Senate Bill No. 36-Committee on Finance

January 27, 1997
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Referred to Committee on Finance

SUMMARY--Provides that all judges and justices are entitled to retirement benefits calculated in same manner. (BDR 23-343)

FISCAL NOTE: Effect on Local Government: No.
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 retirement; providing that all judges and justices are entitled to retirement benefits which are calculated in the same manner and paid by legislative appropriation; providing for the submittal of claims for retirement benefits to court administrator; limiting the participation of justices of the peace and municipal judges in the public employees' retirement system; 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 Chapter 286 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. 1. A justice of the peace or a municipal judge who became a member before October 1, 1997, may remain a member of the system. Those justices or judges may choose to gain service credit for previous service as provided in NRS 286.300.
2. A justice of the peace or a municipal judge who is a member of the system and who qualifies for a pension pursuant to section 11 or 16 of this act may withdraw from the public employees' retirement fund the amount credited to him in the account. No justice or judge may receive benefits pursuant to both this chapter and section 11 or 16 of this act.
Sec. 3. 1. A justice of the peace or a municipal judge who is a member of the system on October 1, 1997, may withdraw from membership by giving written notice to the board of his intention to withdraw from the system and rely entirely upon section 11 or 16 of this act for his retirement.
2. Notice must be received by the board on or before December 31, 1999.
3. When the board receives notice of the withdrawal from membership of a justice or judge pursuant to this section, the system shall promptly refund all employee contributions credited to the account of the justice or judge.
4. A justice or judge who:
(a) Exercises the option granted by this section may not reestablish the service for which the contributions were refunded at any time.
(b) Does not exercise the option must remain a member of the system until he is qualified to exercise the option authorized by subsection 2 of section 2 of this act.
Sec. 4. NRS 286.297 is hereby amended to read as follows:
286.297 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] pursuant to 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. Justices of the peace and municipal judges first elected or appointed on or after October 1, 1997, who are not enrolled in the system at the time of election or appointment.
8. Members of the professional staff of the University and Community College System of Nevada who are employed on or after July 1, 1977.
[8.] 9. Persons employed on or after July 1, 1979, [under] pursuant to the Comprehensive Employment and Training Act.
[9.] 10. Except as otherwise provided in NRS 286.293, persons assigned to intermittent or temporary positions unless the assignment exceeds 6 consecutive months.
[10.] 11. Persons employed on or after July 1, 1981, as part-time guards at school crossings.
[11.] 12. 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.
Sec. 5. NRS 1.365 is hereby amended to read as follows:
1.365 All of the following claims must be submitted to the court administrator, who shall act as administrative officer in processing the claims:
1. Claims of justices of the supreme court [under] pursuant to NRS 2.050 and 2.060.
2. Claims of surviving spouses of justices of the supreme court [under] pursuant to NRS 2.070.
3. Claims of judges of the district courts [under] pursuant to NRS 3.030 and 3.090.
4. Claims of surviving spouses of judges of the district courts [under] pursuant to NRS 3.095.
5. Claims of justices of the peace pursuant to section 11 of this act.
6. Claims of surviving spouses of justices of the peace pursuant to section 13 of this act.
7. Claims of municipal judges pursuant to section 16 of this act.
8. Claims of surviving spouses of municipal judges pursuant to section 18 of this act.
Sec. 6. NRS 2.060 is hereby amended to read as follows:
2.060 1. Any justice of the supreme court who has served as a justice or judge [of a district court] in any one or more [of those] courts in this state for a period or periods aggregating at least 22 years and has ended such service is, after reaching the age of 60 years, entitled to receive annually from the State of Nevada, as a pension during the remainder of his life, a sum of money equal in amount to three-fourths of the sum received as a salary for his judicial services during the last year thereof . [,] The pension is payable every 2 weeks from money provided by direct legislative appropriation.
2. Any justice of the supreme court who has served as a justice or judge [of a district court] in any one or more [of those] courts in this state for a period or periods aggregating 5 years and has ended such service is, after reaching the age of 60 years, entitled to receive annually from the State of Nevada, as a pension during the remainder of his life, a sum of money equal in amount to 4.1666 percent of the sum received as a salary for his judicial services during the last year thereof . [,] The pension is payable every 2 weeks from money provided by direct legislative appropriation.
3. Any justice of the supreme court who qualifies for a pension [under] pursuant to the provisions of subsection 2 is entitled to receive, for each year served beyond 5 years up to a maximum of 22 years, an additional 4.1666 percent of the sum received as a salary for his judicial services during the last year thereof . [,] The pension is payable as provided in subsection 2.
