2005 Nevada Revised Statutes - Chapter 286 — Public Employees Retirement

CHAPTER 286 - PUBLIC EMPLOYEES RETIREMENT

GENERAL PROVISIONS

NRS 286.010 Shorttitle.

NRS 286.015 Declarationof state policy; purpose of chapter.

NRS 286.016 Definitions.

NRS 286.017 Actuarialcomputation defined.

NRS 286.020 Boarddefined.

NRS 286.025 Compensationdefined.

NRS 286.031 Disabilityretirement allowance defined.

NRS 286.040 Employeedefined.

NRS 286.042 Firefighterdefined.

NRS 286.045 Independentcontractor defined.

NRS 286.050 Memberdefined.

NRS 286.061 Policeofficer defined.

NRS 286.065 Postretirementincrease defined.

NRS 286.070 Publicemployer defined.

NRS 286.078 Servicedefined.

NRS 286.080 Serviceretirement allowance defined.

NRS 286.100 Systemdefined.

NRS 286.110 PublicEmployees Retirement System: Establishment; review of System; use of stateservices; public inspection of records; liability of public employers.

NRS 286.117 Limitationson review and copying of records; waiver.

ADMINISTRATION

NRS 286.120 Systemgoverned by Public Employees Retirement Board: Name; number of members; dutiesof Governor; removal of members.

NRS 286.130 Qualificationsof members of Board; terms.

NRS 286.150 Monthlymeetings of Board; certain closed meetings; designation and term of Chairman.

NRS 286.160 Personsemployed by Board: Appointment; salaries; qualifications; other employment ofExecutive Officer prohibited; exceptions.

NRS 286.170 Administrationof System; compensation and removal of employees.

NRS 286.180 Compensationand expenses of members of Board.

NRS 286.190 Generalpowers and duties of Board.

NRS 286.200 Rulesand regulations of Board: Procedure for adoption; conditions.

NRS 286.211 Dutiesof Board: Police and Firefighters Retirement Fund.

NRS 286.215 Dutiesof Board: Calculation and determination of contributions, benefits and servicecredit related to qualified military service.

NRS 286.220 PublicEmployees Retirement Fund.

NRS 286.225 Policeand Firefighters Retirement Fund.

NRS 286.227 Policeand Firefighters Retirement Fund Advisory Committee.

NRS 286.230 PublicEmployees Retirement Administrative Fund.

NRS 286.241 Fundto pay accrued benefits that are not payable because of certain limitations;benefits paid from employer contributions.

NRS 286.260 Individualaccounts of members; liability of Board upon return of contributions.

NRS 286.265 Noticeto Public Employees Benefits Program regarding certain changes in paymentstatus of benefit recipients.

NRS 286.282 Chiefof Budget Division to advise Governor concerning review of Systems policiesand performance.

NRS 286.287 Boardto consider investments: Meetings; duties.

NRS 286.288 Liaisonofficer between System and members or employers; responsibility of System forinaccurate or misleading information.

MEMBERSHIP

NRS 286.290 Conditionsfor membership in System.

NRS 286.293 Personsrequired to participate in System.

NRS 286.297 Personsexcluded from membership in System.

NRS 286.300 Purchaseof credit for service: Requirements; sources; refund of contributions;defaults.

NRS 286.3005 Purchaseof credit for service: Public employer may purchase credit for member.

NRS 286.3007 Purchaseby state agency of credit for service: Conditions.

NRS 286.301 Creditfor free prior service.

NRS 286.303 Freecredit for military service.

NRS 286.365 Eligibilityof civilian employees of Nevada National Guard for membership in System.

NRS 286.367 Eligibilityof volunteer firefighters for membership in System: Contributions; averagecompensation; purchase of credit for service as volunteer firefighter and forcertain military service.

NRS 286.370 Procedurefor integration of previously established retirement systems.

NRS 286.385 Publicemployee on leave of absence to serve in Nevada Legislature may remain memberof System.

NRS 286.391 Publicemployee on leave to work for employee or employer association may remainmember of System; purchase of credit for service.

NRS 286.401 Terminationof membership; rights of retired employee.

CONTRIBUTIONS

NRS 286.410 Amountof contribution by member of System; deduction from payroll; return ofcontributions; disabled members.

NRS 286.421 Paymentof contributions by employer on behalf of employee; average compensation; totalrate of contribution.

NRS 286.425 Electionby employee to have employer pay contributions.

NRS 286.430 Withdrawalof contributions.

NRS 286.435 Repaymentupon retroactive reinstatement.

NRS 286.440 Redepositof withdrawn contributions upon return to service: Procedure.

NRS 286.450 Rateof contributions by public employer.

NRS 286.460 Remittanceof contributions by public employers.

NRS 286.462 Complaintto Department of Taxation required concerning delinquent report or payment.

SERVICE

NRS 286.470 Creditfor service as county commissioner, city councilman or mayor: Calculation ofaverage compensation; waiver of service; exception.

NRS 286.475 Creditfor service as Legislator before July 1, 1967: Calculation of averagecompensation.

NRS 286.477 Creditfor part-time employment; loss of credit.

NRS 286.479 Servicecredit for military service in Persian Gulf Crisis.

NRS 286.481 Serviceineligible for credit.

NRS 286.486 Servicecredited in another system ineligible; exception.

NRS 286.495 Computationof credit for service: Generally.

NRS 286.501 Computationof credit for service: Employees of school districts and professional staff ofNevada System of Higher Education.

NRS 286.505 Conversionof credit for service; time for crediting service.

RETIREMENT

NRS 286.510 Eligibility:Age and service of police officers, firefighters and other employees; reductionof benefit for retirement before required age.

NRS 286.520 Employmentof retired employee: Consequences; notice; exemptions. [Effective through June30, 2009.]

NRS 286.520 Employmentof retired employee: Consequences; notice; exemptions. [Effective July 1, 2009.]

NRS 286.523 Employmentof retired employee: Exception for reemployment of certain retired employees tofill positions for which critical labor shortage exists; determination anddesignation of such positions; limitation on length of designation of position.[Effective through June 30, 2009.]

NRS 286.525 Employmentof retired employee: Enrollment in System; rights of membership; accrual ofcredit for service; benefits for survivor. [Effective through June 30, 2009.]

NRS 286.525 Employmentof retired employee: Enrollment in System; rights of membership; accrual ofcredit for service; benefits for survivor. [Effective July 1, 2009.]

BENEFITS

NRS 286.533 Limitationon distributions to members of System.

NRS 286.534 Actuarialassumptions used in computing benefits: Availability; changes prohibited.

NRS 286.535 Limitationon compensation used to determine retirement benefit.

NRS 286.537 Limitationson benefits and contributions.

NRS 286.538 Minimumbenefits payable to employee who became member of System before January 1,1990.

NRS 286.539 Prohibitionagainst applying forfeitures to increase benefits.

NRS 286.541 Applicationfor service retirement allowance or disability retirement allowance; effectivedate of retirement; rights of present or former spouse; System exempted fromliability for false designation of marital status by member or retired member.

NRS 286.545 Consentof spouse to retirement plan of member.

NRS 286.551 Determinationof monthly service retirement allowance.

NRS 286.575 Postretirementincreases: Payment; effect on monthly benefit.

NRS 286.5756 Postretirementincreases: Persons receiving benefits before September 1, 1983, or for 3 yearsbefore increase.

NRS 286.5765 Postretirementincreases: Persons retired before July 1, 1963; persons retired beforeSeptember 1, 1975, with 20 years credit for service; persons retired beforeJuly 1, 1989, with 20 years credit for service; separate account.

NRS 286.577 Postretirementincreases: Persons receiving allowance before July 1, 1975; persons withbenefits commencing in 1975.

NRS 286.5775 Postretirementincreases: Increases based on years allowance received; beneficiaries ofdeceased employees; limitations.

NRS 286.578 Postretirementincreases: Increases payable July 1, 1979, and July 1, 1980.

NRS 286.5785 Postretirementincreases: Increases payable July 1, 1981, and July 1, 1982.

NRS 286.579 Postretirementincreases: Increase for persons receiving benefits before January 1, 1977.

NRS 286.590 Alternativesto unmodified service retirement allowance.

NRS 286.592 Optionalplans: Death of beneficiary; change of selection; effective date of terminationor adjustment of allowance.

NRS 286.612 Chargesfor deferred protection: Termination; adjustments of allowances or benefits.

NRS 286.615 Optionaldeduction from benefits for payments for group insurance, plan of benefits ormedical and hospital service or other obligations; regulations; exemption ofExecutive Officer, Board and System from liability for errors or omissions.

NRS 286.620 Disabilityretirement allowance: Eligibility; calculation of amount; beneficiaries;effective date of termination or adjustment of allowance.

NRS 286.630 Disabilityretirement allowance: Approval or denial of application; medical examination.

NRS 286.634 Disabilityretirement allowance: Effective date of retirement.

NRS 286.637 Disabilityretirement allowance: Recipient to provide copy of federal income tax return;Board may require medical examinations.

NRS 286.638 Disabilityretirement allowance: Reporting to Internal Revenue Service.

NRS 286.640 Disabilityretirement allowance: Cancellation.

NRS 286.650 Disabilityretirement allowance: Consequences of employment of recipient.

NRS 286.655 Paymentsfor rehabilitation in lieu of disability retirement allowance.

NRS 286.660 Deathof certain member before retirement: Disposition of money to his credit inPublic Employees Retirement Fund.

NRS 286.665 Deathof member, retired employee or beneficiary: Transfer of contributions toretirement fund under certain circumstances; procedure for claiming transferredmoney.

NRS 286.667 Allowancefor retired police officer or firefighter: Benefits for spouse upon death;credit for certain other service prohibited; costs of benefit paid by employee.

NRS 286.669 Personconvicted of murder or voluntary manslaughter of member ineligible to receivebenefits.

NRS 286.670 Rightto benefits not subject to taxes, process, bankruptcy, assignment or assessmentfor impairment or insolvency of insurance company; exceptions.

NRS 286.6703 Paymentof allowance or benefit to alternate payee pursuant to domestic relationsorder.

NRS 286.6705 Transferof unpaid check for benefits or refund to retirement fund; claim for payment ofmoney; period of limitation.

BENEFITS FOR SURVIVORS

GeneralProvisions

NRS 286.671 Definitions.

NRS 286.672 Eligibility.

Children

NRS 286.673 Paymentsto child of deceased member.

Spouses

NRS 286.674 Paymentsto spouse of deceased member.

NRS 286.676 Paymentsto spouse of deceased member who had 10 or more years of accreditedcontributing service.

NRS 286.6765 Paymentsto spouse if deceased member was eligible to retire.

NRS 286.6766 Paymentin lump sum to spouse; exception.

SurvivorBeneficiaries and Additional Payees

NRS 286.6767 Designationof survivor beneficiary and additional payees by member.

NRS 286.67675 Paymentsto survivor beneficiary of and to additional payees designated by deceasedmember.

NRS 286.6768 Paymentsto survivor beneficiary of and to additional payees designated by deceasedmember who had 10 or more years of accredited contributing service.

NRS 286.67685 Paymentto survivor beneficiary of and to additional payees designated by deceasedmember if deceased member was eligible to retire.

NRS 286.6769 Paymentin lump sum to survivor beneficiary of and to additional payees designated bymember; exception.

Parents

NRS 286.677 Paymentto dependent parents; conditions.

Limitationsand Disposition of Surplus

NRS 286.6775 Limitationon and reduction of amount of monthly allowance.

NRS 286.679 Dispositionof surplus of contributions if payments to beneficiary cease.

VESTING OF ALLOWANCES AND BENEFITS

NRS 286.6793 Timeof vesting; vesting of benefits upon termination of System.

INVESTMENT OF MONEY

NRS 286.680 Investmentby Board of money in funds; qualifications and employment of investmentcounsel; employment of other services; liability for investment decisions.

NRS 286.682 Authorizedinvestments: Prudent person standard.

UNIVERSITY OF NEVADA RETIREMENT PROGRAM

NRS 286.802 Boardof Regents to establish separate program for retirement of certain employees;contributions; enrollment.

NRS 286.804 Programmay be separate system or fund; participation in larger system or fund;provision of benefits through investment entity or combination of entities.

NRS 286.808 Contributions;payment by Board of Regents on behalf of participant.

NRS 286.810 Designationof investment entities; approval of contracts.

NRS 286.812 Administrationof program.

NRS 286.814 Participantsineligible for membership in Public Employees Retirement System.

NRS 286.816 Benefitspayable only by designated investment entities.

UNLAWFUL ACTS; PENALTIES

NRS 286.820 Falsestatement or certification; withholding of information.

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GENERAL PROVISIONS

NRS 286.010 Shorttitle. This chapter shall be known as thePublic Employees Retirement Act.

[1:181:1947; 1943 NCL 5230.01]

NRS 286.015 Declarationof state policy; purpose of chapter.

1. It is the policy of this State to provide, throughthe Public Employees Retirement System:

(a) A reasonable base income to qualified employees whohave been employed by a public employer and whose earning capacity has beenremoved or has been substantially reduced by age or disability.

(b) An orderly method of promoting and maintaining ahigh level of service to the public through an equitable separation procedure,which is available to employees at retirement or upon becoming disabled.

(c) A system which will make government employmentattractive to qualified employees in various categories of service and whichwill encourage these employees to remain in government service for such periodsof time as to give the public employer full benefit of the training andexperience gained by these employees while employed by public employers.

2. It is the purpose of this chapter to make suitableprovision for the accomplishment of the policy stated in subsection 1. TheBoard shall define the intermediate objectives and operating guidelines itconsiders necessary to produce the maximum in economy, efficiency andeffectiveness within the System.

(Added to NRS by 1973, 996)

NRS 286.016 Definitions. As used in this chapter, unless the context otherwiserequires, the words and terms defined in NRS286.017 to 286.100, inclusive, havethe meanings ascribed to them in such sections.

(Added to NRS by 1975, 1028)

NRS 286.017 Actuarialcomputation defined. Actuarial computationmeans the computation based on benefits earned and life expectancy of memberand beneficiary to determine necessary reduction of benefits under retirementoptions or to determine cost of purchasing additional benefits as provided inthis chapter.

