Senate Bill No. 439–Committee on Government Affairs

 

CHAPTER..........

 

AN ACT relating to public retirement systems; changing the term “fireman” to “firefighter”; requiring certain educational qualifications for certain persons employed by the Public Employees’ Retirement Board; limiting the length of designations of certain positions in government as being positions for which a monthly service retirement allowance may be paid when a previously retired employee fills the position during a critical labor shortage; providing for an adjustment to the total contribution rate that is actuarially determined for members of the Judicial Retirement Plan; authorizing certain justices of the Supreme Court and district judges to receive benefits for retirement, benefits for disability and survivor benefits pursuant to the Judicial Retirement Plan; eliminating the restriction relating to eligibility for service credit in the calculation of the monthly retirement allowance of a member of the Judicial Retirement Plan; authorizing members of the Public Employees’ Retirement System and the Judicial Retirement System to designate additional payees to receive survivor benefits; 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. NRS 286.031 is hereby amended to read as follows:

    286.031  “Disability retirement allowance” means monthly

payments from the Public Employees’ Retirement Fund or the

Police and [Firemen’s] Firefighters’ Retirement Fund paid to

disabled retired employees.

    Sec. 2.  NRS 286.042 is hereby amended to read as follows:

    286.042  [“Fireman”] “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 he

remained with his former employer.

    Sec. 3.  NRS 286.070 is hereby amended to read as follows:

    286.070  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 nonprofit

corporation to which a public hospital has been conveyed or leased

pursuant to NRS 450.500,] 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.

    Sec. 4.  NRS 286.080 is hereby amended to read as follows:

    286.080  “Service retirement allowance” means monthly

payments from the Public Employees’ Retirement Fund or the

Police and [Firemen’s] Firefighters’ Retirement Fund paid to a

retired employee for the remainder of his life.

    Sec. 5.  NRS 286.130 is hereby amended to read as follows:

    286.130  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 University and

Community College System of Nevada;

        (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 [Firemen’s] Firefighters’ Retirement

Fund.

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

nominating him.

    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 he

has the qualifications required by this section, and until his

successor is appointed and takes office. A member of the Board who

no longer has the qualifications specified in the subsection under

which he was appointed may serve the remainder of his term if the

member loses those qualifications in the final 24 months of his term.

    Sec. 6.  NRS 286.160 is hereby amended to read as follows:

    286.160  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 Assistant 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 Assistant

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 Assistant 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 218.5373. 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 , [and the] 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.

    Sec. 7.  NRS 286.211 is hereby amended to read as follows:

    286.211  1.  The Board shall, with the advice of the Interim

Retirement and Benefits Committee of the Legislature created

pursuant to NRS 218.5373:

    (a) Adopt regulations for the evaluation of requests for

enrollment under the Police and [Firemen’s] Firefighters’

Retirement Fund; and

    (b) Determine those positions eligible under the early retirement

provisions for police officers and [firemen.] 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 [fireman] firefighter or police officer.

    Sec. 8.  NRS 286.225 is hereby amended to read as follows:

    286.225  1.  The Board shall establish a separate retirement

fund known as the Police and [Firemen’s] Firefighters’ Retirement

Fund.

    2.  All refunds, disability retirement allowances, benefits for

survivors, and service retirement allowances paid to police officers

and [firemen] firefighters and their beneficiaries [shall] must be

paid from the Police and [Firemen’s] Firefighters’ Retirement

Fund.

    3.  All contributions paid by and for police officers and

[firemen shall] firefighters must be credited to the Police and

[Firemen’s] Firefighters’ Retirement Fund.

    4.  The Police and [Firemen’s] Firefighters’ Retirement Fund

[shall] 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, [shall] must be paid to eligible

retired police officers and [firemen] firefighters and their

beneficiaries from any such appropriation.

    6.  Investment return on moneys in the Police and [Firemen’s]

Firefighters’ Retirement Fund [shall] 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

[Firemen’s] Firefighters’ Retirement Fund.

    Sec. 9.  NRS 286.227 is hereby amended to read as follows:

    286.227  1.  There is hereby created a Police and [Firemen’s]

Firefighters’ Retirement Fund Advisory Committee. The Board

shall determine the number of its members and appoint the

members. Each member serves at the pleasure of the Board.