4. Any justice who has retired pursuant to subsection 3 and is thereafter recalled to additional active service in the court system is entitled to receive credit toward accumulating 22 years' service for the maximum pension based upon the time he actually spends in the additional active service.
5. Any justice who has the years of service necessary to retire but has not attained the required age may retire at any age with a benefit actuarially reduced to the required retirement age. A benefit [under] pursuant to this subsection must be reduced in the same manner as benefits are reduced for persons retired [under] pursuant to the public employees' retirement system.
6. Any person receiving a pension pursuant to the provisions of this section is entitled to receive post-retirement increases equal to those provided for persons retired [under] pursuant to the public employees' retirement system.
7. Any justice who desires to receive the benefits of this section must file with the state controller and the state treasurer an affidavit setting forth the fact that he is ending his service, the date and place of his birth, and the years he has served in [any district court or the supreme court.] each court in this state.
8. Upon [such notice and] the filing of the affidavit, the state controller shall draw his warrant, payable to the justice who has thus ended his service, upon the state treasurer for the sum due to him . [, and the] The state treasurer shall pay the sum out of money provided by direct legislative appropriation.
9. The faith of the State of Nevada is hereby pledged that this section [shall] will not be repealed or amended so as to affect any justice who may have ended his service pursuant to it.
Sec. 7. NRS 2.065 is hereby amended to read as follows:
2.065 1. A justice of the supreme court who has served as a justice or [as a district] judge in any one or more courts in this state for a period or periods aggregating 5 years or more and who becomes permanently incapacitated, physically or mentally, to perform the duties of his office may retire from office regardless of age.
2. Any justice who retires pursuant to the provisions of subsection 1 or who is retired because of advanced age or mental or physical disability pursuant to section 21 of article 6 of the constitution of the State of Nevada , is entitled to receive annually from the State of Nevada, as a pension during the remainder of his life, the same pension he would receive [under] pursuant to NRS 2.060 based on his years of service, but without regard to his age.
3. Any justice, or his guardian on his behalf if he is unable to act, who desires to retire voluntarily must give notice in writing to the governor. The governor shall appoint three physicians licensed to practice medicine in the State of Nevada to examine the justice and report the results to the governor in writing. If a majority of the physicians is of the opinion that the justice is permanently incapacitated, physically or mentally, the governor shall approve the retirement. The justice or his guardian must file with the state controller and state treasurer an affidavit setting forth the fact of his retirement and the years he has served in [either or both of such courts.] each court in this state.
4. Pensions payable pursuant to this section must be paid in the same manner as pensions are payable [under] pursuant to NRS 2.060. Fees and expenses of physicians appointed pursuant to this section must be paid out of funds provided by direct legislative appropriation.
5. The faith of the State of Nevada is hereby pledged that this section will not be repealed or amended so as to affect adversely any justice who may have retired or been retired pursuant to its provisions.
Sec. 8. NRS 3.090 is hereby amended to read as follows:
3.090 1. Any judge of the district court who has served as a justice [of the supreme court] or judge [of a district court] in any one or more [of those] courts in this state for a period or periods aggregating at least 22 years and has ended such service is, after reaching the age of 60 years, entitled to receive annually from the State of Nevada, as a pension during the remainder of his life, a sum of money equal in amount to three-fourths of the sum received as a salary for his judicial services during the last year thereof . [,] The pension is payable every 2 weeks from money provided by direct legislative appropriation.
2. Any judge of the district court who has served as a justice [of the supreme court] or judge [of a district court] in any one or more [of those] courts in this state for a period or periods aggregating 5 years and has ended such service is, after reaching the age of 60 years, entitled to receive annually from the State of Nevada, as a pension during the remainder of his life, a sum of money equal in amount to 4.1666 percent of the sum received as a salary for his judicial services during the last year thereof . [,] The pension is payable every 2 weeks from money provided by direct legislative appropriation.
3. Any judge of the district court who qualifies for a pension [under] pursuant to the provisions of subsection 2 is entitled to receive, for each year served beyond 5 years up to a maximum of 22 years, an additional 4.1666 percent of the sum received as a salary for his judicial services during the last year thereof . [,] The pension is payable as provided in subsection 2.
4. Any judge who has retired pursuant to subsection 3 and is thereafter recalled to additional active service in the court system is entitled to receive credit toward accumulating 22 years' service for the maximum pension based upon the time he actually spends in the additional active service.
5. Any district judge who has the years of service necessary to retire but has not attained the required age may retire at any age with a benefit actuarially reduced to the required retirement age. A retirement benefit [under] pursuant to this subsection must be reduced in the same manner as benefits are reduced for persons retired [under] pursuant to the public employees' retirement system.
