[Rev. 11/21/2013 10:41:37 AM--2013]

CHAPTER 286 - PUBLIC EMPLOYEES’ RETIREMENT

GENERAL PROVISIONS

NRS 286.010           Short title.

NRS 286.015           Declaration of state policy; purpose of chapter.

NRS 286.016           Definitions.

NRS 286.017           “Actuarial computation” defined.

NRS 286.020           “Board” defined.

NRS 286.025           “Compensation” defined.

NRS 286.031           “Disability retirement allowance” defined.

NRS 286.040           “Employee” defined.

NRS 286.042           “Firefighter” defined.

NRS 286.045           “Independent contractor” defined.

NRS 286.050           “Member” defined.

NRS 286.061           “Police officer” defined.

NRS 286.065           “Postretirement increase” defined.

NRS 286.070           “Public employer” defined.

NRS 286.078           “Service” defined.

NRS 286.080           “Service retirement allowance” defined.

NRS 286.100           “System” defined.

NRS 286.110           Public Employees’ Retirement System: Establishment; review of System; use of state services; public inspection of records; liability of public employers.

NRS 286.117           Limitations on review and copying of records; waiver.

ADMINISTRATION

NRS 286.120           System governed by Public Employees’ Retirement Board: Name; number of members; duties of Governor; removal of members.

NRS 286.130           Qualifications of members of Board; terms.

NRS 286.150           Monthly meetings of Board; certain closed meetings; designation and term of Chair.

NRS 286.160           Persons employed by Board: Appointment; salaries; qualifications; other employment of Executive Officer prohibited; exceptions.

NRS 286.170           Administration of System; compensation and removal of employees.

NRS 286.180           Compensation and expenses of members of Board.

NRS 286.190           General powers and duties of Board.

NRS 286.200           Rules and regulations of Board: Procedure for adoption; conditions.

NRS 286.211           Duties of Board: Police and Firefighters’ Retirement Fund.

NRS 286.215           Duties of Board: Calculation and determination of contributions, benefits and service credit related to qualified military service.

NRS 286.220           Public Employees’ Retirement Fund.

NRS 286.225           Police and Firefighters’ Retirement Fund.

NRS 286.227           Police and Firefighters’ Retirement Fund Advisory Committee.

NRS 286.230           Public Employees’ Retirement Administrative Fund.

NRS 286.241           Fund to pay accrued benefits that are not payable because of certain limitations; benefits paid from employer contributions.

NRS 286.260           Individual accounts of members; liability of Board upon return of contributions.

NRS 286.265           Notice to Public Employees’ Benefits Program regarding certain changes in payment status of benefit recipients.

NRS 286.282           Chief of Budget Division to advise Governor concerning review of System’s policies and performance.

NRS 286.287           Board to consider investments: Meetings; duties.

NRS 286.288           Liaison officer between System and members or employers; responsibility of System for inaccurate or misleading information.

MEMBERSHIP

NRS 286.290           Conditions for membership in System.

NRS 286.293           Persons required to participate in System.

NRS 286.297           Persons excluded from membership in System. [Effective through December 31, 2014, and after that date unless the provisions of Senate Joint Resolution No. 14 (2011) are approved and ratified by the voters at the 2014 General Election.]

NRS 286.297           Persons excluded from membership in System. [Effective January 1, 2015, if the provisions of Senate Joint Resolution No. 14 (2011) are approved and ratified by the voters at the 2014 General Election.]

NRS 286.300           Purchase of credit for service: Requirements; sources; refund of contributions; defaults.

NRS 286.3005         Purchase of credit for service: Public employer may purchase credit for member.

NRS 286.3007         Purchase by state agency of credit for service: Conditions.

NRS 286.301           Credit for free prior service.

NRS 286.303           Free credit for military service.

NRS 286.365           Eligibility of civilian employees of Nevada National Guard for membership in System.

NRS 286.367           Eligibility of volunteer firefighters for membership in System: Contributions; average compensation; purchase of credit for service as volunteer firefighter and for certain military service.

NRS 286.370           Procedure for integration of previously established retirement systems.

NRS 286.385           Public employee on leave of absence to serve in Nevada Legislature may remain member of System.

NRS 286.391           Public employee on leave to work for employee or employer association may remain member of System; purchase of credit for service.

NRS 286.401           Termination of membership; rights of retired employee.

CONTRIBUTIONS

NRS 286.410           Amount of contribution by members of System; deduction from payroll; return of contributions; members with disabilities.

NRS 286.421           Payment of contributions by employer on behalf of employee; average compensation; total rate of contribution. [Effective through December 31, 2014, and after that date unless the provisions of Senate Joint Resolution No. 14 (2011) are approved and ratified by the voters at the 2014 General Election.]

NRS 286.421           Payment of contributions by employer on behalf of employee; average compensation; total rate of contribution. [Effective January 1, 2015, if the provisions of Senate Joint Resolution No. 14 (2011) are approved and ratified by the voters at the 2014 General Election.]

NRS 286.425           Election by employee to have employer pay contributions.

NRS 286.430           Withdrawal of contributions.

NRS 286.435           Repayment upon retroactive reinstatement.

NRS 286.440           Redeposit of withdrawn contributions upon return to service: Procedure.

NRS 286.450           Rate of contributions by public employer.

NRS 286.460           Remittance of contributions by public employers.

NRS 286.462           Complaint to Department of Taxation required concerning delinquent report or payment.

SERVICE

NRS 286.470           Credit for service as county commissioner, city council member or mayor: Calculation of average compensation; waiver of service; exception.

NRS 286.475           Credit for service as Legislator before July 1, 1967: Calculation of average compensation.

NRS 286.477           Credit for part-time employment; loss of credit.

NRS 286.479           Service credit for military service in Persian Gulf Crisis.

NRS 286.481           Service ineligible for credit.

NRS 286.486           Service credited in another system ineligible; exception.

NRS 286.495           Computation of credit for service: Generally.

NRS 286.501           Computation of credit for service: Employees of school districts and professional staff of Nevada System of Higher Education.

NRS 286.505           Conversion of credit for service; time for crediting service.

RETIREMENT

NRS 286.510           Eligibility: Age and service of police officers, firefighters and other employees; reduction of benefit for retirement before required age.

NRS 286.520           Employment of retired employee: Consequences; notice; exemptions.

NRS 286.523           Employment of retired employee: Exception for reemployment of certain retired employees to fill positions for which critical labor shortage exists; determination and designation of such positions; limitation on length of designation of position. [Effective through June 30, 2015.]

NRS 286.525           Employment of retired employee: Enrollment in System; rights of membership; accrual of credit for service; benefits for survivor.

BENEFITS

NRS 286.533           Limitation on distributions to members of System.

NRS 286.534           Actuarial assumptions used in computing benefits: Availability; changes prohibited.

NRS 286.535           Limitation on compensation used to determine retirement benefit.

NRS 286.537           Limitations on benefits and contributions.

NRS 286.538           Minimum benefits payable to employee who became member of System before January 1, 1990.

NRS 286.539           Prohibition against applying forfeitures to increase benefits.

NRS 286.541           Application for service retirement allowance or disability retirement allowance; effective date of retirement; rights of present or former spouse; System exempted from liability for false designation of marital status by member or retired member.

NRS 286.545           Consent of spouse to retirement plan of member.

NRS 286.551           Determination of monthly service retirement allowance.

NRS 286.555           Refund of portion of contributions to certain persons who became members on or after January 1, 2010.

NRS 286.571           Postretirement increases: Calculation of increase for persons who became members on or after January 1, 2010.

NRS 286.575           Postretirement increases: Payment; effect on monthly benefit.

NRS 286.5756         Postretirement increases: Persons receiving benefits before September 1, 1983, or for 3 years before increase.

NRS 286.5765         Postretirement increases: Persons retired before July 1, 1963; persons retired before September 1, 1975, with 20 years’ credit for service; persons retired before July 1, 1989, with 20 years’ credit for service; separate account.

NRS 286.577           Postretirement increases: Persons receiving allowance before July 1, 1975; persons with benefits commencing in 1975.

NRS 286.5775         Postretirement increases: Increases based on years allowance received; beneficiaries of deceased employees; limitations.

NRS 286.578           Postretirement increases: Increases payable July 1, 1979, and July 1, 1980.

NRS 286.5785         Postretirement increases: Increases payable July 1, 1981, and July 1, 1982.

NRS 286.579           Postretirement increases: Increase for persons receiving benefits before January 1, 1977.

NRS 286.590           Alternatives to unmodified service retirement allowance.

NRS 286.592           Optional plans: Death of beneficiary; change of selection; effective date of termination or adjustment of allowance.

NRS 286.612           Charges for deferred protection: Termination; adjustments of allowances or benefits.

NRS 286.615           Optional deduction from benefits for payments for group insurance, plan of benefits or medical and hospital service or other obligations; regulations; exemption of Executive Officer, Board and System from liability for errors or omissions.

NRS 286.620           Disability retirement allowance: Eligibility; calculation of amount; beneficiaries; effective date of termination or adjustment of allowance.

NRS 286.630           Disability retirement allowance: Approval or denial of application; medical examination.

NRS 286.634           Disability retirement allowance: Effective date of retirement.

NRS 286.637           Disability retirement allowance: Recipient to provide copy of federal income tax return; Board may require medical examinations.

NRS 286.638           Disability retirement allowance: Reporting to Internal Revenue Service.

NRS 286.640           Disability retirement allowance: Cancellation.

NRS 286.650           Disability retirement allowance: Consequences of employment of recipient.

NRS 286.655           Payments for rehabilitation in lieu of disability retirement allowance.

NRS 286.660           Death of certain member before retirement: Disposition of money to member’s credit in Public Employees’ Retirement Fund.

NRS 286.665           Death of member, retired employee or beneficiary: Transfer of contributions to retirement fund under certain circumstances; procedure for claiming transferred money.

NRS 286.667           Allowance for retired police officer or firefighter: Benefits for spouse upon death; credit for certain other service prohibited; costs of benefit paid by employee.

NRS 286.669           Person convicted of murder or voluntary manslaughter of member ineligible to receive benefits.

NRS 286.670           Right to benefits not subject to taxes, process, bankruptcy, assignment or assessment for impairment or insolvency of insurance company; exceptions.

NRS 286.6703         Payment of allowance or benefit to alternate payee pursuant to domestic relations order. [Effective through December 31, 2014, and after that date unless the provisions of Senate Joint Resolution No. 14 (2011) are approved and ratified by the voters at the 2014 General Election.]

NRS 286.6703         Payment of allowance or benefit to alternate payee pursuant to domestic relations order. [Effective January 1, 2015, if the provisions of Senate Joint Resolution No. 14 (2011) are approved and ratified by the voters at the 2014 General Election.]

NRS 286.6705         Transfer of unpaid check for benefits or refund to retirement fund; claim for payment of money; period of limitation.

BENEFITS FOR SURVIVORS

General Provisions

NRS 286.671           Definitions.

NRS 286.672           Eligibility.

 

Children

NRS 286.673           Payments to child of deceased member.

 

Spouses

NRS 286.674           Payments to spouse of deceased member.

NRS 286.676           Payments to spouse of deceased member who had 10 or more years of accredited contributing service.

NRS 286.6765         Payments to spouse if deceased member was eligible to retire.

NRS 286.6766         Payment in lump sum to spouse; exception.

 

Survivor Beneficiaries and Additional Payees

NRS 286.6767         Designation of survivor beneficiary and additional payees by member.

NRS 286.67675       Payments to survivor beneficiary of and to additional payees designated by deceased member.

NRS 286.6768         Payments to survivor beneficiary of and to additional payees designated by deceased member who had 10 or more years of accredited contributing service.

NRS 286.67685       Payment to survivor beneficiary of and to additional payees designated by deceased member if deceased member was eligible to retire.

NRS 286.6769         Payment in lump sum to survivor beneficiary of and to additional payees designated by member; exception.

 

Parents

NRS 286.677           Payment to dependent parents; conditions.

 

Limitations and Disposition of Surplus

NRS 286.6775         Limitation on and reduction of amount of monthly allowance.

NRS 286.679           Disposition of surplus of contributions if payments to beneficiary cease.

VESTING OF ALLOWANCES AND BENEFITS

NRS 286.6793         Time of vesting; vesting of benefits upon termination of System.

INVESTMENT OF MONEY

NRS 286.680           Investment by Board of money in funds; qualifications and employment of investment counsel; employment of other services; liability for investment decisions.

NRS 286.682           Authorized investments: “Prudent person” standard.

INVESTMENTS IN COMPANIES WITH CERTAIN OPERATIONS IN IRAN

NRS 286.701           Definitions.

NRS 286.703           “Active business operations” defined.

NRS 286.705           “Business operations” defined.

NRS 286.707           “Company” defined.

NRS 286.709           “Direct holdings” defined.

NRS 286.711           “Inactive business operations” defined.

NRS 286.713           “Iran” defined.

NRS 286.715           “Petroleum resources” defined.

NRS 286.717           “Scrutinized business operations” defined.

NRS 286.719           “Scrutinized company” defined.

NRS 286.721           Board to identify, review and create list of investments in scrutinized companies.

NRS 286.723           Board to prepare report of investments in scrutinized companies.

NRS 286.725           Inapplicability to certain investments.

UNIVERSITY OF NEVADA RETIREMENT PROGRAM

NRS 286.802           Board of Regents to establish separate program for retirement of certain employees; contributions; enrollment.

NRS 286.804           Program may be separate system or fund; participation in larger system or fund; provision of benefits through investment entity or combination of entities.

NRS 286.808           Contributions; payment by Board of Regents on behalf of participant.

NRS 286.810           Designation of investment entities; approval of contracts.

NRS 286.812           Administration of program.

NRS 286.814           Participants ineligible for membership in Public Employees’ Retirement System.

NRS 286.816           Benefits payable only by designated investment entities.

UNLAWFUL ACTS; PENALTIES

NRS 286.820           False statement or certification; withholding of information.

_________

 

GENERAL PROVISIONS

      NRS 286.010  Short title.  This chapter shall be known as the Public Employees’ Retirement Act.

      [1:181:1947; 1943 NCL § 5230.01]

      NRS 286.015  Declaration of state policy; purpose of chapter.

      1.  It is the policy of this State to provide, through the Public Employees’ Retirement System:

      (a) A reasonable base income to qualified employees who have been employed by a public employer and whose earning capacity has been removed or has been substantially reduced by age or disability.

      (b) An orderly method of promoting and maintaining a high level of service to the public through an equitable separation procedure, which is available to employees at retirement or upon becoming disabled.

      (c) A system which will make government employment attractive to qualified employees in various categories of service and which will encourage these employees to remain in government service for such periods of time as to give the public employer full benefit of the training and experience gained by these employees while employed by public employers.

      2.  It is the purpose of this chapter to make suitable provision for the accomplishment of the policy stated in subsection 1. The Board shall define the intermediate objectives and operating guidelines it considers necessary to produce the maximum in economy, efficiency and effectiveness within the System.

      (Added to NRS by 1973, 996)

      NRS 286.016  Definitions.  As used in this chapter, unless the context otherwise requires, the words and terms defined in NRS 286.017 to 286.100, inclusive, have the meanings ascribed to them in such sections.

      (Added to NRS by 1975, 1028)

      NRS 286.017  “Actuarial computation” defined.  “Actuarial computation” means the computation based on benefits earned and life expectancy of member and beneficiary to determine necessary reduction of benefits under retirement options or to determine cost of purchasing additional benefits as provided in this chapter.

      (Added to NRS by 1975, 1028)

      NRS 286.020  “Board” defined.  “Board” means the Public Employees’ Retirement Board.

      [Part 4:181:1947; A 1949, 174; 1955, 23]—(NRS A 1975, 1029)

      NRS 286.025  “Compensation” defined.

      1.  Except as otherwise provided by specific statute, “compensation” is the salary paid to a member by the member’s principal public employer.

      2.  The term includes:

      (a) Base pay, which is the monthly rate of pay excluding all fringe benefits.

      (b) Additional payment:

             (1) As applicable to a member who has an effective date of membership before January 1, 2010, for longevity, shift differential, hazardous duty, work performed on a holiday if it does not exceed the working hours of the normal workweek or pay period for that employee, holding oneself ready for duty while off duty and returning to duty after one’s regular working hours.

             (2) As applicable to a member who has an effective date of membership on or after January 1, 2010, for longevity, shift differential, hazardous duty, work performed on a holiday if it does not exceed the working hours of the normal workweek or pay period for that employee, and, holding oneself ready for duty while off duty and returning to duty within 12 hours after one’s regular working hours to respond to an emergency. As used in this subparagraph, “emergency” means a sudden, unexpected occurrence that is declared by the governing body or chief administrative officer of the public employer to involve clear and imminent danger and require immediate action to prevent and mitigate the endangerment of lives, health or property.

      (c) Payment for extra duty assignments if it is the standard practice of the public employer to include such pay in the employment contract or official job description for the calendar or academic year in which it is paid and such pay is specifically included in the member’s employment contract or official job description.

      (d) The aggregate compensation paid by two separate public employers if one member is employed half-time or more by one, and half-time or less by the other, if the total does not exceed full-time employment, if the duties of both positions are similar and if the employment is pursuant to a continuing relationship between the employers.

      3.  The term does not include any type of payment not specifically described in subsection 2.

      (Added to NRS by 1975, 1028; A 1977, 1574; 1979, 940; 1981, 444; 1999, 2616; 2009, 2346)

      NRS 286.031  “Disability retirement allowance” defined.  “Disability retirement allowance” means monthly payments from the Public Employees’ Retirement Fund or the Police and Firefighters’ Retirement Fund paid to retired employees with disabilities.

      (Added to NRS by 1975, 1028; A 1979, 255; 2003, 2051)

      NRS 286.040  “Employee” defined.

      1.  “Employee” means:

      (a) A public officer of the State of Nevada or its political subdivisions.

      (b) Any person employed by a public employer whose compensation is provided by the public employer and who is under the direction or control of officers of the public employer.

      2.  “Employee” does not include independent contractors or persons rendering professional services to an employer on a fee, retainer or contract basis.

      3.  The Board shall determine who are employees under this definition.

      [Part 2:181:1947; A 1949, 174; 1951, 269; 1951, 324]—(NRS A 1959, 161; 1969, 219; 1975, 1029; 1979, 746)

      NRS 286.042  “Firefighter” defined.  “Firefighter” means a member who is:

      1.  Filling a full-time position with a participating public employer, the principal duties of which require emotional stability and physical capacity in protecting the public and controlling and extinguishing fires.

      2.  The former holder of a position defined in subsection 1 who has:

      (a) Earned at least 2 years of creditable service in that position; and

      (b) Been promoted or transferred within the chain of command by the same public employer to a position related to protecting the public and controlling and extinguishing fires.

      3.  The former holder of a position defined in subsection 1 who:

      (a) Has earned at least 2 years of creditable service in that position; and

      (b) Is employed by a different public employer in a position that would have been eligible under paragraph (b) of subsection 2 had the member remained with the member’s former employer.

      (Added to NRS by 1975, 1028; A 1977, 1574; 1981, 444; 1987, 370; 2003, 2051)

      NRS 286.045  “Independent contractor” defined.  “Independent contractor” means any person who renders specified services for a stipulated fee who is not under the control of a public employer, except as regards the result of the person’s work, and who does not receive employment benefits such as annual leave and group insurance.

      (Added to NRS by 1975, 1028)

      NRS 286.050  “Member” defined.  “Member” means a person:

      1.  Who is employed by a participating public employer and who is contributing to the System; or

      2.  Who has previously been in the employ of a participating public employer and who has contributed to the System but who subsequently terminates such employment without withdrawing the person’s contributions.

      [Part 2:181:1947; A 1949, 174; 1951, 269; 1951, 324]—(NRS A 1975, 1029)

      NRS 286.061  “Police officer” defined.  “Police officer” means a member who is:

      1.  Filling a full-time position with a participating public employer, the principal duties of which require emotional stability and physical capacity in protecting the public and enforcing the laws of the State of Nevada or any of its political subdivisions.

      2.  The former holder of a position defined in subsection 1 who has:

      (a) Earned at least 2 years of creditable service in that position; and

      (b) Been promoted or transferred within the chain of command by the same public employer to a position related to the protection of the public and law enforcement.

      3.  The former holder of a position defined in subsection 1 who:

      (a) Has earned at least 2 years of creditable service in that position; and

      (b) Is employed by a different employer in a position that would have been eligible under paragraph (b) of subsection 2 had the member remained with the member’s former employer.

      (Added to NRS by 1975, 1028; A 1977, 1575; 1981, 501, 2013; 1985, 1982; 1987, 371)

      NRS 286.065  “Postretirement increase” defined.  “Postretirement increase” means the monthly cost-of-living increase added to the monthly payments of:

      1.  Persons receiving disability retirement allowances or service retirement allowances;

      2.  Beneficiaries of deceased members receiving allowances; and

      3.  Persons receiving monthly benefits for survivors,

Ê pursuant to the terms of this chapter.

      (Added to NRS by 1975, 1028; A 1979, 255)

      NRS 286.070  “Public employer” defined.

      1.  “Public employer” means the State, one of its agencies or one of its political subdivisions, the System, irrigation districts created under the laws of the State of Nevada, a public or quasi-public organization or agency that is funded, at least in part, by public money, including a regional transportation commission, a governing body of a charter school and a council of governments created pursuant to the laws of the State of Nevada.

      2.  State agencies are those agencies subject to state control and supervision, including those whose employees are governed by chapter 284 of NRS, unless specifically exempted therefrom, and those which deposit money with the State Treasurer.

      [Part 2:181:1947; A 1949, 174; 1951, 269; 1951, 324]—(NRS A 1959, 12, 161; 1969, 219; 1973, 710; 1975, 1029; 1977, 1576; 1979, 255, 1110; 1987, 1395; 1999, 3319; 2003, 2051)

      NRS 286.078  “Service” defined.  “Service” means all creditable employment which is validated under the provisions of this chapter and can be used in determining eligibility and scope of benefits for members.

      (Added to NRS by 1975, 1029)

      NRS 286.080  “Service retirement allowance” defined.  “Service retirement allowance” means monthly payments from the Public Employees’ Retirement Fund or the Police and Firefighters’ Retirement Fund paid to a retired employee for the remainder of the retired employee’s life.

      [Part 2:181:1947; A 1949, 174; 1951, 269; 1951, 324]—(NRS A 1975, 1029; 1979, 256; 2003, 2052)

      NRS 286.100  “System” defined.  “System” means the Public Employees’ Retirement System established by this chapter.

      [Part 2:181:1947; A 1949, 174; 1951, 269; 1951, 324]—(NRS A 1975, 1030)

      NRS 286.110  Public Employees’ Retirement System: Establishment; review of System; use of state services; public inspection of records; liability of public employers.

      1.  A system of retirement providing benefits for the retirement, disability or death of employees of public employers and funded on an actuarial reserve basis is hereby established and must be known as the Public Employees’ Retirement System. The System is a public agency supported by administrative fees transferred from the retirement funds. The Executive and Legislative Departments of the State Government shall regularly review the System.