    2.  The Committee shall make recommendations to the Board

concerning the administration of and benefits payable from the

Police and [Firemen’s] Firefighters’ Retirement Fund. The Board

shall consult with the Committee on all matters concerning this

Fund, and consider its recommendations upon their merits.

    Sec. 10.  NRS 286.230 is hereby amended to read as follows:

    286.230  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 218.23745, 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 [firemen] 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 [Firemen’s] Firefighters’ Retirement

Fund Advisory Committee.

    Sec. 11.  NRS 286.260 is hereby amended to read as follows:

    286.260  1.  The Board shall provide for an individual account

for each member of the System. Each account [shall] must show the

amount of the member’s contributions to the Public Employees’

Retirement Fund or Police and [Firemen’s] 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 [shall] must not

be credited to such member’s account.

    3.  The Board is relieved of any further liability regarding a

member, his estate or a beneficiary upon the return of all employee

contributions to the member, his estate or beneficiary or a

combination thereof.

    Sec. 12.  NRS 286.300 is hereby amended to read as follows:

    286.300  Except as otherwise required as a result of

NRS 286.537:

    1.  Any member of the System may, except as otherwise

provided in subsection 4, purchase all previous creditable service

performed with his present employing agency if that service was

performed before the enrollment of his 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 purchase authorized pursuant to the

provisions of subsection 1, any member who has 5 years of

creditable service may, except as otherwise provided in subsection

4, 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 purchase authorized pursuant to the

provisions of subsection 1, 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,

may, except as otherwise provided in subsection 4, cause to be

purchased on his 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.

    4.  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 or 2, or cause to

be purchased on his behalf service credit pursuant to subsection 3,

only if, at the time of the purchase, he is employed by a participating

public employer in a position [whose occupant is thereby] eligible

for membership in the System.

    5.  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,

to purchase creditable service pursuant to subsection 1 or 2.

    6.  A member of the System who purchases creditable service

pursuant to subsection 1 or 2 is entitled to receive a refund of any

contributions paid toward the purchase of the service only if he is no

longer in the employ of a participating public employer.

    7.  If a member of the System enters into an agreement whereby

he agrees to pay for the purchase of service credit in installments

and he 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.

    Sec. 13.  NRS 286.367 is hereby amended to read as follows:

    286.367  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 [fireman] 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 his 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 his 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

$750 per month.

    4.  Except as otherwise required as a result of NRS 286.535 or

286.537, the average compensation for a volunteer [fireman]

firefighter is the weighted average of:

    (a) The assumed wage as a volunteer [fireman;] 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.

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 [fireman] firefighter and as a regular

member.

    5.  Any dispute over the status of a person as a volunteer

[fireman] firefighter under this section must be conclusively

determined by the Board.

    6.  A volunteer [fireman] firefighter may purchase all previous

service as a volunteer [fireman] firefighter with any volunteer fire

department which is a member of the System. To validate such

service, the volunteer [fireman] 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 purchase authorized pursuant to the

provisions of subsection 6, a volunteer [fireman] firefighter who has

5 years creditable service as a volunteer [fireman] firefighter may

purchase up to 5 years of service to add to his volunteer service. The

member must pay the full actuarial cost of the service as determined

by an actuary of the System.

    Sec. 14.  NRS 286.410 is hereby amended to read as follows:

    286.410  1.  The employee contribution rate must be:

    (a) The matching contribution rate for employees and employers

that is actuarially determined for police officers and [firemen]

firefighters and for regular members, depending upon the retirement

fund in which the member is participating.

    (b) 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 the existing rate is

within one-quarter of 1 percent of the actuarially determined rate.

    3.  From each payroll during the period of his 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 his 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 [firemen] firefighters shall contribute the additional

contributions required of police officers and [firemen] firefighters

from July 1, 1971, to the date of his enrollment under the Police and

[Firemen’s] 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 his enrollment under the Police and

[Firemen’s] 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 his individual account. These contributions may be

returned to the member, his estate or beneficiary or a combination

thereof in monthly benefits, a lump-sum refund or both.

    6.  Disabled members 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 his regular compensation. The public

employer shall pay the employer contributions on these benefits.

