Senate Bill No. 345–Senators Nolan and Hardy

 

March 17, 2003

____________

 

Referred to Committee on Finance

 

SUMMARY—Provides direction to Public Employees’ Retirement System regarding payment of certain benefits. (BDR 23‑88)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to public employees’ retirement; directing the Public Employees’ Retirement System to report certain payments as disability benefits where allowed by federal law; 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

1-2  thereto a new section to read as follows:

1-3  The System shall, to the extent allowed by federal law, report to

1-4  the Internal Revenue Service of the United States Department of

1-5  the Treasury a disability retirement allowance that is paid to a

1-6  member of the System as a disability benefit instead of as

1-7  retirement income.

1-8  Sec. 2.  The Public Employees’ Retirement System shall:

1-9  1.  On or before October 1, 2003, submit a request to the

1-10  Internal Revenue Service of the United States Department of the

1-11  Treasury for a determination of whether disability retirement

1-12  benefits paid pursuant to chapter 286 of NRS are excludable from

1-13  taxable income;

1-14      2.  On or before July 1, 2004, review any alternative methods

1-15  allowed under federal law for reporting disability retirement

1-16  allowances to the Internal Revenue Service and consider the

1-17  feasibility of implementing any such method; and

2-1  3.  On or before July 1, 2004, prepare and submit a report to the

2-2  Legislative Commission regarding the determination that it

2-3  requested pursuant to subsection 1 and the results of its review

2-4  pursuant to subsection 2.

2-5  Sec. 3.  1.  This section and section 2 of this act become

2-6  effective upon passage and approval.

2-7  2.  Section 1 of this act becomes effective on July 1, 2005.

 

2-8  H