6. Any person receiving a pension pursuant to the provisions of this section is entitled to receive post-retirement increases equal to those provided for persons retired in the public employees' retirement system.
7. Any judge of the district court who desires to receive the benefits of this section must file with the state controller and the state treasurer an affidavit setting forth the fact that he is ending his service, the date and place of his birth, and the years he has served in [any district court or the supreme court.] each court in this state.
8. Upon [such notice and] the filing of the affidavit, the state controller shall draw his warrant, payable to the judge who has thus ended his service, upon the state treasurer for the sum due to him . [, and the] The state treasurer shall pay the sum out of money provided by direct legislative appropriation.
9. The faith of the State of Nevada is hereby pledged that this section [shall] will not be repealed or amended so as to affect any judge of the district court who may have ended his service pursuant to it.
Sec. 9. NRS 3.092 is hereby amended to read as follows:
3.092 1. A district judge who has served as a [district] judge or [as a justice of the supreme court] justice in any one or more courts in this state for a period or periods aggregating 5 years or more and who becomes permanently incapacitated, physically or mentally, to perform the duties of his office may retire from office regardless of age.
2. Any district judge who retires pursuant to the provisions of subsection 1 or who is retired because of advanced age or physical or mental disability pursuant to section 21 of article 6 of the constitution of the State of Nevada , is entitled to receive annually from the State of Nevada, as a pension [for] during the remainder of his life, the same pension he would receive [under] pursuant to NRS 3.090 based on his years of service , but without regard to his age.
3. Any judge, or his guardian on his behalf if he is unable to act, who desires to retire voluntarily must give notice in writing to the governor. The governor shall appoint three physicians licensed to practice medicine in the State of Nevada to examine the judge and report the results to the governor in writing. If a majority of the physicians is of the opinion that the judge is permanently incapacitated, physically or mentally, the governor shall approve the retirement. The judge or his guardian must file with the state controller and the state treasurer an affidavit setting forth the fact of his retirement and the years he has served in [either or both of such courts.] each court in this state.
4. Pensions payable pursuant to this section must be paid in the same manner as pensions payable [under] pursuant to NRS 3.090. Fees and expenses of physicians appointed pursuant to this section must be paid out of funds provided by direct legislative appropriation.
5. The faith of the State of Nevada is hereby pledged that this section will not be repealed or amended so as to affect adversely any judge who may have retired or been retired pursuant to its provisions.
Sec. 10. Chapter 4 of NRS is hereby amended by adding thereto the provisions set forth as sections 11 to 14, inclusive, of this act.
Sec. 11. 1. A justice of the peace who has served as a judge or justice in any one or more courts in this state for a period or periods aggregating at least 22 years and has ended such service is, after reaching the age of 60 years, entitled to receive annually from the State of Nevada, as a pension during the remainder of his life, a sum of money equal to three-fourths of the sum received as a salary for his judicial services during the last year thereof. The pension is payable every 2 weeks from money provided by direct legislative appropriation.
2. A justice of the peace who has served as a judge or justice in any one or more courts in this state for a period or periods aggregating 5 years and has ended such service is, after reaching the age of 60 years, entitled to receive annually from the State of Nevada, as a pension during the remainder of his life, a sum of money equal in amount to 4.1666 percent of the sum received as a salary for his judicial services during the last year thereof. The pension is payable every 2 weeks from money provided by direct legislative appropriation.
3. A justice of the peace who qualifies for a pension pursuant to subsection 2 is entitled to receive, for each year served beyond 5 years up to a maximum of 22 years, an additional 4.1666 percent of the sum received as a salary for his judicial services during the last year thereof. The pension is payable as provided in subsection 2.
4. A justice of the peace who has retired pursuant to subsection 3 and is thereafter recalled to additional active service in the court system is entitled to receive credit toward accumulating 22 years of service for the maximum pension based upon the time he actually spends in the additional active service.
5. A justice of the peace who has the years of service necessary to retire but has not attained the required age may retire at any age with a benefit actuarially reduced to the required retirement age. A retirement benefit pursuant to this subsection must be reduced in the same manner as benefits are reduced for persons retired pursuant to the public employees' retirement system.
6. A person receiving a pension pursuant to this section is entitled to receive post-retirement increases equal to those provided for persons retired in the public employees' retirement system.
7. A justice of the peace who desires to receive the benefits provided by this section must file with the state controller and the state treasurer an affidavit setting forth the fact that he is ending his service, the date and place of his birth and the years he has served in each court in this state.