      2.  The System is entitled to use any services provided to state agencies and shall use the services of the Purchasing Division of the Department of Administration, but is not required to use any other service. The purpose of this subsection is to provide to the Board the necessary autonomy for an efficient and economic administration of the System and its program.

      3.  The official correspondence and records, other than the files of individual members or retired employees, and, except as otherwise provided in NRS 241.035, the minutes, audio recordings, transcripts and books of the System are public records and are available for public inspection. A copy of the minutes or audio recordings must be made available to a member of the public upon request at no charge pursuant to NRS 241.035.

      4.  The respective participating public employers are not liable for any obligation of the System.

      [3:181:1947; 1943 NCL § 5230.03]—(NRS A 1975, 1030; 1977, 1576; 1993, 474, 1552; 1995, 524; 2005, 1409; 2013, 328)

      NRS 286.117  Limitations on review and copying of records; waiver.  All records maintained for a member, retired employee or beneficiary may be reviewed and copied only by the System, the member, the member’s public employer or spouse, or the retired employee or the retired employee’s spouse, or pursuant to a court order, or by a beneficiary after the death of the employee on whose account benefits are received. Any member, retired employee or beneficiary may submit a written waiver to the System authorizing the representative of the member, retired employee or beneficiary to review or copy all such records.

      (Added to NRS by 1977, 1573)

ADMINISTRATION

      NRS 286.120  System governed by Public Employees’ Retirement Board: Name; number of members; duties of Governor; removal of members.

      1.  The governing authority of the System shall be a board of seven persons appointed by the Governor.

      2.  The name of the board shall be the Public Employees’ Retirement Board.

      3.  The Governor shall review periodically the broad administrative policies and performance standards as they are being administered by the Board.

      4.  The Governor may remove and replace any Board member for cause shown.

      [Part 4:181:1947; A 1949, 174; 1955, 23]—(NRS A 1973, 854, 1412)

      NRS 286.130  Qualifications of members of Board; terms.

      1.  Three members of the Board must be persons who:

      (a) Have had at least 10 years of service as employees of the State of Nevada or its political subdivisions;

      (b) Are not elected officers of the State of Nevada or its political subdivisions;

      (c) Are active members of the System; and

      (d) Are appointed from written nominations submitted by the following groups:

             (1) Employees of the State and the Nevada System of Higher Education;

             (2) The academic staff of school districts;

             (3) Employees of cities, excluding Carson City;

             (4) Employees of counties, including Carson City and excluding employees of county hospitals;

             (5) Employees of county hospitals, public utilities, power districts, sanitation districts, classified school employees and employees of other districts as determined by the Board; and

             (6) Employees whose current positions entitle them to participate in the Police and Firefighters’ Retirement Fund.

Ê Each nominee must be a member of the group or organization that is nominating the nominee.

      2.  Two members of the Board must be persons who:

      (a) Have had at least 10 years of service as employees of the State of Nevada or its political subdivisions;

      (b) Are not elected officers of the State of Nevada or its political subdivisions;

      (c) Are active members of the System; and

      (d) Are appointed from written nominations submitted by the following groups:

             (1) Administrators of school districts or members of boards of trustees of school districts; and

             (2) Members of boards of county commissioners or the governing bodies of cities or administrators of counties or cities.

      3.  One member of the Board must be a person who:

      (a) Is an employee of the State of Nevada or its political subdivisions with at least 10 years of service;

      (b) Is serving in a position at least equivalent to the manager of a department or division;

      (c) Is not an elected officer of the State of Nevada or its political subdivisions; and

      (d) Is an active member of the System.

      4.  One member of the board must be a person who:

      (a) Has had at least 10 years of service as an employee of the State of Nevada or its political subdivisions;

      (b) Is not an elected officer of the State of Nevada or its political subdivisions; and

      (c) Is receiving an allowance for service or disability retirement pursuant to this chapter.

      5.  A member of the Board shall serve for 4 years, so long as the member has the qualifications required by this section, and until the member’s successor is appointed and takes office. A member of the Board who no longer has the qualifications specified in the subsection under which the member was appointed may serve the remainder of the member’s term if the member loses those qualifications in the final 24 months of the member’s term.

      [Part 5:181:1947; A 1949, 174; 1943 NCL § 5230.05]—(NRS A 1973, 1413; 1975, 1030; 1981, 445; 1987, 1522; 1991, 2355; 1993, 381; 2003, 2052)

      NRS 286.150  Monthly meetings of Board; certain closed meetings; designation and term of Chair.

      1.  The Board shall meet at least once a month.

      2.  Meetings of the Retirement Board with investment counsel which are limited to the planning of future investments or the establishment of investment objectives and policies, or with legal counsel which are limited to advice upon claims or suits by or against the System may be closed by the Board.

      3.  At its first meeting each year, the Board shall designate one of its members to serve as Chair of the Board for the remainder of the year and until the Chair’s successor is designated and takes office.

      [Part 4:181:1947; A 1949, 174; 1955, 23]—(NRS A 1973, 854; 1977, 1576)

      NRS 286.160  Persons employed by Board: Appointment; salaries; qualifications; other employment of Executive Officer prohibited; exceptions.

      1.  The Board shall employ an Executive Officer who serves at the pleasure of the Board. The Executive Officer shall select an Operations Officer, Investment Officer, Assistant Investment Officer, Manager of Information Systems, Administrative Services Coordinator and Administrative Analyst whose appointments are effective upon confirmation by the Board. The Operations Officer, Investment Officer, Assistant Investment Officer, Manager of Information Systems, Administrative Services Coordinator and Administrative Analyst serve at the pleasure of the Executive Officer.

      2.  The Executive Officer, Operations Officer, Investment Officer, Assistant Investment Officer, Manager of Information Systems, Administrative Services Coordinator and Administrative Analyst are entitled to annual salaries fixed by the Board with the approval of the Interim Retirement and Benefits Committee of the Legislature created pursuant to NRS 218E.420. The salaries of these employees are exempt from the limitations of NRS 281.123.

      3.  The Executive Officer must:

      (a) Be a graduate of a 4-year college or university with a degree in business administration or public administration or equivalent degree.

      (b) Possess at least 5 years’ experience in a high level administrative or executive capacity, including responsibility for a variety of administrative functions such as retirement, insurance, investment or fiscal operations.

      4.  The Operations Officer, Investment Officer, Assistant Investment Officer, Manager of Information Systems and Administrative Analyst must each be a graduate of a 4-year college or university with a degree in business administration or public administration or an equivalent degree.

      5.  Except as otherwise provided in NRS 284.143, the Executive Officer shall not pursue any other business or occupation or perform the duties of any other office of profit during normal office hours unless on leave approved in advance. The Executive Officer shall not participate in any business enterprise or investment in real or personal property if the System owns or has a direct financial interest in that enterprise or property.

      [Part 4:181:1947; A 1949, 174; 1955, 23] + [Part 7:181:1947; 1943 NCL § 5230.07] + [38:295:1953; A 1955, 553]—(NRS A 1967, 1493; 1971, 1429; 1973, 855; 1975, 1031; 1977, 1577; 1979, 746; 1981, 445; 1985, 1709; 1989, 1556; 1995, 250, 2319; 1997, 613; 1999, 3022; 2001, 2401; 2003, 2053; 2007, 500)

      NRS 286.170  Administration of System; compensation and removal of employees.

      1.  Subject to the limitations of this chapter and the budget prescribed by the Board, the System must be administered by the Executive Officer, an Investment Officer, an Operations Officer and a staff authorized by the Board and appointed by the Executive Officer with the approval of the Board.

      2.  The Board shall fix the salaries of the staff in accordance with the pay plan of the State for the classified service. No employee may be removed from the staff except in the manner provided for the classified service of the State.

      [Part 4:181:1947; A 1949, 174; 1955, 23] + [Part 7:181:1947; 1943 NCL § 5230.07]—(NRS A 1967, 1493; 1971, 1430; 1973, 855; 1975, 1031; 1985, 391; 1989, 1557; 1991, 1970)

      NRS 286.180  Compensation and expenses of members of Board.

      1.  Members of the Board are entitled to receive a fee of $80 per day for:

      (a) Attendance at meetings of the Board;

      (b) Any official function directly related to the System which is approved by the Board; or

      (c) Necessary travel to attend a meeting of the Board or a conference or seminar on retirement or to perform an official function described in paragraph (b).

      2.  Fees and reimbursement for expenses must be paid from the Public Employees’ Retirement Administrative Fund.

      3.  Fees and reimbursement for expenses must be paid from commitment fees obtained from borrowers whenever the members of the Board hold special meetings or perform official functions, as described in paragraph (b) of subsection 1, which are limited solely to mortgage and real estate investments.

      [Part 4:181:1947; A 1949, 174; 1955, 23]—(NRS A 1971, 1315; 1973, 855; 1975, 1032; 1977, 1577; 1979, 747; 1981, 446; 1985, 392, 1710)

      NRS 286.190  General powers and duties of Board.  The Board:

      1.  Has the powers and privileges of a body corporate and, subject to the limitations of this chapter, is responsible for managing the System.

      2.  Shall:

      (a) Arrange for a biennial actuarial valuation and report of the actuarial soundness of the System to be prepared by an independent actuary based upon data compiled and supplied by employees of the System, and shall adopt actuarial tables and formulas prepared and recommended by the actuary.

      (b) Provide for a biennial audit of the System, including the Administrative Fund, by an independent certified public accountant.

      (c) Provide an annual report to the Governor, each member of the Legislature, each participating public employer, and each participating employee and employer association, and make the report available to all members upon request. The report must contain, when available, a review of the actuarial valuation required by paragraph (a).

      (d) Post on its website any document that a public employer is required to submit to the System on or after January 1, 2010, relating to the contribution mechanism used by the public employer pursuant to NRS 286.410, 286.421 or 286.450.

      3.  May:

      (a) Adjust the service or correct the records, allowance or benefits of any member, retired employee or beneficiary after an error or inequity has been determined, and require repayment of any money determined to have been paid by the System in error, if the money was paid within 6 years before demand for its repayment.

      (b) Examine and copy personnel and financial records of public employers.

      (c) Receive requests for membership from state, county or municipal entities which are not presently public employers, and determine whether or not any such entity and its employees qualify for membership as provided by this chapter.

      (d) Require an annual notarized statement from a retired employee or beneficiary that the retired employee or beneficiary is in fact receiving an allowance or benefits, and withhold the allowance or benefits if the retired employee or beneficiary fails to provide the statement.

      4.  As used in this section, “error or inequity” means the existence of extenuating circumstances, including, but not limited to, a member’s reasonable and detrimental reliance on representations made by the System or by the public employer pursuant to NRS 286.288 which prove to be erroneous, or the mental incapacity of the member.

      [Part 4:181:1947; A 1949, 174; 1955, 23]—(NRS A 1975, 1032; 1977, 1577; 1979, 747; 1981, 446; 1989, 1557; 2009, 2347)

      NRS 286.200  Rules and regulations of Board: Procedure for adoption; conditions.

      1.  Subject to the limitations of this chapter, the Board shall, from time to time, establish rules and regulations for transacting its business and for administering the System as a public agency. The rules must include, without limitation, rules relating to the administration of the retirement plans in accordance with federal law.

      2.  No rule is effective until 10 days after all of the following conditions have been substantially met:

      (a) A copy of the rule, in the form in which the Board proposes it, must be delivered, within 30 days after the Board proposes it, to all public employers participating in the System.

      (b) As soon as a public employer receives a copy of the proposed rule, the public employer immediately shall cause the copy to be posted on a bulletin board or in some conspicuous place in or near its headquarters.

      (c) If the Board deems a proposed rule to be of such length or of such other nature that it cannot feasibly be publicized by delivery and posting, a summary of the proposed rule must be delivered and posted in the manner and within the time required by paragraphs (a) and (b) of this subsection for copies of proposed rules.

      (d) There must likewise be posted a notice stating that, at a specifically designated time and place at least 15 days after the delivery of the copy of the proposed rule or summary, a hearing on the proposed rule will be held, at which hearing all interested persons have an opportunity to be heard and after which the Board may adopt the proposed rule in the form in which it is originally proposed or with such amendments as are deemed necessary by the Board as a result of the hearing.

      (e) A copy of the rule, in the form in which the Board finally adopts it, must be filed with the Secretary of State.

      [6:181:1947; 1943 NCL § 5230.06]—(NRS A 2001, 2401)

      NRS 286.211  Duties of Board: Police and Firefighters’ Retirement Fund.

      1.  The Board shall, with the advice of the Interim Retirement and Benefits Committee of the Legislature created pursuant to NRS 218E.420:

      (a) Adopt regulations for the evaluation of requests for enrollment under the Police and Firefighters’ Retirement Fund; and

      (b) Determine those positions eligible under the early retirement provisions for police officers and firefighters.

      2.  Service in any position which has not been determined by the Board to be eligible does not entitle a member to early retirement as a firefighter or police officer.

      (Added to NRS by 1987, 370; A 1999, 3022; 2003, 2054)

      NRS 286.215  Duties of Board: Calculation and determination of contributions, benefits and service credit related to qualified military service.  Notwithstanding any other provision of this chapter, the Board shall provide for the calculation and determination of contributions, benefits and service credit relating to qualified military service as defined in section 414(u) of the Internal Revenue Code (26 U.S.C. § 414(u)).

      (Added to NRS by 1997, 214)

      NRS 286.220  Public Employees’ Retirement Fund.

      1.  The Board shall establish a fund known as the Public Employees’ Retirement Fund.

      2.  It is hereby declared to be the policy of the Legislature that the Public Employees’ Retirement Fund is a trust fund established to afford a degree of security to long-time public employees of the State and its political subdivisions. The money in the Fund must not be used or appropriated for any purpose incompatible with the policy of the Public Employees’ Retirement System, as expressed in NRS 286.015. The Fund must be invested and administered to assure the highest return consistent with safety in accordance with accepted investment practices.

      3.  The interest and income earned on the money in the Public Employees’ Retirement Fund, after deducting any applicable charges, must be credited to the Fund.

      4.  Money in the Public Employees’ Retirement Fund must be expended by the Board for the purpose of paying:

      (a) Service retirement allowances;

      (b) Disability retirement allowances;

      (c) Postretirement allowances;

      (d) Benefits for survivors;

      (e) Authorized refunds to members and their beneficiaries;

      (f) Amounts equivalent to disability retirement allowances to be used by employers for rehabilitation; and

      (g) Allowances to beneficiaries,

Ê and for the payment of expenses authorized by law to be paid from the Fund.

      5.  Contributions from members and from participating public employers to the Public Employees’ Retirement Fund must be deposited in a bank or credit union of reputable standing in the State of Nevada. Such deposits must be secured in a manner satisfactory to the Board.

      6.  All checks drawn upon the Public Employees’ Retirement Fund must be signed by two persons designated by the Board.

      [Part 10:181:1947; A 1949, 174; 1953, 129]—(NRS A 1965, 89; 1973, 856, 997; 1975, 1033; 1977, 1578; 1979, 256; 1983, 1583; 1999, 1466)

      NRS 286.225  Police and Firefighters’ Retirement Fund.

      1.  The Board shall establish a separate retirement fund known as the Police and Firefighters’ Retirement Fund.

      2.  All refunds, disability retirement allowances, benefits for survivors, and service retirement allowances paid to police officers and firefighters and their beneficiaries must be paid from the Police and Firefighters’ Retirement Fund.

      3.  All contributions paid by and for police officers and firefighters must be credited to the Police and Firefighters’ Retirement Fund.

      4.  The Police and Firefighters’ Retirement Fund must be administered by the Board and is subject to all restrictions and regulations applicable to the Board.

      5.  Any postretirement increase appropriated by the Legislature in accordance with this chapter must be paid to eligible retired police officers and firefighters and their beneficiaries from any such appropriation.

      6.  Investment return on moneys in the Police and Firefighters’ Retirement Fund must be deposited in that Fund at the end of each fiscal year based on annual average yield of the System.

      7.  The Board shall transfer appropriate employee and employer contributions made by and for members who transfer to and from the Public Employees’ Retirement Fund and the Police and Firefighters’ Retirement Fund.

      (Added to NRS by 1975, 1033; A 1977, 1579; 1979, 257; 2003, 2054)

      NRS 286.227  Police and Firefighters’ Retirement Fund Advisory Committee.

      1.  There is hereby created a Police and Firefighters’ Retirement Fund Advisory Committee. The Board shall determine the number of its members and appoint the members.

      2.  The term of each member is 4 years.

      3.  The Board may remove a member for cause.

      4.  The Committee shall make recommendations to the Board concerning the administration of and benefits payable from the Police and Firefighters’ Retirement Fund. The Board shall consult with the Committee on all matters concerning this Fund, and consider its recommendations upon their merits.

      (Added to NRS by 1977, 1572; A 2003, 2054; 2009, 2348)

      NRS 286.230  Public Employees’ Retirement Administrative Fund.

      1.  The Board shall establish a fund known as the Public Employees’ Retirement Administrative Fund in which must be deposited all administrative fees.

      2.  The Board shall fix an administrative fee per capita sufficient to pay the operating expense of the System. Except as otherwise provided by NRS 1A.200 and 218C.160, the System shall transfer monthly from the respective retirement funds to the Public Employees’ Retirement Administrative Fund the amount of the per capita fee multiplied by the combined number of members and persons receiving allowances from that Fund.

      3.  The Board may establish a separate and additional administrative fee for police officers and firefighters and their public employers to pay the additional expense of maintaining a separate fund and to pay the actual and necessary travel expenses and other expenses, within the limits established by the Board, for meetings of the Police and Firefighters’ Retirement Fund Advisory Committee.

      [Part 10:181:1947; A 1949, 174; 1953, 129]—(NRS A 1975, 1034; 1977, 1579; 1979, 748; 1981, 447; 1991, 2356; 2001 Special Session, 94; 2003, 2054)

      NRS 286.241  Fund to pay accrued benefits that are not payable because of certain limitations; benefits paid from employer contributions.

      1.  The Board may establish a fund to pay the accrued benefits of a member that are not payable because of the limitations set forth in NRS 286.537. The fund must be established in accordance with the provisions of section 415(m) of the Internal Revenue Code (26 U.S.C. § 415(m)) and must be separate from the Public Employees’ Retirement Fund.

      2.  If the Board establishes a fund pursuant to subsection 1, the benefits that are required to be paid from the fund must be paid from a portion of the employer contributions required to be paid pursuant to NRS 286.450. The Board shall:

      (a) Determine the amount of the employer contributions that must be allocated to the fund; and

      (b) Deposit that amount in the fund before it deposits any remaining employer contributions in the Public Employees’ Retirement Fund.

      (Added to NRS by 1997, 215)

      NRS 286.260  Individual accounts of members; liability of Board upon return of contributions.

      1.  The Board shall provide for an individual account for each member of the System. Each account must show the amount of the member’s contributions to the Public Employees’ Retirement Fund or Police and Firefighters’ Retirement Fund and any changes in the account that may be legally authorized.

      2.  Any interest paid by a member with the repayment of withdrawn contributions or purchase of any service must not be credited to such member’s account.

      3.  The Board is relieved of any further liability regarding a member, the member’s estate or a beneficiary upon the return of all employee contributions to the member, the member’s estate or beneficiary or a combination thereof.

      [Part 10:181:1947; A 1949, 174; 1953, 129]—(NRS A 1975, 1034; 2003, 2055)

      NRS 286.265  Notice to Public Employees’ Benefits Program regarding certain changes in payment status of benefit recipients.  The System shall provide to the Public Employees’ Benefits Program written notice regarding a change in the payment status of a recipient of benefits provided pursuant to this chapter that affects the eligibility of the recipient to participate in the Program. Such notice must be provided by the System to the Program, in a format agreed upon by the System and the Program, within 30 calendar days after the System is notified of the change in payment status.

      (Added to NRS by 2003, 3259)

      NRS 286.282  Chief of Budget Division to advise Governor concerning review of System’s policies and performance.  The Chief of the Budget Division of the Department of Administration shall advise the Governor in the discharge of the responsibility for reviewing the System’s administrative policies and performance standards under this chapter.

      (Added to NRS by 1973, 859; A 1983, 182)

      NRS 286.287  Board to consider investments: Meetings; duties.  The Board shall meet at least monthly to consider investments. At each of its meetings it shall:

      1.  Review, and if appropriate direct changes in, the investment portfolio of the System.

      2.  Recommend any appropriate changes in the investment objectives and policies.

      3.  Acknowledge and process investment suggestions forwarded to it by members of the System.

      4.  Provide for investment practice explanations to all members of the System when such explanations seem appropriate.

      (Added to NRS by 1973, 859; A 1975, 1035; 1977, 1580)

      NRS 286.288  Liaison officer between System and members or employers; responsibility of System for inaccurate or misleading information.  Each participating public employer or group of such employers shall select an employee as liaison officer to certify records and coordinate matters pertaining to retirement between the System and members or participating public employers. The System is responsible for any inaccurate or misleading information provided to any person or agency by an officer or employee of the System but is not responsible for inaccurate or misleading information provided by an officer or employee of a participating public employer or any other person.

      (Added to NRS by 1975, 1035; A 1979, 748; 2009, 1575)

MEMBERSHIP

      NRS 286.290  Conditions for membership in System.

      1.  No person may become a member of the System unless the person is in the service of a public employer.

      2.  Except as otherwise provided in this chapter, all public employers shall participate in the System and their employees shall be members of the System.

      [Part 8:181:1947; A 1949, 174; 1951, 269]

      NRS 286.293  Persons required to participate in System.

      1.  The following employees of public employers shall participate in the System:

      (a) Those employed on or after July 1, 1977, in positions considered to be half-time or more according to the full-time work schedule established for that public employer.

      (b) Elected officials or persons appointed to elective positions who are elected or appointed after July 1, 1975, except where excluded by NRS 286.297 and except justices of the peace and municipal judges who are allowed and who elect to participate in the Judicial Retirement Plan pursuant to NRS 1A.285.

      (c) A member whose allowance is vested or who is contributing immediately before a legislative session who is employed on or after January 1, 1981, by either house of the Legislature or by the Legislative Counsel Bureau.

      (d) A member of the Nevada Gaming Commission.

      2.  The Board shall establish standards for determining what constitutes a full-time work schedule pursuant to paragraph (a) of subsection 1.

      (Added to NRS by 1975, 1038; A 1977, 1580; 1981, 448; 1999, 2616; 2005, 1000)

      NRS 286.297  Persons excluded from membership in System. [Effective through December 31, 2014, and after that date unless the provisions of Senate Joint Resolution No. 14 (2011) are approved and ratified by the voters at the 2014 General Election.]  The following persons are not eligible to become members of the System:

      1.  Inmates of state institutions even though they may be receiving compensation for services performed for the institution.

      2.  Independent contractors or persons rendering professional services on a fee, retainer or contract basis.

      3.  Except as otherwise provided in NRS 286.525, persons retired under the provisions of this chapter who are employed by a participating public employer.

      4.  Members of boards or commissions of the State of Nevada or of its political subdivisions when such boards or commissions are advisory or directive and when membership thereon is not compensated except for expenses incurred. Receipt of a fee for attendance at official sessions of a particular board or commission does not constitute compensation for the purpose of this subsection.

