:
1-9 (a) After the committee
creates a plan pursuant to subsection 1, the
1-10 employer shall make a monthly contribution to the program on behalf
of
1-11 each employee who defers compensation pursuant to the program and
1-12 who elects to receive a contribution pursuant to this section.
1-13 (b) The contribution must be in an amount equal
to the lesser of:
1-14 (1) The amount per month
the employee defers pursuant to the
1-15 program; or
1-16 (2) Fifty dollars.
1-17 3. Contributions made pursuant to this section
must be held, invested
1-18 and distributed:
2-1 (a) In accordance with the
requirements for matching contributions
2-2 and the appropriate program pursuant to 26 U.S.C. §§ 401, 403(b)
and
2-3 457, and all other applicable federal statutes, rules and
regulations; and
2-4 (b) In the same manner as
money withheld by an employer pursuant
2-5 to this section and NRS 287.250 to 287.370, inclusive.
2-6 4. The employer may not make a contribution
pursuant to subsection
2-7 2 that exceeds the maximum amount of such contribution allowed
2-8 pursuant to the Internal Revenue Code. If the amount appropriated
and
2-9 available for contributions pursuant to this section is less than
the
2-10 amount required to make contributions pursuant to subparagraph (1)
or
2-11 (2) of paragraph (b) of subsection 2, the employer shall prorate
the
2-12 contributions accordingly.
2-13 Sec. 2. NRS 287.250 is hereby amended to read as follows:
2-14 287.250 As used in NRS
287.250 to 287.370, inclusive, and
section 1
2-15 of this act, unless the context otherwise requires, the words and
terms
2-16 defined in NRS 287.260 to
287.310, inclusive, have the meanings ascribed
2-17 to them in those sections.
2-18 Sec. 3. NRS 287.270 is hereby amended to read as follows:
2-19 287.270 “Deferred
compensation” means income which a state
2-20 employee or employee of the University
and Community College System
2-21 of Nevada may legally set aside under 26
U.S.C. § 401(k), 403(b) or 457
2-22 and any money from
contributions to the program made by the employer
2-23 on behalf of an employee pursuant to section 1 of this act which, while
2-24 invested under the program, is exempt
from federal income taxes on the
2-25 employee’s contributions , the state’s contributions, and interest,
2-26 dividends and capital gains.
2-27 Sec. 4. NRS 287.310 is hereby amended to read as follows:
2-28 287.310 “Program” means the
public employees’ deferred
2-29 compensation program
authorized by NRS 287.250 to 287.370, inclusive
2-30 [.] , and section 1 of this act.
2-31 Sec. 5. NRS 287.320 is hereby amended to read as follows:
2-32 287.320 1. The state may agree with any of its
employees, and the
2-33 board of regents of the University of
Nevada may agree with any of its
2-34 employees, to defer the compensation due
to them in accordance with a
2-35 program approved by the committee and as
authorized by 26 U.S.C. §
2-36 401(k), 403(b) or 457. The board of
regents may agree with any of its
2-37 employees to defer the compensation due
to them as authorized by 26
2-38 U.S.C. § 403(b) without submitting the
program to the committee for its
2-39 approval.
2-40 2.
The employer shall withhold the amount
of compensation which an
2-41 employee has, by such an agreement,
directed the employer to defer.
2-42 3.
The employer may invest the withheld
money and contributions
2-43 made by the employer pursuant to section 1 of this act in any investment
2-44 approved by the committee
or, in the case of deferred compensation under
2-45 26 U.S.C. § 403(b) for
employees of the University and Community
2-46 College System of Nevada by
the board of regents of the University of
2-47 Nevada.
2-48 4. The investments must be
underwritten and offered in compliance
2-49 with all applicable federal
and state laws and regulations, and may be
3-1 offered only by persons who
are authorized and licensed under all
3-2 applicable state and federal
regulations.
3-3 5. All amounts of
compensation deferred pursuant to the program, all
3-4 property and all rights
purchased with those amounts and all income
3-5 attributable to those
amounts, property or rights must, in accordance with
3-6 26 U.S.C. § 457(g), be held
in trust for the exclusive benefit of the
3-7 participants in the program
and their beneficiaries.
3-8 Sec. 6. NRS 287.330 is hereby amended to read as follows:
3-9 287.330 1. The committee shall:
3-10 (a) At its first meeting each year, designate one of its members to
serve
3-11 as chairman of the committee
for a term of 1 year or until his successor has
3-12 been designated.
3-13 (b) Act in such a manner as to promote the collective best
interests of
3-14 the participants in the
program.
3-15 2. The committee may:
3-16 (a) Create an appropriate account for administration of money and
other
3-17 assets resulting from
compensation deferred pursuant to the program [.] ,
3-18 including contributions made by an employer pursuant to section 1
of
3-19 this act.
3-20 (b) With the approval of the governor, delegate to one or more
state
3-21 agencies or institutions of
the University and Community College System
3-22 of Nevada the responsibility
for administering the program for their
3-23 respective employees,
including:
3-24 (1) Collection of deferred compensation;
3-25 (2) Transmittal of money collected to depositories within the
state
3-26 designated by the committee;
and
3-27 (3) Payment of deferred compensation to participating employees.
3-28 (c) Contract with a private person, corporation, institution or
other
3-29 entity, directly or through
a state agency or institution of the University and
3-30 Community College System of
Nevada, for services necessary to the
3-31 administration of the plan,
including, without limitation:
3-32 (1) Consolidated billing;
3-33 (2) The keeping of records for each participating employee and
the
3-34 program;
3-35 (3) The purchase, control and safeguarding of assets;
3-36 (4) Programs for communication with employees; and
3-37 (5) The administration and coordination of the program.
3-38 3. The committee and its
individual members are not liable for any
3-39 decision relating to investments
if the committee has:
3-40 (a) Obtained the advice of qualified counsel on investments.
3-41 (b) Established proper objectives and policies relating to
investments.
3-42 (c) Discharged its duties regarding the decision:
3-43 (1) Solely in the interest of the participants in the program;
and
3-44 (2) With the care, skill, prudence and diligence that, under the
3-45 circumstances existing at
the time of the decision, a prudent person who is
3-46 familiar with similar
investments would use while acting in a similar
3-47 capacity in conducting an
enterprise of similar character and purpose.
3-48 (d) Selected at least two plans from separate and distinct
providers from
3-49 which the participants in
the program may choose.
4-1 (e) Solicited proposals from qualified providers of plans at least
once
4-2 every 5 years.
4-3 Sec. 7. NRS 287.340 is hereby amended to read as follows:
4-4 287.340 1. Deferrals of compensation , other than monthly
4-5 contributions made by employers, may be withheld as
deductions from the
4-6 payroll in accordance with
the agreement between the employer and a
4-7 participating employee.
4-8 2. The amount of deferred
compensation set aside by the employer
4-9 under the program during any
calendar year may not exceed the amount
4-10 authorized by 26 U.S.C. §
401(k), 403(b) or 457.
4-11 Sec. 8. NRS 287.370 is hereby amended to read as follows:
4-12 287.370 No appropriated
money of the state may be spent in
4-13 connection with the administration
of the program except as
monthly
4-14 contributions made by an employer pursuant to section 1 of this act
and
4-15 as compensation for employees who participated in the administration as
4-16 part of their regular
duties, including without limitation:
4-17 1. Members and staff of the
committee; and
4-18 2. Employees of the state
agency or the institution of the University
4-19 and Community College System
of Nevada selected to administer the
4-20 program.
4-21 H