8. Upon the filing of the affidavit, the state controller shall draw a warrant upon the state treasurer payable to the justice of the peace who has thus ended his service for the sum due to him. The state treasurer shall pay the sum out of money provided by direct legislative appropriation.
9. The faith of the State of Nevada is hereby pledged that this section will not be repealed or amended so as to affect any justice of the peace who may have ended his service pursuant to it.
Sec. 12. 1. A justice of the peace who has served as a judge or justice in any one or more courts in this state for a period or periods aggregating 5 years or more and who becomes permanently incapacitated, physically or mentally, to perform the duties of his office may retire from office regardless of age.
2. A justice of the peace who retires pursuant to subsection 1 or who is retired because of advanced age or physical or mental disability pursuant to NRS 1.440, is entitled to receive annually from the State of Nevada, as a pension during the remainder of his life, the same pension he would receive pursuant to section 11 of this act based on his years of service, but without regard to his age.
3. A justice of the peace, or his guardian on his behalf if he is unable to act, who desires to retire voluntarily must give notice in writing to the governor. The governor shall appoint three physicians licensed to practice medicine in the State of Nevada to examine the justice of the peace and report the results to the governor in writing. If a majority of the physicians determines that the justice of the peace is permanently incapacitated, physically or mentally, the governor shall approve the retirement. The justice of the peace or his guardian must file with the state controller and the state treasurer an affidavit setting forth the fact of his retirement and the years he has served in each court in this state.
4. Pensions payable pursuant to this section must be paid in the same manner as pensions payable pursuant to section 11 of this act. Fees and expenses of physicians appointed pursuant to this section must be paid out of funds provided by direct legislative appropriation.
5. The faith of the State of Nevada is hereby pledged that this section will not be repealed or amended so as to affect adversely any justice of the peace who may have retired or been retired pursuant to its provisions.
Sec. 13. 1. If a justice of the peace at the time of his death had retired and was then receiving a pension pursuant to section 11 of this act, or if at the time of his death the justice of the peace had not retired but had performed sufficient service for retirement pursuant to such provisions, the surviving spouse, if the spouse has attained the age of 60 years, is entitled, until his death or remarriage, to receive monthly payments of $2,000 per month.
2. If a surviving spouse of a justice of the peace is not eligible to receive benefits pursuant to subsection 1, he is entitled, until his death or remarriage or until he becomes eligible to receive those benefits, to receive payments equal in amount to the payment provided in NRS 286.674 for the spouse of a deceased member of the public employees' retirement system.
3. To obtain these benefits, the surviving spouse must apply to the board, commission or authority entrusted with the administration of the pension and furnish such information as may be required pursuant to reasonable regulations adopted to carry out the intent of this section.
4. A person receiving a benefit pursuant to this section is entitled to receive post-retirement increases equal to those provided for persons retired pursuant to the public employees' retirement system.
5. It is the intent of this section that no special fund be created to pay these benefits, and all payments made pursuant to this section are to be made out of and charged to a fund created to pay pension benefits to justices of the peace.
Sec. 14. 1. Each child of a deceased justice of the peace is entitled to receive payments equal in amount to the payments provided in NRS 286.673 for the child of a deceased member of the public employees' retirement system.
2. In determining whether a child is a full-time student or financially dependent and physically or mentally incompetent, as provided in NRS 286.673, the court administrator shall use any applicable standards and procedures established by the public employees' retirement board.
3. It is the intent of this section that no special fund be created to pay these benefits, and all payments made pursuant to the provisions of this section are to be made out of and charged to a fund created to pay pension benefits to justices of the peace.
Sec. 15. Chapter 5 of NRS is hereby amended by adding thereto the provisions set forth as sections 16 to 19, inclusive, of this act.
Sec. 16. 1. A municipal judge who has served as a judge or justice in any one or more courts in this state for a period or periods aggregating at least 22 years and has ended such service is, after reaching the age of 60 years, entitled to receive annually from the State of Nevada, as a pension during the remainder of his life, a sum of money equal to three-fourths of the sum received as a salary for his judicial services during the last year thereof. The pension is payable every 2 weeks from money provided by direct legislative appropriation.
2. A municipal judge who has served as a judge or justice in any one or more courts in this state for a period or periods aggregating 5 years and has ended such service is, after reaching the age of 60 years, entitled to receive annually from the State of Nevada, as a pension during the remainder of his life, a sum of money equal in amount to 4.1666 percent of the sum received as a salary for his judicial services during the last year thereof. The pension is payable every 2 weeks from money provided by direct legislative appropriation.