      5.  Substitute teachers and students who are employed by the institution which they attend.

      6.  District judges and justices of the Supreme Court first elected or appointed on or after July 1, 1977, who are not enrolled in the System at the time of election or appointment.

      7.  Members of the professional staff of the Nevada System of Higher Education who are employed on or after July 1, 1977.

      8.  Persons employed on or after July 1, 1979, under the Comprehensive Employment and Training Act.

      9.  Except as otherwise provided in NRS 286.293, persons assigned to intermittent or temporary positions unless the assignment exceeds 6 consecutive months.

      10.  Persons employed on or after July 1, 1981, as part-time guards at school crossings.

      11.  Nurses who:

      (a) Are not full-time employees;

      (b) Are paid an hourly wage on a daily basis;

      (c) Do not receive the employee benefits received by other employees of the same employer; and

      (d) Do not work a regular schedule or are requested to work for a shift at a time.

      [Part 8:181:1947; A 1949, 174; 1951, 269]—(NRS A 1975, 1039; 1977, 1581; 1979, 750, 941; 1981, 449; 1983, 129; 1989, 1558; 1993, 382, 474; 1995, 524)

      NRS 286.297  Persons excluded from membership in System. [Effective January 1, 2015, if the provisions of Senate Joint Resolution No. 14 (2011) are approved and ratified by the voters at the 2014 General Election.]  The following persons are not eligible to become members of the System:

      1.  Inmates of state institutions even though they may be receiving compensation for services performed for the institution.

      2.  Independent contractors or persons rendering professional services on a fee, retainer or contract basis.

      3.  Except as otherwise provided in NRS 286.525, persons retired under the provisions of this chapter who are employed by a participating public employer.

      4.  Members of boards or commissions of the State of Nevada or of its political subdivisions when such boards or commissions are advisory or directive and when membership thereon is not compensated except for expenses incurred. Receipt of a fee for attendance at official sessions of a particular board or commission does not constitute compensation for the purpose of this subsection.

      5.  Substitute teachers and students who are employed by the institution which they attend.

      6.  District judges, judges of the Court of Appeals and justices of the Supreme Court first elected or appointed on or after July 1, 1977, who are not enrolled in the System at the time of election or appointment.

      7.  Members of the professional staff of the Nevada System of Higher Education who are employed on or after July 1, 1977.

      8.  Persons employed on or after July 1, 1979, under the Comprehensive Employment and Training Act.

      9.  Except as otherwise provided in NRS 286.293, persons assigned to intermittent or temporary positions unless the assignment exceeds 6 consecutive months.

      10.  Persons employed on or after July 1, 1981, as part-time guards at school crossings.

      11.  Nurses who:

      (a) Are not full-time employees;

      (b) Are paid an hourly wage on a daily basis;

      (c) Do not receive the employee benefits received by other employees of the same employer; and

      (d) Do not work a regular schedule or are requested to work for a shift at a time.

      [Part 8:181:1947; A 1949, 174; 1951, 269]—(NRS A 1975, 1039; 1977, 1581; 1979, 750, 941; 1981, 449; 1983, 129; 1989, 1558; 1993, 382, 474; 1995, 524; 2013, 1774, effective January 1, 2015, if the provisions of Senate Joint Resolution No. 14 (2011) are approved and ratified by the voters at the 2014 General Election)

      NRS 286.300  Purchase of credit for service: Requirements; sources; refund of contributions; defaults.  Except as otherwise required as a result of NRS 286.537:

      1.  Any member of the System may, except as otherwise provided in subsection 5, purchase all previous creditable service performed with the member’s present employing agency if that service was performed before the enrollment of the member’s agency in the System, even if the service is still creditable in some other system where it cannot be cancelled. The public employer must certify the inclusive dates of employment and number of hours regularly worked by the member to validate the service. The member must pay the full actuarial cost as determined by the actuary.

      2.  In addition to the purchases authorized pursuant to the provisions of subsections 1 and 3, any member who has 5 years of creditable service may, except as otherwise provided in subsection 5, purchase up to 5 years of service. The member must pay the full actuarial cost of the service as determined by an actuary of the System.

      3.  In addition to the purchases authorized pursuant to the provisions of subsections 1 and 2 and in addition to any free credit received pursuant to NRS 286.303 and 286.479, any member who has 5 years of creditable service, served on active military duty during the period beginning on the date proclaimed by the President of the United States as the date on which Operation Desert Storm, Operation Enduring Freedom or Operation Iraqi Freedom began and was honorably discharged or released from active duty may, except as otherwise provided in subsection 5, purchase a number of months of service equal to the number of full months the member served on active military duty, but in no case may the service purchased pursuant to this subsection exceed 3 years. The member must pay the full actuarial cost of the service as determined by an actuary of the System.

      4.  In addition to the purchases authorized pursuant to the provisions of subsections 1 and 3, any member who:

      (a) Is a licensed teacher;

      (b) Has 5 years of creditable service;

      (c) Is, pursuant to statute, regulation or contract, entitled to payment for unused sick leave; and

      (d) Is employed by the board of trustees of a school district that has, pursuant to subsection 5 of NRS 391.180, provided for the payment of unused sick leave in the form of purchase of service,

Ê may, except as otherwise provided in subsection 5, cause to be purchased on the member’s behalf service credit, not to exceed the number of hours of unused sick leave or 1 year, whichever is less. The full actuarial cost of the service as determined by an actuary of the System must be paid for such a purchase. Any service credit purchased pursuant to this subsection must be included as a part of, and is not in addition to, service purchased pursuant to subsection 2.

      5.  A person who becomes a member of the System for the first time on or after January 1, 2000, may, on or after July 1, 2001, purchase creditable service pursuant to subsection 1, 2 or 3, or cause to be purchased on the person’s behalf service credit pursuant to subsection 4, only if, at the time of the purchase, the person is employed by a participating public employer in a position eligible for membership in the System.

      6.  Any member of the System may use:

      (a) All or any portion of the balance of the member’s interest in a qualified trust pursuant to section 401(a) of the Internal Revenue Code, 26 U.S.C. § 401(a); or

      (b) The money contained in an individual retirement account or an individual retirement annuity of a member, the entire amount of which is:

             (1) Attributable to a qualified distribution from a qualified trust pursuant to section 401(a) of the Internal Revenue Code, 26 U.S.C. § 401(a); and

             (2) Qualified as an eligible rollover distribution pursuant to section 402 of the Internal Revenue Code, 26 U.S.C. § 402,

Ê to purchase creditable service pursuant to subsection 1, 2 or 3.

      7.  A member of the System who purchases creditable service pursuant to subsection 1, 2 or 3 is entitled to receive a refund of any contributions paid toward the purchase of the service only if the member is no longer in the employ of a participating public employer.

      8.  If a member of the System enters into an agreement whereby the member agrees to pay for the purchase of service credit in installments and the member defaults on that agreement, the member is entitled to receive service credit in the proportion that the principal paid bears to the principal due under the agreement.

      [Part 8:181:1947; A 1949, 174; 1951, 269]—(NRS A 1960, 472; 1963, 986; 1969, 854; 1975, 1035; 1979, 257, 748, 1110; 1981, 110, 447; 1985, 1710; 1989, 1559; 1991, 2357; 1999, 1558, 2617; 2001, 2402; 2003, 2055; 2005, 949)

      NRS 286.3005  Purchase of credit for service: Public employer may purchase credit for member.  A state agency may purchase credit for service on behalf of a member only as provided in NRS 286.3007. Except as otherwise required as a result of NRS 286.537, any other public employer may pay any portion of the cost to purchase credit for service under NRS 286.300, but is not required to do so. No credit may be validated unless the cost of purchasing credit has been paid.

      (Added to NRS by 1979, 759; A 1981, 111; 1985, 1022, 1711; 1989, 1560; 1991, 2357; 1999, 1965; 2007, 23rd Special Session, 18)

      NRS 286.3007  Purchase by state agency of credit for service: Conditions.  Except as otherwise required as a result of NRS 286.537:

      1.  A state agency may enter into an agreement to pay the cost of purchasing credit for service pursuant to NRS 286.300 on behalf of a member if:

      (a) The agency enters into the agreement before the member is employed;

      (b) The member is employed upon the condition that the employer pay the cost of purchasing the credit; and

      (c) The agreement to pay the cost of purchasing the credit is in writing, becomes part of the personnel records of the employee and is approved in advance by the State Board of Examiners.

      2.  If a state agency is authorized to purchase credit pursuant to subsection 1, it shall not do so until the member has completed 1 year of service in its employ.

      3.  If a state agency is required to reduce the number of its employees, it shall purchase credit for service pursuant to NRS 286.300 for any member who:

      (a) Is eligible to purchase credit;

      (b) Is eligible to retire or will be made eligible by the purchase of the credit;

      (c) Agrees to retire upon completion of the purchase; and

      (d) Has been employed by the agency for 5 or more years.

      4.  If a state agency is required to purchase credit pursuant to subsection 3, it shall pay 5 percent of the cost of purchasing the credit and an additional 5 percent of the cost for each year that the person has been employed by the agency in excess of the minimum requirement of 5 years.

      (Added to NRS by 1985, 1022; A 1991, 2357; 1999, 1198)

      NRS 286.301  Credit for free prior service.  A member who met all requirements for free prior service but who did not have 10 years of service credit as of July 1, 1975, is entitled to credit for free prior service as soon as the member acquires the necessary 10 years of service credit.

      (Added to NRS by 1977, 1573)

      NRS 286.303  Free credit for military service.  A member who met all requirements for free military credit as of May 19, 1975, but who did not have 5 years of consecutive service credit after the member’s return from the Armed Forces, is entitled to free credit for military service as soon as the member attains 5 years of consecutive service credit under the System.

      (Added to NRS by 1977, 1573)

      NRS 286.365  Eligibility of civilian employees of Nevada National Guard for membership in System.

      1.  Notwithstanding the provisions of any other section of this chapter, the Nevada National Guard shall be deemed an employing agency of the State of Nevada for the purpose of membership of the civilian employees of the Nevada National Guard in the System.

      2.  Except as otherwise required as a result of NRS 286.537, the membership of the civilian employees of the Nevada National Guard in the System may be retroactive at the option of the individual employee upon payment of all employee contributions for prior service. Contributions for prior service may be paid as provided in NRS 286.440.

      3.  No civilian employee of the Nevada National Guard is entitled to become or continue as a member of the System if such employee has or obtains retirement coverage for such employee’s position as a civilian employee under a retirement program administered by the United States Government, to the end that no dual coverage results.

      (Added to NRS by 1960, 296; A 1991, 2358)

      NRS 286.367  Eligibility of volunteer firefighters for membership in System: Contributions; average compensation; purchase of credit for service as volunteer firefighter and for certain military service.

      1.  The volunteers of a regularly organized and recognized fire department may, by the joint application of a majority of those volunteers addressed to the Board, become members of the System. A volunteer firefighter who joins a fire department of which all the volunteers have become members of the System becomes a member of the System. The volunteers of a participating fire department may withdraw from the System by the joint application of a majority of those volunteers addressed to the Board.

      2.  The city, town, county or district which recognizes the volunteers is the public employer and shall collect and pay over the employee’s share and pay the employer’s share of the contribution to the Public Employees’ Retirement Fund and the Public Employees’ Retirement Administrative Fund, in the manner prescribed in this chapter. The local government may, if so requested by the volunteers, further contribute any amount by which the sum receivable by each volunteer for any month is less than the amount of the volunteer’s required share of the contribution, but no further contributions may be placed in a volunteer’s account with the System or refunded to a volunteer or the volunteer’s employer upon the volunteer’s termination.

      3.  In determining the amount of contributions to be paid for the volunteers, they are assumed to be receiving a wage established by the local government which is not less than $150 nor more than $2,000 per month.

      4.  Except as otherwise required as a result of NRS 286.535 or 286.537, the average compensation for a volunteer firefighter is the weighted average of:

      (a) The assumed wage as a volunteer firefighter; and

      (b) The average salary in other covered employment which, if the service in that employment exceeds 3 years, is calculated upon the 3 highest consecutive years.

Ê The weight given to the assumed wage and average salary, respectively, is proportionate to the length of service in each capacity. Except as otherwise required as a result of NRS 286.535 or 286.537, average compensation is computed from the sum of the assumed wage and actual salary if a member is employed simultaneously as a volunteer firefighter and as a regular member.

      5.  Any dispute over the status of a person as a volunteer firefighter under this section must be conclusively determined by the Board.

      6.  A volunteer firefighter may purchase all previous service as a volunteer firefighter with any volunteer fire department which is a member of the System. To validate such service, the volunteer firefighter must pay the full cost as determined by the actuary. The employing agency may pay the employer’s share of the cost but is not required to do so.

      7.  In addition to the purchases authorized pursuant to the provisions of subsections 6 and 8, a volunteer firefighter who has 5 years of creditable service as a volunteer firefighter may purchase up to 5 years of service to add to the member’s volunteer service. The member must pay the full actuarial cost of the service as determined by an actuary of the System.

      8.  In addition to the purchases authorized pursuant to the provisions of subsections 6 and 7 and in addition to any free credit received pursuant to NRS 286.303 and 286.479, a volunteer firefighter who has 5 years of creditable service as a volunteer firefighter, served on active military duty during the period beginning on the date proclaimed by the President of the United States as the date on which Operation Desert Storm, Operation Enduring Freedom or Operation Iraqi Freedom began and was honorably discharged or released from active duty may purchase a number of months of service equal to the number of full months the member served on active military duty, but in no case may the service purchased pursuant to this subsection exceed 3 years. The member must pay the full actuarial cost of the service as determined by an actuary of the System.

      (Added to NRS by 1969, 1147; A 1975, 1039; 1977, 1582; 1985, 791, 1711; 1989, 1561; 1991, 2359; 2003, 2056; 2005, 889, 950)

      NRS 286.370  Procedure for integration of previously established retirement systems.

      1.  Employees whose membership in a previously established retirement system excludes them from membership in the System established by this chapter may apply to the Board in writing for the former system to be integrated into the latter System and for them to become members of the latter System. Whenever two-thirds of them and their employer, through its governing body, chief official or department head so apply, the Board may:

      (a) Cause a financial and actuarial investigation of the proposed integration to be made, the cost of which shall be borne by the previously established system; and

      (b) Upon such terms as are set forth in a contract between the Board and the employer, integrate the previously established system into the System established by this chapter.

      2.  The contract shall have no effect until notice and hearing regarding it are afforded in the manner prescribed in NRS 286.200 for the promulgation of rules by the Board.

      3.  Nothing in this chapter nor any action taken pursuant to it shall reduce or impair the benefits which employees who are receiving benefits from a retirement system integrated with the System provided by this chapter would have received had the integration not been effected.

      [9(1):181:1947; 1943 NCL § 5230.09]

      NRS 286.385  Public employee on leave of absence to serve in Nevada Legislature may remain member of System.  Except as otherwise required as a result of NRS 286.535 or 286.537:

      1.  A public employee on a leave of absence to serve in the Nevada Legislature may remain a contributing member of the System during the leave of absence if retirement contributions to the System are paid by the Legislator at the contribution rate otherwise applicable to the public employee as a public employee during the period in which the public employee is on the leave of absence to serve in the Nevada Legislature.

      2.  When a public employee on a leave of absence to serve in the Nevada Legislature continues to be a contributing member of the System pursuant to subsection 1, the employee shall pay the contributions required directly to the System. The System shall ensure that the employer of the public employee who is on a leave of absence to serve in the Nevada Legislature provides to the System documentation of the period during which the employee is on the leave of absence. The public employer is not required to pay the employer contribution during the leave of absence.

      3.  A public employee on a leave of absence to serve in the Nevada Legislature may elect to have the amount deducted pursuant to NRS 218C.390 paid to the System to partially offset the contributions that the employee is required to pay to remain a member of the System.

      4.  A public employee who makes the election authorized pursuant to this section does not accrue any service credit for retirement under the Legislators’ Retirement System after the date of the public employee’s election pursuant to this section becomes effective.

      5.  For the purposes of this section, “compensation” shall be deemed to be the salary paid for the position from which the employee is on leave.

      (Added to NRS by 1999, 2615)

      NRS 286.391  Public employee on leave to work for employee or employer association may remain member of System; purchase of credit for service.

      1.  A public employee on leave to work for a recognized employee or employer association may remain a member of the System if retirement contributions to the System are continued.

      2.  When an employee on leave continues to be a member of the System, the public employer from whom the employee is on leave shall include the payment of the contributions and all other required information on the employee’s regular monthly retirement report as provided in NRS 286.460. The public employer is not required to pay the employer contribution.

      3.  Except as otherwise required as a result of NRS 286.535 or 286.537, for the purposes of this section, “compensation” shall be deemed to be the salary paid for the position from which the employee is on leave.

      4.  Except as otherwise required as a result of NRS 286.537, any member of the System may purchase credit for any period on or after July 1, 1947, for which contributions were not paid, which qualifies under this section. The member must pay the full actuarial costs determined by the actuary.

      (Added to NRS by 1981, 443; A 1985, 1712; 1991, 2360)

      NRS 286.401  Termination of membership; rights of retired employee.  Membership of an employee in the System terminates upon:

      1.  The death of a member.

      2.  The withdrawal of contributions from a member’s account.

      3.  Receipt of retirement allowances by a member.

      4.  Receipt of disability allowances by a member.

Ê A retired employee is not entitled to any right conferred by this chapter upon a member unless the provision conferring that right expressly states that it is conferred upon a retired employee.

      (Added to NRS by 1975, 1040; A 1977, 1583)

CONTRIBUTIONS

      NRS 286.410  Amount of contribution by members of System; deduction from payroll; return of contributions; members with disabilities.

      1.  The employee contribution rate must be:

      (a) The matching contribution rate for employees and employers that is actuarially determined for police officers and firefighters and for regular members, depending upon the retirement fund in which the member is participating.

      (b) Except as otherwise provided in subsection 2, adjusted on the first monthly retirement reporting period commencing on or after July 1 of each odd-numbered year based on the actuarially determined contribution rate indicated in the biennial actuarial valuation and report of the immediately preceding year. The adjusted rate must be rounded to the nearest one-quarter of 1 percent.

      2.  The employee’s portion of the matching contribution rate for employees and employers must not be adjusted in accordance with the provisions of paragraph (b) of subsection 1 if:

      (a) The existing rate is lower than the actuarially determined rate but within one-quarter of 1 percent of the actuarially determined rate.

      (b) The existing rate is higher than the actuarially determined rate but is within 1 percent of the actuarially determined rate. If the existing rate is more than 1 percent higher than the actuarially determined rate, the existing rate must be reduced by the amount by which it exceeds 1 percent above the actuarially determined rate.

      3.  From each payroll during the period of the employee’s membership, the employer shall deduct the amount of the member’s contributions and transmit the deduction to the Board at intervals designated and upon forms prescribed by the Board. The contributions must be paid on compensation earned by a member from the member’s first day of service.

      4.  Any employee whose position is determined after July 1, 1971, to be eligible under the early retirement provisions for police officers and firefighters shall contribute the additional contributions required of police officers and firefighters from July 1, 1971, to the date of the employee’s enrollment under the Police and Firefighters’ Retirement Fund, if employment in this position occurred before July 1, 1971, or from date of employment in this position to the date of the employee’s enrollment under the Police and Firefighters’ Retirement Fund, if employment occurs later.

      5.  Except as otherwise provided in NRS 286.430, the System shall guarantee to each member the return of at least the total employee contributions which the member has made and which were credited to the member’s individual account. These contributions may be returned to the member, the member’s estate or beneficiary or a combination thereof in monthly benefits, a lump-sum refund or both.

      6.  Members with disabilities who are injured on the job and receive industrial insurance benefits for temporary total disability remain contributing members of the System for the duration of the benefits if and while the public employer continues to pay the difference between these benefits and the member’s regular compensation. The public employer shall pay the employer contributions on these benefits.

      [Part 14:181:1947; A 1949, 174; 1951, 76, 269]—(NRS A 1959, 880; 1963, 987; 1965, 401; 1967, 741; 1969, 855; 1971, 622; 1973, 1413; 1975, 1040; 1977, 1583; 1981, 449; 1983, 479; 1985, 1713; 1993, 475; 2003, 2057; 2009, 2348)

      NRS 286.421  Payment of contributions by employer on behalf of employee; average compensation; total rate of contribution. [Effective through December 31, 2014, and after that date unless the provisions of Senate Joint Resolution No. 14 (2011) are approved and ratified by the voters at the 2014 General Election.]

      1.  A public employer that elected to pay on behalf of its employees the contributions required by subsection 1 of NRS 286.410 before July 1, 1983, shall continue to do so, but a public employer may not elect to pay those contributions on behalf of its employees on or after July 1, 1983.

      2.  An employee of a public employer that did not elect to pay on behalf of its employees the contributions required by subsection 1 of NRS 286.410 before July 1, 1983, may elect to:

      (a) Pay the contribution required by subsection 1 of NRS 286.410 on the employee’s own behalf; or

      (b) Have the employee’s portion of the contribution paid by the employee’s employer pursuant to the provisions of NRS 286.425.

      3.  Except for any person chosen by election or appointment to serve in an elective office of a political subdivision or as a district judge or a justice of the Supreme Court of this State:

      (a) Payment of the employee’s portion of the contributions pursuant to subsection 1 must be:

             (1) Made in lieu of equivalent basic salary increases or cost-of-living increases, or both; or

             (2) Counterbalanced by equivalent reductions in employees’ salaries.

      (b) The average compensation from which the amount of benefits payable pursuant to this chapter is determined must be increased with respect to each month beginning after June 30, 1975, by 50 percent of the contribution made by the public employer, and must not be less than it would have been if contributions had been made by the member and the public employer separately. In the case of any officer or judge described in this subsection, any contribution made by the public employer on the officer’s or judge’s behalf does not affect the officer’s or judge’s compensation but is an added special payment.

      4.  Employee contributions made by a public employer must be deposited in either the Public Employees’ Retirement Fund or the Police and Firefighters’ Retirement Fund as is appropriate. These contributions must not be credited to the individual account of the member and may not be withdrawn by the member upon the member’s termination.

      5.  The membership of an employee who became a member on or after July 1, 1975, and all contributions on whose behalf were made by the member’s public employer must not be cancelled upon the termination of the member’s service.

      6.  If an employer is paying the basic contribution on behalf of an employee, the total contribution rate, in lieu of the amounts required by subsection 1 of NRS 286.410 and NRS 286.450, must be:

      (a) The total contribution rate for employers that is actuarially determined for police officers and firefighters and for regular members, depending upon the retirement fund in which the member is participating.

      (b) Except as otherwise provided in subsection 7, adjusted on the first monthly retirement reporting period commencing on or after July 1 of each odd-numbered year based on the actuarially determined contribution rate indicated in the biennial actuarial valuation and report of the immediately preceding year. The adjusted rate must be rounded to the nearest one-quarter of 1 percent.

      7.  The total contribution rate for employers must not be adjusted in accordance with the provisions of paragraph (b) of subsection 6 if:

      (a) The existing rate is lower than the actuarially determined rate but is within one-half of 1 percent of the actuarially determined rate.