(Added to NRS by 1975, 1028)

NRS 286.020 Boarddefined. Board means the Public Employees RetirementBoard.

[Part 4:181:1947; A 1949, 174; 1955, 23](NRS A 1975,1029)

NRS 286.025 Compensationdefined.

1. Except as otherwise provided by specific statute,compensation is the salary paid to a member by his principal public employer.

2. The term includes:

(a) Base pay, which is the monthly rate of payexcluding all fringe benefits.

(b) Additional payment for longevity, shiftdifferential, hazardous duty, work performed on a holiday if it does not exceedthe working hours of the normal workweek or pay period for that employee,holding oneself ready for duty while off duty and returning to duty after onesregular working hours.

(c) Payment for extra duty assignments if it is thestandard practice of the public employer to include such pay in the employmentcontract or official job description for the calendar or academic year in whichit is paid and such pay is specifically included in the members employmentcontract or official job description.

(d) The aggregate compensation paid by two separatepublic employers if one member is employed half-time or more by one, andhalf-time or less by the other, if the total does not exceed full-timeemployment, if the duties of both positions are similar and if the employmentis pursuant to a continuing relationship between the employers.

3. The term does not include any type of payment notspecifically described in subsection 2.

(Added to NRS by 1975, 1028; A 1977, 1574; 1979, 940;1981, 444; 1999, 2616)

NRS 286.031 Disabilityretirement allowance defined. Disability retirementallowance means monthly payments from the Public Employees Retirement Fund orthe Police and Firefighters Retirement Fund paid to disabled retiredemployees.

(Added to NRS by 1975, 1028; A 1979, 255; 2003, 2051)

NRS 286.040 Employeedefined.

1. Employee means:

(a) A public officer of the State of Nevada or itspolitical subdivisions.

(b) Any person employed by a public employer whosecompensation is provided by the public employer and who is under the directionor control of officers of the public employer.

2. Employee does not include independent contractorsor persons rendering professional services to an employer on a fee, retainer orcontract basis.

3. The Board shall determine who are employees underthis definition.

[Part 2:181:1947; A 1949, 174; 1951, 269; 1951,324](NRS A 1959, 161; 1969, 219; 1975, 1029; 1979, 746)

NRS 286.042 Firefighterdefined. Firefighter means a member who is:

1. Filling a full-time position with a participatingpublic employer, the principal duties of which require emotional stability andphysical capacity in protecting the public and controlling and extinguishingfires.

2. The former holder of a position defined insubsection 1 who has:

(a) Earned at least 2 years of creditable service inthat position; and

(b) Been promoted or transferred within the chain ofcommand by the same public employer to a position related to protecting thepublic and controlling and extinguishing fires.

3. The former holder of a position defined insubsection 1 who:

(a) Has earned at least 2 years of creditable servicein that position; and

(b) Is employed by a different public employer in aposition that would have been eligible under paragraph (b) of subsection 2 hadhe remained with his former employer.

(Added to NRS by 1975, 1028; A 1977, 1574; 1981, 444;1987, 370; 2003, 2051)

NRS 286.045 Independentcontractor defined. Independent contractormeans any person who renders specified services for a stipulated fee who is notunder the control of a public employer, except as regards the result of hiswork, and who does not receive employment benefits such as annual leave andgroup insurance.

(Added to NRS by 1975, 1028)

NRS 286.050 Memberdefined. Member means a person:

1. Who is employed by a participating public employerand who is contributing to the System; or

2. Who has previously been in the employ of aparticipating public employer and who has contributed to the System but whosubsequently terminates such employment without withdrawing his contributions.

[Part 2:181:1947; A 1949, 174; 1951, 269; 1951,324](NRS A 1975, 1029)

NRS 286.061 Policeofficer defined. Police officer means amember who is:

1. Filling a full-time position with a participatingpublic employer, the principal duties of which require emotional stability andphysical capacity in protecting the public and enforcing the laws of the Stateof Nevada or any of its political subdivisions.

2. The former holder of a position defined insubsection 1 who has:

(a) Earned at least 2 years of creditable service inthat position; and

(b) Been promoted or transferred within the chain ofcommand by the same public employer to a position related to the protection ofthe public and law enforcement.

3. The former holder of a position defined insubsection 1 who:

(a) Has earned at least 2 years of creditable servicein that position; and

(b) Is employed by a different employer in a positionthat would have been eligible under paragraph (b) of subsection 2 had heremained with his former employer.

(Added to NRS by 1975, 1028; A 1977, 1575; 1981, 501,2013; 1985, 1982; 1987, 371)

NRS 286.065 Postretirementincrease defined. Postretirement increasemeans the monthly cost-of-living increase added to the monthly payments of:

1. Persons receiving disability retirement allowancesor service retirement allowances;

2. Beneficiaries of deceased members receivingallowances; and

3. Persons receiving monthly benefits for survivors,

pursuant tothe terms of this chapter.

(Added to NRS by 1975, 1028; A 1979, 255)

NRS 286.070 Publicemployer defined.

1. Public employer means the State, one of itsagencies or one of its political subdivisions, the System, irrigation districtscreated under the laws of the State of Nevada, a public or quasi-publicorganization or agency that is funded, at least in part, by public money,including a regional transportation commission, a governing body of a charterschool and a council of governments created pursuant to the laws of the Stateof Nevada.

2. State agencies are those agencies subject to statecontrol and supervision, including those whose employees are governed by chapter 284 of NRS, unless specifically exemptedtherefrom, and those which deposit money with the State Treasurer.

[Part 2:181:1947; A 1949, 174; 1951, 269; 1951,324](NRS A 1959, 12, 161; 1969, 219; 1973, 710; 1975, 1029; 1977, 1576; 1979,255, 1110; 1987, 1395; 1999,3319; 2003, 2051)

NRS 286.078 Servicedefined. Service means all creditable employmentwhich is validated under the provisions of this chapter and can be used in determiningeligibility and scope of benefits for members.

(Added to NRS by 1975, 1029)

NRS 286.080 Serviceretirement allowance defined. Serviceretirement allowance means monthly payments from the Public EmployeesRetirement Fund or the Police and Firefighters Retirement Fund paid to aretired employee for the remainder of his life.

[Part 2:181:1947; A 1949, 174; 1951, 269; 1951,324](NRS A 1975, 1029; 1979, 256; 2003, 2052)

NRS 286.100 Systemdefined. System means the Public EmployeesRetirement System established by this chapter.

[Part 2:181:1947; A 1949, 174; 1951, 269; 1951,324](NRS A 1975, 1030)

NRS 286.110 PublicEmployees Retirement System: Establishment; review of System; use of stateservices; public inspection of records; liability of public employers.

1. A system of retirement providing benefits for theretirement, disability or death of employees of public employers and funded onan actuarial reserve basis is hereby established and must be known as thePublic Employees Retirement System. The System is a public agency supported byadministrative fees transferred from the retirement funds. The Executive andLegislative Departments of the State Government shall regularly review theSystem.

2. The System is entitled to use any services providedto state agencies and shall use the services of the Purchasing Division of theDepartment of Administration, but is not required to use any other service. Thepurpose of this subsection is to provide to the Board the necessary autonomyfor an efficient and economic administration of the System and its program.

3. The official correspondence and records, other thanthe files of individual members or retired employees, and, except as otherwiseprovided in NRS 241.035, the minutes,audio recordings, transcripts and books of the System are public records andare available for public inspection.

4. The respective participating public employers arenot liable for any obligation of the System.

[3:181:1947; 1943 NCL 5230.03](NRS A 1975, 1030;1977, 1576; 1993, 474, 1552; 1995, 524; 2005, 1409)

NRS 286.117 Limitationson review and copying of records; waiver. Allrecords maintained for a member, retired employee or beneficiary may bereviewed and copied only by the System, the member, his public employer orspouse, or the retired employee or his spouse, or pursuant to a court order, orby a beneficiary after the death of the employee on whose account benefits arereceived. Any member, retired employee or beneficiary may submit a writtenwaiver to the System authorizing his representative to review or copy all suchrecords.

(Added to NRS by 1977, 1573)

ADMINISTRATION

NRS 286.120 Systemgoverned by Public Employees Retirement Board: Name; number of members; dutiesof Governor; removal of members.

1. The governing authority of the System shall be aboard of seven persons appointed by the Governor.

2. The name of the board shall be the PublicEmployees Retirement Board.

3. The Governor shall review periodically the broadadministrative policies and performance standards as they are beingadministered by the Board.

4. The Governor may remove and replace any Board memberfor cause shown.

[Part 4:181:1947; A 1949, 174; 1955, 23](NRS A 1973,854, 1412)

NRS 286.130 Qualificationsof members of Board; terms.

1. Three members of the Board must be persons who:

(a) Have had at least 10 years of service as employeesof the State of Nevada or its political subdivisions;

(b) Are not elected officers of the State of Nevada orits political subdivisions;

(c) Are active members of the System; and

(d) Are appointed from written nominations submitted bythe following groups:

(1) Employees of the State and the Nevada Systemof Higher Education;

(2) The academic staff of school districts;

(3) Employees of cities, excluding Carson City;

(4) Employees of counties, including Carson Cityand excluding employees of county hospitals;

(5) Employees of county hospitals, publicutilities, power districts, sanitation districts, classified school employeesand employees of other districts as determined by the Board; and

(6) Employees whose current positions entitlethem to participate in the Police and Firefighters Retirement Fund.

Each nomineemust 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 employeesof the State of Nevada or its political subdivisions;

(b) Are not elected officers of the State of Nevada orits political subdivisions;

(c) Are active members of the System; and

(d) Are appointed from written nominations submitted bythe following groups:

(1) Administrators of school districts ormembers of boards of trustees of school districts; and

(2) Members of boards of county commissioners orthe 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 itspolitical subdivisions with at least 10 years of service;

(b) Is serving in a position at least equivalent to themanager of a department or division;

(c) Is not an elected officer of the State of Nevada orits 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 employeeof the State of Nevada or its political subdivisions;

(b) Is not an elected officer of the State of Nevada orits political subdivisions; and

(c) Is receiving an allowance for service or disabilityretirement pursuant to this chapter.

5. A member of the Board shall serve for 4 years, solong as he has the qualifications required by this section, and until hissuccessor is appointed and takes office. A member of the Board who no longerhas the qualifications specified in the subsection under which he was appointedmay serve the remainder of his term if the member loses those qualifications inthe final 24 months of his term.

[Part 5:181:1947; A 1949, 174; 1943 NCL 5230.05](NRS A 1973, 1413; 1975, 1030; 1981, 445; 1987, 1522; 1991, 2355;1993, 381; 2003, 2052)

NRS 286.150 Monthlymeetings of Board; certain closed meetings; designation and term of Chairman.

1. The Board shall meet at least once a month.

2. Meetings of the Retirement Board with investmentcounsel which are limited to the planning of future investments or theestablishment of investment objectives and policies, or with legal counselwhich are limited to advice upon claims or suits by or against the System maybe closed by the Board.

3. At its first meeting each year, the Board shalldesignate one of its members to serve as Chairman of the Board for theremainder of the year and until his successor is designated and takes office.

[Part 4:181:1947; A 1949, 174; 1955, 23](NRS A 1973,854; 1977, 1576)

NRS 286.160 Personsemployed by Board: Appointment; salaries; qualifications; other employment ofExecutive Officer prohibited; exceptions.

1. The Board shall employ an Executive Officer whoserves at the pleasure of the Board. The Executive Officer shall select anOperations Officer, Investment Officer, Assistant Investment Officer, Managerof Information Systems, Administrative Assistant and Administrative Analystwhose appointments are effective upon confirmation by the Board. The OperationsOfficer, Investment Officer, Assistant Investment Officer, Manager ofInformation Systems, Administrative Assistant and Administrative Analyst serveat the pleasure of the Executive Officer.

2. The Executive Officer, Operations Officer,Investment Officer, Assistant Investment Officer, Manager of InformationSystems, Administrative Assistant and Administrative Analyst are entitled toannual salaries fixed by the Board with the approval of the Interim Retirementand Benefits Committee of the Legislature created pursuant to NRS 218.5373. The salaries of theseemployees are exempt from the limitations of NRS281.123.

3. The Executive Officer must:

(a) Be a graduate of a 4-year college or universitywith a degree in business administration or public administration or equivalentdegree.

(b) Possess at least 5 years experience in a highlevel administrative or executive capacity, including responsibility for avariety of administrative functions such as retirement, insurance, investmentor fiscal operations.

4. The Operations Officer, Investment Officer,Assistant Investment Officer, Manager of Information Systems and AdministrativeAnalyst must each be a graduate of a 4-year college or university with a degreein business administration or public administration or an equivalent degree.

5. Except as otherwise provided in NRS 284.143, the Executive Officer shallnot pursue any other business or occupation or perform the duties of any otheroffice of profit during normal office hours unless on leave approved inadvance. The Executive Officer shall not participate in any business enterpriseor investment in real or personal property if the System owns or has a directfinancial interest in that enterprise or property.

[Part 4:181:1947; A 1949, 174; 1955, 23] + [Part7:181:1947; 1943 NCL 5230.07] + [38:295:1953; A 1955, 553](NRS A 1967, 1493;1971, 1429; 1973, 855; 1975, 1031; 1977, 1577; 1979, 746; 1981, 445; 1985,1709; 1989, 1556; 1995, 250, 2319; 1997, 613; 1999, 3022; 2001, 2401; 2003, 2053)

NRS 286.170 Administrationof System; compensation and removal of employees.

1. Subject to the limitations of this chapter and thebudget prescribed by the Board, the System must be administered by theExecutive Officer, an Investment Officer, an Operations Officer and a staffauthorized by the Board and appointed by the Executive Officer with theapproval of the Board.

2. The Board shall fix the salaries of the staff inaccordance with the pay plan of the State for the classified service. Noemployee may be removed from the staff except in the manner provided for theclassified service of the State.

[Part 4:181:1947; A 1949, 174; 1955, 23] + [Part7:181:1947; 1943 NCL 5230.07](NRS A 1967, 1493; 1971, 1430; 1973, 855; 1975,1031; 1985, 391; 1989, 1557; 1991, 1970)

NRS 286.180 Compensationand expenses of members of Board.

