(REPRINTED WITH ADOPTED AMENDMENTS)
FIRST REPRINTS.B. 349
Senate Bill No. 349–Committee on Finance
(On Behalf of Public Employees’ Retirement System)
March 14, 2001
____________
Referred to Committee on Finance
SUMMARY—Makes various changes regarding public employees’ retirement system. (BDR 23‑752)
FISCAL NOTE: Effect on Local Government: Yes.
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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 the public employees’ retirement system; providing for benefits for a survivor beneficiary in certain circumstances; decreasing the number of years of service at which a police officer or fireman is eligible to retire regardless of age; revising the formula for calculating retirement allowances; 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 286 of NRS is hereby amended by adding thereto
1-2 the provisions set forth as sections 2 to 6, inclusive, of this act.
1-3 Sec. 2. An unmarried member may designate, in writing, a survivor
1-4 beneficiary to receive the payments provided pursuant to section 3, 4 or 5
1-5 of this act if the member is unmarried on the date of his death. A
1-6 designation pursuant to this section must be made on a form approved by
1-7 the executive officer.
1-8 Sec. 3. 1. The survivor beneficiary of a deceased member is
1-9 entitled to receive a cumulative benefit of at least $450 per month. The
1-10 payments must begin on the first day of the month immediately following
1-11 the death of the member and must cease on the last day of the month in
1-12 which the survivor beneficiary dies. If payments cease before the total
1-13 amount of contributions made by the deceased member have been
1-14 received by the survivor beneficiary, the surplus of contributions over
1-15 payments received must be paid to the survivor beneficiary.
1-16 2. The benefits paid pursuant to this section are in addition to any
1-17 benefits paid pursuant to NRS 286.673.
1-18 3. As used in this section, “survivor beneficiary” means a person
1-19 designated pursuant to section 2 of this act.
2-1 Sec. 4. 1. Except as limited by subsection 3, the survivor
2-2 beneficiary of a deceased member who had 10 or more years of
2-3 accredited contributing service is entitled to receive a monthly allowance
2-4 equivalent to that provided by:
2-5 (a) Option 3 in NRS 286.590, if the deceased member had less than 15
2-6 years of service on the date of his death; or
2-7 (b) Option 2 in NRS 286.590, if the deceased member had more than
2-8 15 years of service on the date of his death.
2-9 To apply the provisions of Options 2 and 3, the deceased member shall be
2-10 deemed to have retired on the date of his death immediately after having
2-11 named the survivor beneficiary as beneficiary pursuant to the applicable
2-12 option. This benefit must be computed without any reduction for age for
2-13 the deceased member. The benefits provided by this subsection must be
2-14 paid to the survivor beneficiary for the remainder of the life of the
2-15 survivor beneficiary.
2-16 2. The survivor beneficiary may elect to receive the benefits provided
2-17 by any one of the following only:
2-18 (a) This section;
2-19 (b) Section 3 of this act; or
2-20 (c) Section 6 of this act.
2-21 3. The benefits provided by paragraph (a) of subsection 1 may only
2-22 be paid to the survivor beneficiary of a member who died on or after
2-23 January 1, 2002.
2-24 4. As used in this section, “survivor beneficiary” means a person
2-25 designated pursuant to section 2 of this act.
2-26 Sec. 5. 1. Except as limited by subsection 2, the survivor
2-27 beneficiary of a deceased member who was fully eligible to retire, both as
2-28 to service and age, is entitled to receive a monthly allowance equivalent
2-29 to that provided by option 2 in NRS 286.590. This section does not apply
2-30 to the survivor beneficiary of a member who was eligible to retire only
2-31 pursuant to subsection 6 of NRS 286.510. For the purposes of applying
2-32 the provisions of option 2, the deceased member shall be deemed to have
2-33 retired on the date of his death immediately after having named the
2-34 survivor beneficiary as beneficiary pursuant to option 2. The benefits
2-35 provided by this section must be paid to the survivor beneficiary for the
2-36 remainder of the life of the survivor beneficiary. The survivor beneficiary
2-37 may elect to receive the benefits provided by any one of the following
2-38 only:
2-39 (a) This section;
2-40 (b) Section 3 of this act;
2-41 (c) Section 4 of this act; or
2-42 (d) Section 6 of this act.
2-43 2. The benefits provided by this section may only be paid to the
2-44 survivor beneficiary of a member who died on or after January 1, 2002.