      (b) The existing rate is higher than the actuarially determined rate but is within 2 percent of the actuarially determined rate. If the existing rate is more than 2 percent higher than the actuarially determined rate, the existing rate must be reduced by the amount by which it exceeds 2 percent above the actuarially determined rate.

      8.  For the purposes of adjusting salary increases and cost-of-living increases or of salary reduction, the total contribution must be equally divided between employer and employee.

      9.  Public employers other than the State of Nevada shall pay the entire employee contribution for those employees who contribute to the Police and Firefighters’ Retirement Fund on and after July 1, 1981.

      (Added to NRS by 1975, 1042; A 1977, 1584; 1979, 941; 1981, 440; 1983, 1647, 1930, 2048; 1985, 1713, 1983; 1987, 372; 1989, 1023; 1991, 469; 1993, 476; 1999, 3329; 2003, 2058; 2009, 2349)

      NRS 286.421  Payment of contributions by employer on behalf of employee; average compensation; total rate of contribution. [Effective January 1, 2015, if the provisions of Senate Joint Resolution No. 14 (2011) are approved and ratified by the voters at the 2014 General Election.]

      1.  A public employer that elected to pay on behalf of its employees the contributions required by subsection 1 of NRS 286.410 before July 1, 1983, shall continue to do so, but a public employer may not elect to pay those contributions on behalf of its employees on or after July 1, 1983.

      2.  An employee of a public employer that did not elect to pay on behalf of its employees the contributions required by subsection 1 of NRS 286.410 before July 1, 1983, may elect to:

      (a) Pay the contribution required by subsection 1 of NRS 286.410 on the employee’s own behalf; or

      (b) Have the employee’s portion of the contribution paid by the employee’s employer pursuant to the provisions of NRS 286.425.

      3.  Except for any person chosen by election or appointment to serve in an elective office of a political subdivision or as a district judge, a judge of the Court of Appeals or a justice of the Supreme Court of this State:

      (a) Payment of the employee’s portion of the contributions pursuant to subsection 1 must be:

             (1) Made in lieu of equivalent basic salary increases or cost-of-living increases, or both; or

             (2) Counterbalanced by equivalent reductions in employees’ salaries.

      (b) The average compensation from which the amount of benefits payable pursuant to this chapter is determined must be increased with respect to each month beginning after June 30, 1975, by 50 percent of the contribution made by the public employer, and must not be less than it would have been if contributions had been made by the member and the public employer separately. In the case of any officer or judge described in this subsection, any contribution made by the public employer on the officer’s or judge’s behalf does not affect the officer’s or judge’s compensation but is an added special payment.

      4.  Employee contributions made by a public employer must be deposited in either the Public Employees’ Retirement Fund or the Police and Firefighters’ Retirement Fund as is appropriate. These contributions must not be credited to the individual account of the member and may not be withdrawn by the member upon the member’s termination.

      5.  The membership of an employee who became a member on or after July 1, 1975, and all contributions on whose behalf were made by the member’s public employer must not be cancelled upon the termination of the member’s service.

      6.  If an employer is paying the basic contribution on behalf of an employee, the total contribution rate, in lieu of the amounts required by subsection 1 of NRS 286.410 and NRS 286.450, must be:

      (a) The total contribution rate for employers that is actuarially determined for police officers and firefighters and for regular members, depending upon the retirement fund in which the member is participating.

      (b) Except as otherwise provided in subsection 7, adjusted on the first monthly retirement reporting period commencing on or after July 1 of each odd-numbered year based on the actuarially determined contribution rate indicated in the biennial actuarial valuation and report of the immediately preceding year. The adjusted rate must be rounded to the nearest one-quarter of 1 percent.

      7.  The total contribution rate for employers must not be adjusted in accordance with the provisions of paragraph (b) of subsection 6 if:

      (a) The existing rate is lower than the actuarially determined rate but is within one-half of 1 percent of the actuarially determined rate.

      (b) The existing rate is higher than the actuarially determined rate but is within 2 percent of the actuarially determined rate. If the existing rate is more than 2 percent higher than the actuarially determined rate, the existing rate must be reduced by the amount by which it exceeds 2 percent above the actuarially determined rate.

      8.  For the purposes of adjusting salary increases and cost-of-living increases or of salary reduction, the total contribution must be equally divided between employer and employee.

      9.  Public employers other than the State of Nevada shall pay the entire employee contribution for those employees who contribute to the Police and Firefighters’ Retirement Fund on and after July 1, 1981.

      (Added to NRS by 1975, 1042; A 1977, 1584; 1979, 941; 1981, 440; 1983, 1647, 1930, 2048; 1985, 1713, 1983; 1987, 372; 1989, 1023; 1991, 469; 1993, 476; 1999, 3329; 2003, 2058; 2009, 2349; 2013, 1774, effective January 1, 2015, if the provisions of Senate Joint Resolution No. 14 (2011) are approved and ratified by the voters at the 2014 General Election)

      NRS 286.425  Election by employee to have employer pay contributions.  At any time after January 1, 1984, an employee who is paying the employee’s contribution on the employee’s own behalf may elect to have the employee’s portion of the contribution paid by the employee’s employer in the manner provided in NRS 286.421. An employee who makes such an election may not thereafter convert to paying the employee’s own contributions.

      (Added to NRS by 1983, 1930)

      NRS 286.430  Withdrawal of contributions.

      1.  Except as otherwise provided in subsection 8 and NRS 286.300, a member may withdraw the employee contributions credited to the member’s individual account if:

      (a) The member has terminated service for which contribution is required; or

      (b) The member is employed in a position for which contribution is prohibited.

      2.  The System shall not refund these contributions until it has received:

      (a) A properly completed application for refund;

      (b) A notice of termination from the member’s public employer or a certification by the public employer that the member is employed in a position for which contribution is prohibited; and

      (c) Except as otherwise provided in subsection 3, all contributions withheld from such member’s compensation.

      3.  If a member submits an application for a refund of the member’s contributions before all of the member’s contributions which were withheld have been remitted, the System may refund the portion of the member’s contributions which it has received.

      4.  If it is determined, after the System has refunded the contributions of a member, that an additional amount of less than $10 is due to the member, a refund of that amount need not be paid.

      5.  Refunds, pursuant to this section, must be made by check mailed to the address specified by a member in the member’s application for refund.

      6.  The System shall transfer all money retained pursuant to subsection 4 and the amount of any unclaimed refund checks to the Public Employees’ Retirement Fund or the Police and Firefighters’ Retirement Fund.

      7.  All membership rights and active service credit in the System, including service for which the public employer paid the employee contributions, are cancelled upon the withdrawal of contributions from a member’s account.

      8.  A member who transfers to a position for which contribution is prohibited must remain in that position for at least 90 days before the member is eligible to receive a refund pursuant to this section.

      [Part 16:181:1947; A 1949, 174; 1951, 269; 1955, 117]—(NRS A 1963, 988; 1965, 955; 1975, 1043; 1977, 1585; 1979, 258; 1981, 450; 1983, 480; 1987, 681; 2001, 2403; 2003, 2059)

      NRS 286.435  Repayment upon retroactive reinstatement.  Except as otherwise required as a result of NRS 286.537:

      1.  Any member whose employment is involuntarily terminated and who is thereafter reinstated retroactively to employment with a participating public employer by order of any administrative or judicial authority, or by the terms of any settlement agreement, shall pay to the System:

      (a) Any employee contributions which were refunded to the member;

      (b) Any service or disability allowance which was paid to the member;

      (c) All employee contributions which would have been made on the back pay awarded to the member; and

      (d) The interest on any amount due from the date on which:

             (1) The member received the money to be repaid pursuant to paragraph (a) or (b); and

             (2) Each contribution would have been made on the money due pursuant to paragraph (c),

Ê to the date of payment at the assumed investment income rate used in the most recent actuarial valuation of the System.

      2.  The employer shall deduct from any back pay awarded or granted to the member all money due pursuant to subsection 1 and forward this amount to the System. If the amount of back pay awarded or granted to the member is not sufficient to pay all of the money due pursuant to subsection 1, the member shall pay any balance due to the System under a reasonable plan for payment established by the System.

      3.  Upon receipt by the System of the full amount due pursuant to subsection 1, the member is entitled to all the membership rights and service credit which were cancelled by the member’s involuntary termination.

      (Added to NRS by 1983, 491; A 1989, 1562; 1991, 2360)

      NRS 286.440  Redeposit of withdrawn contributions upon return to service: Procedure.

      1.  Whenever a member, who has previously withdrawn the amount credited to the member as provided in NRS 286.430, returns to the service of a public employer participating in the System and remains a contributing member for 6 months, the member may:

      (a) Make repayment in a lump sum plus interest from the date the member withdrew the member’s contributions to the date of repayment; or

      (b) With the approval of the Executive Officer, enter into an agreement containing a schedule of payments to repay the withdrawn contributions plus interest from the date of withdrawal to the date of repayment. Payments shall not be less than $10 per month.

Ê For the purposes of this subsection, interest shall be computed at the assumed investment income rate used in the actuarial valuation of the System next preceding the date of repayment under paragraph (a) or agreement under paragraph (b).

      2.  Upon redepositing the member’s withdrawn contributions, with interest, the member shall have restored completely the member’s previous service credit which had been relinquished by the withdrawal of such contributions. If a member fails to perform fully an agreed repayment schedule, the member is entitled to service credit for previous service in the same proportion that the member’s repayment of withdrawn contributions bears to the total amount of withdrawn contributions.

      [Part 16:181:1947; A 1949, 174; 1951, 269; 1955, 117]—(NRS A 1961, 162; 1963, 988; 1967, 742; 1973, 1415; 1975, 1044; 1977, 1586)

      NRS 286.450  Rate of contributions by public employer.

      1.  The employer contribution rate must be:

      (a) The matching contribution rate for employees and employers that is actuarially determined for police officers and firefighters and for regular members, depending upon the retirement fund in which the member is participating.

      (b) Except as otherwise provided in subsection 2, adjusted on the first monthly retirement reporting period commencing on or after July 1 of each odd-numbered year based on the actuarially determined contribution rate indicated in the biennial actuarial valuation and report of the immediately preceding year. The adjusted rate must be rounded to the nearest one-quarter of 1 percent.

      2.  The employer’s portion of the matching contribution rate for employees and employers must not be adjusted in accordance with the provisions of paragraph (b) of subsection 1 if:

      (a) The existing rate is lower than the actuarially determined rate but is within one-quarter of 1 percent of the actuarially determined rate.

      (b) The existing rate is higher than the actuarially determined rate but is within 1 percent of the actuarially determined rate. If the existing rate is more than 1 percent higher than the actuarially determined rate, the existing rate must be reduced by the amount by which it exceeds 1 percent above the actuarially determined rate.

      [15:181:1947; A 1949, 174; 1951, 269; 1953, 129]—(NRS A 1959, 881; 1963, 989; 1967, 743; 1969, 858; 1971, 623; 1973, 1416; 1975, 1045; 1977, 1586; 1981, 451; 1985, 1714; 1987, 373; 1993, 477; 2003, 2060; 2009, 2350)

      NRS 286.460  Remittance of contributions by public employers.

      1.  Each participating public employer which pays compensation to its officers or employees in whole or in part from money received from sources other than money appropriated from the State General Fund shall pay public employer contributions, or the proper portion thereof, to the System from the money of the department, board, commission or agency.

      2.  Public employer contributions for compensation paid from the State General Fund must be paid directly by each department, board, commission or other agency concerned, and allowance therefor must be made in the appropriation made for each department, board, commission or other state agency.

      3.  All participating public employers that are required to make payments pursuant to this section shall file payroll reports not later than 15 days after the end of the reporting period, together with the remittance of the amount due the System. The 15-day limit is extended 1 working day for each legal holiday that falls within the 15-day period and is officially recognized by the public employer.

      4.  Payroll reports must contain accurate payroll information and be filed in a form prescribed by the Board. If the payroll reports are not filed or the amounts due are not remitted within the time provided, a penalty on the unpaid balance due must be assessed at a rate of 4 percent more than the prime rate of interest as published in the Wall Street Journal (Western Edition) for the first date the payment or report becomes delinquent. For purposes of calculating the penalty on the unpaid balance due, the unpaid balance due must be calculated based on the most recent payroll report submitted to the System by the public employer.

      5.  A notice of the penalty assessed must be mailed by certified mail to the chief administrator of the delinquent public employer. The public employer shall pay the assessment within 90 days after receipt of the notice or an additional penalty of 1 percent of the assessment per month must be imposed until paid. Refusal or failure by the public employer to pay the assessment within 12 months after receipt is a misdemeanor on the part of the chief administrator of the delinquent public employer. The Board may accept, no later than 30 days after the notice is received, an appeal from a public employer for waiver or reduction of a penalty assessed on account of extenuating circumstances and make any adjustment it deems necessary.

      6.  Except as otherwise required as a result of NRS 286.537, upon notification that a current employee was not properly enrolled in the System by the public employer, the public employer shall pay within 90 days all the employee and employer contributions and the interest that is due as computed by the System from the first day the employee was eligible for membership. The public employer is entitled to recover from the employee the employee contributions and interest thereon.

      7.  If an employer reports wages pursuant to this section that are ineligible pursuant to the definition of compensation under NRS 286.025, the public employer is responsible to the employee for the impact to the member’s benefit, if any, that results from the erroneously reported wages.

      8.  As used in this section, “reporting period” means the calendar month for which members’ compensation and service credits are reported and certified by participating public employers. Compensation paid during each month must be reported separately, and retroactive salary increases must be identified separately for each month to which they apply.

      [Part 12:181:1947; 1943 NCL § 5230.12] + [12(a): 181:1947; added 1949, 174; A 1951, 269]—(NRS A 1971, 623, 1317; 1975, 1045; 1977, 1586; 1981, 451; 1991, 1970, 2361; 2001, 2403; 2009, 1576, 2351)

      NRS 286.462  Complaint to Department of Taxation required concerning delinquent report or payment.  If a public employer is delinquent by more than 90 days in submitting a report or paying an amount due pursuant to subsection 3 of NRS 286.460, the System shall submit a written complaint to the Department of Taxation asking it to take such actions as are necessary in accordance with NRS 354.665.

      (Added to NRS by 1991, 1970; A 1995, 251, 1897)

SERVICE

      NRS 286.470  Credit for service as county commissioner, city council member or mayor: Calculation of average compensation; waiver of service; exception.

      1.  Except as otherwise required as a result of NRS 286.535 or 286.537, or as otherwise provided in subsection 3, average compensation for service performed as a county commissioner, city council member or mayor must be calculated as follows for those members whose effective date of retirement is after May 19, 1975:

      (a) Service retirement allowance for elective service must be computed on the basis of the highest 36 consecutive months of elective service multiplied by the percentage of average compensation earned during such service.

      (b) Service retirement allowance for regular service must be computed on the basis of the highest 36 consecutive months of regular service multiplied by the percentage of average compensation earned during such service.

      (c) The service retirement allowances for elective service and for regular service are added together to provide the total unmodified service retirement allowance earned by the member.

      (d) Average compensation for service before July 1, 1977, is computed from the sum of both salaries when a member is employed simultaneously as a regular member and as a county commissioner, city council member or mayor.

      2.  A member who has service as a county commissioner, city council member or mayor may, upon retirement, waive such service and have the member’s allowances computed as a regular member.

      3.  If a member who has service as a county commissioner, city council member or mayor has an average salary for the entire period of elective service that is equal to or greater than the average salary of a member for regular service for the same period, the calculations required pursuant to subsection 1 do not apply and the member must receive credit for regular service.

      [8.5:181:1947; added 1955, 295]—(NRS A 1967, 743, 1222; 1971, 547; 1975, 1046; 1977, 1587; 1991, 2362; 1999, 2617)

      NRS 286.475  Credit for service as Legislator before July 1, 1967: Calculation of average compensation.  The method of calculating the average compensation of a county commissioner or a council member of an incorporated city prescribed in subsection 1 of NRS 286.470 shall be used in calculating the average compensation of persons serving as Legislators prior to July 1, 1967, where such service has remained accredited under the provisions of this chapter.

      (Added to NRS by 1969, 858; A 1977, 1588)

      NRS 286.477  Credit for part-time employment; loss of credit.

      1.  Except as otherwise required as a result of NRS 286.537, an employee may receive full service credit for part-time employment if:

      (a) The employee and the employer of the employee enter into an agreement covering the employee’s part-time employment and the agreement is approved by the Board;

      (b) The employee will have reached the age and completed the years of service necessary for retirement, without actuarial reduction of the employee’s benefit, at the expiration of the term of the agreement;

      (c) The employee works half-time or more, but less than full-time, according to the regular schedule established by the employer for the employee’s position;

      (d) The employee and the employer make contributions equal to the lesser of:

             (1) The amount which a person serving on a full-time basis in the position would contribute and which the person’s employer would contribute for the person; or

             (2) The amount which the employee and employer contributed during the last 12 months of the employee’s full-time employment, adjusted to include increases to offset higher costs of living provided to similarly situated employees of the same public employer;

      (e) Employment ends on or before the fifth anniversary of the day on which the agreement became effective; and

      (f) The employee agrees in writing to the forfeiture of credit provided in subsection 2.

      2.  An employee loses all service credit which the employee did not earn by actual work and which has accrued pursuant to this section if the employee:

      (a) Returns to full-time employment in the service of any public employer at any time after beginning part-time work under the agreement, except for full-time employment as an elected public officer as a result of appointment to an elective office.

      (b) Continues in the employee’s part-time employment beyond the fifth anniversary of the day on which the agreement became effective.

      (Added to NRS by 1979, 495; A 1981, 452; 1983, 481; 1991, 2363)

      NRS 286.479  Service credit for military service in Persian Gulf Crisis.

      1.  A member who has 5 years or more of service credit is entitled to receive free service credit for military service for the period beginning on the date proclaimed by the President of the United States as the date on which hostilities began in the Persian Gulf Crisis and ending on the date proclaimed by the President of the United States as the termination of hostilities in the Persian Gulf Crisis if the member:

      (a) Began active military duty within 6 months after the last date of employment or leave of absence without pay with a participating public employer; and

      (b) Returned to employment with a participating public employer within 1 year after being honorably discharged or released from active duty.

      2.  A member who meets all of the requirements of subsection 1 except that the member does not have 5 years of service credit is entitled to receive the free credit pursuant to subsection 1 as soon as the member attains 5 years of service credit.

      (Added to NRS by 1991, 1860)

      NRS 286.481  Service ineligible for credit.  A member shall not be credited with service for:

      1.  Except as otherwise provided in NRS 286.385, leave of absence without pay;

      2.  Overtime work;

      3.  Employment in a position which does not qualify the member for participation in the System;

      4.  More than 1 day within a day, 1 month within a month, or 1 year of service in any 12-month period; or

      5.  Any period for which compensation is not received by the member unless specifically otherwise provided in this chapter.

      (Added to NRS by 1975, 1047; A 1999, 2618)

      NRS 286.486  Service credited in another system ineligible; exception.  Except as specifically otherwise provided in this chapter, a member shall not receive credit in the System for service that entitled such member to credit for retirement purposes in any other retirement system operated by the federal or a state government, or any of their agencies or political subdivisions, including the Social Security Act (Act of Congress approved August 14, 1935, chapter 531, 49 Stat. 620, as amended).

      (Added to NRS by 1975, 1047)

      NRS 286.495  Computation of credit for service: Generally.  Except as provided in NRS 286.470, 286.475 and 286.501, members shall be credited with service on the basis of days, months or years actually worked by a member, except that:

      1.  Intermittent service shall be credited to a member on the basis of 1 day of service for each 8 hours worked, and portions of a day shall be prorated.

      2.  Part-time employees who regularly work at least half-time for a full year with a minimum of 720 hours worked are entitled to a full year of credit for retirement eligibility only, with credit for actual service for determination of benefit being granted on actual time worked.

      3.  An employee of the Nevada Legislature who works full-time for at least 6 months in a fiscal year during which the Legislature meets in regular session is entitled to a full year of credit for retirement eligibility only, with credit for actual service for determination of benefit being granted on actual time worked.

Ê Service credit under this section shall be computed according to the fiscal year. No member may receive less credit under this section than was provided under the law in force at the time when the credit was earned. Nothing in this section allows a member to receive more than 1 year of credit for retirement eligibility in any year.

      (Added to NRS by 1975, 1047; A 1977, 1589; 2003, 2094, 3516)

      NRS 286.501  Computation of credit for service: Employees of school districts and professional staff of Nevada System of Higher Education.  Each member who is employed by a school district for less than 12 months per school year and each member of the professional staff of the Nevada System of Higher Education employed for the academic year who is employed for less than 12 months per fiscal year is credited with service as follows:

      1.  Service is credited on the basis of a full year if the member works full-time for the full school year.

      2.  Employment for a part of a school year is credited on a ratio of one and one-third days for each day worked, but credit may not be given in advance or until the appropriate period has expired.

      3.  A full year of service is not credited until the full 12-month period has expired. If the employee begins work under a new contract before the expiration of the 12-month period for the old contract, credit must be granted for the period of overlap, as certified by the school district, at the first period in which there is a lapse in service.

      4.  Service credit under this section must be computed according to:

      (a) The school year for school district employees.

      (b) The fiscal year for members of the professional staff of the Nevada System of Higher Education.

      5.  A member receives full credit while on sabbatical leave if the public employer certifies that the compensation and contributions reported for the member are the same as if the member were employed full-time. If the employer does not so certify, the member receives credit in the proportion that the member’s actual compensation bears to the member’s previous compensation.

Ê No member may receive less credit under this section than was provided under the law in force when the credit was earned.

      (Added to NRS by 1975, 1048; A 1977, 1589; 1979, 751; 1985, 1715; 1993, 383; 1999, 2618)

      NRS 286.505  Conversion of credit for service; time for crediting service.

      1.  For the purpose of maintaining the individual accounts of members, the Board may convert service credit from increments of days, months and years to hundredths of a year.

      2.  A member shall not be credited with service until after the period to be credited to the member has expired.

      (Added to NRS by 1975, 1048)

RETIREMENT

      NRS 286.510  Eligibility: Age and service of police officers, firefighters and other employees; reduction of benefit for retirement before required age.

      1.  Except as otherwise provided in subsections 2 and 3, a member of the System:

      (a) Who has an effective date of membership before January 1, 2010, is eligible to retire at age 65 if the member has at least 5 years of service, at age 60 if the member has at least 10 years of service and at any age if the member has at least 30 years of service.

      (b) Who has an effective date of membership on or after January 1, 2010, is eligible to retire at age 65 if the member has at least 5 years of service, at age 62 if the member has at least 10 years of service and at any age if the member has at least 30 years of service.

      2.  A police officer or firefighter:

      (a) Who has an effective date of membership before January 1, 2010, is eligible to retire at age 65 if the police officer or firefighter has at least 5 years of service, at age 55 if the police officer or firefighter has at least 10 years of service, at age 50 if the police officer or firefighter has at least 20 years of service and at any age if the police officer or firefighter has at least 25 years of service.

      (b) Who has an effective date of membership on or after January 1, 2010, is eligible to retire at age 65 if the police officer or firefighter has at least 5 years of service, at age 60 if the police officer or firefighter has at least 10 years of service and at age 50 if the police officer or firefighter has at least 20 years of service.

