Assembly Bill No. 408

Assembly Bill No. 408-Committee on Government Affairs

CHAPTER

110

AN ACT relating to public retirement; authorizing the public employees' retirement board to establish a fund for the payment of accrued benefits for certain members of the public employees' retirement system; repealing certain obsolete provisions; and providing other matters properly relating thereto.

[Approved June 1, 1997]

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 286 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. 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)).
Sec. 3. 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.
Sec. 4. NRS 286.525 is hereby amended to read as follows:
286.5251. 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. If he so enrolls:
(a) He forfeits all retirement allowances for the duration of that employment.
(b) Upon termination of the employment, he is entitled to receive, upon written request, a refund of all contributions made by him during the employment. Except as otherwise required as a result of NRS 286.535 or 286.537, if he does not request the refund and the duration of the employment was at least 6 months, he gains additional service credit for that employment and is entitled to have a separate service retirement allowance calculated based on his 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 his 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 he entitled to any of the rights of membership that were not in effect at the time of his 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), [as that section existed on July 5, 1991,] 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 286.535 or 286.537, a retired employee who has been receiving a retirement allowance and who is reemployed and enrolls in the system for at least 5 years may elect to return all retirement allowances plus interest from the date of return to employment to the date of repayment and have his additional credit for service added to his previous credit for service. If he chooses to do so, he shall be deemed a continuing employee with a break in service. This election 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 if the member elected to receive his service retirement allowance without modification.
Sec. 5. NRS 286.537 is hereby amended to read as follows:
286.5371. 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)) . [, as those sections existed on July 5, 1991.] 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 him from both plans are limited pursuant to this section. His benefits from the plan providing the greater benefit must be reduced if the benefits from both plans exceed the limitations of this section.
Sec. 6. NRS 218.23815 is hereby amended to read as follows:
218.238151. 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 law, the benefits payable to and the contributions made by or for the benefit of a legislator [whose effective date of membership is on or after January 1, 1990,] are limited pursuant to the provisions of sections 415(b) and 415(e) of the Internal Revenue Code (26 U.S.C. §§ 415(b) and 415(e)) . [, as those sections existed on July 5, 1991.] 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 a legislator.
3. Notwithstanding any other provision of law, if a legislator whose effective date of membership is on or after January 1, 1990, is a member of the public employees' retirement system and is a member of the legislators' retirement system, the benefits payable to him from both plans are limited pursuant to this section. His benefits from the plan providing the greater benefit must be reduced if the benefits from both plans exceed the limitations of this section.
Sec. 7. NRS 286.310 and 286.576 are hereby repealed.
Sec. 8. 1. This act becomes effective on July 1, 1997.
2. The amendatory provisions of sections 5 and 6 of this act apply retroactively to January 1, 1990.
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