2-45 3. As used in this section, “survivor beneficiary” means a person
2-46 designated pursuant to section 2 of this act.
2-47 Sec. 6. 1. Any survivor beneficiary eligible for payments pursuant
2-48 to the provisions of section 3 or 4 of this act may elect to waive payment
2-49 of a monthly allowance and to receive instead in a lump sum a refund of
3-1 all contributions to the public employees’ retirement fund or the police
3-2 and firemen’s retirement fund made by a deceased member plus any
3-3 contributions made by a public employer in lieu of the employee’s
3-4 contributions, but if more than one person is eligible for benefits on
3-5 account of the contributions of any one deceased member, no such lump
3-6 sum payment may be made.
3-7 2. As used in this section, “survivor beneficiary” means a person
3-8 designated pursuant to section 2 of this act.
3-9 Sec. 7. NRS 286.510 is hereby amended to read as follows:
3-10 286.510 1. Except as otherwise provided in subsections 2 and 3, a
3-11 member of the system is eligible to retire at age 65 if he has at least 5 years
3-12 of service, at age 60 if he has at least 10 years of service[,] and at any age
3-13 if he has at least 30 years of service.
3-14 2. A police officer or fireman is eligible to retire at age 65 if he has at
3-15 least 5 years of service, at age 55 if he has at least 10 years of service, at
3-16 age 50 if he has at least 20 years of service[,] and at any age if he has at
3-17 least [30] 25 years of service. Only service performed in a position as a
3-18 police officer or fireman, established as such by statute or regulation,
3-19 service performed pursuant to subsection 3 and credit for military service,
3-20 may be counted toward eligibility for retirement pursuant to this
3-21 subsection.
3-22 3. Except as otherwise provided in subsection 4, a police officer or
3-23 fireman who has at least 5years of service as a police officer or fireman
3-24 and is otherwise eligible to apply for disability retirement pursuant to NRS
3-25 286.620 because of an injury arising out of and in the course of his
3-26 employment remains eligible for retirement pursuant to subsection 2 if:
3-27 (a) He applies to the board for disability retirement and the board
3-28 approves his application;
3-29 (b) In lieu of a disability retirement allowance, he accepts another
3-30 position with the public employer with which he was employed when he
3-31 became disabled as soon as practicable but not later than 90 days after the
3-32 board approves his application for disability retirement;
3-33 (c) He remains continuously employed by that public employer until he
3-34 becomes eligible for retirement pursuant to subsection 2; and
3-35 (d) After he accepts a position pursuant to paragraph (b), his
3-36 contributions are paid at the rate that is actuarially determined for police
3-37 officers and firemen until he becomes eligible for retirement pursuant to
3-38 subsection 2.
3-39 4. If a police officer or fireman who accepted another position with the
3-40 public employer with which he was employed when he became disabled
3-41 pursuant to subsection 3 ceases to work for that public employer before
3-42 becoming eligible to retire pursuant to subsection 2, he may begin to
3-43 receive a disability retirement allowance without further approval by the
3-44 board by notifying the board on a form prescribed by the board.
3-45 5. Eligibility for retirement, as provided in this section, does not
3-46 require the member to have been a participant in the system at the
3-47 beginning of his credited service.
3-48 6. Any member who has the years of creditable service necessary to
3-49 retire but has not attained the required age, if any, may retire at any age
4-1 with a benefit actuarially reduced to the required retirement age. Except as
4-2 otherwise required as a result of NRS 286.537, a retirement benefit [under]
4-3 pursuant to this subsection must be reduced by 4 percent of the
4-4 unmodified benefit for each full year that the member is under the
4-5 appropriate retirement age, and an additional 0.33 percent for each
4-6 additional month that the member is under the appropriate retirement age.
4-7 Any option selected [under] pursuant to this subsection must be reduced
4-8 by an amount proportionate to the reduction provided in this subsection for
4-9 the unmodified benefit. The board may adjust the actuarial reduction based
4-10 upon an experience study of the system and recommendation by the
4-11 actuary.
4-12 Sec. 8. NRS 286.551 is hereby amended to read as follows:
4-13 286.551 Except as otherwise required as a result of NRS 286.535 or
4-14 286.537:
4-15 1. Except as otherwise provided in this subsection,a monthly service
4-16 retirement allowance must be determined by multiplying a member’s
4-17 average compensation by 2.5 percent for each year of service[,] earned
4-18 before July 1, 2001, and 2.67 percent for each year of service earned on
4-19 or after July 1, 2001, except that a member:
4-20 (a) Who has an effective date of membership on or after July 1, 1985, is
4-21 entitled to a benefit of not more than 75 percent of his average
4-22 compensation with his eligibility for service credit ceasing at 30 years of
4-23 service.