Ê Only service performed in a position as a police officer or firefighter, established as such by statute or regulation, service performed pursuant to subsection 3 and credit for military service, may be counted toward eligibility for retirement pursuant to this subsection.

      3.  Except as otherwise provided in subsection 4, a police officer or firefighter who has at least 5 years of service as a police officer or firefighter and is otherwise eligible to apply for disability retirement pursuant to NRS 286.620 because of an injury arising out of and in the course of the police officer’s or firefighter’s employment remains eligible for retirement pursuant to subsection 2 if:

      (a) The police officer or firefighter applies to the Board for disability retirement and the Board approves the police officer’s or firefighter’s application;

      (b) In lieu of a disability retirement allowance, the police officer or firefighter accepts another position with the public employer with which the police officer or firefighter was employed when the police officer or firefighter became disabled as soon as practicable but not later than 90 days after the Board approves the police officer’s or firefighter’s application for disability retirement;

      (c) The police officer or firefighter remains continuously employed by that public employer until the police officer or firefighter becomes eligible for retirement pursuant to subsection 2; and

      (d) After the police officer or firefighter accepts a position pursuant to paragraph (b), the police officer’s or firefighter’s contributions are paid at the rate that is actuarially determined for police officers and firefighters until the police officer or firefighter becomes eligible for retirement pursuant to subsection 2.

      4.  If a police officer or firefighter who accepted another position with the public employer with which the police officer or firefighter was employed when the police officer or firefighter became disabled pursuant to subsection 3 ceases to work for that public employer before becoming eligible to retire pursuant to subsection 2, the police officer or firefighter may begin to receive a disability retirement allowance without further approval by the Board by notifying the Board on a form prescribed by the Board.

      5.  Eligibility for retirement, as provided in this section, does not require the member to have been a participant in the System at the beginning of the police officer’s or firefighter’s credited service.

      6.  Any member who has the years of creditable service necessary to retire but has not attained the required age, if any, may retire at any age with a benefit actuarially reduced to the required retirement age. Except as otherwise required as a result of NRS 286.537, a retirement benefit pursuant to this subsection must be reduced:

      (a) If the member has an effective date of membership before January 1, 2010, by 4 percent of the unmodified benefit for each full year that the member is under the appropriate retirement age, and an additional 0.33 percent for each additional month that the member is under the appropriate retirement age.

      (b) If the member has an effective date of membership on or after January 1, 2010, by 6 percent of the unmodified benefit for each full year that the member is under the appropriate retirement age, and an additional 0.5 percent for each additional month that the member is under the appropriate retirement age.

Ê Any option selected pursuant to this subsection must be reduced by an amount proportionate to the reduction provided in this subsection for the unmodified benefit. The Board may adjust the actuarial reduction based upon an experience study of the System and recommendation by the actuary.

      [Part 18:181:1947; A 1949, 174; 1951, 269]—(NRS A 1971, 623; 1975, 1048; 1981, 453; 1989, 1024; 1991, 2364; 1999, 972; 2001, 1288; 2003, 2060; 2009, 2352)

      NRS 286.520  Employment of retired employee: Consequences; notice; exemptions.

      1.  Except as otherwise provided in this section and NRS 286.525, the consequences of the employment of a retired employee are:

      (a) A retired employee who accepts employment or an independent contract with a public employer under this System is disqualified from receiving any allowances under this System for the duration of that employment or contract if:

             (1) The retired employee accepted the employment or contract within 90 calendar days after the effective date of the employee’s retirement; or

             (2) The retired employee is employed in a position which is eligible to participate in this System.

      (b) If a retired employee accepts employment or an independent contract with a public employer under this System more than 90 calendar days after the effective date of the employee’s retirement in a position which is not eligible to participate in this System, the employee’s allowance under this System terminates upon the employee’s earning an amount equal to one-half of the average salary for participating public employees who are not police officers or firefighters in any fiscal year, for the duration of that employment or contract.

      (c) If a retired employee accepts employment with an employer who is not a public employer under this System, the employee is entitled to the same allowances as a retired employee who has no employment.

      2.  The retired employee and the public employer shall notify the System:

      (a) Within 10 days after the first day of an employment or contract governed by paragraph (a) of subsection 1.

      (b) Within 30 days after the first day of an employment or contract governed by paragraph (b) of subsection 1.

      (c) Within 10 days after a retired employee earns more than one-half of the average salary for participating public employees who are not police officers or firefighters in any fiscal year from an employment or contract governed by paragraph (b) of subsection 1.

      3.  For the purposes of this section, the average salary for participating public employees who are not police officers or firefighters must be computed on the basis of the most recent actuarial valuation of the System.

      4.  If a retired employee who accepts employment or an independent contract with a public employer under this System pursuant to this section elects not to reenroll in the System pursuant to subsection 1 of NRS 286.525, the public employer with which the retired employee accepted employment or an independent contract may pay contributions on behalf of the retired employee to a retirement fund which is not a part of the System in an amount not to exceed the amount of the contributions that the public employer would pay to the System on behalf of a participating public employee who is employed in a similar position.

      5.  If a retired employee is chosen by election or appointment to fill an elective public office, the retired employee is entitled to the same allowances as a retired employee who has no employment, unless the retired employee is serving in the same office in which the retired employee served and for which the retired employee received service credit as a member. A public employer may pay contributions on behalf of such a retired employee to a retirement fund which is not a part of the System in an amount not to exceed the amount of the contributions that the public employer would pay to the System on behalf of a participating public employee who serves in the same office.

      6.  The System may waive for one period of 30 days or less a retired employee’s disqualification under this section if the public employer certifies in writing, in advance, that the retired employee is recalled to meet an emergency and that no other qualified person is immediately available.

      7.  A person who accepts employment or an independent contract with either house of the Legislature or by the Legislative Counsel Bureau is exempt from the provisions of subsections 1 and 2 for the duration of that employment or contract.

      8.  A person who accepts employment with a volunteer fire department of which all the volunteers have become members of the System pursuant to NRS 286.367 is exempt from the provisions of subsections 1 and 2 for the duration of that employment.

      [23:181:1947; A 1949, 174; 1953, 129]—(NRS A 1957, 731; 1959, 163, 583; 1963, 989; 1967, 1222, 1667; 1969, 19, 856; 1971, 1317; 1977, 1590; 1979, 751, 942; 1981, 142; 1983, 481; 1985, 1715; 1999, 2619; 2001, 2404; 2003, 2061; 2009, 704)

      NRS 286.523  Employment of retired employee: Exception for reemployment of certain retired employees to fill positions for which critical labor shortage exists; determination and designation of such positions; limitation on length of designation of position. [Effective through June 30, 2015.]

      1.  It is the policy of this State to ensure that the reemployment of a retired public employee pursuant to this section is limited to positions of extreme need. An employer who desires to employ such a retired public employee to fill a position for which there is a critical labor shortage must make the determination of reemployment based upon the appropriate and necessary delivery of services to the public.

      2.  The provisions of subsections 1 and 2 of NRS 286.520 do not apply to a retired employee who accepts employment or an independent contract with a public employer under the System if:

      (a) The retired employee fills a position for which there is a critical labor shortage; and

      (b) At the time of the retired employee’s reemployment, the retired employee is receiving:

             (1) A benefit that is not actuarially reduced pursuant to subsection 6 of NRS 286.510; or

             (2) A benefit actuarially reduced pursuant to subsection 6 of NRS 286.510 and has reached the required age at which the retired employee could have retired with a benefit that was not actuarially reduced pursuant to subsection 6 of NRS 286.510.

      3.  A retired employee who is reemployed under the circumstances set forth in subsection 2 may reenroll in the System as provided in NRS 286.525.

      4.  Positions for which there are critical labor shortages must be determined in an open public meeting held by the designating authority as follows:

      (a) Except as otherwise provided in this subsection, the State Board of Examiners shall designate positions in State Government for which there are critical labor shortages.

      (b) The Supreme Court shall designate positions in the Judicial Branch of State Government for which there are critical labor shortages.

      (c) The Board of Regents shall designate positions in the Nevada System of Higher Education for which there are critical labor shortages.

      (d) The board of trustees of each school district shall designate positions within the school district for which there are critical labor shortages.

      (e) The governing body of a charter school shall designate positions within the charter school for which there are critical labor shortages.

      (f) The governing body of a local government shall designate positions with the local government for which there are critical labor shortages.

      (g) The Board shall designate positions within the System for which there are critical labor shortages.

      5.  In determining whether a position is a position for which there is a critical labor shortage, the designating authority shall make findings based upon the criteria set forth in this subsection that support the designation. Before making a designation, the designating authority shall consider all efforts made by the applicable employer to fill the position through other means. The written findings made by the designating authority must include:

      (a) The history of the rate of turnover for the position;

      (b) The number of openings for the position and the number of qualified candidates for those openings after all other efforts of recruitment have been exhausted;

      (c) The length of time the position has been vacant;

      (d) The difficulty in filling the position due to special circumstances, including, without limitation, special educational or experience requirements for the position; and

      (e) The history and success of the efforts to recruit for the position, including, without limitation, advertising, recruitment outside of this State and all other efforts made.

      6.  A designating authority that designates a position as a critical need position shall submit to the System its written findings which support that designation made pursuant to subsection 5 on a form prescribed by the System. The System shall compile the forms received from each designating authority and provide a biennial report on the compilation to the Interim Retirement and Benefits Committee of the Legislature.

      7.  A designating authority shall not designate a position pursuant to subsection 4 as a position for which there is a critical labor shortage for a period longer than 2 years. To be redesignated as such a position, the designating authority must consider and make new findings in an open public meeting as to whether the position continues to meet the criteria set forth in subsection 5.

      (Added to NRS by 2001, 2400; A 2003, 2062; 2005, 1077; 2009, 1549, 1550; R 2011, 90, effective June 30, 2015)

      NRS 286.525  Employment of retired employee: Enrollment in System; rights of membership; accrual of credit for service; benefits for survivor.

      1.  A retired employee who accepts employment in a position eligible for membership may enroll in the System as of the effective date of that employment. As of the date of enrollment:

      (a) The retired employee forfeits all retirement allowances for the duration of that employment.

      (b) The retired employee is entitled to receive, after the termination of the employment and upon written request, a refund of all contributions made by the retired employee during the employment. Except as otherwise required as a result of NRS 286.535 or 286.537, if the retired employee does not request the refund and the duration of the employment was at least 6 months, the retired employee gains additional service credit for that employment and is entitled to have a separate service retirement allowance calculated based on the retired employee’s compensation and service, effective upon the termination of that employment. If the duration of the employment was:

             (1) Less than 5 years, the additional allowance must be added to the retired employee’s original allowance and must be under the same option and designate the same beneficiary as the original allowance.

             (2) Five years or more, the additional allowance may be under any option and designate any beneficiary in accordance with NRS 286.545.

      2.  The original service retirement allowance of such a retired employee must not be recalculated based upon the additional service credit, nor is the retired employee entitled to any of the rights of membership that were not in effect at the time of the retired employee’s original retirement. The accrual of service credit pursuant to this section is subject to the limits imposed by:

      (a) NRS 286.551; and

      (b) Section 415 of the Internal Revenue Code, 26 U.S.C. § 415, if the member’s effective date of membership is on or after January 1, 1990.

      3.  Except as otherwise required as a result of NRS 286.470, 286.535 or 286.537, a retired employee who has been receiving a retirement allowance and who is reemployed and is enrolled in the System for at least 5 years may have the retired employee’s additional credit for service added to the retired employee’s previous credit for service. This additional credit for service must not apply to more than one period of employment after the original retirement.

      4.  The survivor of a deceased member who had previously retired and was rehired and enrolled in the System, who qualifies for benefits pursuant to NRS 286.671 to 286.6793, inclusive, is eligible for the benefits based on the service accrued through the second period of employment.

      (Added to NRS by 1979, 944; A 1983, 482; 1985, 1717; 1991, 1971, 2364; 1995, 251; 1997, 215; 1999, 2620; 2003, 2063)

BENEFITS

      NRS 286.533  Limitation on distributions to members of System.  Notwithstanding any other provision of law, every distribution to a member must be made pursuant to the provisions of section 401(a)(9) of the Internal Revenue Code, 26 U.S.C. § 401(a)(9), that apply to governmental plans.

      (Added to NRS by 1991, 2354; A 2011, 823)

      NRS 286.534  Actuarial assumptions used in computing benefits: Availability; changes prohibited.

      1.  The Board shall not change the actuarial assumptions used in computing the benefits provided to a member.

      2.  The Board shall make available to every member upon request the actuarial assumptions used in computing the benefits provided to a member.

      (Added to NRS by 1991, 2355)

      NRS 286.535  Limitation on compensation used to determine retirement benefit.  Notwithstanding any other provision of law, the amount of compensation used to determine the retirement benefit of a member of the System must not exceed:

      1.  For persons who first became members of the System before July 1, 1996, the limitation provided by section 401(a)(17) of the Internal Revenue Code (26 U.S.C. § 401(a)(17)), as that section existed on July 1, 1993.

      2.  For persons who first became members of the System on or after July 1, 1996, the limitation provided by section 401(a)(17) of the Internal Revenue Code (26 U.S.C. § 401(a)(17)), as that section existed on July 1, 1996.

      (Added to NRS by 1991, 2355; A 1995, 252)

      NRS 286.537  Limitations on benefits and contributions.

      1.  The election provided by section 415(b)(10)(c) of the Internal Revenue Code (26 U.S.C. § 415(b)(10)(c)) is hereby made.

      2.  Notwithstanding any other provision of this chapter, the benefits payable to and the contributions made by or for the benefit of an employee whose effective date of membership is on or after January 1, 1990, are limited pursuant to the provisions of sections 415(b), 415(c) and 415(e) of the Internal Revenue Code (26 U.S.C. §§ 415(b), 415(c) and 415(e)). The provisions of section 415(b)(2)(F) of the Internal Revenue Code (26 U.S.C. § 415(b)(2)(F)) do not apply to the benefits of such an employee.

      3.  Notwithstanding any other provision of law, if an employee whose effective date of membership is on or after January 1, 1990, is a member of the System and a member of the Legislators’ Retirement System, the benefits payable to the employee from both plans are limited pursuant to this section. The employee’s benefits from the plan providing the greater benefit must be reduced if the benefits from both plans exceed the limitations of this section.

      (Added to NRS by 1991, 2355; A 1997, 216)

      NRS 286.538  Minimum benefits payable to employee who became member of System before January 1, 1990.  The benefits payable to an employee whose effective date of membership is before January 1, 1990, must not be less than the employee’s accrued benefits determined without regard to any amendment of the System made after October 14, 1987.

      (Added to NRS by 1991, 2355)

      NRS 286.539  Prohibition against applying forfeitures to increase benefits.  Forfeitures must not be applied to increase the benefits any member would otherwise receive pursuant to the provisions governing the System as provided by section 401(a)(8) of the Internal Revenue Code, 26 U.S.C. § 401(a)(8).

      (Added to NRS by 1991, 2355; A 2011, 823)

      NRS 286.541  Application for service retirement allowance or disability retirement allowance; effective date of retirement; rights of present or former spouse; System exempted from liability for false designation of marital status by member or retired member.

      1.  Applications for service retirement allowances or disability retirement allowances must be submitted to the offices of the System on forms approved by the Executive Officer. The form shall not be deemed filed unless it contains:

      (a) The member’s selection of the retirement plan contained in NRS 286.551 or one of the optional plans provided in NRS 286.590;

      (b) A notarized statement of the marital status of the member; and

      (c) If the member is married, a statement of the spouse’s consent or objection to the chosen retirement plan, signed by the spouse and notarized.

      2.  Except as otherwise required by NRS 286.533, retirement becomes effective on whichever of the following days is the later:

      (a) The day immediately following the applicant’s last day of employment;

      (b) The day the completed application form is filed with the System;

      (c) The day immediately following the applicant’s last day of creditable service; or

      (d) The effective date of retirement specified on the application form.

      3.  The selection of a retirement plan by a member and consent or objection to that plan by the spouse pursuant to this section does not affect the responsibility of the member concerning the rights of any present or former spouse.

      4.  The System is not liable for any damages resulting from the false designation of marital status by a member or retired member.

      (Added to NRS by 1975, 1049; A 1979, 259; 1987, 682; 1991, 2365)

      NRS 286.545  Consent of spouse to retirement plan of member.

      1.  If the spouse of the member does not consent to the retirement plan chosen by the member before the date on which the retirement becomes effective pursuant to NRS 286.541 the System shall:

      (a) Notify the spouse that the spouse has 90 days to consent or have the member change the member’s selection; and

      (b) Pay the retirement at the amount calculated for Option 2 provided in NRS 286.590 until the spouse consents or for 90 days, whichever is less.

      2.  Upon consent of the spouse or at the end of the 90 days, the retirement benefit must be recalculated and paid under the terms of the option originally selected by the member retroactively to the date on which the retirement became effective.

      (Added to NRS by 1987, 680)

      NRS 286.551  Determination of monthly service retirement allowance.  Except as otherwise required as a result of NRS 286.535 or 286.537:

      1.  Except as otherwise provided in subsection 2:

      (a) For a member who has an effective date of membership before January 1, 2010, a monthly service retirement allowance must be determined by multiplying a member’s average compensation by 2.5 percent for each year of service earned before July 1, 2001, and 2.67 percent for each year of service earned on or after July 1, 2001.

      (b) For a member who has an effective date of membership on or after January 1, 2010, a monthly service retirement allowance must be determined by multiplying a member’s average compensation by 2.5 percent for each year of service earned.

      2.  A member:

      (a) Who has an effective date of membership on or after July 1, 1985, is entitled to a benefit of not more than 75 percent of the member’s average compensation with the member’s eligibility for service credit ceasing at 30 years of service.

      (b) Who has an effective date of membership before July 1, 1985, and retires on or after July 1, 1977, is entitled to a benefit of not more than 90 percent of the member’s average compensation with the member’s eligibility for service credit ceasing at 36 years of service.

Ê In no case may the service retirement allowance determined pursuant to this section be less than the allowance to which the retired employee would have been entitled pursuant to the provisions of this section which were in effect on the day before July 3, 1991.

      3.  For the purposes of this section, except as otherwise provided in subsections 4, 5 and 6, “average compensation” means the average of a member’s 36 consecutive months of highest compensation as certified by the public employer.

      4.  Except as otherwise provided in subsection 5, for an employee who becomes a member of the System on or after January 1, 2010, the following limits must be observed when calculating the member’s average compensation based on a 60-month period that commences 24 months immediately preceding the 36 consecutive months of highest compensation:

      (a) The compensation for the 13th through the 24th months may not exceed the actual compensation amount for the 1st through the 12th months by more than 10 percent;

      (b) The compensation for the 25th through the 36th months may not exceed by more than 10 percent the lesser of:

             (1) The maximum compensation amount allowed pursuant to paragraph (a); or

             (2) The actual compensation amount for the 13th through the 24th months;

      (c) The compensation for the 37th through the 48th months may not exceed by more than 10 percent the lesser of:

             (1) The maximum compensation amount allowed pursuant to paragraph (b); or

             (2) The actual compensation amount for the 25th through the 36th months; and

      (d) The compensation for the 49th through the 60th months may not exceed by more than 10 percent the lesser of:

             (1) The maximum average compensation amount allowed pursuant to paragraph (c); or

             (2) The actual compensation amount for the 37th through the 48th months.

      5.  Compensation attributable to a promotion and assignment-related compensation must be excluded when calculating the limits pursuant to subsection 4.

      6.  The average compensation of a member who has a break in service or partial months of compensation, or both, as a result of service as a Legislator during a regular or special session of the Nevada Legislature must be calculated on the basis of the average of the member’s 36 consecutive months of highest compensation as certified by the member’s public employer excluding each month during any part of which the Legislature was in session. This subsection does not affect the computation of years of service.

      7.  The retirement allowance for a regular part-time employee must be computed from the salary which the employee would have received as a full-time employee if it results in greater benefits for the employee. A regular part-time employee is a person who works half-time or more, but less than full-time:

      (a) According to the regular schedule established by the employer for the employee’s position; and

      (b) Pursuant to an established agreement between the employer and the employee.

      (Added to NRS by 1975, 1049; A 1977, 1591; 1979, 753; 1983, 483; 1985, 1717; 1987, 412; 1989, 1092, 1562; 1991, 1972, 2365; 2001, 1289; 2009, 2353)

      NRS 286.555  Refund of portion of contributions to certain persons who became members on or after January 1, 2010.

      1.  A person who becomes a member of the System on or after January 1, 2010, and whose monthly service retirement allowance is determined using an average compensation amount limited by the provisions of subsection 4 of NRS 286.551 is entitled to a refund from the person’s individual account of the difference between:

      (a) The amount of the employee contribution pursuant to NRS 286.410; and

      (b) The amount the employee contribution would have been had it been actuarially determined to account for the limits imposed by the provisions of subsection 4 of NRS 286.551.

      2.  The System shall pay any amount to which a person is entitled pursuant to subsection 1 upon the final determination of the amount of the person’s benefit, but not later than 6 months after the effective date of the person’s retirement.

      (Added to NRS by 2009, 2345)

      NRS 286.571  Postretirement increases: Calculation of increase for persons who became members on or after January 1, 2010.

      1.  Except as otherwise provided in subsection 2, for a person who retires and who has an effective date of membership on or after January 1, 2010, allowances or benefits must be increased once each year on the first day of the month immediately following the anniversary of the date the person began receiving the allowance or benefit, by the lesser of:

      (a) Two percent following the 3rd anniversary of the commencement of benefits, 3 percent following the 6th anniversary of the commencement of benefits, 3.5 percent following the 9th anniversary of the commencement of benefits, 4 percent following the 12th anniversary of the commencement of benefits and each year thereafter; or

      (b) The average percentage of increase in the Consumer Price Index (All Items) for the 3 preceding years, unless a different index is substituted by the Board.

      2.  In any event, the allowance or benefit of a member must be increased by the percentages set forth in paragraph (a) of subsection 1 if the allowance or benefit of a member has not increased at a rate greater than or equal to the average of the Consumer Price Index (All Items), unless a different index is substituted by the Board, for the period between the date of the member’s retirement and the date specified in subsection 1.

      3.  The Board may use a different index for the calculation made pursuant to paragraph (b) of subsection 1 if:

      (a) The substituted index is compiled and published by the United States Department of Labor; and

      (b) The Board determines that the substituted index represents a more accurate measurement of the cost of living for retired employees.

      4.  The base from which the increase provided by this section must be calculated is the allowance or benefit in effect on the day before the increase becomes effective.

      (Added to NRS by 2009, 2346)

      NRS 286.575  Postretirement increases: Payment; effect on monthly benefit.

      1.  Except as otherwise required as a result of NRS 286.537, a postretirement allowance must be paid from the Public Employees’ Retirement Fund or the Police and Firefighters’ Retirement Fund to each member receiving a disability allowance or service retirement allowance from that Fund under the provisions of this chapter in the amount and manner provided and from time to time adjusted by law. Each member whose allowance was increased after the member’s retirement by payments for years of service in excess of 20 years is entitled to receive an increase based upon the member’s adjusted allowance.