3. A municipal judge who qualifies for a pension pursuant to subsection 2 is entitled to receive, for each year served beyond 5 years up to a maximum of 22 years, an additional 4.1666 percent of the sum received as a salary for his judicial services during the last year thereof. The pension is payable as provided in subsection 2.
4. A municipal judge who has retired pursuant to subsection 3 and is thereafter recalled to additional active service in the court system is entitled to receive credit toward accumulating 22 years of service for the maximum pension based upon the time he actually spends in the additional active service.
5. A municipal judge who has the years of service necessary to retire but has not attained the required age may retire at any age with a benefit actuarially reduced to the required retirement age. A retirement benefit pursuant to this subsection must be reduced in the same manner as benefits are reduced for persons retired pursuant to the public employees' retirement system.
6. A person receiving a pension pursuant to this section is entitled to receive post-retirement increases equal to those provided for persons retired in the public employees' retirement system.
7. A municipal judge who desires to receive the benefits provided by this section must file with the state controller and the state treasurer an affidavit setting forth the fact that he is ending his service, the date and place of his birth and the years he has served in each court in this state.
8. Upon the filing of the affidavit, the state controller shall draw a warrant upon the state treasurer payable to the municipal judge who has thus ended his service for the sum due to him. The state treasurer shall pay the sum out of money provided by direct legislative appropriation.
9. The faith of the State of Nevada is hereby pledged that this section will not be repealed or amended so as to affect any municipal judge who may have ended his service pursuant to it.
Sec. 17. 1. A municipal judge who has served as a judge or justice in any one or more courts in this state for a period or periods aggregating 5 years or more and who becomes permanently incapacitated, physically or mentally, to perform the duties of his office may retire from office regardless of age.
2. A municipal judge who retires pursuant to subsection 1 or who is retired because of advanced age or physical or mental disability pursuant to NRS 1.440, is entitled to receive annually from the State of Nevada, as a pension during the remainder of his life, the same pension he would receive pursuant to section 16 of this act based on his years of service, but without regard to his age.
3. A municipal judge, or his guardian on his behalf if he is unable to act, who desires to retire voluntarily must give notice in writing to the governor. The governor shall appoint three physicians licensed to practice medicine in the State of Nevada to examine the judge and report the results to the governor in writing. If a majority of the physicians determines that the judge is permanently incapacitated, physically or mentally, the governor shall approve the retirement. The judge or his guardian must file with the state controller and the state treasurer an affidavit setting forth the fact of his retirement and the years he has served in each court in this state.
4. Pensions payable pursuant to this section must be paid in the same manner as pensions payable pursuant to section 16 of this act. Fees and expenses of physicians appointed pursuant to this section must be paid out of funds provided by direct legislative appropriation.
5. The faith of the State of Nevada is hereby pledged that this section will not be repealed or amended so as to affect adversely any municipal judge who may have retired or been retired pursuant to its provisions.
Sec. 18. 1. If a municipal judge at the time of his death had retired and was then receiving a pension pursuant to section 16 of this act, or if at the time of his death the judge had not retired but had performed sufficient service for retirement pursuant to such provisions, the surviving spouse, if the spouse has attained the age of 60 years, is entitled, until his death or remarriage, to receive monthly payments of $2,000 per month.
2. If a surviving spouse of a judge is not eligible to receive benefits pursuant to subsection 1, he is entitled, until his death or remarriage or until he becomes eligible to receive those benefits, to receive payments equal in amount to the payment provided in NRS 286.674 for the spouse of a deceased member of the public employees' retirement system.
3. To obtain these benefits, the surviving spouse must apply to the board, commission or authority entrusted with the administration of the pension and furnish such information as may be required pursuant to reasonable regulations adopted to carry out the intent of this section.
4. A person receiving a benefit pursuant to this section is entitled to receive post-retirement increases equal to those provided for persons retired pursuant to the public employees' retirement system.
5. It is the intent of this section that no special fund be created to pay these benefits, and all payments made pursuant to this section are to be made out of and charged to a fund created to pay pension benefits to municipal judges.
Sec. 19. 1. Each child of a deceased municipal judge is entitled to receive payments equal in amount to the payments provided in NRS 286.673 for the child of a deceased member of the public employees' retirement system.
2. In determining whether a child is a full-time student or financially dependent and physically or mentally incompetent, as provided in NRS 286.673, the court administrator shall use any applicable standards and procedures established by the public employees' retirement board.
3. It is the intent of this section that no special fund be created to pay these benefits, and all payments made pursuant to this section are to be made out of and charged to a fund created to pay pension benefits to municipal judges.

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