    Sec. 15.  NRS 286.421 is hereby amended to read as follows:

    286.421  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 his own behalf; or

    (b) Have his portion of the contribution paid by his 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 his behalf does not affect his

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 [Firemen’s] 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 his 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 his public employer must not be cancelled upon the

termination of his 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 [firemen] firefighters and for

regular members, depending upon the retirement fund in which the

member is participating.

    (b) 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 the existing rate is within one-half of 1 percent of 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 [Firemen’s] Firefighters’ Retirement

Fund on and after July 1, 1981.

    Sec. 16.  NRS 286.430 is hereby amended to read as follows:

    286.430  1.  Except as otherwise provided in subsection 8 and

NRS 286.300, a member may withdraw the employee contributions

credited to his individual account if:

    (a) He has terminated service for which contribution is required;

or

    (b) He 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 his

contributions before all of his contributions which were withheld

have been remitted, the System may refund the portion of his

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 him, 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 his 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 [Firemen’s]

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

he is eligible to receive a refund pursuant to this section.

    Sec. 17.  NRS 286.450 is hereby amended to read as follows:

    286.450  1.  The employer contribution rate must be:

    (a) The matching contribution rate for employees and employers

that is actuarially determined for police officers and [firemen]

firefighters and for regular members, depending upon the retirement

fund in which the member is participating.

    (b) 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 the existing rate is

within one-quarter of 1 percent of the actuarially determined rate.

    Sec. 18.  NRS 286.510 is hereby amended to read as follows:

    286.510  1.  Except as otherwise provided in subsections 2 and

3, 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] firefighter 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 25 years of service. Only service

performed in a position as a police officer or [fireman,] 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 [fireman] firefighter who has at least 5 years of service as

a police officer or [fireman] 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 his employment remains

eligible for retirement pursuant to subsection 2 if:

    (a) He applies to the Board for disability retirement and the

Board approves his application;

    (b) In lieu of a disability retirement allowance, he accepts

another position with the public employer with which he was

employed when he became disabled as soon as practicable but not

later than 90 days after the Board approves his application for

disability retirement;

    (c) He remains continuously employed by that public employer

until he becomes eligible for retirement pursuant to subsection 2;

and

    (d) After he accepts a position pursuant to paragraph (b), his

contributions are paid at the rate that is actuarially determined for

police officers and [firemen] firefighters until he becomes eligible

for retirement pursuant to subsection 2.

    4.  If a police officer or [fireman] firefighter who accepted

another position with the public employer with which he was

employed when he became disabled pursuant to subsection 3 ceases

to work for that public employer before becoming eligible to retire

pursuant to subsection 2, he 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 his 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 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 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.

    Sec. 19.  NRS 286.520 is hereby amended to read as follows:

    286.520  1.  Except as otherwise provided in this section and

NRS 286.523 and 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) He accepted the employment or contract within 90

calendar days after the effective date of his retirement; or

        (2) He 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 his retirement in a position

which is not eligible to participate in this System, his allowance

under this System terminates upon his earning an amount equal to

one-half of the average salary for participating public employees

who are not police officers or [firemen] 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) [; and] 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 [firemen] 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

[firemen] 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, he is entitled to the same allowances as

a retired employee who has no employment, unless he is serving in

the same office in which he served and for which he 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.

    Sec. 20.  NRS 286.523 is hereby amended to read as follows:

    286.523  1.  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) He fills a position for which there is a critical labor shortage;

and

    (b) At the time of his reemployment, he is receiving:

        (1) [An unmodified benefit;] 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 he could

have retired with [an unmodified benefit.] a benefit that was not

actuarially reduced pursuant to subsection 6 of NRS 286.510.

    2.  A retired employee who is reemployed under the

circumstances set forth in subsection 1 may reenroll in the system as

provided in NRS 286.525.

    3.  Positions for which there are critical labor shortages must be

determined 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

University and Community College System of Nevada for which

there are critical labor shortages.

    (d) The Department of Education shall designate positions with

the various school districts for which there are critical labor

shortages.

    (e) The governing body of a local government shall designate

positions with the local government for which there are critical labor

shortages.

    (f) The Board shall designate positions within the System for

which there are critical labor shortages.

    4.  In determining whether a position is a position for which

there is a critical labor shortage, the designating authority shall give

consideration to:

    (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;

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

    (d) The success of recruiting persons in other states to fill the

position.