      2.  Postretirement allowances must be considered a part of a retired employee’s monthly benefit and included in the allowance paid to a beneficiary under one of the optional plans provided in NRS 286.590.

      (Added to NRS by 1963, 995; A 1965, 955; 1971, 626; 1975, 1050; 1977, 1591; 1979, 259; 1991, 2366; 2003, 2064)

      NRS 286.5756  Postretirement increases: Persons receiving benefits before September 1, 1983, or for 3 years before increase.

      1.  A person is entitled to the increase provided in this section if the person began receiving an allowance or benefit:

      (a) Before September 1, 1983, and has received the allowance or benefit for at least 6 continuous months in the 12 months preceding the effective date of the increase; or

      (b) At least 3 years before the increase.

      2.  Except as otherwise provided in subsection 3, allowances or benefits increase once each year on the first day of the month immediately following the anniversary of the date the person began receiving the allowance or benefit, by the lesser of:

      (a) Two percent following the 3rd anniversary of the commencement of benefits, 3 percent following the 6th anniversary of the commencement of benefits, 3.5 percent following the 9th anniversary of the commencement of benefits, 4 percent following the 12th anniversary of the commencement of benefits and 5 percent following the 14th anniversary of the commencement of benefits; or

      (b) The average percentage of increase in the Consumer Price Index (All Items) for the 3 preceding years, unless a different index is substituted by the Board.

      3.  In any event, the allowance or benefit of a member must be increased by the percentages set forth in paragraph (a) of subsection 2 if the allowance or benefit of a member has not increased at a rate greater than or equal to the average of the Consumer Price Index (All Items), unless a different index is substituted by the Board, for the period between the date of the member’s retirement and the date specified in subsection 2.

      4.  The Board may use a different index for the calculation made pursuant to paragraph (b) of subsection 2 if:

      (a) The substituted index is compiled and published by the United States Department of Labor; and

      (b) The Board determines that the substituted index represents a more accurate measurement of the cost of living for retired employees.

      5.  The base from which the increase provided by this section must be calculated is the allowance or benefit in effect on the day before the increase becomes effective.

      (Added to NRS by 1983, 1925; A 1989, 1025; 1991, 1861; 1995, 252; 1997, 351)

      NRS 286.5765  Postretirement increases: Persons retired before July 1, 1963; persons retired before September 1, 1975, with 20 years’ credit for service; persons retired before July 1, 1989, with 20 years’ credit for service; separate account.

      1.  The System shall provide an increase of $80 per month for all public employees who retired before July 1, 1963, in addition to the amounts to which they were respectively entitled on April 1, 1975.

      2.  An employee who retired before September 1, 1975, with 20 or more years of credit for service, whose gross benefit is less than $500 per month must be paid an increase in an amount which would make the retired employee’s gross benefit $500 per month or an increase of $200 per month, whichever is less. If a person receiving a benefit under option 3 or 5 as the beneficiary of an employee who retired before September 1, 1975, with 20 or more years of credit for service, is receiving less than $250 per month, the person must be paid an increase in an amount which would make the person’s gross benefit $250 per month or an increase of $100 per month, whichever is less.

      3.  An employee who retired with 20 or more years of credit for service, who had reached the age for full retirement eligibility without reduction for age at the time of retirement and whose gross benefit as of July 1, 1989, is less than $550 per month, must be paid an increase in an amount which would make the retired employee’s gross benefit $550 per month or an increase of $100 per month, whichever is less. If a person receiving a benefit under option 3 or 5 as the beneficiary of an employee who retired with 20 or more years of credit for service and had reached the age for full retirement eligibility without reduction for age at the time of retirement, is receiving a gross benefit as of July 1, 1989, of less than $275 per month, the person must be paid an increase in an amount which would make the person’s gross benefit $275 per month or an increase of $50 per month, whichever is less.

      4.  All money which has been accumulated under the provisions of that certain act of the Legislature of the State of Nevada entitled “An Act to provide against losses to the state and its respective counties, townships, incorporated cities and irrigation districts through defalcation, misappropriation of funds or other wrongful acts on the part of officials or employees; to provide for the issuance of surety bonds for state, county, township, city and irrigation district officials and employees, establishing a fund therefor, and other matters relating thereto; and to repeal all acts and parts of acts in conflict therewith,” approved March 26, 1937, as amended, must be transferred to the Public Employees’ Retirement Fund. The money must be combined with the appropriation made by section 35 of chapter 270, Statutes of Nevada 1975, and segregated into a separate account within the Public Employees’ Retirement Fund from which the increases provided in this section must be paid. If the money in that account is insufficient to pay those increases, the amount needed must be provided by the System.

      (Added to NRS by 1983, 1926; A 1983, 1889; 1985, 1188; 1989, 1128)

      NRS 286.577  Postretirement increases: Persons receiving allowance before July 1, 1975; persons with benefits commencing in 1975.

      1.  The System shall pay a postretirement allowance from the appropriate retirement fund to each member receiving a disability retirement allowance or service retirement allowance under the provisions of this chapter who first became entitled to receive any such allowance before July 1, 1975, as follows: As of the 1st day of July in each year following June 30, 1963, or the calendar year in which any monthly disability allowance or service retirement allowance was first paid, whichever last occurs, and preceding July 1, 1975, there must be added to such monthly disability allowance or service retirement allowance and paid to the member monthly thereafter an amount equivalent to 1.5 percent of the amount of such monthly disability allowance or service retirement allowance as originally computed, approved and paid.

      2.  Each member who retired before January 1, 1962, is entitled to receive an increase in the member’s postretirement allowance of 1.5 percent of the amount of the member’s monthly disability retirement allowance or service retirement allowance, as originally computed, approved and paid, for each calendar year following the calendar year of the member’s retirement and preceding the calendar year 1963.

      3.  Beginning on July 1, 1975, the System shall pay a postretirement increase from the appropriate retirement fund to each person who receives monthly service retirement, disability or survivor benefit allowances as follows:

 

Period of Beginning Receipt                                                             Increase of Base Benefit

 

July 1 to December 31, 1963....................................................... 5.00  percent

Calendar year 1964....................................................................... 4.75  percent

Calendar year 1965....................................................................... 4.50  percent

Calendar year 1966....................................................................... 4.25  percent

Calendar year 1967....................................................................... 4.00  percent

Calendar year 1968....................................................................... 3.75  percent

Calendar year 1969....................................................................... 3.50  percent

Calendar year 1970....................................................................... 3.25  percent

Calendar year 1971....................................................................... 3.00  percent

Calendar year 1972....................................................................... 2.75  percent

Calendar year 1973....................................................................... 2.50  percent

Calendar year 1974....................................................................... 2.25  percent

 

and beginning on July 1, 1976, an additional increase of the same amount must be paid to each person.

      4.  Beginning July 1, 1976, a postretirement increase of 2 percent must be paid to every such member who began receiving benefits during the calendar year 1975.

      (Added to NRS by 1983, 1927)

      NRS 286.5775  Postretirement increases: Increases based on years allowance received; beneficiaries of deceased employees; limitations.

      1.  In addition to the other postretirement allowances and increases provided by law, if adequate money is available which has been designated for this purpose, the Public Employees’ Retirement System shall provide a postretirement increase based upon the total number of calendar years that the recipient has been receiving an allowance. The increases are payable beginning July 1, 1977, and July 1, 1978, as follows:

 

       Total Years

Receiving Allowance                                                                       Increase of Base Benefit

 

    12 or more..................................................................................... 5.00  percent

   11                                                                                                      4.75  percent

   10                                                                                                      4.50  percent

      9                                                                                                      4.25  percent

      8                                                                                                      4.00  percent

      7                                                                                                      3.75  percent

      6                                                                                                      3.50  percent

      5                                                                                                      3.25  percent

      4                                                                                                      3.00  percent

      3                                                                                                      2.75  percent

      2                                                                                                      2.50  percent

      1                                                                                                      2.25  percent

 

      2.  A person who has been receiving an allowance for at least 6 months but less than 1 year when postretirement increases are paid is entitled to an increase of 2 percent of the person’s base benefit.

      3.  A beneficiary of a deceased retired employee is entitled to receive postretirement increases provided in this section based on the effective date of retirement for the retired employee and:

      (a) The base benefit for the retired employee if the retired employee selected option 2 or 4; or

      (b) Fifty percent of the base benefit of the retired employee if the retired employee selected option 3 or 5.

      4.  The postretirement increases provided in this section are payable only if they do not exceed the percentage increase in the Consumer Price Index (All Items) during the previous calendar year or any limitations required as a result of NRS 286.537. The percentage for postretirement increases provided in this section must be reduced to the percentage increase in the Consumer Price Index (All Items) for the previous calendar year if the increase in the index is less than the percentage provided in this section.

      (Added to NRS by 1983, 1927; A 1991, 2366)

      NRS 286.578  Postretirement increases: Increases payable July 1, 1979, and July 1, 1980.

      1.  In addition to other postretirement allowances or benefits provided by law, and subject to the limitation provided in subsection 3, the Public Employees’ Retirement System shall provide a postretirement increase to each eligible person, based upon:

      (a) The number of years the person has received a retirement allowance or in the case of a beneficiary of a retired employee, the number of years an allowance or benefits have been received since the retired employee’s effective date of retirement; and

      (b) The amount of the person’s cumulative allowance or benefit computed as of the dates on which these increases are payable.

      2.  The increases provided in subsection 1 are payable on July 1, 1979, and July 1, 1980, as follows:

 

Number of Years Receiving                                                                Increase in Cumulative

  Allowance or Benefit                                                                           Allowance or Benefit

 

5 years or more................................................................................... 5.0  percent

4 years.................................................................................................. 4.5  percent

3 years.................................................................................................. 4.0  percent

2 years.................................................................................................. 3.5  percent

1 year.................................................................................................... 3.0  percent

 

      3.  These percentage increases are payable only if they do not exceed the percentage increase in the “All Items Consumer Price Index” for the preceding calendar year. If the percentage increase in the index for the preceding year is less than any percentage increase described in subsection 2, the latter increase must be reduced to the former.

      (Added to NRS by 1983, 1928; A 1985, 267)

      NRS 286.5785  Postretirement increases: Increases payable July 1, 1981, and July 1, 1982.

      1.  On July 1, 1981, and July 1, 1982, the System shall provide a cost-of-living increase to each retired employee or beneficiary. The increase must be based on the number of years the person has been drawing benefits plus the portion of the year, in full calendar months, in which the person began drawing benefits, in the amounts:

 

    Number of years and full calendar                                                                                    

       months during which benefits                                                                    Percentage of

             have been received                                                                                       Increase

 

1 year..................................................................................................................... 3.0

1 year and 1 month through 2 years................................................................ 3.5

2 years and 1 month through 3 years.............................................................. 4.0

3 years and 1 month through 4 years.............................................................. 4.5

4 years and 1 month through 5 years.............................................................. 5.0

5 years and 1 month through 6 years.............................................................. 5.5

6 years and 1 month through 7 years.............................................................. 6.0

7 years and 1 month through 8 years.............................................................. 6.5

8 years and 1 month through 9 years.............................................................. 7.0

9 years and 1 month through 10 years............................................................ 7.5

10 years and 1 month through 11 years.......................................................... 8.0

11 years and 1 month through 12 years.......................................................... 8.5

12 years and 1 month through 13 years.......................................................... 9.0

13 years and 1 month through 14 years.......................................................... 9.5

14 years and 1 month and more.................................................................... 10.0

 

      2.  The increase for a retired employee or beneficiary who has been receiving benefits for less than 12 full calendar months on July 1 is 3 percent prorated for the number of full calendar months in which the person has received benefits.

      3.  In addition to the other postretirement allowances and increases provided by law, the System shall provide a monthly postretirement increase of $100 per month, beginning on July 1, 1981, to surviving spouses who receive benefits pursuant to subsection 2 of NRS 286.674.

      4.  The increases provided in this section are payable only if and to the extent that they respectively do not exceed the increase in the Consumer Price Index (All Items) for the calendar year preceding their payment.

      (Added to NRS by 1983, 1929)

      NRS 286.579  Postretirement increases: Increase for persons receiving benefits before January 1, 1977.

      1.  In addition to the other postretirement allowances and increases provided by law, the System shall provide a monthly postretirement increase to each person who began receiving benefits before January 1, 1977, or to the person’s designated beneficiary upon the person’s death in these amounts:

 

     Base Benefit                                                                                           Monthly Increase

 

 $0—$100...................................................................................................... $20

101— 200........................................................................................................ 15

201— 300........................................................................................................ 10

301— 500........................................................................................................... 5

501 and above................................................................................................... 3

 

      2.  A single postretirement increase pursuant to this section must be prorated among two or more recipients of benefits for survivors on behalf of one deceased member.

      (Added to NRS by 1981, 576)

      NRS 286.590  Alternatives to unmodified service retirement allowance.  The alternatives to an unmodified service retirement allowance are as follows:

      1.  Option 2 consists of a reduced service retirement allowance payable monthly during the retired employee’s life, with the provision that it continue after the retired employee’s death for the life of the beneficiary whom the retired employee nominates by written designation acknowledged and filed with the Board at the time of retirement should the beneficiary survive the retired employee.

      2.  Option 3 consists of a reduced service retirement allowance payable monthly during the retired employee’s life, with the provision that it continue after the retired employee’s death at one-half the rate paid to the retired employee and be paid for the life of the beneficiary whom the retired employee nominates by written designation acknowledged and filed with the Board at the time of retirement should the beneficiary survive the retired employee.

      3.  Option 4 consists of a reduced service retirement allowance payable monthly during the retired employee’s life, with the provision that it continue after the retired employee’s death for the life of the retired employee’s beneficiary, whom the retired employee nominates by written designation acknowledged and filed with the Board at the time of the election, should the retired employee’s beneficiary survive the retired employee, beginning on the attainment by the surviving beneficiary of age 60. If a beneficiary designated under this option dies after the date of the retired employee’s death but before attaining age 60, the contributions of the retired employee which have not been returned to the retired employee or the retired employee’s beneficiary must be paid to the estate of the deceased beneficiary.

      4.  Option 5 consists of a reduced service retirement allowance payable monthly during the retired employee’s life, with the provision that it continue after the retired employee’s death at one-half the rate paid to the retired employee and be paid for the life of the retired employee’s beneficiary whom the retired employee nominates by written designation acknowledged and filed with the Board at the time of the election, should the retired employee’s beneficiary survive the retired employee, beginning on the attainment by the surviving beneficiary of age 60. If a beneficiary designated under this option dies after the date of the retired employee’s death but before attaining age 60, the contributions of the retired employee which have not been returned to the retired employee or the retired employee’s beneficiary must be paid to the estate of the deceased beneficiary.

      5.  Option 6 consists of a reduced service retirement allowance payable monthly during the retired employee’s life, with the provision that a specific sum per month, which cannot exceed the monthly allowance paid to the retired employee, be paid after the retired employee’s death to the beneficiary for the life of the beneficiary whom the retired employee nominates by written designation acknowledged and filed with the Board at the time of retirement, should the beneficiary survive the retired employee.

      6.  Option 7 consists of a reduced service retirement allowance payable monthly during the retired employee’s life, with the provision that a specific sum per month, which cannot exceed the monthly allowance paid to the retired employee, be paid after the retired employee’s death to the beneficiary for the life of the beneficiary whom the retired employee nominates by written designation acknowledged and filed with the Board at the time of election, should the beneficiary survive the retired employee, beginning on the attainment by the surviving beneficiary of age 60 years. If a surviving beneficiary dies after the date of the retired employee’s death, but before attaining age 60, all contributions of the retired employee which have not been returned to the retired employee or the retired employee’s beneficiary must be paid to the estate of the beneficiary.

      [Part 20:181:1947; A 1951, 269; 1953, 386; 1955, 23]—(NRS A 1957, 522; 1961, 200; 1975, 1051; 1977, 1593; 1979, 250, 753; 1983, 483; 1993, 2781)

      NRS 286.592  Optional plans: Death of beneficiary; change of selection; effective date of termination or adjustment of allowance.

      1.  If a member enters retirement status under one of the optional plans described in NRS 286.590 and the designated beneficiary predeceases the retired employee, the retired employee’s monthly retirement allowance must be automatically adjusted to the unmodified retirement allowance provided in NRS 286.551.

      2.  A retired employee may not change the selected option or designated beneficiary after the effective date of retirement except as provided in subsection 4 of this section and subsection 3 of NRS 286.525.

      3.  A retired employee who selects an unmodified retirement allowance may relinquish the retired employee’s right to that allowance and apply for a refund of the retired employee’s remaining contributions at any time. A retired employee who selects one of the optional plans described in NRS 286.590 may relinquish the retired employee’s right and the right of the beneficiary under that plan and apply for a refund of the retired employee’s remaining contributions at any time. If the designated beneficiary is the spouse of the retired employee, or if the right of the beneficiary is the subject of a court order, the retired employee shall provide an acknowledged release by the beneficiary of any claim against the System or the employee’s contributions when applying for a refund.

      4.  A retired employee may cancel the retired employee’s selected option and designation of beneficiary and revert to the unmodified retirement allowance. The retired employee shall make this election by written designation, acknowledged and filed with the Board. The written election must be accompanied by a written, notarized acknowledgment of the change by the beneficiary if the beneficiary is the spouse of the retired employee. The election to cancel a selected option and revert to the unmodified allowance does not abrogate any obligation of the retired employee respecting community property.

      5.  The termination or adjustment of a monthly retirement allowance resulting from the death of a retired employee or beneficiary must not become effective until the first day of the month immediately following the death of the retired employee or beneficiary.

      (Added to NRS by 1983, 491; A 1985, 1718; 1987, 682)

      NRS 286.612  Charges for deferred protection: Termination; adjustments of allowances or benefits.

      1.  Charges for deferred protection must not be made on or after July 1, 1995, against the:

      (a) Allowance payable to a beneficiary pursuant to NRS 286.600 or 286.610, as those sections existed on June 30, 1995.

      (b) Service retirement allowance of a member who selected deferred protection for a beneficiary before July 1, 1975, and who will retire on or after July 1, 1995.

      (c) Service retirement allowance of a member who selected deferred protection for a beneficiary before July 1, 1975, and who retired before July 1, 1995.

      2.  If a charge for deferred protection has been made against the allowance or benefit of a member or beneficiary on or after July 1, 1995, the member or beneficiary must notify the Board. The Board shall adjust the allowance or benefit of the member or beneficiary for any charge made during the period between July 1, 1995, and the date of notification.

      3.  As used in this section, “deferred protection” means the benefit which a member was permitted to select during employment before July 1, 1975, pursuant to NRS 286.600 and 286.610, as those sections existed on June 30, 1995, to provide an allowance to the member’s beneficiary if the member died while employed and before retirement.

      (Added to NRS by 1995, 250)

      NRS 286.615  Optional deduction from benefits for payments for group insurance, plan of benefits or medical and hospital service or other obligations; regulations; exemption of Executive Officer, Board and System from liability for errors or omissions.

      1.  In addition to the options provided in NRS 287.023 and subject to the requirements of that section, any officer or employee of a governmental entity enumerated in subsection 1 of NRS 287.023 who retires under the conditions set forth in NRS 1A.350, 1A.480, 286.510 or 286.620 and, at the time of retirement, was covered or had dependents covered by any group insurance, plan of benefits or medical and hospital service established pursuant to NRS 287.010, 287.015, 287.020 or paragraph (b), (c) or (d) of subsection 1 of NRS 287.025, has the option of having the Executive Officer deduct and pay the retired person’s premium or contribution for that coverage, as well as the amount due or to become due upon any obligation designated by the Board pursuant to subsection 2, from the retired person’s monthly retirement allowance until:

      (a) The retired person notifies the Executive Officer to discontinue the deduction; or

      (b) Any of the retired person’s dependents elect to assume the premium or contribution applicable to the dependent’s coverage before the death of such a retired person and continue coverage pursuant to NRS 287.023 after the retired person’s death.

      2.  The Board may adopt regulations to carry out the provisions of subsection 1, including, but not limited to, regulations governing the number and types of obligations, amounts for the payment of which may be deducted and paid by the Board at the option of the officer or employee pursuant to this section.

      3.  The Executive Officer, Board and System are not liable for any damages resulting from errors or omissions concerning the deductions and payment of premiums or contributions authorized pursuant to this section unless willful neglect or gross negligence is proven.

      (Added to NRS by 1973, 327; A 1985, 40; 1987, 502, 683; 1999, 3022; 2003, 2736, 3259)

      NRS 286.620  Disability retirement allowance: Eligibility; calculation of amount; beneficiaries; effective date of termination or adjustment of allowance.

      1.  A member of the System who has 5 years or more of service credit and who becomes totally unable to perform the member’s current job or any comparable job for which the member is qualified by training and experience, because of injury or mental or physical illness of a permanent nature is eligible to apply for disability retirement if:

      (a) Except as otherwise provided in subsection 5, the member’s employment will be terminated because of the disability;

      (b) The member is in the employ of a participating public employer at the time of application for disability retirement;

      (c) The member proves that the disability renders the member unable to perform the duties of the member’s present position and of any other position the member has held within the past year;

      (d) The member files a notarized application for disability retirement with the System which indicates a selection of option and to which is attached a personal statement by the member, describing the disability, the duties which the member can and cannot perform, and any benefits the member is entitled to receive for disability from any other public source;

      (e) The public employer files an official statement certifying the member’s employment record, job description, work evaluations, record of disability and absences that have occurred because of the disability; and

      (f) The immediate supervisor of the member files an official statement regarding the effect upon the work of the member after the disability, job functions that can and cannot be performed because of the disability, and whether or not there are alternative jobs that can be performed by the member.

      2.  Except as otherwise required as a result of NRS 286.537, the amount of the disability retirement allowance must be calculated in the same manner as provided for service retirement calculations in NRS 286.551, except that no reduction for the member’s age may be made and that the allowance must be reduced by the amount of any other benefit received from any source on account of the same disability:

      (a) If the benefit is provided or was purchased by the expenditure of money by a Nevada public employer; and

      (b) To the extent that the total of the unmodified benefit and the other benefit would otherwise exceed the member’s average compensation.

      3.  A member may apply for disability retirement even if the member is eligible for service retirement.

      4.  Each child of a deceased recipient of a disability retirement allowance is entitled to receive the benefits provided by NRS 286.673 only if the decedent had not reached the age and completed the service required to be eligible for a service retirement allowance, except that these benefits must not be paid to anyone who is named as a beneficiary under one of the options to an unmodified allowance.

      5.  If a member whose application for disability retirement has been:

      (a) Approved, dies before the member’s employment is terminated, but within 60 days after the application was approved; or

      (b) Mailed before the member’s death as indicated by the date of the postmark dated by the post office on the envelope in which it was mailed, dies before the Board has acted upon the application and the Board approves thereafter the application,

Ê the member’s beneficiary is entitled to receive an allowance under the option selected rather than the benefit otherwise provided for a survivor.

      6.  The termination or adjustment of a disability retirement allowance resulting from the death of a recipient of an allowance pursuant to this section must not become effective until the first day of the month immediately following the death of the recipient.