1. Members of the Board are entitled to receive a feeof $80 per day for:

(a) Attendance at meetings of the Board;

(b) Any official function directly related to theSystem which is approved by the Board; or

(c) Necessary travel to attend a meeting of the Boardor a conference or seminar on retirement or to perform an official functiondescribed in paragraph (b).

2. Fees and reimbursement for expenses must be paidfrom the Public Employees Retirement Administrative Fund.

3. Fees and reimbursement for expenses must be paidfrom commitment fees obtained from borrowers whenever the members of the Boardhold special meetings or perform official functions, as described in paragraph(b) of subsection 1, which are limited solely to mortgage and real estateinvestments.

[Part 4:181:1947; A 1949, 174; 1955, 23](NRS A 1971,1315; 1973, 855; 1975, 1032; 1977, 1577; 1979, 747; 1981, 446; 1985, 392, 1710)

NRS 286.190 Generalpowers and duties of Board. The Board:

1. Has the powers and privileges of a body corporateand, subject to the limitations of this chapter, is responsible for managingthe System.

2. Shall:

(a) Arrange for a biennial actuarial valuation andreport of the actuarial soundness of the System to be prepared by anindependent actuary based upon data compiled and supplied by employees of theSystem, and shall adopt actuarial tables and formulas prepared and recommendedby the actuary.

(b) Provide for a biennial audit of the System, includingthe Administrative Fund, by an independent certified public accountant.

(c) Provide an annual report to the Governor, eachmember of the Legislature, each participating public employer, and eachparticipating employee and employer association, and make the report availableto all members upon request. The report must contain, when available, a reviewof the actuarial valuation required by paragraph (a).

3. May:

(a) Adjust the service or correct the records,allowance or benefits of any member, retired employee or beneficiary after anerror or inequity has been determined, and require repayment of any moneydetermined to have been paid by the System in error, if the money was paidwithin 6 years before demand for its repayment.

(b) Examine and copy personnel and financial records ofpublic employers.

(c) Receive requests for membership from state, countyor municipal entities which are not presently public employers, and determinewhether or not any such entity and its employees qualify for membership asprovided by this chapter.

(d) Require an annual notarized statement from aretired employee or beneficiary that he is in fact receiving an allowance orbenefits, and withhold the allowance or benefits if he fails to provide thestatement.

4. As used in this section, error or inequity meansthe existence of extenuating circumstances, including, but not limited to, amembers reasonable and detrimental reliance on representations made by theSystem or by the public employer pursuant to NRS286.288 which prove to be erroneous, or the mental incapacity of themember.

[Part 4:181:1947; A 1949, 174; 1955, 23](NRS A 1975,1032; 1977, 1577; 1979, 747; 1981, 446; 1989, 1557)

NRS 286.200 Rulesand regulations of Board: Procedure for adoption; conditions.

1. Subject to the limitations of this chapter, theBoard shall, from time to time, establish rules and regulations for transactingits business and for administering the System as a public agency. The rulesmust include, without limitation, rules relating to the administration of theretirement plans in accordance with federal law.

2. No rule is effective until 10 days after all of thefollowing conditions have been substantially met:

(a) A copy of the rule, in the form in which the Boardproposes it, must be delivered, within 30 days after the Board proposes it, toall public employers participating in the System.

(b) As soon as a public employer receives a copy of theproposed rule, the public employer immediately shall cause the copy to beposted on a bulletin board or in some conspicuous place in or near itsheadquarters.

(c) If the Board deems a proposed rule to be of suchlength or of such other nature that it cannot feasibly be publicized bydelivery and posting, a summary of the proposed rule must be delivered andposted in the manner and within the time required by paragraphs (a) and (b) ofthis subsection for copies of proposed rules.

(d) There must likewise be posted a notice statingthat, at a specifically designated time and place at least 15 days after thedelivery of the copy of the proposed rule or summary, a hearing on the proposedrule will be held, at which hearing all interested persons have an opportunity tobe heard and after which the Board may adopt the proposed rule in the form inwhich it is originally proposed or with such amendments as are deemed necessaryby the Board as a result of the hearing.

(e) A copy of the rule, in the form in which the Boardfinally adopts it, must be filed with the Secretary of State.

[6:181:1947; 1943 NCL 5230.06](NRS A 2001, 2401)

NRS 286.211 Dutiesof Board: Police and Firefighters Retirement Fund.

1. The Board shall, with the advice of the InterimRetirement and Benefits Committee of the Legislature created pursuant to NRS 218.5373:

(a) Adopt regulations for the evaluation of requestsfor enrollment under the Police and Firefighters Retirement Fund; and

(b) Determine those positions eligible under the earlyretirement provisions for police officers and firefighters.

2. Service in any position which has not beendetermined by the Board to be eligible does not entitle a member to earlyretirement as a firefighter or police officer.

(Added to NRS by 1987, 370; A 1999, 3022; 2003, 2054)

NRS 286.215 Dutiesof Board: Calculation and determination of contributions, benefits and servicecredit related to qualified military service. Notwithstandingany other provision of this chapter, the Board shall provide for thecalculation and determination of contributions, benefits and service creditrelating to qualified military service as defined in section 414(u) of theInternal Revenue Code (26 U.S.C. 414(u)).

(Added to NRS by 1997, 214)

NRS 286.220 PublicEmployees Retirement Fund.

1. The Board shall establish a fund known as thePublic Employees Retirement Fund.

2. It is hereby declared to be the policy of theLegislature that the Public Employees Retirement Fund is a trust fundestablished to afford a degree of security to long-time public employees of theState and its political subdivisions. The money in the Fund must not be used orappropriated for any purpose incompatible with the policy of the PublicEmployees Retirement System, as expressed in NRS286.015. The Fund must be invested and administered to assure the highestreturn consistent with safety in accordance with accepted investment practices.

3. The interest and income earned on the money in thePublic Employees Retirement Fund, after deducting any applicable charges, mustbe credited to the Fund.

4. Money in the Public Employees Retirement Fund mustbe expended by the Board for the purpose of paying:

(a) Service retirement allowances;

(b) Disability retirement allowances;

(c) Postretirement allowances;

(d) Benefits for survivors;

(e) Authorized refunds to members and theirbeneficiaries;

(f) Amounts equivalent to disability retirementallowances to be used by employers for rehabilitation; and

(g) Allowances to beneficiaries,

and for thepayment of expenses authorized by law to be paid from the Fund.

5. Contributions from members and from participatingpublic employers to the Public Employees Retirement Fund must be deposited ina bank or credit union of reputable standing in the State of Nevada. Suchdeposits must be secured in a manner satisfactory to the Board.

6. All checks drawn upon the Public EmployeesRetirement Fund must be signed by two persons designated by the Board.

[Part 10:181:1947; A 1949, 174; 1953, 129](NRS A1965, 89; 1973, 856, 997; 1975, 1033; 1977, 1578; 1979, 256; 1983, 1583; 1999, 1466)

NRS 286.225 Policeand Firefighters Retirement Fund.

1. The Board shall establish a separate retirementfund known as the Police and Firefighters Retirement Fund.

2. All refunds, disability retirement allowances,benefits for survivors, and service retirement allowances paid to policeofficers and firefighters and their beneficiaries must be paid from the Policeand Firefighters Retirement Fund.

3. All contributions paid by and for police officersand firefighters must be credited to the Police and Firefighters RetirementFund.

4. The Police and Firefighters Retirement Fund mustbe administered by the Board and is subject to all restrictions and regulationsapplicable to the Board.

5. Any postretirement increase appropriated by theLegislature in accordance with this chapter must be paid to eligible retiredpolice officers and firefighters and their beneficiaries from any suchappropriation.

6. Investment return on moneys in the Police andFirefighters Retirement Fund must be deposited in that Fund at the end of eachfiscal year based on annual average yield of the System.

7. The Board shall transfer appropriate employee andemployer contributions made by and for members who transfer to and from thePublic Employees Retirement Fund and the Police and Firefighters RetirementFund.

(Added to NRS by 1975, 1033; A 1977, 1579; 1979, 257;2003, 2054)

NRS 286.227 Policeand Firefighters Retirement Fund Advisory Committee.

1. There is hereby created a Police and FirefightersRetirement Fund Advisory Committee. The Board shall determine the number of itsmembers and appoint the members. Each member serves at the pleasure of theBoard.

2. The Committee shall make recommendations to theBoard concerning the administration of and benefits payable from the Police andFirefighters Retirement Fund. The Board shall consult with the Committee onall matters concerning this Fund, and consider its recommendations upon theirmerits.

(Added to NRS by 1977, 1572; A 2003, 2054)

NRS 286.230 PublicEmployees Retirement Administrative Fund.

1. The Board shall establish a fund known as thePublic Employees Retirement Administrative Fund in which must be deposited alladministrative fees.

2. The Board shall fix an administrative fee percapita sufficient to pay the operating expense of the System. Except asotherwise provided by NRS 1A.200 and 218.23745, the System shall transfermonthly from the respective retirement funds to the Public EmployeesRetirement Administrative Fund the amount of the per capita fee multiplied bythe combined number of members and persons receiving allowances from that Fund.

3. The Board may establish a separate and additionaladministrative fee for police officers and firefighters and their publicemployers to pay the additional expense of maintaining a separate fund and topay the actual and necessary travel expenses and other expenses, within thelimits established by the Board, for meetings of the Police and FirefightersRetirement Fund Advisory Committee.

[Part 10:181:1947; A 1949, 174; 1953, 129](NRS A1975, 1034; 1977, 1579; 1979, 748; 1981, 447; 1991, 2356; 2001 Special Session,94; 2003, 2054)

NRS 286.241 Fundto pay accrued benefits that are not payable because of certain limitations;benefits paid from employer contributions.

1. The Board may establish a fund to pay the accruedbenefits of a member that are not payable because of the limitations set forthin NRS 286.537. The fund must beestablished in accordance with the provisions of section 415(m) of the InternalRevenue Code (26 U.S.C. 415(m)) and must be separate from the Public EmployeesRetirement Fund.

2. If the Board establishes a fund pursuant tosubsection 1, the benefits that are required to be paid from the fund must bepaid from a portion of the employer contributions required to be paid pursuantto NRS 286.450. The Board shall:

(a) Determine the amount of the employer contributionsthat must be allocated to the fund; and

(b) Deposit that amount in the fund before it depositsany remaining employer contributions in the Public Employees Retirement Fund.

(Added to NRS by 1997, 215)

NRS 286.260 Individualaccounts of members; liability of Board upon return of contributions.

1. The Board shall provide for an individual accountfor each member of the System. Each account must show the amount of themembers contributions to the Public Employees Retirement Fund or Police andFirefighters Retirement Fund and any changes in the account that may belegally authorized.

2. Any interest paid by a member with the repayment ofwithdrawn contributions or purchase of any service must not be credited to suchmembers account.

3. The Board is relieved of any further liabilityregarding a member, his estate or a beneficiary upon the return of all employeecontributions to the member, his estate or beneficiary or a combinationthereof.

[Part 10:181:1947; A 1949, 174; 1953, 129](NRS A1975, 1034; 2003,2055)

NRS 286.265 Noticeto Public Employees Benefits Program regarding certain changes in paymentstatus of benefit recipients. The System shallprovide to the Public Employees Benefits Program written notice regarding achange in the payment status of a recipient of benefits provided pursuant tothis chapter that affects the eligibility of the recipient to participate inthe Program. Such notice must be provided by the System to the Program, in aformat agreed upon by the System and the Program, within 30 calendar days afterthe System is notified of the change in payment status.

(Added to NRS by 2003, 3259)

NRS 286.282 Chiefof Budget Division to advise Governor concerning review of Systems policiesand performance. The Chief of the BudgetDivision of the Department of Administration shall advise the Governor in thedischarge of his responsibility for reviewing the Systems administrativepolicies and performance standards under this chapter.

(Added to NRS by 1973, 859; A 1983, 182)

NRS 286.287 Boardto consider investments: Meetings; duties. TheBoard shall meet at least monthly to consider investments. At each of itsmeetings it shall:

1. Review, and if appropriate direct changes in, theinvestment portfolio of the System.

2. Recommend any appropriate changes in the investmentobjectives and policies.

3. Acknowledge and process investment suggestionsforwarded to it by members of the System.

4. Provide for investment practice explanations to allmembers of the System when such explanations seem appropriate.

(Added to NRS by 1973, 859; A 1975, 1035; 1977, 1580)

NRS 286.288 Liaisonofficer between System and members or employers; responsibility of System forinaccurate or misleading information. Anyparticipating public employer or group of such employers may select an employeeas liaison officer to certify records and coordinate matters pertaining toretirement between the System and members or participating public employers.The System is responsible for any inaccurate or misleading information providedto any person or agency by an officer or employee of the System, but is notresponsible for inaccurate or misleading information provided by any otherperson.

(Added to NRS by 1975, 1035; A 1979, 748)

MEMBERSHIP

NRS 286.290 Conditionsfor membership in System.

1. No person may become a member of the System unlesshe is in the service of a public employer.

2. Except as otherwise provided in this chapter, allpublic employers shall participate in the System and their employees shall bemembers of the System.

[Part 8:181:1947; A 1949, 174; 1951, 269]

NRS 286.293 Personsrequired to participate in System.

1. The following employees of public employers shallparticipate in the System:

(a) Those employed on or after July 1, 1977, inpositions considered to be half-time or more according to the full-time workschedule established for that public employer.

(b) Elected officials or persons appointed to electivepositions who are elected or appointed after July 1, 1975, except whereexcluded by NRS 286.297 and exceptjustices of the peace and municipal judges who are allowed and who elect toparticipate in the Judicial Retirement Plan pursuant to NRS 1A.285.

(c) A member whose allowance is vested or who iscontributing immediately before a legislative session who is employed on orafter January 1, 1981, by either house of the Legislature or by the LegislativeCounsel Bureau.

(d) A member of the Nevada Gaming Commission.

2. The Board shall establish standards for determiningwhat constitutes a full-time work schedule pursuant to paragraph (a) ofsubsection 1.