    5.  A designating authority shall not designate a position

pursuant to subsection 3 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 whether the position continues to meet the criteria set

forth in subsection 4.

    Sec. 21.  NRS 286.525 is hereby amended to read as follows:

    286.525  1.  A retired employee who accepts employment in a

position [whose occupant is thereby] eligible for membership may

enroll in the System as of the effective date of that employment.

[As] Except as otherwise provided in NRS 286.523, as of the date

of enrollment:

    (a) He forfeits all retirement allowances for the duration of that

employment.

    (b) He is entitled to receive, after the termination of the

employment and 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,

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 his additional credit for service

added to his 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.

    Sec. 22.  NRS 286.575 is hereby amended to read as follows:

    286.575  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 [Firemen’s]

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 his retirement by payments for

years of service in excess of 20 years is entitled to receive an

increase based upon his 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.

    Sec. 23.  NRS 286.665 is hereby amended to read as follows:

    286.665  1.  Any contributions remaining in a member’s,

retired employee’s or beneficiary’s individual account [shall] must

be transferred to the Public Employees’ Retirement Fund or the

Police and [Firemen’s] 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 his claim, with an appropriate

prayer for the relief demanded. A copy of the petition [shall] 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, he may, with the consent of the

court, confess judgment on behalf of the System.

    3.  If judgment is not confessed, the petition [shall] 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.

    Sec. 24.  NRS 286.667 is hereby amended to read as follows:

    286.667  1.  A retired employee whose service or disability

retirement allowance is payable from the Police and [Firemen’s]

Firefighters’ Retirement Fund is entitled to receive his allowance

without modification.

    2.  Upon the death of such a person, a person who was his

spouse at the time of his 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 [Firemen’s] Firefighters’

Retirement Fund before July 1, 1981.

    (b) At the time of his 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 [fireman,] firefighter, except military service,

may not be credited toward the benefit conferred by this section. A

police officer or [fireman] 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 his total service; or

    (c) Purchase the additional spouse’s benefit at the time he retires

by paying the full actuarial cost as computed for his 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.

    Sec. 25.  NRS 286.6705 is hereby amended to read as follows:

    286.6705  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 [Fireman’s]

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 his 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, he 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 [Public Employees’ Retirement] 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.

    Sec. 26.  NRS 286.6766 is hereby amended to read as follows:

    286.6766  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 lumpsum a

refund of all contributions to the Public Employees’ Retirement

Fund or the Police and [Fireman’s] 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.

    Sec. 27.  NRS 286.6767 is hereby amended to read as follows:

    286.6767  [An unmarried]

    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 his death.

    2.  A designation pursuant to [this section] 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.

    Sec. 28.  NRS 286.67675 is hereby amended to read as

follows:

    286.67675  1.  [The] 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. [If]

    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.

    [2.] 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.

    [3.] 4. As used in this section, “survivor beneficiary” means a

person designated pursuant to NRS 286.6767.

    Sec. 29.  NRS 286.6768 is hereby amended to read as follows:

    286.6768  1.  Except as otherwise provided in subsection 2

and as limited by subsection [3,] 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 his death; or

    (b) Option 2 in NRS 286.590, if the deceased member had 15 or

more years of service on the date of his death.

To apply the provisions of Options 2 and 3, the deceased member

shall be deemed to have retired on the date of his 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.

    [3.] 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.

    [4.] 5. As used in this section, “survivor beneficiary” means a

person designated pursuant to NRS 286.6767.

    Sec. 30.  NRS 286.67685 is hereby amended to read as

follows:

    286.67685  1.  Except as otherwise provided in subsection 2

and as limited by subsection [2,] 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 his 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.

    [3.] 4. As used in this section, “survivor beneficiary” means a

person designated pursuant to NRS 286.6767.

    Sec. 31.  NRS 286.6769 is hereby amended to read as follows:

    286.6769  1.  [Any] 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 [Fireman’s] 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.

    Sec. 32.  NRS 286.680 is hereby amended to read as follows:

    286.680  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 his 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 [Fireman’s] 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.