      [Part 22:181:1947; A 1949, 174; 1951, 269]—(NRS A 1957, 206, 526; 1965, 958; 1973, 624; 1975, 1055; 1979, 755, 943; 1981, 453; 1983, 485; 1985, 1719; 1991, 2367)

      NRS 286.630  Disability retirement allowance: Approval or denial of application; medical examination.

      1.  The Board shall designate medical advisers to review information which has been submitted by the private physician of the member, conduct medical examinations, make recommendations and consult with the Board concerning applications for disability retirement.

      2.  The Board shall require a medical examination of each applicant for disability retirement. The examination must at least consist of:

      (a) An examination at an applicant’s expense and by the applicant’s personal physician who shall submit a written statement to the Board describing the nature and extent of the applicant’s disability, the physician’s statement whether or not the member is disabled, and copies of any medical information necessary to support the statement; and

      (b) A review of the written statement from the applicant’s physician by the Board’s medical advisers.

Ê The member shall provide any additional information which the Board or medical advisers deem necessary and shall submit to an additional medical examination upon the request of the Board. The costs of such additional examination must be paid from the Public Employees’ Retirement Administrative Fund.

      3.  The Board shall consider the complete application for disability retirement and the recommendations of its staff and the medical advisers, and approve or deny the application.

      4.  A member may apply to the Board for one reconsideration within 45 days after the denial by the Board of the member’s application, if the member can present new evidence which was not available or the existence of which was not known to the member at the time the Board originally considered the member’s application.

      [Part 22:181:1947; A 1949, 174; 1951, 269]—(NRS A 1975, 1056; 1977, 63; 1981, 454)

      NRS 286.634  Disability retirement allowance: Effective date of retirement.

      1.  The effective date of disability retirement for a member whose application for disability retirement has been approved by the Board is:

      (a) The day after the member’s last day of employment; or

      (b) The day after the member’s death, if death intervenes between the member’s application and the member’s retirement.

      2.  A member whose application for disability retirement has been approved by the Board must retire from the member’s employment and begin drawing benefits within 60 days after the date of the approval or the member must reapply and be reapproved before the member may draw benefits unless the member remains on sick leave for the entire period of continued employment.

      (Added to NRS by 1981, 443)

      NRS 286.637  Disability retirement allowance: Recipient to provide copy of federal income tax return; Board may require medical examinations.

      1.  Each recipient of a disability retirement allowance shall provide to the System a copy of the recipient’s federal income tax return and withholding statements for all income for the preceding calendar year by May 1 of each year.

      2.  The Board may adopt regulations to require medical examinations of recipients of disability retirement allowances. Expenses for such medical examinations must be paid from the Public Employees’ Retirement Administrative Fund. If any member receiving such benefits refuses a reasonable request from the Board to submit to a medical examination, the Board may discontinue the payment of the member’s benefits and may provide for the forfeiture of all the member’s benefits which accrue during the discontinuance.

      (Added to NRS by 1981, 443)

      NRS 286.638  Disability retirement allowance: Reporting to Internal Revenue Service.  The System shall, to the extent allowed by federal law, report to the Internal Revenue Service of the United States Department of the Treasury a disability retirement allowance that is paid to a member of the System as a disability benefit instead of as retirement income.

      (Added to NRS by 2003, 1927)

      NRS 286.640  Disability retirement allowance: Cancellation.

      1.  When the recipient of a disability retirement allowance is determined by the Board to be no longer disabled, the allowance must be cancelled.

      2.  An employee retired on account of disability whose benefit is cancelled may:

      (a) Apply for a refund of unused contributions;

      (b) Suspend the monthly benefit until eligible for service retirement; or

      (c) Elect a service retirement reduced for the retired employee’s age if the retired employee has the service credit necessary to retire.

      [Part 22:181:1947; A 1949, 174; 1951, 269]—(NRS A 1975, 1057; 1981, 455)

      NRS 286.650  Disability retirement allowance: Consequences of employment of recipient.

      1.  Except as otherwise provided in subsection 2, whenever a recipient of a disability retirement allowance returns to employment with a participating public employer, the allowance must be discontinued, the member shall again become a contributing member of the System and the member’s service credit at time of disability retirement must be restored. An amount equivalent to the member’s total employee contributions at time of disability less 15 percent of total disability benefits paid must be returned to the member’s individual member account. The member shall retire under the same retirement plan previously selected for retirement on account of disability if the member returns to disability retirement or elects service retirement within 1 year after the member’s return to employment.

      2.  A recipient of a disability retirement allowance may be employed and continue to receive the member’s allowance if the member applies to the Board for approval of the employment before the member begins to work and the Board approves the application. The application must include:

      (a) A full description of the proposed employment; and

      (b) A statement written by the member declaring the reasons why the proposed employment should not be found to conflict with the member’s disability.

      [Part 22:181:1947; A 1949, 174; 1951, 269]—(NRS A 1975, 1057; 1981, 455; 1985, 1720; 1991, 1973)

      NRS 286.655  Payments for rehabilitation in lieu of disability retirement allowance.  The Board may make direct payments to a public employer for the rehabilitation of a member eligible to receive a disability retirement allowance. These payments, up to but not exceeding the disability retirement allowance, are payable at the request of the member in lieu of the disability retirement allowance.

      (Added to NRS by 1977, 1572)

      NRS 286.660  Death of certain member before retirement: Disposition of money to member’s credit in Public Employees’ Retirement Fund.

      1.  If a person who is a member of the System and has less than 2 years of accredited contributing service or has more than 2 years of accredited service and payments are not due under NRS 286.673 to 286.677, inclusive, dies before retiring, the amount credited at the time of the member’s death to the member’s account in the Public Employees’ Retirement Fund shall be paid directly and without probate or administration to the beneficiaries which the member designates.

      2.  Should more than one beneficiary be named, the amount standing to the credit of the member shall be distributed equally among such persons unless otherwise specifically directed by the member. Full payment by the Board to persons designated as beneficiaries shall discharge the Board and System completely on account of the death.

      3.  The death of any named beneficiary, prior to the death of the member, shall operate to distribute the share of the deceased beneficiary in equal shares to the other named beneficiaries who shall survive, but if the deceased beneficiary shall be survived by minor children the share of the deceased beneficiary shall be distributed in equal shares among such surviving minor children.

      4.  Should no beneficiaries survive, or should the member not designate a beneficiary, the amount otherwise due shall be paid directly to the estate of the deceased member.

      [21:181:1947; A 1951, 269]—(NRS A 1963, 985; 1967, 744)

      NRS 286.665  Death of member, retired employee or beneficiary: Transfer of contributions to retirement fund under certain circumstances; procedure for claiming transferred money.

      1.  Any contributions remaining in a member’s, retired employee’s or beneficiary’s individual account must be transferred to the Public Employees’ Retirement Fund or the Police and Firefighters’ Retirement Fund upon the death of the member, retired employee or beneficiary if there is no heir, devisee or legatee capable of receiving the money.

      2.  If, within 6 years after any transfer under subsection 1, any person appears and claims any money which was transferred to a retirement fund, the claimant may file a petition in the District Court for Carson City stating the nature of the claim, with an appropriate prayer for the relief demanded. A copy of the petition must be served upon the Attorney General before or at the time of filing it. Within 20 days after service, the Attorney General shall appear in the proceeding and respond to the petition. If, after examining all the facts, the Attorney General is convinced that the System has no legal defense against the petition, the Attorney General may, with the consent of the Court, confess judgment on behalf of the System.

      3.  If judgment is not confessed, the petition must be considered at issue on the 20th day after its filing, and may be heard by the Court on that day, or at such future day as the Court may order. Upon the hearing, the Court shall examine into the claim and hear the allegations and proofs. If the Court finds that the claimant is entitled to any money transferred under subsection 1 to a retirement fund, it shall order the Public Employees’ Retirement Board to pay such money forthwith to the claimant, but without interest or cost to the Board.

      4.  All persons, except minors and persons of unsound mind, who fail to appear and file their petitions within the time limited in subsection 2 are forever barred. Minors and persons of unsound mind may appear and file their petitions at any time within 5 years after their respective disabilities are removed.

      (Added to NRS by 1977, 1573; A 1979, 259; 2003, 2064)

      NRS 286.667  Allowance for retired police officer or firefighter: Benefits for spouse upon death; credit for certain other service prohibited; costs of benefit paid by employee.

      1.  A retired employee whose service or disability retirement allowance is payable from the Police and Firefighters’ Retirement Fund is entitled to receive the allowance without modification.

      2.  Upon the death of such a retired employee, a person who was the retired employee’s spouse at the time of retirement is entitled, upon attaining the age of 50 years, to receive a benefit equal to 50 percent of the allowance to which the retired employee was entitled.

      3.  This section does not apply to a person who:

      (a) Begins receiving a service or disability retirement allowance or a benefit from the Police and Firefighters’ Retirement Fund before July 1, 1981.

      (b) At the time of retirement, elects one of the alternatives to an unmodified retirement allowance.

      4.  Service performed after July 1, 1981, in positions other than as a police officer or firefighter, except military service, may not be credited toward the benefit conferred by this section. A police officer or firefighter who has performed service which is not creditable toward this benefit may elect to:

      (a) Select a retirement option other than one permitted by this section;

      (b) Receive the benefit conferred by this section with a spouse’s benefit reduced by a proportion equal to that which the service which is not creditable bears to the police officer’s or firefighter’s total service; or

      (c) Purchase the additional spouse’s benefit at the time the police officer or firefighter retires by paying the full actuarial cost as computed for the police officer’s or firefighter’s situation by the actuary of the System.

      5.  The entire cost of the benefit conferred by this section must be paid by the employee. Each employer must adjust the salaries of its employees who are eligible for the benefit to offset its cost to the employer. Employers who adjust salaries pursuant to this subsection do not by doing so violate any collective bargaining agreement or other contract.

      (Added to NRS by 1979, 945; A 1981, 441; 1983, 487, 1931; 1985, 1721; 1999, 2621; 2003, 2065)

      NRS 286.669  Person convicted of murder or voluntary manslaughter of member ineligible to receive benefits.  Any person convicted of the murder or voluntary manslaughter of a member of the System is ineligible to receive any benefit conferred by any provision of this chapter by reason of the death of that member. The System may withhold the payment of any benefit otherwise payable under this chapter by reason of the death of any member from any person charged with the murder or voluntary manslaughter of that member, pending final determination of those charges.

      (Added to NRS by 1979, 759)

      NRS 286.670  Right to benefits not subject to taxes, process, bankruptcy, assignment or assessment for impairment or insolvency of insurance company; exceptions.

      1.  Except as otherwise provided in NRS 31A.150 and 286.6703 and as limited by subsection 2, the right of a person to a pension, an annuity, a retirement allowance, the return of contributions, the pension, annuity or retirement allowance itself, any optional benefit or death benefit or any other right accrued or accruing to any person under the provisions of this chapter, and the money in the various funds created by this chapter, is:

      (a) Exempt from all state, county and municipal taxes.

      (b) Not subject to execution, garnishment, attachment or any other process.

      (c) Not subject to the operation of any bankruptcy or insolvency law.

      (d) Not assignable, by power of attorney or otherwise.

      (e) Exempt from assessment for the impairment or insolvency of any life or health insurance company.

      2.  The System may withhold money from a refund or benefit when the person applying for or receiving the refund or benefit owes money to the System.

      [24:181:1947; 1943 NCL § 5230.24]—(NRS A 1959, 411; 1969, 512; 1981, 456; 1983, 1878; 1985, 1431; 1987, 484; 1993, 478)

      NRS 286.6703  Payment of allowance or benefit to alternate payee pursuant to domestic relations order. [Effective through December 31, 2014, and after that date unless the provisions of Senate Joint Resolution No. 14 (2011) are approved and ratified by the voters at the 2014 General Election.]

      1.  A person may submit a judgment, decree or order of a district court or the Supreme Court of the State of Nevada relating to child support, alimony or the disposition of community property to the Executive Officer or the designee of the Executive Officer for a determination of whether the judgment, decree or order entitles an alternate payee to receive from the System all or a portion of the allowance or benefit of a member or a retired employee.

      2.  The judgment, decree or order submitted to the Executive Officer must be signed by a district judge or by the justices of the Supreme Court and entered and certified by the clerk of the district court or the Clerk of the Supreme Court.

      3.  The Executive Officer or the designee of the Executive Officer shall, in accordance with rules prescribed by the Board, determine whether the judgment, decree or order entitles the alternate payee to receive an allowance or benefit from the System. An alternate payee is entitled to receive an allowance or benefit from the System if the judgment, decree or order:

      (a) Specifies clearly the names and last known mailing addresses, if any, of the member or retired employee and the alternate payee;

      (b) Specifies clearly the amount, percentage or manner of determining the amount of the allowance or benefit of the member or retired employee that must be paid by the System to each alternate payee;

      (c) Specifically directs the System to pay an allowance or benefit to the alternate payee;

      (d) Does not require the System to provide an allowance or benefit or any option not otherwise provided under this chapter; and

      (e) Does not require the payment of an allowance or benefit to an alternate payee before the retirement of a member or the distribution to or withdrawal of contributions by a member.

      4.  For purposes of this subsection, “alternate payee” means a spouse, former spouse, child or other dependent of a member or retired employee who, pursuant to a judgment, decree or order relating to child support, alimony or the disposition of community property, is entitled to receive all or a portion of the allowance or benefit of a member or retired member from the System.

      (Added to NRS by 1993, 473; A 2005, 1066)

      NRS 286.6703  Payment of allowance or benefit to alternate payee pursuant to domestic relations order. [Effective January 1, 2015, if the provisions of Senate Joint Resolution No. 14 (2011) are approved and ratified by the voters at the 2014 General Election.]

      1.  A person may submit a judgment, decree or order of a district court, the Court of Appeals or the Supreme Court of the State of Nevada relating to child support, alimony or the disposition of community property to the Executive Officer or the designee of the Executive Officer for a determination of whether the judgment, decree or order entitles an alternate payee to receive from the System all or a portion of the allowance or benefit of a member or a retired employee.

      2.  The judgment, decree or order submitted to the Executive Officer must be signed by a district judge, the judges of the Court of Appeals or by the justices of the Supreme Court and entered and certified by the clerk of the district court or the Clerk of the Supreme Court.

      3.  The Executive Officer or the designee of the Executive Officer shall, in accordance with rules prescribed by the Board, determine whether the judgment, decree or order entitles the alternate payee to receive an allowance or benefit from the System. An alternate payee is entitled to receive an allowance or benefit from the System if the judgment, decree or order:

      (a) Specifies clearly the names and last known mailing addresses, if any, of the member or retired employee and the alternate payee;

      (b) Specifies clearly the amount, percentage or manner of determining the amount of the allowance or benefit of the member or retired employee that must be paid by the System to each alternate payee;

      (c) Specifically directs the System to pay an allowance or benefit to the alternate payee;

      (d) Does not require the System to provide an allowance or benefit or any option not otherwise provided under this chapter; and

      (e) Does not require the payment of an allowance or benefit to an alternate payee before the retirement of a member or the distribution to or withdrawal of contributions by a member.

      4.  For purposes of this subsection, “alternate payee” means a spouse, former spouse, child or other dependent of a member or retired employee who, pursuant to a judgment, decree or order relating to child support, alimony or the disposition of community property, is entitled to receive all or a portion of the allowance or benefit of a member or retired member from the System.

      (Added to NRS by 1993, 473; A 2005, 1066; 2013, 1776, effective January 1, 2015, if the provisions of Senate Joint Resolution No. 14 (2011) are approved and ratified by the voters at the 2014 General Election)

      NRS 286.6705  Transfer of unpaid check for benefits or refund to retirement fund; claim for payment of money; period of limitation.

      1.  Any check for benefits or a refund which has not been paid within 5 years after being transferred to the account for unclaimed benefits or refunds must be transferred to the Public Employees’ Retirement Fund or Police and Firefighters’ Retirement Fund, whichever is appropriate.

      2.  If, within 6 years after a check for benefits or a refund has been transferred pursuant to subsection 1, any person appears and claims the money, the claimant may file a petition in the District Court for Carson City stating the nature of the claim, with an appropriate prayer for the relief demanded. A copy of the petition must be served upon the Attorney General before or at the time it is filed. Within 20 days after service, the Attorney General shall appear in the proceeding and respond to the petition. If, after examining all the facts, the Attorney General is convinced that the System has no legal defense against the petition, the Attorney General may, with the consent of the Court, confess judgment on behalf of the System.

      3.  If judgment is not confessed, the petition must be considered at issue on the 20th day after its filing, and may be heard by the Court on that day, or at such future day as the Court may order. Upon the hearing, the Court shall examine into the claim and hear the allegations and proofs. If the Court finds that the claimant is entitled to any money transferred pursuant to subsection 1 to a retirement fund, it shall order the Board to pay the money forthwith to the claimant, but without interest or cost to the Board.

      4.  All persons, except minors and persons of unsound mind, who fail to appear and file their petitions within the time limited in subsection 1 are forever barred. Minors and persons of unsound mind may appear and file their petitions at any time within 5 years after their respective disabilities are removed.

      (Added to NRS by 1987, 681; A 2003, 2065)

BENEFITS FOR SURVIVORS

General Provisions

      NRS 286.671  Definitions.  As used in NRS 286.671 to 286.679, inclusive:

      1.  “Child” means an unmarried person under 18 years of age who is the issue or legally adopted child of a deceased member. As used in this subsection, “issue” means the progeny or biological offspring of the deceased member.

      2.  “Dependent parent” means the surviving parent of a deceased member who was dependent upon the deceased member for at least 50 percent of the surviving parent’s support for at least 6 months immediately preceding the death of the deceased member.

      3.  “Spouse” means the surviving husband or wife of a deceased member.

      (Added to NRS by 1963, 983; A 1975, 1058; 1977, 1594; 1989, 1563; 1995, 253)

      NRS 286.672  Eligibility.

      1.  Except as otherwise provided in subsection 3, if a deceased member had 2 years of accredited contributing service in the 2 1/2 years immediately preceding the member’s death or was a regular, part-time employee who had 2 or more years of creditable contributing service before and at least 1 day of contributing service within 6 months immediately preceding the member’s death, or if the employee had 10 or more years of accredited contributing service, certain of the deceased member’s dependents are eligible for payments as provided in NRS 286.671 to 286.679, inclusive. If the death of the member resulted from a mental or physical condition which required the member to leave the employ of a participating public employer or go on leave without pay, eligibility pursuant to the provisions of this section extends for 18 months after the member’s termination or commencement of leave without pay.

      2.  If the death of a member occurs while the member is on leave of absence granted by the member’s employer for further training and if the member met the requirements of subsection 1 at the time the member’s leave began, certain of the deceased member’s dependents are eligible for payments as provided in subsection 1.

      3.  If the death of a member is caused by an occupational disease or an accident arising out of and in the course of the member’s employment, no prior contributing service is required to make the deceased member’s dependents eligible for payments pursuant to NRS 286.671 to 286.679, inclusive, except that this subsection does not apply to an accident occurring while the member is traveling between the member’s home and the member’s principal place of employment or to an accident or occupational disease arising out of employment for which no contribution is made.

      4.  As used in this section, “dependent” includes a survivor beneficiary designated pursuant to NRS 286.6767.

      (Added to NRS by 1963, 983; A 1967, 1064; 1975, 1058; 1977, 1594; 1979, 756, 944; 1989, 1025; 1995, 253; 2001, 1290)

Children

      NRS 286.673  Payments to child of deceased member.

      1.  Except as limited by NRS 286.6775, each child of a deceased member is entitled to receive a cumulative benefit of at least $400 per month, beginning on the first day of the month following the member’s death.

      2.  Payments to any child cease on the last day of the month of:

      (a) The child’s adoption;

      (b) The child’s death;

      (c) The child’s marriage; or

      (d) Except as otherwise provided in subsection 3, 4 or 5, the child’s attaining the age of 18 years.

      3.  Except as otherwise provided in subsection 4, these benefits may be paid to the child of a deceased member until the last day of the month of the child’s 23rd birthday if, at the time that the child attains 18 years, the child is, and continues thereafter to be, a full-time student in any accredited:

      (a) High school;

      (b) Vocational or technical school; or

      (c) College or university.

      4.  If the Board ceases the payment of benefits to a child of a deceased member who received benefits pursuant to subsection 3 because the child ceased being a full-time student, the Board may resume the payment of such benefits until the last day of the month of the child’s 23rd birthday if the child returns to full-time status at an accredited:

      (a) High school;

      (b) Vocational or technical school; or

      (c) College or university.

      5.  These benefits may be commenced or extended indefinitely beyond a child’s 18th birthday if and so long as the child is determined by the System to be:

      (a) Financially dependent; and

      (b) Physically or mentally incompetent.

      6.  All benefits under this section may be paid by the System to the child’s:

      (a) Surviving parent; or

      (b) Legal guardian.

      7.  The Board shall establish uniform standards and procedures for determining whether a child is:

      (a) A full-time student;

      (b) Financially dependent; and

      (c) Physically or mentally incompetent.

      (Added to NRS by 1963, 983; A 1975, 1058; 1977, 1595; 1979, 757; 1983, 487; 1989, 1026; 1995, 254; 1999, 2621; 2005, 1066)

Spouses

      NRS 286.674  Payments to spouse of deceased member.

      1.  The spouse of a deceased member is entitled to receive a cumulative benefit of at least $450 per month. The payments must begin on the first day of the month immediately following the death of the member and must cease on the last day of the month in which the spouse dies. If payments cease before the total amount of contributions made by the deceased member have been received by the spouse, the surplus of contributions over payments received must be paid to the spouse.

      2.  The benefits paid pursuant to this section are in addition to any benefits paid pursuant to NRS 286.673.

      (Added to NRS by 1963, 984; A 1975, 1059; 1983, 488; 1989, 1026; 1995, 254; 1999, 2622)

      NRS 286.676  Payments to spouse of deceased member who had 10 or more years of accredited contributing service.

      1.  Except as limited by subsections 3 and 4, the spouse of a deceased member who had 10 or more years of accredited contributing service is entitled to receive a monthly allowance equivalent to that provided by:

      (a) Option 3 in NRS 286.590, if the deceased member had less than 15 years of service on the date of the member’s death; or

      (b) Option 2 in NRS 286.590, if the deceased member had more than 15 years of service on the date of the member’s death.

Ê To apply the provisions of Options 2 and 3, the deceased member shall be deemed to have retired on the date of the member’s death immediately after having named the spouse as beneficiary under the applicable option. This benefit must be computed without any reduction for age for the deceased member. The benefits provided by this subsection must be paid to the spouse for the remainder of the spouse’s life.

      2.  The spouse may elect to receive the benefits provided by any one of the following only:

      (a) This section;

      (b) NRS 286.674; or

      (c) NRS 286.6766.

      3.  The benefit payable to the spouse of a member who died before May 19, 1975, is limited to a spouse who received at least 50 percent of the spouse’s support from the member during the 6 months immediately preceding the member’s death and to the amounts provided in this subsection. If, at the time of the member’s death, the member had 15 or more years of service and did not elect an optional retirement plan as offered in this chapter, the deceased member’s spouse, upon attaining the age of 60 years, may receive a cumulative benefit of at least $450 per month or 50 percent of the average salary received by the member for the 3 consecutive highest salaried years of the member’s last 10 years of service, whichever is less. Payments, or the right to receive payments, must cease upon the death of the spouse. Benefits under this section are not renewable following termination.