(Added to NRS by 1975, 1038; A 1977, 1580; 1981, 448;1999, 2616; 2005, 1000)

NRS 286.297 Personsexcluded from membership in System. The followingpersons are not eligible to become members of the System:

1. Inmates of state institutions even though they maybe receiving compensation for services performed for the institution.

2. Independent contractors or persons renderingprofessional services on a fee, retainer or contract basis.

3. Except as otherwise provided in NRS 286.525, persons retired under theprovisions of this chapter who are employed by a participating public employer.

4. Members of boards or commissions of the State ofNevada or of its political subdivisions when such boards or commissions areadvisory or directive and when membership thereon is not compensated except forexpenses incurred. Receipt of a fee for attendance at official sessions of aparticular board or commission does not constitute compensation for the purposeof this subsection.

5. Substitute teachers and students who are employedby the institution which they attend.

6. District judges and justices of the Supreme Courtfirst elected or appointed on or after July 1, 1977, who are not enrolled inthe System at the time of election or appointment.

7. Members of the professional staff of the NevadaSystem of Higher Education who are employed on or after July 1, 1977.

8. Persons employed on or after July 1, 1979, underthe Comprehensive Employment and Training Act.

9. Except as otherwise provided in NRS 286.293, persons assigned to intermittentor temporary positions unless the assignment exceeds 6 consecutive months.

10. Persons employed on or after July 1, 1981, aspart-time guards at school crossings.

11. 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 byother employees of the same employer; and

(d) Do not work a regular schedule or are requested towork for a shift at a time.

[Part 8:181:1947; A 1949, 174; 1951, 269](NRS A1975, 1039; 1977, 1581; 1979, 750, 941; 1981, 449; 1983, 129; 1989, 1558; 1993,382, 474; 1995, 524)

NRS 286.300 Purchaseof credit for service: Requirements; sources; refund of contributions;defaults. Except as otherwise required as aresult of NRS 286.537:

1. Any member of the System may, except as otherwiseprovided in subsection 5, purchase all previous creditable service performedwith his present employing agency if that service was performed before theenrollment of his agency in the System, even if the service is still creditablein some other system where it cannot be cancelled. The public employer mustcertify the inclusive dates of employment and number of hours regularly workedby the member to validate the service. The member must pay the full actuarialcost as determined by the actuary.

2. In addition to the purchases authorized pursuant tothe provisions of subsections 1 and 3, any member who has 5 years of creditableservice may, except as otherwise provided in subsection 5, purchase up to 5years of service. The member must pay the full actuarial cost of the service asdetermined by an actuary of the System.

3. In addition to the purchases authorized pursuant tothe provisions of subsections 1 and 2 and in addition to any free creditreceived pursuant to NRS 286.303 and 286.479, any member who has 5 years ofcreditable service, served on active military duty during the period beginningon the date proclaimed by the President of the United States as the date onwhich Operation Desert Storm, Operation Enduring Freedom or Operation IraqiFreedom began and was honorably discharged or released from active duty may,except as otherwise provided in subsection 5, purchase a number of months ofservice equal to the number of full months he served on active military duty,but in no case may the service purchased pursuant to this subsection exceed 3years. The member must pay the full actuarial cost of the service as determinedby an actuary of the System.

4. In addition to the purchases authorized pursuant tothe provisions of subsections 1 and 3, 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 schooldistrict that has, pursuant to subsection 5 of NRS 391.180, provided for the payment ofunused sick leave in the form of purchase of service,

may, exceptas otherwise provided in subsection 5, cause to be purchased on his behalfservice credit, not to exceed the number of hours of unused sick leave or 1year, whichever is less. The full actuarial cost of the service as determinedby an actuary of the System must be paid for such a purchase. Any servicecredit purchased pursuant to this subsection must be included as a part of, andis not in addition to, service purchased pursuant to subsection 2.

5. A person who becomes a member of the System for thefirst time on or after January 1, 2000, may, on or after July 1, 2001, purchasecreditable service pursuant to subsection 1, 2 or 3, or cause to be purchasedon his behalf service credit pursuant to subsection 4, only if, at the time ofthe purchase, he is employed by a participating public employer in a positioneligible for membership in the System.

6. Any member of the System may use:

(a) All or any portion of the balance of the membersinterest in a qualified trust pursuant to section 401(a) of the InternalRevenue Code, 26 U.S.C. 401(a); or

(b) The money contained in an individual retirementaccount or an individual retirement annuity of a member, the entire amount ofwhich is:

(1) Attributable to a qualified distributionfrom 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 rolloverdistribution pursuant to section 402 of the Internal Revenue Code, 26 U.S.C. 402,

to purchasecreditable service pursuant to subsection 1, 2 or 3.

7. A member of the System who purchases creditableservice pursuant to subsection 1, 2 or 3 is entitled to receive a refund of anycontributions paid toward the purchase of the service only if he is no longerin the employ of a participating public employer.

8. If a member of the System enters into an agreementwhereby he agrees to pay for the purchase of service credit in installments andhe defaults on that agreement, the member is entitled to receive service creditin the proportion that the principal paid bears to the principal due under theagreement.

[Part 8:181:1947; A 1949, 174; 1951, 269](NRS A1960, 472; 1963, 986; 1969, 854; 1975, 1035; 1979, 257, 748, 1110; 1981, 110,447; 1985, 1710; 1989, 1559; 1991, 2357; 1999, 1558, 2617; 2001, 2402; 2003, 2055; 2005, 949)

NRS 286.3005 Purchaseof credit for service: Public employer may purchase credit for member. A state agency may purchase credit for service on behalfof a member only as provided in NRS286.3007. Except as otherwise required as a result of NRS 286.537 or 391.165, any other public employer may payany portion of the cost to purchase credit for service under NRS 286.300, but is not required to do so.No credit may be validated unless the cost of purchasing credit has been paid.

(Added to NRS by 1979, 759; A 1981, 111; 1985, 1022,1711; 1989, 1560; 1991, 2357; 1999, 1965)

NRS 286.3007 Purchaseby state agency of credit for service: Conditions. Exceptas otherwise required as a result of NRS286.537:

1. A state agency may enter into an agreement to paythe cost of purchasing credit for service pursuant to NRS 286.300 on behalf of a member if:

(a) The agency enters into the agreement before themember is employed;

(b) The member is employed upon the condition that theemployer pay the cost of purchasing the credit; and

(c) The agreement to pay the cost of purchasing thecredit is in writing, becomes part of the personnel records of the employee andis approved in advance by the State Board of Examiners.

2. If a state agency is authorized to purchase creditpursuant to subsection 1, it shall not do so until the member has completed 1year of service in its employ.

3. If a state agency is required to reduce the numberof its employees, it shall purchase credit for service pursuant to NRS 286.300 for any member who:

(a) Is eligible to purchase credit;

(b) Is eligible to retire or will be made eligible bythe purchase of the credit;

(c) Agrees to retire upon completion of the purchase;and

(d) Has been employed by the agency for 5 or moreyears.

4. If a state agency is required to purchase creditpursuant to subsection 3, it shall pay 5 percent of the cost of purchasing thecredit and an additional 5 percent of the cost for each year that the personhas been employed by the agency in excess of the minimum requirement of 5years.

(Added to NRS by 1985, 1022; A 1991, 2357; 1999, 1198)

NRS 286.301 Creditfor free prior service. A member who met all requirementsfor free prior service but who did not have 10 years of service credit as ofJuly 1, 1975, is entitled to credit for free prior service as soon as heacquires the necessary 10 years of service credit.

(Added to NRS by 1977, 1573)

NRS 286.303 Freecredit for military service. A member who metall requirements for free military credit as of May 19, 1975, but who did nothave 5 years of consecutive service credit after his return from the ArmedForces, is entitled to free credit for military service as soon as he attains 5years of consecutive service credit under the System.

(Added to NRS by 1977, 1573)

NRS 286.365 Eligibilityof civilian employees of Nevada National Guard for membership in System.

1. Notwithstanding the provisions of any other sectionof this chapter, the Nevada National Guard shall be deemed an employing agencyof the State of Nevada for the purpose of membership of the civilian employeesof the Nevada National Guard in the System.

2. Except as otherwise required as a result of NRS 286.537, the membership of the civilianemployees of the Nevada National Guard in the System may be retroactive at theoption of the individual employee upon payment of all employee contributionsfor prior service. Contributions for prior service may be paid as provided in NRS 286.440.

3. No civilian employee of the Nevada National Guardis entitled to become or continue as a member of the System if he has orobtains retirement coverage for his position as a civilian employee under aretirement program administered by the United States Government, to the endthat no dual coverage results.

(Added to NRS by 1960, 296; A 1991, 2358)

NRS 286.367 Eligibilityof volunteer firefighters for membership in System: Contributions; averagecompensation; purchase of credit for service as volunteer firefighter and forcertain military service.

1. The volunteers of a regularly organized andrecognized fire department may, by the joint application of a majority of thosevolunteers addressed to the Board, become members of the System. A volunteerfirefighter who joins a fire department of which all the volunteers have becomemembers of the System becomes a member of the System. The volunteers of aparticipating fire department may withdraw from the System by the jointapplication of a majority of those volunteers addressed to the Board.

2. The city, town, county or district which recognizesthe volunteers is the public employer and shall collect and pay over theemployees share and pay the employers share of the contribution to the PublicEmployees Retirement Fund and the Public Employees Retirement AdministrativeFund, in the manner prescribed in this chapter. The local government may, if sorequested by the volunteers, further contribute any amount by which the sumreceivable by each volunteer for any month is less than the amount of hisrequired share of the contribution, but no further contributions may be placedin a volunteers account with the System or refunded to a volunteer or hisemployer upon the volunteers termination.

3. In determining the amount of contributions to bepaid for the volunteers, they are assumed to be receiving a wage established bythe local government which is not less than $150 nor more than $2,000 permonth.

4. Except as otherwise required as a result of NRS 286.535 or 286.537, the average compensation for avolunteer firefighter is the weighted average of:

(a) The assumed wage as a volunteer firefighter; and

(b) The average salary in other covered employmentwhich, if the service in that employment exceeds 3 years, is calculated uponthe 3 highest consecutive years.

The weightgiven to the assumed wage and average salary, respectively, is proportionate tothe length of service in each capacity. Except as otherwise required as aresult of NRS 286.535 or 286.537, average compensation is computedfrom the sum of the assumed wage and actual salary if a member is employedsimultaneously as a volunteer firefighter and as a regular member.

5. Any dispute over the status of a person as avolunteer firefighter under this section must be conclusively determined by theBoard.

6. A volunteer firefighter may purchase all previousservice as a volunteer firefighter with any volunteer fire department which isa member of the System. To validate such service, the volunteer firefightermust pay the full cost as determined by the actuary. The employing agency maypay the employers share of the cost but is not required to do so.

7. In addition to the purchases authorized pursuant tothe provisions of subsections 6 and 8, a volunteer firefighter who has 5 yearsof creditable service as a volunteer firefighter may purchase up to 5 years ofservice to add to his volunteer service. The member must pay the full actuarialcost of the service as determined by an actuary of the System.

8. In addition to the purchases authorized pursuant tothe provisions of subsections 6 and 7 and in addition to any free creditreceived pursuant to NRS 286.303 and 286.479, a volunteer firefighter who has 5years of creditable service as a volunteer firefighter, served on activemilitary duty during the period beginning on the date proclaimed by thePresident of the United States as the date on which Operation Desert Storm,Operation Enduring Freedom or Operation Iraqi Freedom began and was honorablydischarged or released from active duty may purchase a number of months ofservice equal to the number of full months he served on active military duty,but in no case may the service purchased pursuant to this subsection exceed 3years. The member must pay the full actuarial cost of the service as determinedby an actuary of the System.

(Added to NRS by 1969, 1147; A 1975, 1039; 1977,1582; 1985, 791, 1711; 1989, 1561; 1991, 2359; 2003, 2056; 2005, 889, 950)

NRS 286.370 Procedurefor integration of previously established retirement systems.

1. Employees whose membership in a previouslyestablished retirement system excludes them from membership in the Systemestablished by this chapter may apply to the Board in writing for the formersystem to be integrated into the latter System and for them to become membersof the latter System. Whenever two-thirds of them and their employer, throughits governing body, chief official or department head so apply, the Board may:

(a) Cause a financial and actuarial investigation ofthe proposed integration to be made, the cost of which shall be borne by thepreviously established system; and

(b) Upon such terms as are set forth in a contractbetween the Board and the employer, integrate the previously established systeminto the System established by this chapter.

2. The contract shall have no effect until notice andhearing regarding it are afforded in the manner prescribed in NRS 286.200 for the promulgation of rulesby the Board.

3. Nothing in this chapter nor any action takenpursuant to it shall reduce or impair the benefits which employees who arereceiving benefits from a retirement system integrated with the System providedby this chapter would have received had the integration not been effected.

[9(1):181:1947; 1943 NCL 5230.09]

NRS 286.385 Publicemployee on leave of absence to serve in Nevada Legislature may remain memberof System. Except as otherwise required as aresult of NRS 286.535 or 286.537:

1. A public employee on a leave of absence to serve inthe Nevada Legislature may remain a contributing member of the System duringthe leave of absence if retirement contributions to the System are paid by theLegislator at the contribution rate otherwise applicable to him as a publicemployee during the period in which he is on the leave of absence to serve inthe Nevada Legislature.

2. When a public employee on a leave of absence toserve in the Nevada Legislature continues to be a contributing member of theSystem pursuant to subsection 1, the employee shall pay the contributionsrequired directly to the System. The System shall ensure that the employer ofthe public employee who is on a leave of absence to serve in the NevadaLegislature provides to the System documentation of the period during which theemployee is on the leave of absence. The public employer is not required to paythe employer contribution during the leave of absence.

3. A public employee on a leave of absence to serve inthe Nevada Legislature may elect to have the amount deducted pursuant to NRS 218.2387 paid to the System topartially offset the contributions that the employee is required to pay toremain a member of the System.

4. A public employee who makes the election authorizedpursuant to this section does not accrue any service credit for retirementunder the Legislators Retirement System after the date of his electionpursuant to this section becomes effective.