    Sec. 33.  NRS 1A.180 is hereby amended to read as follows:

    1A.180  1.  Beginning July 1, 2003, the Court Administrator

shall submit to the System for deposit in the Judicial Retirement

Fund on behalf of each member of the System the percentage of

compensation of the member that is determined by the actuary of the

System to be required to pay the normal cost incurred in making

payments pursuant to subsection 5 of NRS 1A.160 and any

administrative expenses of the System. Such payments must be:

    (a) Accompanied by payroll reports that include information

deemed necessary by the Board to carry out its duties; and

    (b) Received by the System not later than 15 days after the

calendar month for which the compensation and service credits of

members of the System are reported and certified by the Court

Administrator. The compensation must be reported separately for

each month that it is paid.

    2.  Beginning July 1, 2003, the [Court Administrator] State of

Nevada shall pay to the System for deposit in the Judicial

Retirement Fund from any fund created for the purpose of paying

pension benefits to justices of the Supreme Court or district judges

an amount as the contribution of the State of Nevada as employer

which is actuarially determined to be sufficient to provide the

System with enough money to pay all benefits for which the System

will be liable.

    3.  Except as otherwise provided in this subsection, the total

contribution rate that is actuarially determined for members of the

Judicial Retirement Plan must be 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. The adjusted rate must be rounded to the nearest one-

quarter of 1 percent. The total contribution rate must not be

adjusted pursuant to this subsection if the existing rate is within

one-half of 1 percent of the actuarially determined rate.

    Sec. 33.5.  NRS 1A.270 is hereby amended to read as follows:

    1A.270 1.  Each justice of the Supreme Court or district judge

who is elected or appointed as a justice of the Supreme Court or a

district judge on or after November 5, 2002, who takes office on or

after January 1, 2003, and who previously has not served as either a

justice of the Supreme Court or a district judge must receive benefits

for retirement, benefits for disability and survivor benefits under the

Judicial Retirement Plan, if eligible to receive such benefits under

the Judicial Retirement Plan, unless he is a member of the Public

Employees’ Retirement System and elects to remain a member

pursuant to NRS 1A.280 if eligible to do so.

    2.  Each justice of the Supreme Court or district judge who is

elected or appointed as a justice of the Supreme Court or district

judge on or after November 5, 2002, and who previously has served

as either a justice of the Supreme Court or a district judge and each

justice of the Supreme Court or district judge who is serving as a

justice of the Supreme Court or district judge on November 5,

2002, must receive benefits for retirement, benefits for disability and

survivor benefits pursuant to either:

    (a) NRS 2.060 to 2.083, inclusive, or 3.090 to 3.099, inclusive,

as those sections existed on November 5, 2002, if eligible to receive

such benefits under such provisions; or

    (b) The Judicial Retirement Plan, if eligible to receive such

benefits under the Judicial Retirement Plan,

whichever is most beneficial to the justice or judge or his survivor,

as determined by the justice or judge at the time of his retirement or

the time at which he becomes disabled, or as determined by his

survivor at the time of his death, unless he is a member of the Public

Employees’ Retirement System and elects to remain a member

pursuant to NRS 1A.280 if eligible to do so. A survivor may not

change a determination that affects the survivor and which was

made by a justice or judge pursuant to this section while the justice

or judge was alive.

    3.  A determination made pursuant to subsection 2 is final

and if a justice or judge or his survivor determines pursuant to

subsection 2:

    (a) To receive benefits pursuant to the Judicial Retirement Plan,

the justice, judge or survivor may not receive benefits pursuant to

NRS 2.060 to 2.083, inclusive, or pursuant to NRS 3.090 to 3.099,

inclusive; or

    (b) To receive benefits pursuant to NRS 2.060 to 2.083,

inclusive, or pursuant to NRS 3.090 to 3.099, inclusive, the justice,

judge or survivor may not receive benefits pursuant to the Judicial

Retirement Plan.

    4.  No justice of the Supreme Court or district judge or survivor

of a justice of the Supreme Court or district judge may receive

benefits under both this chapter and:

    (a) NRS 2.060 to 2.083, inclusive; or

    (b) NRS 3.090 to 3.099, inclusive.

    5.  A justice of the Supreme Court or district judge or a survivor

of a justice of the Supreme Court or district judge who is receiving

retirement allowances pursuant to NRS 2.060 to 2.083, inclusive, or

pursuant to NRS 3.090 to 3.099, inclusive, on January 1, 2003, is

not eligible for transfer to the Judicial Retirement Plan.