      4.  The benefits provided by paragraph (a) of subsection 1 may only be paid to the spouses of members who died on or after May 19, 1975.

      (Added to NRS by 1963, 984; A 1967, 1093; 1975, 1059; 1979, 260, 758; 1981, 457; 1987, 684; 1989, 1027; 1995, 254; 1999, 2622)

      NRS 286.6765  Payments to spouse if deceased member was eligible to retire.

      1.  Except as limited by subsection 2, the spouse of a deceased member who was fully eligible to retire, both as to service and age, is entitled to receive a monthly allowance equivalent to that provided by option 2 in NRS 286.590. This section does not apply to the spouse of a member who was eligible to retire only under subsection 6 of NRS 286.510. For the purposes of applying the provisions of option 2, the deceased member shall be deemed to have retired on the date of the member’s death immediately after having named the spouse as beneficiary under option 2. The benefits provided by this section must be paid to the spouse for the remainder of the spouse’s life. The spouse may elect to receive the benefits provided by any one of the following only:

      (a) This section;

      (b) NRS 286.674;

      (c) NRS 286.676; or

      (d) NRS 286.6766.

      2.  The benefits provided by this section may only be paid to the spouses of members who died on or after May 19, 1975.

      (Added to NRS by 1981, 442; A 1999, 973)

      NRS 286.6766  Payment in lump sum to spouse; exception.  Any spouse eligible for payments under the provisions of NRS 286.674 or 286.676 may elect to waive payment of a monthly allowance and to receive instead in a lump sum a refund of all contributions to the Public Employees’ Retirement Fund or the Police and Firefighters’ Retirement Fund made by a deceased member plus any contributions made by a public employer in lieu of the employee’s contributions, but if more than one person is eligible for benefits on account of the contributions of any one deceased member, no such lump-sum payment may be made.

      (Added to NRS by 1963, 985; A 1975, 1060; 1977, 1595; 1983, 488; 2003, 2066)

Survivor Beneficiaries and Additional Payees

      NRS 286.6767  Designation of survivor beneficiary and additional payees by member.

      1.  A member may designate, in writing, a survivor beneficiary and one or more additional payees to receive the payments provided pursuant to NRS 286.67675, 286.6768 or 286.67685 if the member is unmarried on the date of the member’s death.

      2.  A designation pursuant to subsection 1 must be made on a form approved by the Executive Officer. If a member has designated one or more payees in addition to the survivor beneficiary, the member must designate the percentage of the payments that the survivor beneficiary and each additional payee is entitled to receive.

      (Added to NRS by 2001, 1287; A 2003, 2066)

      NRS 286.67675  Payments to survivor beneficiary of and to additional payees designated by deceased member.

      1.  Except as otherwise provided in this subsection, the survivor beneficiary of a deceased member is entitled to receive a cumulative benefit of at least $450 per month. If a member has designated one or more payees in addition to the survivor beneficiary pursuant to NRS 286.6767, the cumulative benefit paid pursuant to this subsection must be divided between the survivor beneficiary and any additional payee in the proportion designated by the member pursuant to NRS 286.6767. The payments must begin on the first day of the month immediately following the death of the member and must cease on the last day of the month in which the survivor beneficiary dies.

      2.  Except as otherwise provided in this subsection, if payments made pursuant to subsection 1 cease before the total amount of contributions made by the deceased member have been received by the survivor beneficiary, the surplus of contributions over payments received must be paid to the survivor beneficiary. If the member had designated one or more payees in addition to the survivor beneficiary pursuant to NRS 286.6767, the surplus of contributions over payments received must be divided between the survivor beneficiary and any additional payee in the proportion designated by the member pursuant to NRS 286.6767.

      3.  The benefits paid pursuant to this section are in addition to any benefits paid pursuant to NRS 286.673.

      4.  As used in this section, “survivor beneficiary” means a person designated pursuant to NRS 286.6767.

      (Added to NRS by 2001, 1287; A 2003, 2066)

      NRS 286.6768  Payments to survivor beneficiary of and to additional payees designated by deceased member who had 10 or more years of accredited contributing service.

      1.  Except as otherwise provided in subsection 2 and as limited by subsection 4, the survivor beneficiary of a deceased member who had 10 or more years of accredited contributing service is entitled to receive a monthly allowance equivalent to that provided by:

      (a) Option 3 in NRS 286.590, if the deceased member had less than 15 years of service on the date of the member’s death; or

      (b) Option 2 in NRS 286.590, if the deceased member had 15 or more years of service on the date of the member’s death.

Ê To apply the provisions of Options 2 and 3, the deceased member shall be deemed to have retired on the date of the member’s death immediately after having named the survivor beneficiary as beneficiary pursuant to the applicable option. This benefit must be computed without any reduction for age for the deceased member. The benefits provided by this subsection must be paid to the survivor beneficiary for the remainder of the life of the survivor beneficiary.

      2.  If the member had designated one or more payees in addition to the survivor beneficiary pursuant to NRS 286.6767, the monthly allowance to which a survivor beneficiary is entitled pursuant to subsection 1 must be divided between the survivor beneficiary and any additional payee in the proportion designated by the member pursuant to NRS 286.6767.

      3.  The survivor beneficiary may elect to receive the benefits provided by any one of the following only:

      (a) This section;

      (b) NRS 286.67675; or

      (c) NRS 286.6769.

      4.  The benefits provided by paragraph (a) of subsection 1 may only be paid to the survivor beneficiary and, if applicable, any additional payee of a member who died on or after January 1, 2002.

      5.  As used in this section, “survivor beneficiary” means a person designated pursuant to NRS 286.6767.

      (Added to NRS by 2001, 1287; A 2001 Special Session, 99; 2003, 2067)

      NRS 286.67685  Payment to survivor beneficiary of and to additional payees designated by deceased member if deceased member was eligible to retire.

      1.  Except as otherwise provided in subsection 2 and as limited by subsection 3, the survivor beneficiary of a deceased member who was fully eligible to retire, both as to service and age, is entitled to receive a monthly allowance equivalent to that provided by Option 2 in NRS 286.590. This section does not apply to the survivor beneficiary of a member who was eligible to retire only pursuant to subsection 6 of NRS 286.510. For the purposes of applying the provisions of Option 2, the deceased member shall be deemed to have retired on the date of the member’s death immediately after having named the survivor beneficiary as beneficiary pursuant to Option 2. The benefits provided by this section must be paid to the survivor beneficiary for the remainder of the life of the survivor beneficiary. The survivor beneficiary may elect to receive the benefits provided by any one of the following only:

      (a) This section;

      (b) NRS 286.67675;

      (c) NRS 286.6768; or

      (d) NRS 286.6769.

      2.  If the member had designated one or more payees in addition to the survivor beneficiary pursuant to NRS 286.6767, the monthly allowance to which a survivor beneficiary is entitled pursuant to subsection 1 must be divided between the survivor beneficiary and any additional payee in the proportion designated by the member pursuant to NRS 286.6767.

      3.  The benefits provided by this section may only be paid to the survivor beneficiary and, if applicable, any additional payee of a member who died on or after January 1, 2002.

      4.  As used in this section, “survivor beneficiary” means a person designated pursuant to NRS 286.6767.

      (Added to NRS by 2001, 1288; A 2003, 2067)

      NRS 286.6769  Payment in lump sum to survivor beneficiary of and to additional payees designated by member; exception.

      1.  Except as otherwise provided in subsection 2, any survivor beneficiary eligible for payments pursuant to the provisions of NRS 286.67675 or 286.6768 may elect to waive payment of a monthly allowance and to receive instead in a lump sum a refund of all contributions to the Public Employees’ Retirement Fund or the Police and Firefighters’ Retirement Fund made by a deceased member plus any contributions made by a public employer in lieu of the employee’s contributions, but if more than one person is eligible for benefits on account of the contributions of any one deceased member, no such lump-sum payment may be made.

      2.  If the member had designated one or more payees in addition to the survivor beneficiary pursuant to NRS 286.6767, the lump sum to which a survivor beneficiary is entitled pursuant to subsection 1 must be divided between the survivor beneficiary and any additional payee in the proportion designated by the member pursuant to NRS 286.6767.

      3.  As used in this section, “survivor beneficiary” means a person designated pursuant to NRS 286.6767.

      (Added to NRS by 2001, 1288; A 2003, 2068)

Parents

      NRS 286.677  Payment to dependent parents; conditions.  If payments or refunds are not made pursuant to the provisions of NRS 286.673, 286.674, 286.676, 286.67675 or 286.6768, the dependent parent of a deceased member is entitled to receive a cumulative benefit of at least $400 per month, and if there are two dependent parents, each is entitled to receive a cumulative benefit of at least $400 per month. Payments to any parent pursuant to this section must cease upon the death of that parent.

      (Added to NRS by 1963, 985; A 1975, 1060; 1989, 1028; 1995, 255; 1999, 2623; 2001, 1291)

Limitations and Disposition of Surplus

      NRS 286.6775  Limitation on and reduction of amount of monthly allowance.  The amount of each monthly allowance paid since May 19, 1977, as specified in NRS 286.673 to 286.677, inclusive, shall not exceed the deceased member’s average compensation and shall be reduced by the amount of any other benefit received from any source:

      1.  If that benefit was provided or purchased by the expenditure of money by a public employer in this state, except for lump-sum payments under a group insurance program; and

      2.  To the extent that the total of the allowance and the other benefit would otherwise exceed the deceased member’s average compensation.

      (Added to NRS by 1977, 1573; A 1979, 758; 2001, 1291)

      NRS 286.679  Disposition of surplus of contributions if payments to beneficiary cease.

      1.  If payments to a beneficiary pursuant to NRS 286.671 to 286.679, inclusive, cease before the total contributions of a deceased member have been paid in benefits, and there is no person entitled to receive such benefits pursuant to any provision of this chapter, the surplus of such contributions over the benefits actually received may be paid in a lump sum to:

      (a) The beneficiary whom the deceased member designated for this purpose in writing on a form approved by the System.

      (b) If no such designation was made or the person designated is deceased, the beneficiary who previously received the payments.

      (c) If no payment may be made pursuant to paragraphs (a) and (b), the persons entitled as heirs or residuary legatees to the estate of the deceased member.

      2.  A lump-sum payment made pursuant to this section fully discharges the obligations of the System.

      (Added to NRS by 1963, 985; A 1983, 489; 1995, 255; 2001, 1291)

VESTING OF ALLOWANCES AND BENEFITS

      NRS 286.6793  Time of vesting; vesting of benefits upon termination of System.

      1.  The retirement allowance for a member who:

      (a) Ceased being an active member before July 1, 1989, vested on the date that the employee completed 10 years of accredited contributing service; and

      (b) Is active on or after July 1, 1989, becomes vested on the date that the employee completes 5 years of accredited contributing service.

      2.  Benefits for survivors offered pursuant to this chapter become vested on the date that the employee completes 10 years of accredited contributing service or becomes entitled to begin receiving benefits or on the date of the member’s death, whichever event occurs first.

      3.  Unless otherwise specifically provided by the amendatory act, any change in the provisions of this chapter is retroactive for all service of any member before the date of vesting, but no change may impair any vested allowance or benefit.

      4.  Upon the termination or partial termination of the System:

      (a) Except as otherwise provided in paragraph (b), all accrued benefits that are funded become 100 percent vested and nonforfeitable.

      (b) A member who receives the member’s vested accrued benefits in a complete cash distribution before the termination is not entitled to the vesting of any benefits which have been forfeited.

      (Added to NRS by 1967, 744; A 1975, 1060; 1977, 1595; 1979, 261; 1981, 457; 1989, 1028; 1991, 2369; 2001, 1291)

INVESTMENT OF MONEY

      NRS 286.680  Investment by Board of money in funds; qualifications and employment of investment counsel; employment of other services; liability for investment decisions.

      1.  In addition to the provisions of chapter 355 of NRS, the Board may invest and reinvest the money in its funds as provided in this section and NRS 286.682 and may employ investment counsel for that purpose. The Board may also employ investment supervisory services, trust audit services and other related investment services which it deems necessary to invest effectively and safeguard the money in the System’s funds.

      2.  No person engaged in business as a broker or dealer in securities or who has a direct pecuniary interest in any such business who receives commissions for transactions performed as agent for the Board is eligible for employment as investment counsel for the Board.

      3.  The Board shall not engage investment counsel unless:

      (a) The principal business of the person selected by the Board consists of giving continuous advice as to the investment of money on the basis of the individual needs of each client;

      (b) The person and the person’s predecessors have been continuously engaged in such a business for a period of 5 or more years;

      (c) The person is registered as an investment adviser under the laws of the United States as from time to time in effect, or is a bank or an investment management subsidiary of a bank; and

      (d) The contract between the Board and the investment counsel is of no specific duration and is voidable at any time by either party.

      4.  The Board and its individual members are not liable for investment decisions made by investment counsel if they obtain qualified investment counsel, establish proper objectives and policies for investments, and issue appropriate interim directives. Investment counsel is liable for any investment decision that is not made in accordance with the objectives and policies established by the Board and any applicable interim directives.

      5.  The expenses incurred in obtaining and reviewing services pursuant to the provisions of this section and the reimbursements to employees for their expenses incurred in connection with investment decisions must be paid out of the Public Employees’ Retirement Fund and the Police and Firefighters’ Retirement Fund in proportion to their respective assets.

      6.  The Board shall tender invitations to banks and credit unions for commercial banking and trust services, consider proposals submitted by interested banks and credit unions, and consider contracts for commercial banking and trust services at least every 5 years.

      (Added to NRS by 1959, 882; A 1965, 685, 959; 1973, 857; 1975, 1061; 1977, 1595; 1983, 489; 1987, 512; 1993, 478; 1999, 1467; 2003, 2068)

      NRS 286.682  Authorized investments: “Prudent person” standard.  The Board may invest the money in its funds in every kind of investment which persons of prudence, discretion and intelligence acquire or retain for their own account.

      (Added to NRS by 1973, 850; A 1975, 1062; 1997, 1607)

INVESTMENTS IN COMPANIES WITH CERTAIN OPERATIONS IN IRAN

      NRS 286.701  Definitions.  As used in NRS 286.701 to 286.725, inclusive, unless the context otherwise requires, the words and terms defined in NRS 286.703 to 286.719, inclusive, have the meanings ascribed to them in those sections.

      (Added to NRS by 2009, 2776)

      NRS 286.703  “Active business operations” defined.  “Active business operations” means all business operations that are not inactive business operations.

      (Added to NRS by 2009, 2776)

      NRS 286.705  “Business operations” defined.  “Business operations” means investing, with actual knowledge on or after August 5, 1996, in Iran’s petroleum sector, which investment directly and significantly contributes to the enhancement of Iran’s ability to develop the petroleum resources of Iran. The term does not include the retail sale of gasoline and related consumer products.

      (Added to NRS by 2009, 2776)

      NRS 286.707  “Company” defined.  “Company” means any foreign sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited-liability partnership, limited-liability company, or any other foreign entity or business association, including all wholly-owned subsidiaries, majority-owned subsidiaries or parent companies or affiliates of these entities or business associations, that exist for the purpose of making a profit.

      (Added to NRS by 2009, 2776)

      NRS 286.709  “Direct holdings” defined.  “Direct holdings” means all publicly traded equity securities of a company that are held directly by the public fund or in an account or fund in which the public fund owns all shares or interests.

      (Added to NRS by 2009, 2776)

      NRS 286.711  “Inactive business operations” defined.  “Inactive business operations” means the continued holding or renewal of rights to property previously operated for the purpose of generating revenues but not presently deployed for that purpose.

      (Added to NRS by 2009, 2776)

      NRS 286.713  “Iran” defined.  “Iran” means the Islamic Republic of Iran.

      (Added to NRS by 2009, 2776)

      NRS 286.715  “Petroleum resources” defined.  “Petroleum resources” means petroleum or natural gas.

      (Added to NRS by 2009, 2776)

      NRS 286.717  “Scrutinized business operations” defined.  “Scrutinized business operations” means any active business operations that:

      1.  Are subject to or liable for sanctions under the Iran Sanctions Act of 1996, Public Law 104-172, as amended; and

      2.  Involve the maintenance of:

      (a) The company’s existing assets or investments in Iran; or

      (b) The deployment of new investments to Iran that meet or exceed the threshold referred to in the Iran Sanctions Act of 1996, as amended.

      (Added to NRS by 2009, 2776)

      NRS 286.719  “Scrutinized company” defined.  “Scrutinized company” means any company engaging in scrutinized business operations.

      (Added to NRS by 2009, 2777)

      NRS 286.721  Board to identify, review and create list of investments in scrutinized companies.

      1.  Except as otherwise provided in NRS 286.725, the Board shall identify those scrutinized companies in which the System has direct holdings. In making the determination, the Board shall review and rely on publicly available information regarding companies with business operations in Iran, including information provided by nonprofit organizations, research firms, international organizations and governmental entities.

      2.  The Board shall create a list of all identified scrutinized companies pursuant to subsection 1.

      3.  The Board shall update the list on an annual basis with information provided and received from those entities listed in subsection 1.

      (Added to NRS by 2009, 2777)

      NRS 286.723  Board to prepare report of investments in scrutinized companies.

      1.  Except as otherwise provided in NRS 286.725, the Board shall prepare an annual report of investments of money from the System in scrutinized companies as identified pursuant to NRS 286.721. The report must include the amount of money allocated in such investments and other data and statistics designed to explain the past and current extent to which funds from the System are invested in scrutinized companies.

      2.  The Board shall submit a copy of the report to the Governor and the Director of the Legislative Counsel Bureau for distribution to the Legislature on or before February 1 of each year which must cover all investments during the previous calendar year.

      (Added to NRS by 2009, 2777)

      NRS 286.725  Inapplicability to certain investments.  The provisions of NRS 286.721 and 286.723 do not apply to:

      1.  Money invested in a defined contribution plan that is authorized by the Internal Revenue Code and administered by the Board; or

      2.  Investments in a company that is primarily engaged in:

      (a) Supplying goods or services intended to relieve human suffering in Iran; or

      (b) Promoting health, education, religious, welfare or journalistic activities in Iran.

      (Added to NRS by 2009, 2777)

UNIVERSITY OF NEVADA RETIREMENT PROGRAM

      NRS 286.802  Board of Regents to establish separate program for retirement of certain employees; contributions; enrollment.

      1.  The Board of Regents of the University of Nevada shall provide a retirement program separate from the Public Employees’ Retirement System. The program must provide retirement and death benefits for members of the professional staff. The State and the participants shall contribute to the cost of the program.

      2.  A person employed as a member of the professional staff who is enrolled in the Public Employees’ Retirement System at the time of the person’s employment shall remain a member of that System. Any other eligible employee must be enrolled in the retirement program.

      (Added to NRS by 1969, 242; A 1977, 1597; 1993, 480)

      NRS 286.804  Program may be separate system or fund; participation in larger system or fund; provision of benefits through investment entity or combination of entities.

      1.  The retirement program may be a separate system or fund or may participate in a larger system or fund with respect to some or all of the benefits provided under the program. The benefits under the retirement program may be provided through any investment entity or combination of entities, including, but not limited to:

      (a) An insurance or annuity contract, either fixed or variable in nature;

      (b) A mutual fund;

      (c) A bank or other depository institution; and

      (d) An investment adviser who is registered pursuant to the Investment Advisers Act of 1940,

Ê as specified in the program.

      2.  If benefits are provided through insurance or annuity contracts, the contracts may be obtained from any life insurance or annuity company authorized to do business in this State, or from an affiliate of such a company if the affiliate is organized as a nonprofit educational corporation and issues annuities only to nonprofit institutions of education and research.

      3.  As used in this section, “depository institution” has the meaning ascribed to it in NRS 657.037.

      (Added to NRS by 1969, 242; A 1977, 1597; 1987, 484; 1993, 481)

      NRS 286.808  Contributions; payment by Board of Regents on behalf of participant.

      1.  The Board of Regents of the University of Nevada shall contribute on behalf of each participant an amount equal to 10 percent of the participant’s gross compensation during continuance of employment. Each participant shall also contribute 10 percent of the participant’s gross compensation, but the contributions required by this section must not be less than those authorized by NRS 286.410 and 286.450. Payment of the contributions required by this section must be made by the disbursing officer for the Nevada System of Higher Education to the designated investment entities for the benefit of each participant.

      2.  The Board of Regents of the University of Nevada may, on behalf of each participant, pay the contribution required to be paid by the participant in subsection 1. Any such payment must be:

      (a) Made in lieu of an equivalent increase in the basic salary or in the cost of living for the participant, or both; or

      (b) Counterbalanced by an equivalent reduction in the participant’s salary.

      (Added to NRS by 1969, 243; A 1973, 1418; 1975, 1062; 1985, 1722; 1991, 1748; 1993, 384, 481; 1995, 512)

      NRS 286.810  Designation of investment entities; approval of contracts.  The Board of Regents of the University of Nevada shall designate the investment entities to provide investment services under the retirement program and shall approve the form and contents of the contracts. In making the designation and giving the approval, the Board shall consider:

      1.  The nature and extent of the rights and benefits to be provided by such contracts for staff members and their beneficiaries;

      2.  The relation of such rights and benefits to the amount of contributions to be made;

      3.  The suitability of such rights and benefits to the needs of the staff members and the interests of the Nevada System of Higher Education in the recruitment and retention of staff members; and

      4.  The ability of the designated investment entities to provide such suitable rights and benefits under such contracts.

      (Added to NRS by 1969, 243; A 1977, 1597; 1993, 384, 481; 1995, 512)

      NRS 286.812  Administration of program.  The Board of Regents of the University of Nevada shall provide for the administration of the program and perform all functions which may be necessary for the accomplishment of the program.

      (Added to NRS by 1969, 243; A 1977, 1597)

      NRS 286.814  Participants ineligible for membership in Public Employees’ Retirement System.  Any member of the professional staff of the Nevada System of Higher Education enrolled in the retirement program is ineligible for membership in the Public Employees’ Retirement System so long as the member remains continuously employed in any position by the Nevada System of Higher Education and continues in the retirement program.

      (Added to NRS by 1969, 244; A 1977, 1597; 1993, 385)

      NRS 286.816  Benefits payable only by designated investment entities.  A retirement, death or other benefit must not be paid by the State of Nevada or the Board of Regents of the University of Nevada under the retirement program. Benefits are payable to participating employees or their beneficiaries only by the designated investment entities in accordance with the terms of the contracts.

      (Added to NRS by 1969, 244; A 1977, 1598; 1993, 482; 1995, 526)

UNLAWFUL ACTS; PENALTIES

      NRS 286.820  False statement or certification; withholding of information.  Any person who knowingly makes a false statement, certifies to an incorrect document or withholds information for the purpose of receiving or assisting another person in receiving benefits under this chapter to which the person or other person is not entitled is guilty of a gross misdemeanor.

      (Added to NRS by 1975, 1062)