Assembly Bill No. 481-Assemblymen de Braga, Neighbors, Segerblom, Collins, Chowning, Evans, Price, Koivisto, Braunlin, Parks, Ohrenschall, Lee, Bache, Anderson, Arberry, Giunchigliani, Goldwater, Amodei, Manendo and Berman
May 14, 1997
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Referred to Committee on Government Affairs
SUMMARY--Makes various changes regarding retirement benefits of police officers and firemen. (BDR 23-812)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: Yes.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to the public employees' retirement system; reducing the number of years of service required for the retirement of police officers and firemen; increasing the amount of retirement benefit for certain police officers and firemen; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
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Section 1 NRS 286.510 is hereby amended to read as follows:
286.510 1. Except as otherwise provided in subsection 2, a member of the system is eligible to retire at age 65 if he has at least 5 years of service, at age 60 if he has at least 10 years of service, and at any age if he has at least 30 years of service.
2. A police officer or fireman is eligible to retire at age 65 if he has at least 5 years of service, at age 55 if he has at least 10 years of service, [at age 50 if he has at least 20 years of service,] and at any age if he has at least [30] 25 years of service. Only service performed in a position as a police officer or fireman, established as such by statute or regulation, and credit for military service, may be counted toward eligibility for retirement pursuant to this subsection.
3. 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 his credited service.
4. 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 under this subsection must be reduced 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. Any option selected under 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.
Sec. 2. NRS 286.551 is hereby amended to read as follows:
286.551 Except as otherwise required as a result of NRS 286.535 or 286.537:
1. Except as otherwise provided in this subsection, a monthly service retirement allowance must be determined by multiplying a member's average compensation by 2.5 percent for each year of service, except that 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 his average compensation with his 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 his average compensation with his eligibility for service credit ceasing at 36 years of service.
(c) Who is a police officer or fireman retiring after 25 or more years of service in accordance with subsection 2 of NRS 286.510, is entitled to a monthly service retirement allowance determined by multiplying his average compensation by 3 percent for each year of service.
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 under the provisions of this section which were in effect on the day before July 3, 1991.
2. For the purposes of this section, except as otherwise provided in subsection 3, "average compensation" means the average of a member's 36 consecutive months of highest compensation as certified by the public employer.
3. 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 his 36 consecutive months of highest compensation as certified by his 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.
4. The retirement allowance for a regular part-time employee must be computed from the salary which he 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 his position; and
(b) Pursuant to an established agreement between the employer and the employee.
Sec. 3. This act becomes effective on July 1, 1997.