    Sec. 34.  NRS 1A.310 is hereby amended to read as follows:

    1A.310  Except as otherwise required as a result of

NRS 1A.410:

    1.  A member of the Judicial Retirement Plan who has 5 years

of creditable service may, except as otherwise provided in

subsection 2, 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.

    2.  A justice or judge may purchase creditable service pursuant

to subsection 1 only if, at the time of the purchase, he is employed

in a position [whose occupant is] eligible for membership in the

Judicial Retirement Plan.

    3.  A member of the Judicial Retirement Plan may use:

    (a) All or any portion of the balance of his 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

in 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,

to purchase creditable service pursuant to subsection 1.

    4.  If a member of the Judicial Retirement Plan enters into an

agreement whereby he agrees to pay for the purchase of service

credit in installments and he 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.

    Sec. 35.  NRS 1A.370 is hereby amended to read as follows:

    1A.370  1.  A retired justice or judge who accepts employment

as a justice of the Supreme Court or district judge in any judicial

capacity, including, without limitation, employment as a senior

justice or senior judge of the Nevada court system, may enroll in the

Judicial Retirement Plan as of the effective date of that employment.

[As] Except as otherwise provided in NRS 1A.380, as of the date of

enrollment:

    (a) He forfeits all retirement allowances for the duration of that

employment; and

    (b) Except as otherwise required as a result of NRS 1A.400 or

1A.410, if the duration of the employment is 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 is:

        (1) Less than 5 years, the additional allowance must be added

to his original allowance and must be under the same option and

designated the same beneficiary as the original allowance; or

        (2) Five years or more, the additional allowance may be

under any option and designate any beneficiary in accordance with

NRS 1A.430.

    2.  The original service retirement allowance of such a retired

justice or judge 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 1A.440; and

    (b) Section 415 of the Internal Revenue Code, 26 U.S.C. § 415.

    3.  Except as otherwise required as a result of NRS 1A.400 or

1A.410, a retired justice or judge who has been receiving a

retirement allowance pursuant to the Judicial Retirement Plan and

who is reemployed and is enrolled in the Plan for at least 5 years

may have his additional credit for service added to his 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 of the Judicial

Retirement Plan who had previously retired and was reemployed

and enrolled in the Plan, who qualifies for benefits pursuant to NRS

1A.340 and 1A.530 to 1A.670, inclusive, is eligible for the benefits

based on the service accrued through the second period of

employment.

    Sec. 36.  NRS 1A.380 is hereby amended to read as follows:

    1A.380  1.  The provisions of subsection 1 of NRS 1A.360 do

not apply to a retired justice or judge who accepts employment as a

justice of the Supreme Court or district judge in a judicial capacity

if:

    (a) He fills a position for which there is a critical labor shortage;

and

    (b) At the time of his reemployment, he is receiving:

        (1) [An unmodified benefit;] A benefit that is not actuarially

reduced pursuant to subsection 2 of NRS 1A.350; or

        (2) A benefit actuarially reduced pursuant to subsection 2 of

NRS 1A.350 and has reached the required age at which he could

have retired with [an unmodified benefit.] a benefit that was not

actuarially reduced pursuant to subsection 2 of NRS 1A.350.

    2.  A retired justice or judge who is reemployed under the

circumstances set forth in subsection 1 may reenroll in the Judicial

Retirement Plan as provided in NRS 1A.370.

    3.  The Supreme Court shall designate positions in the Judicial

Branch of State Government for which there are critical labor

shortages. The Supreme Court shall not designate a position

pursuant to this subsection 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 Supreme Court must consider

whether a critical labor shortage continues to exist for the

position.

    Sec. 37.  NRS 1A.440 is hereby amended to read as follows:

    1A.440  Except as otherwise required as a result of NRS

1A.400 or 1A.410:

    1.  Except as otherwise provided in this subsection, a monthly

service retirement allowance must be determined by multiplying a

member of the Judicial Retirement Plan’s average compensation by

3.4091 percent for each year of service, except that a member of the

Plan is entitled to a benefit of not more than 75 percent of his

average compensation . [with his eligibility for service credit

ceasing at 22 years of service.]

    2.  For the purposes of this section, “average compensation”

means the average of a member of the Plan’s 36 consecutive months

of highest compensation as certified by the Court Administrator.