4-24 (b) Who has an effective date of membership before July 1, 1985, and
4-25 retires on or after July 1, 1977, is entitled to a benefit of not more than 90
4-26 percent of his average compensation with his eligibility for service credit
4-27 ceasing at 36 years of service.
4-28 In no case may the service retirement allowance determined pursuant to
4-29 this section be less than the allowance to which the retired employee would
4-30 have been entitled [under] pursuant to the provisions of this section which
4-31 were in effect on the day before July 3, 1991.
4-32 2. For the purposes of this section, except as otherwise provided in
4-33 subsection 3, “average compensation” means the average of a member’s 36
4-34 consecutive months of highest compensation as certified by the public
4-35 employer.
4-36 3. The average compensation of a member who has a break in service
4-37 or partial months of compensation, or both, as a result of service as a
4-38 legislator during a regular or special session of the Nevada legislature must
4-39 be calculated on the basis of the average of his 36 consecutive months of
4-40 highest compensation as certified by his public employer excluding each
4-41 month during any part of which the legislature was in session. This
4-42 subsection does not affect the computation of years of service.
4-43 4. The retirement allowance for a regular part-time employee must be
4-44 computed from the salary which he would have received as a full-time
4-45 employee if it results in greater benefits for the employee. A regular part-
4-46 time employee is a person who works half time or more, but less than full
4-47 time:
4-48 (a) According to the regular schedule established by the employer for
4-49 his position; and
5-1 (b) Pursuant to an established agreement between the employer and the
5-2 employee.
5-3 Sec. 9. NRS 286.672 is hereby amended to read as follows:
5-4 286.672 1. Except as otherwise provided in subsection 3, if a
5-5 deceased member had 2 years of accredited contributing service in the
5-6 2 1/2 years immediately preceding his death or was a regular, part-time
5-7 employee who had 2 or more years of creditable contributing service
5-8 before and at least 1 day of contributing service within 6 months
5-9 immediately preceding his death, or if the employee had 10 or more years
5-10 of accredited contributing service, certain of his dependents are eligible for
5-11 payments as provided in NRS 286.671 to 286.679, inclusive [.] , and
5-12 sections 2 to 6, inclusive, of this act. If the death of the member resulted
5-13 from a mental or physical condition which required him to leave the
5-14 employ of a participating public employer or go on leave without pay,
5-15 eligibility pursuant to the provisions of this section extends for 18 months
5-16 after his termination or commencement of leave without pay.
5-17 2. If the death of a member occurs while he is on leave of absence
5-18 granted by his employer for further training and if he met the requirements
5-19 of subsection 1 at the time his leave began, certain of his dependents are
5-20 eligible for payments as provided in subsection 1.
5-21 3. If the death of a member is caused by an occupational disease or an
5-22 accident arising out of and in the course of his employment, no prior
5-23 contributing service is required to make his dependents eligible for
5-24 payments [under] pursuant to NRS 286.671 to 286.679, inclusive, and
5-25 sections 2 to 6, inclusive, of this act, except that this subsection does not
5-26 apply to an accident occurring while the member is traveling between his
5-27 home and his principal place of employment or to an accident or
5-28 occupational disease arising out of employment for which no contribution
5-29 is made.
5-30 4. As used in this section, “dependent” includes a survivor
5-31 beneficiary designated pursuant to section 2 of this act.
5-32 Sec. 10. NRS 286.677 is hereby amended to read as follows:
5-33 286.677 If payments or refunds are not made[under]pursuant to the
5-34 provisions of NRS 286.673, 286.674,[or]286.676, or section 3 or 4 of
5-35 this act, the dependent parent of a deceased member is entitled to receive a
5-36 cumulative benefit of at least $400 per month, and if there are two
5-37 dependent parents, each is entitled to receive a cumulative benefit of at
5-38 least $400 per month. Payments to any parent [under]pursuant to this
5-39 section must cease upon the death of that parent.