5. For the purposes of this section, compensationshall be deemed to be the salary paid for the position from which the employeeis on leave.

(Added to NRS by 1999, 2615)

NRS 286.391 Publicemployee on leave to work for employee or employer association may remainmember of System; purchase of credit for service.

1. A public employee on leave to work for a recognizedemployee or employer association may remain a member of the System ifretirement contributions to the System are continued.

2. When an employee on leave continues to be a memberof the System, the public employer from whom the employee is on leave shallinclude the payment of the contributions and all other required information onhis regular monthly retirement report as provided in NRS 286.460. The public employer is notrequired to pay the employer contribution.

3. Except as otherwise required as a result of NRS 286.535 or 286.537, for the purposes of this section,compensation shall be deemed to be the salary paid for the position fromwhich the employee is on leave.

4. Except as otherwise required as a result of NRS 286.537, any member of the System maypurchase credit for any period on or after July 1, 1947, for which contributionswere not paid, which qualifies under this section. The member must pay the fullactuarial costs determined by the actuary.

(Added to NRS by 1981, 443; A 1985, 1712; 1991, 2360)

NRS 286.401 Terminationof membership; rights of retired employee. Membershipof an employee in the System terminates upon:

1. The death of a member.

2. The withdrawal of contributions from a membersaccount.

3. Receipt of retirement allowances by a member.

4. Receipt of disability allowances by a member.

A retiredemployee is not entitled to any right conferred by this chapter upon a memberunless the provision conferring that right expressly states that it isconferred upon a retired employee.

(Added to NRS by 1975, 1040; A 1977, 1583)

CONTRIBUTIONS

NRS 286.410 Amountof contribution by member of System; deduction from payroll; return ofcontributions; disabled members.

1. The employee contribution rate must be:

(a) The matching contribution rate for employees andemployers that is actuarially determined for police officers and firefightersand for regular members, depending upon the retirement fund in which the memberis participating.

(b) Adjusted on the first monthly retirement reportingperiod commencing on or after July 1 of each odd-numbered year based on theactuarially determined contribution rate indicated in the biennial actuarialvaluation and report of the immediately preceding year. The adjusted rate mustbe rounded to the nearest one-quarter of 1 percent.

2. The employees portion of the matching contributionrate for employees and employers must not be adjusted in accordance with theprovisions of paragraph (b) of subsection 1 if the existing rate is withinone-quarter of 1 percent of the actuarially determined rate.

3. From each payroll during the period of hismembership, the employer shall deduct the amount of the members contributionsand transmit the deduction to the Board at intervals designated and upon formsprescribed by the Board. The contributions must be paid on compensation earnedby a member from his first day of service.

4. Any employee whose position is determined afterJuly 1, 1971, to be eligible under the early retirement provisions for policeofficers and firefighters shall contribute the additional contributionsrequired of police officers and firefighters from July 1, 1971, to the date ofhis enrollment under the Police and Firefighters Retirement Fund, ifemployment in this position occurred before July 1, 1971, or from date of employmentin this position to the date of his enrollment under the Police andFirefighters Retirement Fund, if employment occurs later.

5. Except as otherwise provided in NRS 286.430, the System shall guarantee toeach member the return of at least the total employee contributions which themember has made and which were credited to his individual account. Thesecontributions may be returned to the member, his estate or beneficiary or acombination thereof in monthly benefits, a lump-sum refund or both.

6. Disabled members who are injured on the job andreceive industrial insurance benefits for temporary total disability remaincontributing members of the System for the duration of the benefits if andwhile the public employer continues to pay the difference between thesebenefits and his regular compensation. The public employer shall pay theemployer contributions on these benefits.

[Part 14:181:1947; A 1949, 174; 1951, 76, 269](NRS A1959, 880; 1963, 987; 1965, 401; 1967, 741; 1969, 855; 1971, 622; 1973, 1413;1975, 1040; 1977, 1583; 1981, 449; 1983, 479; 1985, 1713; 1993, 475; 2003, 2057)

NRS 286.421 Paymentof contributions by employer on behalf of employee; average compensation; totalrate of contribution.

1. A public employer that elected to pay on behalf ofits employees the contributions required by subsection 1 of NRS 286.410 before July 1, 1983, shallcontinue to do so, but a public employer may not elect to pay thosecontributions on behalf of its employees on or after July 1, 1983.

2. An employee of a public employer that did not electto pay on behalf of its employees the contributions required by subsection 1 ofNRS 286.410 before July 1, 1983, mayelect 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 hisemployer pursuant to the provisions of NRS286.425.

3. Except for any person chosen by election orappointment to serve in an elective office of a political subdivision or as adistrict judge or a justice of the Supreme Court of this State :

(a) Payment of the employees portion of thecontributions pursuant to subsection 1 must be:

(1) Made in lieu of equivalent basic salaryincreases or cost-of-living increases, or both; or

(2) Counterbalanced by equivalent reductions inemployees salaries.

(b) The average compensation from which the amount ofbenefits payable pursuant to this chapter is determined must be increased withrespect to each month beginning after June 30, 1975, by 50 percent of thecontribution made by the public employer, and must not be less than it wouldhave been if contributions had been made by the member and the public employerseparately. 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 hiscompensation but is an added special payment.

4. Employee contributions made by a public employermust be deposited in either the Public Employees Retirement Fund or the Policeand Firefighters Retirement Fund as is appropriate. These contributions mustnot be credited to the individual account of the member and may not bewithdrawn by the member upon his termination.

5. The membership of an employee who became a memberon or after July 1, 1975, and all contributions on whose behalf were made byhis public employer must not be cancelled upon the termination of his service.

6. If an employer is paying the basic contribution onbehalf of an employee, the total contribution rate, in lieu of the amountsrequired by subsection 1 of NRS 286.410and NRS 286.450, must be:

(a) The total contribution rate for employers that isactuarially determined for police officers and firefighters and for regularmembers, depending upon the retirement fund in which the member isparticipating.

(b) Adjusted on the first monthly retirement reportingperiod commencing on or after July 1 of each odd-numbered year based on theactuarially determined contribution rate indicated in the biennial actuarialvaluation and report of the immediately preceding year. The adjusted rate mustbe rounded to the nearest one-quarter of 1 percent.

7. The total contribution rate for employers must notbe adjusted in accordance with the provisions of paragraph (b) of subsection 6if the existing rate is within one-half of 1 percent of the actuariallydetermined rate.

8. For the purposes of adjusting salary increases andcost-of-living increases or of salary reduction, the total contribution must beequally divided between employer and employee.

9. Public employers other than the State of Nevadashall pay the entire employee contribution for those employees who contributeto the Police and Firefighters Retirement Fund on and after July 1, 1981.

(Added to NRS by 1975, 1042; A 1977, 1584; 1979, 941;1981, 440; 1983, 1647, 1930, 2048; 1985, 1713, 1983; 1987, 372; 1989, 1023;1991, 469; 1993, 476; 1999,3329; 2003, 2058)

NRS 286.425 Electionby employee to have employer pay contributions. Atany time after January 1, 1984, an employee who is paying the employees contributionon his own behalf may elect to have his portion of the contribution paid by hisemployer in the manner provided in NRS286.421. An employee who makes such an election may not thereafter convertto paying his own contributions.

(Added to NRS by 1983, 1930)

NRS 286.430 Withdrawalof contributions.

1. Except as otherwise provided in subsection 8 and NRS 286.300, a member may withdraw theemployee contributions credited to his individual account if:

(a) He has terminated service for which contribution isrequired; or

(b) He is employed in a position for which contributionis prohibited.

2. The System shall not refund these contributionsuntil it has received:

(a) A properly completed application for refund;

(b) A notice of termination from the members publicemployer or a certification by the public employer that the member is employedin a position for which contribution is prohibited; and

(c) Except as otherwise provided in subsection 3, allcontributions withheld from such members compensation.

3. If a member submits an application for a refund ofhis contributions before all of his contributions which were withheld have beenremitted, the System may refund the portion of his contributions which it hasreceived.

4. If it is determined, after the System has refundedthe contributions of a member, that an additional amount of less than $10 isdue to him, a refund of that amount need not be paid.

5. Refunds, pursuant to this section, must be made bycheck mailed to the address specified by a member in his application forrefund.

6. The System shall transfer all money retainedpursuant to subsection 4 and the amount of any unclaimed refund checks to thePublic Employees Retirement Fund or the Police and Firefighters RetirementFund.

7. All membership rights and active service credit inthe System, including service for which the public employer paid the employeecontributions, are cancelled upon the withdrawal of contributions from amembers account.

8. A member who transfers to a position for whichcontribution is prohibited must remain in that position for at least 90 daysbefore he is eligible to receive a refund pursuant to this section.

[Part 16:181:1947; A 1949, 174; 1951, 269; 1955,117](NRS A 1963, 988; 1965, 955; 1975, 1043; 1977, 1585; 1979, 258; 1981, 450;1983, 480; 1987, 681; 2001,2403; 2003, 2059)

NRS 286.435 Repaymentupon retroactive reinstatement. Except as otherwiserequired as a result of NRS 286.537:

1. Any member whose employment is involuntarilyterminated and who is thereafter reinstated retroactively to employment with aparticipating public employer by order of any administrative or judicialauthority, or by the terms of any settlement agreement, shall pay to theSystem:

(a) Any employee contributions which were refunded tohim;

(b) Any service or disability allowance which was paidto him;

(c) All employee contributions which would have beenmade on the back pay awarded to him; and

(d) The interest on any amount due from the date onwhich:

(1) He received the money to be repaid pursuantto paragraph (a) or (b); and

(2) Each contribution would have been made onthe money due pursuant to paragraph (c),

to the dateof payment at the assumed investment income rate used in the most recentactuarial valuation of the System.

2. The employer shall deduct from any back pay awardedor granted to the member all money due pursuant to subsection 1 and forwardthis amount to the System. If the amount of back pay awarded or granted to themember is not sufficient to pay all of the money due pursuant to subsection 1,the member shall pay any balance due to the System under a reasonable plan forpayment established by the System.

3. Upon receipt by the System of the full amount duepursuant to subsection 1, the member is entitled to all the membership rightsand service credit which were cancelled by his involuntary termination.

(Added to NRS by 1983, 491; A 1989, 1562; 1991, 2360)

NRS 286.440 Redepositof withdrawn contributions upon return to service: Procedure.

1. Whenever a member, who has previously withdrawn theamount credited to him as provided in NRS286.430, returns to the service of a public employer participating in theSystem and remains a contributing member for 6 months, he may:

(a) Make repayment in a lump sum plus interest from thedate he withdrew his contributions to the date of repayment; or

(b) With the approval of the Executive Officer, enterinto an agreement containing a schedule of payments to repay the withdrawncontributions plus interest from the date of withdrawal to the date ofrepayment. Payments shall not be less than $10 per month.

For thepurposes of this subsection, interest shall be computed at the assumedinvestment income rate used in the actuarial valuation of the System nextpreceding the date of repayment under paragraph (a) or agreement underparagraph (b).

2. Upon redepositing his withdrawn contributions, withinterest, the member shall have restored completely his previous service creditwhich had been relinquished by the withdrawal of such contributions. If amember fails to perform fully an agreed repayment schedule, he is entitled toservice credit for previous service in the same proportion that his repaymentof withdrawn contributions bears to the total amount of withdrawncontributions.

[Part 16:181:1947; A 1949, 174; 1951, 269; 1955,117](NRS A 1961, 162; 1963, 988; 1967, 742; 1973, 1415; 1975, 1044; 1977,1586)

NRS 286.450 Rateof contributions by public employer.

1. The employer contribution rate must be:

(a) The matching contribution rate for employees andemployers that is actuarially determined for police officers and firefightersand for regular members, depending upon the retirement fund in which the memberis participating.

(b) Adjusted on the first monthly retirement reportingperiod commencing on or after July 1 of each odd-numbered year based on theactuarially determined contribution rate indicated in the biennial actuarialvaluation and report of the immediately preceding year. The adjusted rate mustbe rounded to the nearest one-quarter of 1 percent.

2. The employers portion of the matching contributionrate for employees and employers must not be adjusted in accordance with theprovisions of paragraph (b) of subsection 1 if the existing rate is withinone-quarter of 1 percent of the actuarially determined rate.

[15:181:1947; A 1949, 174; 1951, 269; 1953, 129](NRSA 1959, 881; 1963, 989; 1967, 743; 1969, 858; 1971, 623; 1973, 1416; 1975,1045; 1977, 1586; 1981, 451; 1985, 1714; 1987, 373; 1993, 477; 2003, 2060)

NRS 286.460 Remittanceof contributions by public employers.

1. Each participating public employer which payscompensation to its officers or employees in whole or in part from moneyreceived from sources other than money appropriated from the State GeneralFund, shall pay public employer contributions, or the proper portion thereof,to the System from the money of the department, board, commission or agency.

2. Public employer contributions for compensation paidfrom the State General Fund must be paid directly by each department, board,commission or other agency concerned, and allowance therefor must be made inthe appropriation made for each department, board, commission or other stateagency.

3. All participating public employers that arerequired to make payments pursuant to this section shall file payroll reportsnot later than 15 days after the end of the reporting period, together with theremittance of the amount due to the System. The 15-day limit is extended 1working day for each legal holiday that falls within the 15-day period and isofficially recognized by the public employer.

4. Payroll reports must contain accurate payrollinformation and be filed in a form prescribed by the Board. If the payrollreports are not filed or the amounts due are not remitted within the timeprovided, a penalty on the unpaid balance due must be assessed at a rate of 4percent more than the prime rate of interest as published in the Wall StreetJournal (Western Edition) for the first date the payment or report becomesdelinquent.

5. A notice of the penalty assessed must be mailed bycertified mail to the chief administrator of the delinquent public employer.The public employer shall pay the assessment within 90 days after receipt ofthe notice or an additional penalty of 1 percent of the assessment per monthmust be imposed until paid. Refusal or failure by the public employer to paythe assessment within 12 months after receipt is a misdemeanor on the part ofthe chief administrator of the delinquent public employer. The Retirement Boardmay accept, no later than 30 days after the notice is received, an appeal froma public employer for waiver or reduction of a penalty assessed on account ofextenuating circumstances and make any adjustment it deems necessary.