 

 

    Sec. 38.  NRS 1A.620 is hereby amended to read as follows:

    1A.620  [An unmarried]

    1.  A member of the Judicial Retirement Plan may designate, in

writing, a survivor beneficiary and one or more additional payees

to receive the payments provided pursuant to NRS 1A.630, 1A.640

or 1A.650 if the member is unmarried on the date of his death.

    2.  A designation pursuant to [this section] subsection 1 must

be made on a form approved by the Executive Officer of the Board.

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.

    Sec. 39.  NRS 1A.630 is hereby amended to read as follows:

    1A.630  1.  [The] Except as otherwise provided in this

subsection, the survivor beneficiary of a deceased member of the

Judicial Retirement Plan 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 1A.620, 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 1A.620. 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.  The benefits paid pursuant to this section are in addition to

any benefits paid pursuant to NRS 1A.580.

    3.  As used in this section, “survivor beneficiary” means a

person designated pursuant to NRS 1A.620.

    Sec. 40.  NRS 1A.640 is hereby amended to read as follows:

    1A.640  1.  [The] Except as otherwise provided in subsection

2, the survivor beneficiary of a deceased member of the Judicial

Retirement Plan who had 10 or more years of creditable service is

entitled to receive a monthly allowance equivalent to that provided

by:

    (a) Option 3 in NRS 1A.450, if the deceased member had less

than 15 years of service on the date of his death; or

    (b) Option 2 in NRS 1A.450, if the deceased member had 15 or

more years of service on the date of his death.

To apply the provisions of Options 2 and 3, the deceased member

shall be deemed to have retired on the date of his 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 1A.620, 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 1A.620.

    3.  The survivor beneficiary may elect to receive the benefits

provided by any one of the following only:

    (a) This section; or

    (b) NRS 1A.630.

    [3.] 4. As used in this section, “survivor beneficiary” means a

person designated pursuant to NRS 1A.620.

    Sec. 41.  NRS 1A.650 is hereby amended to read as follows:

    1A.650  1.  [The] Except as otherwise provided in subsection

2, the survivor beneficiary of a deceased member of the Judicial

Retirement Plan 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 1A.450. This section does not apply to

the survivor beneficiary of a member who was eligible to retire only

pursuant to subsection 2 of NRS 1A.350. For the purposes of

applying the provisions of Option 2, the deceased member shall be

deemed to have retired on the date of his 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 1A.630; or

    (c) NRS 1A.640.

    2.  If the member had designated one or more payees in

addition to the survivor beneficiary pursuant to NRS 1A.620, 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 1A.620.

    3.  As used in this section, “survivor beneficiary” means a

person designated pursuant to NRS 1A.620.

    Sec. 42.  NRS 2.079 is hereby amended to read as follows:

    2.079  1.  [An unmarried] A justice of the Supreme Court may

designate, in writing, a survivor beneficiary and one or more

additional payees to receive the payments provided pursuant to this

section if the justice is unmarried on the date of his death. A

designation pursuant to this section must be made on a form

approved by the Court Administrator. If the justice has designated

one or more payees in addition to the survivor beneficiary, the

justice must designate the percentage of the payments that the

survivor beneficiary and each additional payee is entitled to

receive.

    2.  [If] Except as otherwise provided in this subsection, if a

justice of the Supreme Court at the time of his death had retired and

was then receiving a pension pursuant to the provisions of NRS

2.060, or if at the time of his death the justice had not retired but had

performed sufficient service for retirement pursuant to the

provisions of NRS 2.060, the survivor beneficiary designated

pursuant to subsection 1, if the survivor beneficiary has attained the

age of 60 years, is entitled, until his death, to receive monthly

payments of $2,500 per month. If the justice had designated one or

more payees in addition to the survivor beneficiary pursuant to

subsection 1, the monthly payments paid pursuant to this

subsection must be divided between the survivor beneficiary and

any additional payee in the proportion designated by the justice

pursuant to subsection 1.