5-40 Sec. 11. NRS 286.6775 is hereby amended to read as follows:
5-41 286.6775 The amount of each monthly allowance paid since May 19,
5-42 1977, as specified in NRS 286.673 to 286.677, inclusive,and sections 3, 4
5-43 and 5 of this act shall not exceed the deceased member’s average
5-44 compensation and shall be reduced by the amount of any other benefit
5-45 received from any source:
5-46 1. If that benefit was provided or purchased by the expenditure of
5-47 money by a public employer in this state, except for lump sum payments
5-48 under a group insurance program; and
6-1 2. To the extent that the total of the allowance and the other benefit
6-2 would otherwise exceed the deceased member’s average compensation.
6-3 Sec. 12. NRS 286.679 is hereby amended to read as follows:
6-4 286.679 1. If payments to a beneficiary [under]pursuant to NRS
6-5 286.671 to 286.679, inclusive, and sections 2 to 6, inclusive, of this act,
6-6 cease before the total contributions of a deceased member have been paid
6-7 in benefits, and there is no person entitled to receive such benefits [under]
6-8 pursuant to any provision of this chapter, the surplus of such contributions
6-9 over the benefits actually received may be paid in a lump sum to:
6-10 (a) The beneficiary whom the deceased member designated for this
6-11 purpose in writing on a form approved by the system.
6-12 (b) If no such designation was made or the person designated is
6-13 deceased, the beneficiary who previously received the payments.
6-14 (c) If no payment may be made pursuant to paragraphs (a) and (b), the
6-15 persons entitled as heirs or residuary legatees to the estate of the deceased
6-16 member.
6-17 2. A lump-sum payment made pursuant to this section fully discharges
6-18 the obligations of the system.
6-19 Sec. 13. NRS 286.6793 is hereby amended to read as follows:
6-20 286.6793 1. [Retirement allowances for members who are] The
6-21 retirement allowance for a member who:
6-22 (a) Ceased being an active member before July 1, 1989, vested on the
6-23 date that the employee completed 10 years of accredited contributing
6-24 service; and
6-25 (b) Is active on or after July 1, 1989, [become] becomes vested on the
6-26 date that the employee completes 5years of accredited contributing
6-27 service.
6-28 2. Benefits for survivors offered pursuant to this chapter become
6-29 vested on the date that the employee completes 10 years of accredited
6-30 contributing service or becomes entitled to begin receiving benefits or on
6-31 the date of his death, whichever event occurs first.
6-32 3. Unless otherwise specifically provided by the amendatory act, any
6-33 change in the provisions of this chapter is retroactive for all service of any
6-34 member before the date of vesting, but no change may impair any vested
6-35 allowance or benefit.
6-36 4. [Any person employed by the state or its political subdivisions who
6-37 is a participating member of the system on or after July 1, 1989, who has
6-38 been employed for a period of 5 or more years, who leaves the employ of
6-39 the state or its political subdivisions before the attainment of the minimum
6-40 service retirement age and who has not received a refund of his employee
6-41 contributions, upon reaching the minimum service retirement age
6-42 applicable to his years of service credit, may receive the same benefits to
6-43 which he would otherwise have been entitled had he continued
6-44 membership in the system.
6-45 5.] Upon the termination or partial termination of the system:
6-46 (a) Except as otherwise provided in paragraph (b), all accrued benefits
6-47 that are funded become 100 percent vested and nonforfeitable.
7-1 (b) A member who receives his vested accrued benefits in a complete
7-2 cash distribution before the termination is not entitled to the vesting of any
7-3 benefits which have been forfeited.
7-4 Sec. 14. NRS 1.365 is hereby amended to read as follows:
7-5 1.365 All of the following claims must be submitted to the court
7-6 administrator, who shall act as administrative officer in processing the
7-7 claims:
7-8 1. Claims of justices of the supreme court [under] pursuant to
7-9 NRS 2.050 and 2.060.
7-10 2. Claims [of surviving spouses of justices of the supreme court under]
7-11 pursuant to NRS 2.070 [.]and section 15 of this act.
7-12 3. Claims of judges of the district courts [under] pursuant to
7-13 NRS 3.030 and 3.090.
7-14 4. Claims [of surviving spouses of judges of the district courts under]
7-15 pursuant to NRS 3.095 [.]and section 16 of this act.
7-16 Sec. 15. Chapter 2 of NRS is hereby amended by adding thereto a new
7-17 section to read as follows:
7-18 1. If a justice of the supreme court at the time of his death had
7-19 retired and was then receiving a pension pursuant to the provisions of
7-20 NRS 2.060, or if at the time of his death the justice had not retired but
7-21 had performed sufficient service for retirement pursuant to the
7-22 provisions of NRS 2.060, the survivor beneficiary, if the survivor
7-23 beneficiary has attained the age of 60 years, is entitled, until his death, to
7-24 receive monthly payments of $2,500 per month.