6. Except as otherwise required as a result of NRS 286.537, upon notification that acurrent employee was not properly enrolled in the System by the public employer,the public employer shall pay within 90 days all the employee and employercontributions and the interest that is due as computed by the System from thefirst day the employee was eligible for membership. The public employer isentitled to recover from the employee the employee contributions and interestthereon.

7. As used in this section, reporting period meansthe calendar month for which members compensation and service credits arereported and certified by participating public employers. Compensation paidduring each month must be reported separately, and retroactive salary increasesmust be identified separately for each month to which they apply.

[Part 12:181:1947; 1943 NCL 5230.12] + [12(a):181:1947; added 1949, 174; A 1951, 269](NRS A 1971, 623, 1317; 1975, 1045;1977, 1586; 1981, 451; 1991, 1970, 2361; 2001, 2403)

NRS 286.462 Complaintto Department of Taxation required concerning delinquent report or payment. If a public employer is delinquent by more than 90 days insubmitting a report or paying an amount due pursuant to subsection 3 of NRS 286.460, the System shall submit awritten complaint to the Department of Taxation asking it to take such actionsas are necessary in accordance with NRS354.665.

(Added to NRS by 1991, 1970; A 1995, 251, 1897)

SERVICE

NRS 286.470 Creditfor service as county commissioner, city councilman or mayor: Calculation ofaverage compensation; waiver of service; exception.

1. Except as otherwise required as a result of NRS 286.535 or 286.537, or as otherwise provided insubsection 3, average compensation for service performed as a countycommissioner, councilman or mayor must be calculated as follows for thosemembers whose effective date of retirement is after May 19, 1975:

(a) Service retirement allowance for elective servicemust be computed on the basis of the highest 36 consecutive months of electiveservice multiplied by the percentage of average compensation earned during suchservice.

(b) Service retirement allowance for regular servicemust be computed on the basis of the highest 36 consecutive months of regularservice multiplied by the percentage of average compensation earned during suchservice.

(c) The service retirement allowances for electiveservice and for regular service are added together to provide the totalunmodified service retirement allowance earned by the member.

(d) Average compensation for service before July 1,1977, is computed from the sum of both salaries when a member is employedsimultaneously as a regular member and as a county commissioner, councilman ormayor.

2. A member who has service as a county commissioner,councilman or mayor may, upon retirement, waive such service and have hisallowances computed as a regular member.

3. If a member who has service as a countycommissioner, councilman or mayor has an average salary for the entire periodof elective service that is equal to or greater than the average salary of amember for regular service for the same period, the calculations requiredpursuant to subsection 1 do not apply and the member must receive credit forregular service.

[8.5:181:1947; added 1955, 295](NRS A 1967, 743,1222; 1971, 547; 1975, 1046; 1977, 1587; 1991, 2362; 1999, 2617)

NRS 286.475 Creditfor service as Legislator before July 1, 1967: Calculation of averagecompensation. The method of calculating theaverage compensation of a county commissioner or a councilman of anincorporated city prescribed in subsection 1 of NRS 286.470 shall be used in calculatingthe average compensation of persons serving as Legislators prior to July 1,1967, where such service has remained accredited under the provisions of thischapter.

(Added to NRS by 1969, 858; A 1977, 1588)

NRS 286.477 Creditfor part-time employment; loss of credit.

1. Except as otherwise required as a result of NRS 286.537, an employee may receive fullservice credit for part-time employment if:

(a) The employee and his employer enter into anagreement covering his part-time employment and the agreement is approved bythe Board;

(b) The employee will have reached the age andcompleted the years of service necessary for retirement, without actuarialreduction of his benefit, at the expiration of the term of the agreement;

(c) The employee works half-time or more, but less thanfull-time, according to the regular schedule established by the employer forhis position;

(d) The employee and the employer make contributionsequal to the lesser of:

(1) The amount which a person serving on afull-time basis in the position would contribute and which his employer wouldcontribute for him; or

(2) The amount which the employee and employercontributed during the last 12 months of the employees full-time employment,adjusted to include increases to offset higher costs of living provided tosimilarly situated employees of the same public employer;

(e) Employment ends on or before the fifth anniversaryof the day on which the agreement became effective; and

(f) The employee agrees in writing to the forfeiture ofcredit provided in subsection 2.

2. An employee loses all service credit which he didnot earn by actual work and which has accrued pursuant to this section if he:

(a) Returns to full-time employment in the service ofany public employer at any time after beginning part-time work under theagreement, except for full-time employment as an elected public officer as aresult of appointment to an elective office.

(b) Continues in his part-time employment beyond thefifth anniversary of the day on which the agreement became effective.

(Added to NRS by 1979, 495; A 1981, 452; 1983, 481;1991, 2363)

NRS 286.479 Servicecredit for military service in Persian Gulf Crisis.

1. A member who has 5 years or more of service creditis entitled to receive free service credit for military service for the periodbeginning on the date proclaimed by the President of the United States as thedate on which hostilities began in the Persian Gulf Crisis and ending on thedate proclaimed by the President of the United States as the termination ofhostilities in the Persian Gulf Crisis if the member:

(a) Began active military duty within 6 months afterthe last date of employment or leave of absence without pay with aparticipating public employer; and

(b) Returned to employment with a participating publicemployer within 1 year after being honorably discharged or released from activeduty.

2. A member who meets all of the requirements ofsubsection 1 except that he does not have 5 years of service credit is entitledto receive the free credit pursuant to subsection 1 as soon as he attains 5years of service credit.

(Added to NRS by 1991, 1860)

NRS 286.481 Serviceineligible for credit. A member shall not becredited with service for:

1. Except as otherwise provided in NRS 286.385, leave of absence without pay;

2. Overtime work;

3. Employment in a position which does not qualify himfor participation in the System;

4. More than 1 day within a day, 1 month within amonth, or 1 year of service in any 12-month period; or

5. Any period for which compensation is not receivedby the member unless specifically otherwise provided in this chapter.

(Added to NRS by 1975, 1047; A 1999, 2618)

NRS 286.486 Servicecredited in another system ineligible; exception. Exceptas specifically otherwise provided in this chapter, a member shall not receivecredit in the System for service that entitled such member to credit forretirement purposes in any other retirement system operated by the federal or astate government, or any of their agencies or political subdivisions, includingthe Social Security Act (Act of Congress approved August 14, 1935, chapter 531,49 Stat. 620, as amended).

(Added to NRS by 1975, 1047)

NRS 286.495 Computationof credit for service: Generally. Except asprovided in NRS 286.470, 286.475 and 286.501, members shall be credited withservice on the basis of days, months or years actually worked by a member,except that:

1. Intermittent service shall be credited to a memberon the basis of 1 day of service for each 8 hours worked, and portions of a dayshall be prorated.

2. Part-timeemployees who regularly work at least half-time for a full year with a minimumof 720 hours worked are entitled to a full year of credit for retirementeligibility only, with credit for actual service for determination of benefitbeing granted on actual time worked.

3. An employeeof the Nevada Legislature who works full time for at least 6 months in a fiscalyear during which the Legislature meets in regular session is entitled to afull year of credit for retirement eligibility only, with credit for actual servicefor determination of benefit being granted on actual time worked.

Servicecredit under this section shall be computed according to the fiscal year. Nomember may receive less credit under this section than was provided under thelaw in force at the time when the credit was earned. Nothing in this sectionallows a member to receive more than 1 year of credit for retirementeligibility in any year.

(Added to NRS by 1975, 1047; A 1977, 1589; 2003, 2094, 3516)

NRS 286.501 Computationof credit for service: Employees of school districts and professional staff ofNevada System of Higher Education. Each memberwho is employed by a school district for less than 12 months per school yearand each member of the professional staff of the Nevada System of Higher Educationemployed for the academic year who is employed for less than 12 months perfiscal year is credited with service as follows:

1. Service is credited on the basis of a full year ifthe member works full-time for the full school year.

2. Employment for a part of a school year is creditedon a ratio of one and one-third days for each day worked, but credit may not begiven in advance or until the appropriate period has expired.

3. A full year of service is not credited until thefull 12-month period has expired. If the employee begins work under a newcontract before the expiration of the 12-month period for the old contract,credit must be granted for the period of overlap, as certified by the schooldistrict, at the first period in which there is a lapse in service.

4. Service credit under this section must be computedaccording to:

(a) The school year for school district employees.

(b) The fiscal year for members of the professionalstaff of the Nevada System of Higher Education.

5. A member receives full credit while on sabbaticalleave if the public employer certifies that the compensation and contributionsreported for the member are the same as if he were employed full-time. If theemployer does not so certify, the member receives credit in the proportion thathis actual compensation bears to his previous compensation.

No membermay receive less credit under this section than was provided under the law inforce when the credit was earned.

(Added to NRS by 1975, 1048; A 1977, 1589; 1979, 751;1985, 1715; 1993, 383; 1999,2618)

NRS 286.505 Conversionof credit for service; time for crediting service.

1. For the purpose of maintaining the individualaccounts of members, the Board may convert service credit from increments ofdays, months and years to hundredths of a year.

2. A member shall not be credited with service untilafter the period to be credited to him has expired.

(Added to NRS by 1975, 1048)

RETIREMENT

NRS 286.510 Eligibility:Age and service of police officers, firefighters and other employees; reductionof benefit for retirement before required age.

1. Except as otherwise provided in subsections 2 and3, a member of the System is eligible to retire at age 65 if he has at least 5years of service, at age 60 if he has at least 10 years of service and at anyage if he has at least 30 years of service.

2. A police officer or firefighter is eligible toretire at age 65 if he has at least 5 years of service, at age 55 if he has atleast 10 years of service, at age 50 if he has at least 20 years of service andat any age if he has at least 25 years of service. Only service performed in aposition as a police officer or firefighter, established as such by statute orregulation, service performed pursuant to subsection 3 and credit for militaryservice, may be counted toward eligibility for retirement pursuant to thissubsection.

3. Except as otherwise provided in subsection 4, apolice officer or firefighter who has at least 5 years of service as a policeofficer or firefighter and is otherwise eligible to apply for disabilityretirement pursuant to NRS 286.620because of an injury arising out of and in the course of his employment remainseligible for retirement pursuant to subsection 2 if:

(a) He applies to the Board for disability retirementand the Board approves his application;

(b) In lieu of a disability retirement allowance, heaccepts another position with the public employer with which he was employedwhen he became disabled as soon as practicable but not later than 90 days afterthe Board approves his application for disability retirement;

(c) He remains continuously employed by that publicemployer 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 forpolice officers and firefighters until he becomes eligible for retirementpursuant to subsection 2.

4. If a police officer or firefighter who acceptedanother position with the public employer with which he was employed when hebecame disabled pursuant to subsection 3 ceases to work for that publicemployer before becoming eligible to retire pursuant to subsection 2, he maybegin to receive a disability retirement allowance without further approval bythe Board by notifying the Board on a form prescribed by the Board.

5. Eligibility for retirement, as provided in thissection, does not require the member to have been a participant in the Systemat the beginning of his credited service.

6. Any member who has the years of creditable servicenecessary to retire but has not attained the required age, if any, may retireat any age with a benefit actuarially reduced to the required retirement age.Except as otherwise required as a result of NRS286.537, a retirement benefit pursuant to this subsection must be reducedby 4 percent of the unmodified benefit for each full year that the member isunder the appropriate retirement age, and an additional 0.33 percent for eachadditional month that the member is under the appropriate retirement age. Anyoption selected pursuant to this subsection must be reduced by an amountproportionate to the reduction provided in this subsection for the unmodifiedbenefit. The Board may adjust the actuarial reduction based upon an experiencestudy of the System and recommendation by the actuary.

[Part 18:181:1947; A 1949, 174; 1951, 269](NRS A1971, 623; 1975, 1048; 1981, 453; 1989, 1024; 1991, 2364; 1999, 972; 2001, 1288; 2003, 2060)

NRS 286.520 Employmentof retired employee: Consequences; notice; exemptions. [Effective through June30, 2009.]

1. Except as otherwise provided in this section and NRS 286.523 and 286.525, the consequences of the employmentof a retired employee are:

(a) A retired employee who accepts employment or anindependent contract with a public employer under this System is disqualifiedfrom receiving any allowances under this System for the duration of thatemployment or contract if:

(1) He accepted the employment or contractwithin 90 calendar days after the effective date of his retirement; or

(2) He is employed in a position which iseligible to participate in this System.

(b) If a retired employee accepts employment or anindependent contract with a public employer under this System more than 90calendar days after the effective date of his retirement in a position which isnot eligible to participate in this System, his allowance under this Systemterminates upon his earning an amount equal to one-half of the average salaryfor participating public employees who are not police officers or firefightersin any fiscal year, for the duration of that employment or contract.

(c) If a retired employee accepts employment with anemployer who is not a public employer under this System, the employee isentitled to the same allowances as a retired employee who has no employment.

2. The retired employee and the public employer shall notifythe System:

(a) Within 10 days after the first day of an employmentor contract governed by paragraph (a) of subsection 1.

(b) Within 30 days after the first day of an employmentor contract governed by paragraph (b) of subsection 1.

(c) Within 10 days after a retired employee earns morethan one-half of the average salary for participating public employees who arenot police officers or firefighters in any fiscal year from an employment orcontract governed by paragraph (b) of subsection 1.

3. For the purposes of this section, the averagesalary for participating public employees who are not police officers orfirefighters must be computed on the basis of the most recent actuarialvaluation of the System.

4. If a retired employee who accepts employment or anindependent contract with a public employer under this System pursuant to thissection elects not to reenroll in the System pursuant to subsection 1 of NRS 286.525, the public employer with whichthe retired employee accepted employment or an independent contract may paycontributions on behalf of the retired employee to a retirement fund which isnot a part of the System in an amount not to exceed the amount of the contributionsthat the public employer would pay to the System on behalf of a participatingpublic employee who is employed in a similar position.