    3.  [If] Except as otherwise provided in this subsection, if a

survivor beneficiary of a justice is not eligible to receive benefits

pursuant to subsection 2, he is entitled, until his death or until he

becomes eligible to receive those benefits, to receive payments

equal in amount to the payment provided in subsection 1 of NRS

286.67675 for the survivor beneficiary of a deceased member of the

Public Employees’ Retirement System. If the justice had

designated one or more payees in addition to the survivor

beneficiary pursuant to subsection 1, the payments paid pursuant

to this subsection must be divided between the survivor beneficiary

and any additional payee in the proportion designated by the

justice pursuant to subsection 1.

    4.  To obtain [these benefits,] the benefits authorized in

subsection 3, the survivor beneficiary must make application to the

Executive Officer of the Public Employees’ Retirement Board and

furnish such information as may be required pursuant to reasonable

regulations adopted for the purpose of carrying out the intent of this

section.

    5.  Any person receiving a benefit pursuant to the provisions of

this section is entitled to receive postretirement increases equal to

those provided for persons retired pursuant to the Public Employees’

Retirement System.

    6.  It is the intent of this section that no special fund be created

for the purpose of paying these benefits, and all payments made

pursuant to the provisions of this section are to be made out of and

charged to the Judicial Retirement Fund established pursuant to

NRS 1A.160.

 

 

    Sec. 43.  NRS 3.098 is hereby amended to read as follows:

    3.098  1.  [An unmarried] A district judge may designate, in

writing, a survivor beneficiary and one or more additional payees

to receive the payments provided pursuant to this section if the

judge is unmarried on the date of his death. A designation pursuant

to this section must be made on a form approved by the Court

Administrator. If the district judge has designated one or more

payees in addition to the survivor beneficiary, the district judge

must designate the percentage of the payments that the survivor

beneficiary and each additional payee is entitled to receive.

    2.  [If] Except as otherwise provided in this subsection, if a

district judge at the time of his death had retired and was then

receiving a pension pursuant to the provisions of NRS 3.090, or if at

the time of his death the district judge had not retired but had

performed sufficient service for retirement pursuant to the

provisions of NRS 3.090, the survivor beneficiary designated

pursuant to subsection 1, if the survivor beneficiary has attained the

age of 60 years, is entitled, until his death, to receive monthly

payments of $2,500 per month. If the district judge had designated

one or more payees in addition to the survivor beneficiary

pursuant to subsection 1, the monthly payments paid pursuant to

this subsection must be divided between the survivor beneficiary

and any additional payee in the proportion designated by the

district judge pursuant to subsection 1.

    3.  [If] Except as otherwise provided in this subsection, if a

survivor beneficiary of a district judge is not eligible to receive

benefits pursuant to subsection 2, he is entitled, until his death or

until he becomes eligible to receive those benefits, to receive

payments equal in amount to the payment provided in subsection 1

of NRS 286.67675 for the survivor beneficiary of a deceased

member of the Public Employees’ Retirement System. If the district

judge had designated one or more payees in addition to the

survivor beneficiary pursuant to subsection 1, the payments paid

pursuant to this subsection must be divided between the survivor

beneficiary and any additional payee in the proportion designated

by the district judge pursuant to subsection 1.

    4.  To obtain [these benefits,] the benefits authorized by

subsection 3, the survivor beneficiary must make application to the

Executive Officer of the Public Employees’ Retirement [Fund]

Board and furnish such information as may be required pursuant to

reasonable regulations adopted for the purpose of carrying out the

intent of this section.

    5.  Any person receiving a benefit pursuant to the provisions of

this section is entitled to receive postretirement increases equal to

those provided for persons retired pursuant to the Public Employees’

Retirement System.

    6.  It is the intent of this section that no special fund be created

for the purpose of paying these benefits, and all payments made

pursuant to the provisions of this section are to be made out of and

charged to the Judicial Retirement Fund established pursuant to

NRS 1A.160.

    Sec. 44.  The designation of a position for which there is a

critical labor shortage pursuant to NRS 1A.380 or 286.523 expires

on the date on which the authority to make the designation expires.

    Sec. 45.  1.  This section and sections 1 to 26, inclusive, and

32 to 37, inclusive, and 44 of this act become effective on July 1,

2003.

    2.  Sections 27 to 31, inclusive, and 38 to 43, inclusive, of this

act become effective on January 1, 2004.

    3.  Sections 20, 21, 35 and 36 of this act expire by limitation on

June 30, 2005.

 

²⁰~~~~~⁰³