7-25 2. If a survivor beneficiary of a justice is not eligible to receive
7-26 benefits pursuant to subsection 1, he is entitled, until his death or until
7-27 he becomes eligible to receive those benefits, to receive payments equal in
7-28 amount to the payment provided in subsection 1 of section 3 of this act
7-29 for the survivor beneficiary of a deceased member of the public
7-30 employees’ retirement system.
7-31 3. To obtain these benefits, the survivor beneficiary must make
7-32 application to the board, commission or authority entrusted with the
7-33 administration of the judges’ pensions and furnish such information as
7-34 may be required pursuant to reasonable regulations adopted for the
7-35 purpose of carrying out the intent of this section.
7-36 4. Any person receiving a benefit pursuant to the provisions of this
7-37 section is entitled to receive post-retirement increases equal to those
7-38 provided for persons retired pursuant to the public employees’ retirement
7-39 system.
7-40 5. It is the intent of this section that no special fund be created for
7-41 the purpose of paying these benefits, and all payments made pursuant to
7-42 the provisions of this section are to be made out of and charged to any
7-43 fund created for the purpose of paying pension benefits to justices of the
7-44 supreme court.
7-45 6. As used in this section, “survivor beneficiary” means a person
7-46 designated pursuant to section 2 of this act.
8-1 Sec. 16. Chapter 3 of NRS is hereby amended by adding thereto a new
8-2 section to read as follows:
8-3 1. If a district judge at the time of his death had retired and was then
8-4 receiving a pension pursuant to the provisions of NRS 3.090, or if at the
8-5 time of his death the judge had not retired but had performed sufficient
8-6 service for retirement pursuant to the provisions of NRS 3.090, the
8-7 survivor beneficiary, if the survivor beneficiary has attained the age of 60
8-8 years, is entitled, until his death, to receive monthly payments of $2,500
8-9 per month.
8-10 2. If a survivor beneficiary of a judge is not eligible to receive
8-11 benefits pursuant to subsection 1, he is entitled, until his death or until
8-12 he becomes eligible to receive those benefits, to receive payments equal in
8-13 amount to the payment provided in subsection 1 of section 3 of this act
8-14 for the survivor beneficiary of a deceased member of the public
8-15 employees’ retirement system.
8-16 3. To obtain these benefits, the survivor beneficiary must make
8-17 application to the board, commission or authority entrusted with the
8-18 administration of the judges’ pensions and furnish such information as
8-19 may be required pursuant to reasonable regulations adopted for the
8-20 purpose of carrying out the intent of this section.
8-21 4. Any person receiving a benefit pursuant to the provisions of this
8-22 section is entitled to receive post-retirement increases equal to those
8-23 provided for persons retired pursuant to the public employees’ retirement
8-24 system.
8-25 5. It is the intent of this section that no special fund be created for
8-26 the purpose of paying these benefits, and all payments made pursuant to
8-27 the provisions of this section are to be made out of and charged to any
8-28 fund created for the purpose of paying pension benefits to district judges.
8-29 6. As used in this section, “survivor beneficiary” means a person
8-30 designated pursuant to section 2 of this act.
8-31 Sec. 17. NRS 218.2392 is hereby amended to read as follows:
8-32 218.2392 1. The provisions of NRS 286.671 to 286.679, inclusive,
8-33 and sections 2 to 6, inclusive, of this act, except NRS 286.6775, relating to
8-34 benefits for survivors [under]pursuant to the public employees’ retirement
8-35 system, are applicable to a legislator’s dependents, and such benefits for
8-36 survivors shall be paid by the board following the death of a legislator to
8-37 the persons entitled thereto from the legislators’ retirement fund.
8-38 2. It is declared that of the contributions required by subsections 1 and
8-39 2 of NRS 218.2387 , one-half of 1 percent shall be regarded as costs
8-40 incurred in benefits for survivors.
8-41 Sec. 18. 1. This section and sections 7, 8 and 13 of this act become
8-42 effective on July 1, 2001.
8-43 2. Sections 1 to 6, inclusive, 9 to 12, inclusive, and 14 to 17, inclusive,
8-44 of this act become effective on January 1, 2002.
8-45 H