5. If a retired employee is chosen by election orappointment to fill an elective public office, he is entitled to the sameallowances as a retired employee who has no employment, unless he is serving inthe same office in which he served and for which he received service credit asa member. A public employer may pay contributions on behalf of such a retiredemployee to a retirement fund which is not a part of the System in an amountnot to exceed the amount of the contributions that the public employer wouldpay to the System on behalf of a participating public employee who serves inthe same office.

6. The System may waive for one period of 30 days orless a retired employees disqualification under this section if the publicemployer certifies in writing, in advance, that the retired employee isrecalled to meet an emergency and that no other qualified person is immediatelyavailable.

7. A person who accepts employment or an independentcontract with either house of the Legislature or by the Legislative CounselBureau is exempt from the provisions of subsections 1 and 2 for the duration ofthat employment or contract.

[23:181:1947; A 1949, 174; 1953, 129](NRS A 1957,731; 1959, 163, 583; 1963, 989; 1967, 1222, 1667; 1969, 19, 856; 1971, 1317;1977, 1590; 1979, 751, 942; 1981, 142; 1983, 481; 1985, 1715; 1999, 2619; 2001, 2404; 2003, 2061)

NRS 286.520 Employment of retired employee:Consequences; notice; exemptions. [Effective July 1, 2009.]

1. Except as otherwise provided in this section and NRS 286.525, the consequences of theemployment of a retired employee are:

(a) A retired employee who accepts employment or anindependent contract with a public employer under this System is disqualifiedfrom receiving any allowances under this System for the duration of thatemployment or contract if:

(1) He accepted the employment or contractwithin 90 calendar days after the effective date of his retirement; or

(2) He is employed in a position which iseligible to participate in this System.

(b) If a retired employee accepts employment or anindependent contract with a public employer under this System more than 90calendar days after the effective date of his retirement in a position which isnot eligible to participate in this System, his allowance under this Systemterminates upon his earning an amount equal to one-half of the average salaryfor participating public employees who are not police officers or firefightersin any fiscal year, for the duration of that employment or contract.

(c) If a retired employee accepts employment with anemployer who is not a public employer under this System, the employee isentitled to the same allowances as a retired employee who has no employment.

2. The retired employee and the public employer shall notifythe System:

(a) Within 10 days after the first day of an employmentor contract governed by paragraph (a) of subsection 1.

(b) Within 30 days after the first day of an employmentor contract governed by paragraph (b) of subsection 1.

(c) Within 10 days after a retired employee earns morethan one-half of the average salary for participating public employees who arenot police officers or firefighters in any fiscal year from an employment orcontract governed by paragraph (b) of subsection 1.

3. For the purposes of this section, the averagesalary for participating public employees who are not police officers orfirefighters must be computed on the basis of the most recent actuarialvaluation of the System.

4. If a retired employee who accepts employment or anindependent contract with a public employer under this System pursuant to thissection elects not to reenroll in the System pursuant to subsection 1 of NRS 286.525, the public employer with whichthe retired employee accepted employment or an independent contract may paycontributions on behalf of the retired employee to a retirement fund which isnot a part of the System in an amount not to exceed the amount of the contributionsthat the public employer would pay to the System on behalf of a participatingpublic employee who is employed in a similar position.

5. If a retired employee is chosen by election orappointment to fill an elective public office, he is entitled to the sameallowances as a retired employee who has no employment, unless he is serving inthe same office in which he served and for which he received service credit asa member. A public employer may pay contributions on behalf of such a retiredemployee to a retirement fund which is not a part of the System in an amountnot to exceed the amount of the contributions that the public employer wouldpay to the System on behalf of a participating public employee who serves inthe same office.

6. The System may waive for one period of 30 days orless a retired employees disqualification under this section if the publicemployer certifies in writing, in advance, that the retired employee isrecalled to meet an emergency and that no other qualified person is immediatelyavailable.

7. A person who accepts employment or an independentcontract with either house of the Legislature or by the Legislative CounselBureau is exempt from the provisions of subsections 1 and 2 for the duration ofthat employment or contract.

[23:181:1947; A 1949, 174; 1953, 129](NRS A 1957,731; 1959, 163, 583; 1963, 989; 1967, 1222, 1667; 1969, 19, 856; 1971, 1317;1977, 1590; 1979, 751, 942; 1981, 142; 1983, 481; 1985, 1715; 1999, 2619; 2001, 2404; 2003, 2061, effectiveJuly 1, 2009)

NRS 286.523 Employmentof retired employee: Exception for reemployment of certain retired employees tofill positions for which critical labor shortage exists; determination anddesignation of such positions; limitation on length of designation of position.[Effective through June 30, 2009.]

1. The provisions of subsections 1 and 2 of NRS 286.520 do not apply to a retiredemployee who accepts employment or an independent contract with a publicemployer under the System if:

(a) He fills a position for which there is a criticallabor shortage; and

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

(1) A benefit that is not actuarially reducedpursuant to subsection 6 of NRS 286.510;or

(2) A benefit actuarially reduced pursuant tosubsection 6 of NRS 286.510 and hasreached the required age at which he could have retired with a benefit that wasnot actuarially reduced pursuant to subsection 6 of NRS 286.510.

2. A retired employee who is reemployed under thecircumstances set forth in subsection 1 may reenroll in the System as providedin NRS 286.525.

3. Positions for which there are critical laborshortages must be determined as follows:

(a) Except as otherwise provided in this subsection,the State Board of Examiners shall designate positions in State Government forwhich there are critical labor shortages.

(b) The Supreme Court shall designate positions in theJudicial Branch of State Government for which there are critical laborshortages.

(c) The Board of Regents shall designate positions inthe Nevada System of Higher Education for which there are critical laborshortages.

(d) The Department of Education shall designatepositions with the various school districts for which there are critical laborshortages.

(e) The governing body of a local government shalldesignate positions with the local government for which there are criticallabor shortages.

(f) The Board shall designate positions within theSystem for which there are critical labor shortages.

4. In determining whether a position is a position forwhich there is a critical labor shortage, the designating authority shall giveconsideration to:

(a) The history of the rate of turnover for theposition;

(b) The number of openings for the position and thenumber of qualified candidates for those openings;

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

(d) The successof recruiting persons in other states to fill the position.

5. A designating authority shall not designate aposition pursuant to subsection 3 as a position for which there is a criticallabor shortage for a period longer than 2 years. To be redesignated as such aposition, the designating authority must consider whether the positioncontinues to meet the criteria set forth in subsection 4.

(Added to NRS by 2001, 2400; A 2003, 2062; 2005, 1077)

NRS 286.525 Employmentof retired employee: Enrollment in System; rights of membership; accrual ofcredit for service; benefits for survivor. [Effective through June 30, 2009.]

1. A retired employee who accepts employment in aposition eligible for membership may enroll in the System as of the effectivedate of that employment. Except as otherwise provided in NRS 286.523, as of the date of enrollment:

(a) He forfeits all retirement allowances for theduration of that employment.

(b) He is entitled to receive, after the termination ofthe employment and upon written request, a refund of all contributions made byhim during the employment. Except as otherwise required as a result of NRS 286.535 or 286.537, if he does not request the refundand the duration of the employment was at least 6 months, he gains additionalservice credit for that employment and is entitled to have a separate serviceretirement allowance calculated based on his compensation and service, effectiveupon the termination of that employment. If the duration of the employment was:

(1) Less than 5 years, the additional allowancemust be added to his original allowance and must be under the same option anddesignate the same beneficiary as the original allowance.

(2) Five years or more, the additional allowancemay be under any option and designate any beneficiary in accordance with NRS 286.545.

2. The original service retirement allowance of such aretired employee must not be recalculated based upon the additional servicecredit, nor is he entitled to any of the rights of membership that were not ineffect at the time of his original retirement. The accrual of service creditpursuant 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 members 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 beenreceiving a retirement allowance and who is reemployed and is enrolled in theSystem for at least 5 years may have his additional credit for service added tohis previous credit for service. This additional credit for service must notapply to more than one period of employment after the original retirement.

4. The survivor of a deceased member who hadpreviously retired and was rehired and enrolled in the System, who qualifiesfor benefits pursuant to NRS 286.671 to 286.6793, inclusive, is eligible for thebenefits based on the service accrued through the second period of employment.

(Added to NRS by 1979, 944; A 1983, 482; 1985, 1717;1991, 1971, 2364; 1995, 251; 1997, 215; 1999, 2620; 2003, 2063)

NRS 286.525 Employment of retired employee:Enrollment in System; rights of membership; accrual of credit for service;benefits for survivor. [Effective July 1, 2009.]

1. A retired employee who accepts employment in aposition eligible for membership may enroll in the System as of the effectivedate of that employment. As of the date of enrollment:

(a) He forfeits all retirement allowances for theduration of that employment.

(b) He is entitled to receive, after the termination ofthe employment and upon written request, a refund of all contributions made byhim during the employment. Except as otherwise required as a result of NRS 286.535 or 286.537, if he does not request the refundand the duration of the employment was at least 6 months, he gains additionalservice credit for that employment and is entitled to have a separate serviceretirement allowance calculated based on his compensation and service, effectiveupon the termination of that employment. If the duration of the employment was:

(1) Less than 5 years, the additional allowancemust be added to his original allowance and must be under the same option anddesignate the same beneficiary as the original allowance.

(2) Five years or more, the additional allowancemay be under any option and designate any beneficiary in accordance with NRS 286.545.

2. The original service retirement allowance of such aretired employee must not be recalculated based upon the additional servicecredit, nor is he entitled to any of the rights of membership that were not ineffect at the time of his original retirement. The accrual of service creditpursuant 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 members 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 beenreceiving a retirement allowance and who is reemployed and is enrolled in theSystem for at least 5 years may have his additional credit for service added tohis previous credit for service. This additional credit for service must notapply to more than one period of employment after the original retirement.

4. The survivor of a deceased member who hadpreviously retired and was rehired and enrolled in the System, who qualifiesfor benefits pursuant to NRS 286.671 to 286.6793, inclusive, is eligible for thebenefits based on the service accrued through the second period of employment.

(Added to NRS by 1979, 944; A 1983, 482; 1985, 1717;1991, 1971, 2364; 1995, 251; 1997, 215; 1999, 2620; 2003, 2063,effective July 1, 2009)

BENEFITS

NRS 286.533 Limitationon distributions to members of System. Notwithstandingany other provision of law, every distribution to a member must be madepursuant to the provisions of section 401(a)(9) of the Internal Revenue Code(26 U.S.C. 401(a)(9)), as that section existed on July 5, 1991, that apply togovernmental plans.

(Added to NRS by 1991, 2354)

NRS 286.534 Actuarialassumptions used in computing benefits: Availability; changes prohibited.

1. The Board shall not change the actuarialassumptions used in computing the benefits provided to a member.

2. The Board shall make available to every member uponrequest the actuarial assumptions used in computing the benefits provided to amember.

(Added to NRS by 1991, 2355)

NRS 286.535 Limitationon compensation used to determine retirement benefit. Notwithstandingany other provision of law, the amount of compensation used to determine theretirement benefit of a member of the System must not exceed:

1. For persons who first became members of the Systembefore July 1, 1996, the limitation provided by section 401(a)(17) of theInternal Revenue Code (26 U.S.C. 401(a)(17)), as that section existed on July1, 1993.

2. For persons who first became members of the Systemon or after July 1, 1996, the limitation provided by section 401(a)(17) of theInternal Revenue Code (26 U.S.C. 401(a)(17)), as that section existed on July1, 1996.

(Added to NRS by 1991, 2355; A 1995, 252)

NRS 286.537 Limitationson benefits and contributions.

1. The election provided by section 415(b)(10)(c) ofthe Internal Revenue Code (26 U.S.C. 415(b)(10)(c)) is hereby made.

2. Notwithstanding any other provision of thischapter, the benefits payable to and the contributions made by or for thebenefit of an employee whose effective date of membership is on or afterJanuary 1, 1990, are limited pursuant to the provisions of sections 415(b),415(c) and 415(e) of the Internal Revenue Code (26 U.S.C. 415(b), 415(c) and415(e)). The provisions of section 415(b)(2)(F) of the Internal Revenue Code(26 U.S.C. 415(b)(2)(F)) do not apply to the benefits of such an employee.

3. Notwithstanding any other provision of law, if anemployee whose effective date of membership is on or after January 1, 1990, isa member of the System and a member of the Legislators Retirement System, thebenefits payable to him from both plans are limited pursuant to this section.His benefits from the plan providing the greater benefit must be reduced if thebenefits from both plans exceed the limitations of this section.

(Added to NRS by 1991, 2355; A 1997, 216)

NRS 286.538 Minimumbenefits payable to employee who became member of System before January 1,1990. The benefits payable to an employeewhose effective date of membership is before January 1, 1990, must not be lessthan his accrued benefits determined without regard to any amendment of theSystem made after October 14, 1987.

(Added to NRS by 1991, 2355)

NRS 286.539 Prohibitionagainst applying forfeitures to increase benefits. Forfeituresmust not be applied to increase the benefits any member would otherwise receivepursuant to the provisions governing the System as provided by section401(a)(8) of the Internal Revenue Code (26 U.S.C. 401(a)(8)), as that sectionexisted on July 5, 1991.

(Added to NRS by 1991, 2355)

NRS 286.541 Applicationfor service retirement allowance or disability retirement allowance; effectivedate of retirement; rights of present or former spouse; System exempted fromliability for false designation of marital status by member or retired member.

1. Applications for service retirement allowances ordisability retirement allowances must be submitted to the offices of the Systemon forms approved by the Executive Officer. The form shall not be deemed filedunless it contains:

(a) The members selection of the retirement plancontained in NRS 286.551 or one of theoptional plans provided in NRS 286.590;

(b) A notarized statement of the marital status of themember; and

(c) If the member is married, a statement of thespouses consent or objection to the chosen retirement plan, signed by thespouse and notarized.

2. Except as otherwise required by NRS 286.533, retirement becomes effectiveon whichever of the following days is the later:

(a) The day immediately following the applicants lastday of employment;

(b) The day the completed application form is filedwith the System;

(c) The day immediately following the applicants lastday of creditable service; or

(d) The effective date of retirement specified on theapplication form.

