Senate Bill No. 345–Senators Nolan and Hardy

 

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AN ACT relating to public employees’ retirement; directing the Public Employees’ Retirement System to report certain payments as disability benefits where allowed by federal law; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

    Section 1. Chapter 286 of NRS is hereby amended by adding

 thereto a new section to read as follows:

    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.

    Sec. 2.  The Public Employees’ Retirement System shall:

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

 Internal Revenue Service of the United States Department of the

 Treasury for a determination of whether disability retirement

 benefits paid pursuant to chapter 286 of NRS are excludable from

 taxable income;

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

 allowed under federal law for reporting disability retirement

 allowances to the Internal Revenue Service and consider the

 feasibility of implementing any such method; and

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

 Legislative Commission regarding the determination that it

 requested pursuant to subsection 1 and the results of its review

 pursuant to subsection 2.

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

 effective upon passage and approval.

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

 

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