3. The selection of a retirement plan by a member andconsent or objection to that plan by the spouse pursuant to this section doesnot affect the responsibility of the member concerning the rights of anypresent or former spouse.

4. The System is not liable for any damages resultingfrom the false designation of marital status by a member or retired member.

(Added to NRS by 1975, 1049; A 1979, 259; 1987, 682;1991, 2365)

NRS 286.545 Consentof spouse to retirement plan of member.

1. If the spouse of the member does not consent to theretirement plan chosen by the member before the date on which the retirementbecomes effective pursuant to NRS 286.541the System shall:

(a) Notify the spouse that he has 90 days to consent orhave the member change his selection; and

(b) Pay the retirement at the amount calculated forOption 2 provided in NRS 286.590 untilthe spouse consents or for 90 days, whichever is less.

2. Upon consent of the spouse or at the end of the 90days, the retirement benefit must be recalculated and paid under the terms ofthe option originally selected by the member retroactively to the date on whichthe retirement became effective.

(Added to NRS by 1987, 680)

NRS 286.551 Determinationof monthly service retirement allowance. Exceptas otherwise required as a result of NRS286.535 or 286.537:

1. Except as otherwise provided in this subsection, amonthly service retirement allowance must be determined by multiplying amembers average compensation by 2.5 percent for each year of service earnedbefore July 1, 2001, and 2.67 percent for each year of service earned on orafter July 1, 2001, except that a member:

(a) Who has an effective date of membership on or afterJuly 1, 1985, is entitled to a benefit of not more than 75 percent of hisaverage compensation with his eligibility for service credit ceasing at 30years of service.

(b) Who has an effective date of membership before July1, 1985, and retires on or after July 1, 1977, is entitled to a benefit of notmore than 90 percent of his average compensation with his eligibility forservice credit ceasing at 36 years of service.

In no casemay the service retirement allowance determined pursuant to this section beless than the allowance to which the retired employee would have been entitledpursuant to the provisions of this section which were in effect on the daybefore July 3, 1991.

2. For the purposes of this section, except asotherwise provided in subsection 3, average compensation means the average ofa members 36 consecutive months of highest compensation as certified by thepublic employer.

3. The average compensation of a member who has abreak in service or partial months of compensation, or both, as a result ofservice as a Legislator during a regular or special session of the NevadaLegislature must be calculated on the basis of the average of his 36consecutive months of highest compensation as certified by his public employerexcluding each month during any part of which the Legislature was in session.This subsection does not affect the computation of years of service.

4. The retirement allowance for a regular part-timeemployee must be computed from the salary which he would have received as afull-time employee if it results in greater benefits for the employee. Aregular part-time employee is a person who works half-time or more, but lessthan full-time:

(a) According to the regular schedule established bythe employer for his position; and

(b) Pursuant to an established agreement between theemployer and the employee.

(Added to NRS by 1975, 1049; A 1977, 1591; 1979, 753;1983, 483; 1985, 1717; 1987, 412; 1989, 1092, 1562; 1991, 1972, 2365; 2001, 1289)

NRS 286.575 Postretirementincreases: Payment; effect on monthly benefit.

1. Except as otherwise required as a result of NRS 286.537, a postretirement allowancemust be paid from the Public Employees Retirement Fund or the Police andFirefighters Retirement Fund to each member receiving a disability allowanceor service retirement allowance from that Fund under the provisions of thischapter in the amount and manner provided and from time to time adjusted bylaw. Each member whose allowance was increased after his retirement by paymentsfor years of service in excess of 20 years is entitled to receive an increasebased upon his adjusted allowance.

2. Postretirement allowances must be considered a partof a retired employees monthly benefit and included in the allowance paid to abeneficiary under one of the optional plans provided in NRS 286.590.

(Added to NRS by 1963, 995; A 1965, 955; 1971, 626;1975, 1050; 1977, 1591; 1979, 259; 1991, 2366; 2003, 2064)

NRS 286.5756 Postretirementincreases: Persons receiving benefits before September 1, 1983, or for 3 yearsbefore increase.

1. A person is entitled to the increase provided inthis section if he began receiving an allowance or benefit:

(a) Before September 1, 1983, and has received theallowance or benefit for at least 6 continuous months in the 12 monthspreceding the effective date of the increase; or

(b) At least 3 years before the increase.

2. Except as otherwise provided in subsection 3,allowances or benefits increase once each year on the first day of the monthimmediately following the anniversary of the date the person began receivingthe allowance or benefit, by the lesser of:

(a) Two percent following the 3rd anniversary of thecommencement of benefits, 3 percent following the 6th anniversary of thecommencement of benefits, 3.5 percent following the 9th anniversary of thecommencement of benefits, 4 percent following the 12th anniversary of thecommencement of benefits and 5 percent following the 14th anniversary of thecommencement of benefits; or

(b) The average percentage of increase in the ConsumerPrice Index (All Items) for the 3 preceding years, unless a different index issubstituted by the Board.

3. In any event, the allowance or benefit of a membermust be increased by the percentages set forth in paragraph (a) of subsection 2if the allowance or benefit of a member has not increased at a rate greaterthan or equal to the average of the Consumer Price Index (All Items), unless adifferent index is substituted by the Board, for the period between the date ofhis retirement and the date specified in subsection 2.

4. The Board may use a different index for thecalculation made pursuant to paragraph (b) of subsection 2 if:

(a) The substituted index is compiled and published bythe United States Department of Labor; and

(b) The Board determines that the substituted indexrepresents a more accurate measurement of the cost of living for retiredemployees.

5. The base from which the increase provided by thissection must be calculated is the allowance or benefit in effect on the daybefore the increase becomes effective.

(Added to NRS by 1983, 1925; A 1989, 1025; 1991,1861; 1995, 252; 1997, 351)

NRS 286.5765 Postretirementincreases: Persons retired before July 1, 1963; persons retired beforeSeptember 1, 1975, with 20 years credit for service; persons retired beforeJuly 1, 1989, with 20 years credit for service; separate account.

1. The System shall provide an increase of $80 permonth for all public employees who retired before July 1, 1963, in addition tothe amounts to which they were respectively entitled on April 1, 1975.

2. An employee who retired before September 1, 1975,with 20 or more years of credit for service, whose gross benefit is less than$500 per month must be paid an increase in an amount which would make his grossbenefit $500 per month or an increase of $200 per month, whichever is less. Ifa person receiving a benefit under option 3 or 5 as the beneficiary of anemployee who retired before September 1, 1975, with 20 or more years of creditfor service, is receiving less than $250 per month, he must be paid an increasein an amount which would make his gross benefit $250 per month or an increaseof $100 per month, whichever is less.

3. An employee who retired with 20 or more years ofcredit for service, who had reached the age for full retirement eligibilitywithout reduction for age at the time of retirement and whose gross benefit asof July 1, 1989, is less than $550 per month, must be paid an increase in anamount which would make his gross benefit $550 per month or an increase of $100per month, whichever is less. If a person receiving a benefit under option 3 or5 as the beneficiary of an employee who retired with 20 or more years of creditfor service and had reached the age for full retirement eligibility withoutreduction for age at the time of retirement, is receiving a gross benefit as ofJuly 1, 1989, of less than $275 per month, he must be paid an increase in anamount which would make his gross benefit $275 per month or an increase of $50per month, whichever is less.

4. All money which has been accumulated under theprovisions of that certain act of the Legislature of the State of Nevadaentitled An Act to provide against losses to the state and its respectivecounties, townships, incorporated cities and irrigation districts throughdefalcation, misappropriation of funds or other wrongful acts on the part ofofficials or employees; to provide for the issuance of surety bonds for state,county, township, city and irrigation district officials and employees,establishing a fund therefor, and other matters relating thereto; and to repealall acts and parts of acts in conflict therewith, approved March 26, 1937, asamended, must be transferred to the Public Employees Retirement Fund. Themoney must be combined with the appropriation made by section 35 of chapter270, Statutes of Nevada 1975, and segregated into a separate account within thePublic Employees Retirement Fund from which the increases provided in thissection must be paid. If the money in that account is insufficient to pay thoseincreases, the amount needed must be provided by the System.

(Added to NRS by 1983, 1926; A 1983, 1889; 1985,1188; 1989, 1128)

NRS 286.577 Postretirementincreases: Persons receiving allowance before July 1, 1975; persons withbenefits commencing in 1975.

1. The System shall pay a postretirement allowancefrom the appropriate retirement fund to each member receiving a disabilityretirement allowance or service retirement allowance under the provisions ofthis chapter who first became entitled to receive any such allowance beforeJuly 1, 1975, as follows: As of the 1st day of July in each year following June30, 1963, or the calendar year in which any monthly disability allowance orservice retirement allowance was first paid, whichever last occurs, andpreceding July 1, 1975, there must be added to such monthly disability allowanceor service retirement allowance and paid to the member monthly thereafter anamount equivalent to 1.5 percent of the amount of such monthly disabilityallowance or service retirement allowance as originally computed, approved andpaid.

2. Each member who retired before January 1, 1962, isentitled to receive an increase in his postretirement allowance of 1.5 percentof the amount of his monthly disability retirement allowance or serviceretirement allowance, as originally computed, approved and paid, for eachcalendar year following the calendar year of his retirement and preceding thecalendar year 1963.

3. Beginning on July 1, 1975, the System shall pay apostretirement increase from the appropriate retirement fund to each person whoreceives monthly service retirement, disability or survivor benefit allowancesas follows:

 

Period ofBeginning Receipt Increaseof Base Benefit

 

July 1 to December 31, 1963............................................................ 5.00percent

Calendar year 1964............................................................................ 4.75percent

Calendar year 1965............................................................................ 4.50percent

Calendar year 1966............................................................................ 4.25percent

Calendar year 1967............................................................................ 4.00percent

Calendar year 1968............................................................................ 3.75percent

Calendar year 1969............................................................................ 3.50percent

Calendar year 1970............................................................................ 3.25percent

Calendar year 1971............................................................................ 3.00percent

Calendar year 1972............................................................................ 2.75percent

Calendar year 1973............................................................................ 2.50percent

Calendar year 1974............................................................................ 2.25percent

 

andbeginning on July 1, 1976, an additional increase of the same amount must bepaid to each person.

4. Beginning July 1, 1976, a postretirement increaseof 2 percent must be paid to every such member who began receiving benefitsduring the calendar year 1975.

(Added to NRS by 1983, 1927)

NRS 286.5775 Postretirementincreases: Increases based on years allowance received; beneficiaries ofdeceased employees; limitations.

1. In addition to the other postretirement allowancesand increases provided by law, if adequate money is available which has beendesignated for this purpose, the Public Employees Retirement System shallprovide a postretirement increase based upon the total number of calendar yearsthat the recipient has been receiving an allowance. The increases are payablebeginning July 1, 1977, and July 1, 1978, as follows:

 

TotalYears

ReceivingAllowance Increaseof Base Benefit

 

12 or more...................................................................................... 5.00percent

11 4.75percent

10 4.50percent

9 4.25percent

8 4.00percent

7 3.75percent

6 3.50percent

5 3.25percent

4 3.00percent

3 2.75percent

2 2.50percent

1 2.25percent

 

2. A person who has been receiving an allowance for atleast 6 months but less than 1 year when postretirement increases are paid isentitled to an increase of 2 percent of his base benefit.

3. A beneficiary of a deceased retired employee isentitled to receive postretirement increases provided in this section based onthe effective date of retirement for the retired employee and:

(a) The base benefit for the retired employee if heselected option 2 or 4; or

(b) Fifty percent of the base benefit of the retiredemployee if he selected option 3 or 5.

4. The postretirement increases provided in thissection are payable only if they do not exceed the percentage increase in theConsumer Price Index (All Items) during the previous calendar year or anylimitations required as a result of NRS286.537. The percentage for postretirement increases provided in thissection must be reduced to the percentage increase in the Consumer Price Index(All Items) for the previous calendar year if the increase in the index is lessthan the percentage provided in this section.

(Added to NRS by 1983, 1927; A 1991, 2366)

NRS 286.578 Postretirementincreases: Increases payable July 1, 1979, and July 1, 1980.

1. In addition to other postretirement allowances orbenefits provided by law, and subject to the limitation provided in subsection3, the Public Employees Retirement System shall provide a postretirementincrease to each eligible person, based upon:

(a) The number of years he has received a retirementallowance or in the case of a beneficiary of a retired employee, the number ofyears an allowance or benefits have been received since the retired employeeseffective date of retirement; and

(b) The amount of his cumulative allowance or benefitcomputed as of the dates on which these increases are payable.

2. The increases provided in subsection 1 are payableon July 1, 1979, and July 1, 1980, as follows:

 

Numberof Years Receiving Increasein Cumulative

Allowanceor Benefit Allowanceor Benefit

 

5 years or more..................................................................................... 5.0percent

4 years................................................................................................... 4.5percent

3 years................................................................................................... 4.0percent

2 years................................................................................................... 3.5percent

1 year..................................................................................................... 3.0percent

 

3. These percentage increases are payable only if theydo not exceed the percentage increase in the All Items Consumer Price Indexfor the preceding calendar year. If the percentage increase in the index forthe preceding year is less than any percentage increase described in subsection2, the latter increase must be reduced to the former.

(Added to NRS by 1983, 1928; A 1985, 267)

NRS 286.5785 Postretirementincreases: Increases payable July 1, 1981, and July 1, 1982.

1. On July 1, 1981, and July 1, 1982, the System shallprovide a cost-of-living increase to each retired employee or beneficiary. Theincrease must be based on the number of years the person has been drawingbenefits plus the portion of the year, in full calendar months, in which hebegan drawing benefits, in the amounts:

 

Numberof years and full calendar

monthsduring which benefits Percentageof

havebeen received Increase

 

1 year....................................................................................................................... 3.0

1 year and 1 month through 2 years................................................................... 3.5

2 years and 1 month through 3 years................................................................. 4.0

3 years and 1 month through 4 years................................................................. 4.5

4 years and 1 month through 5 years................................................................. 5.0

5 years and 1 month through 6 years................................................................. 5.5

6 years and 1 month through 7 years................................................................. 6.0

7 years and 1 month through 8 years................................................................. 6.5

8 years and 1 month through 9 years................................................................. 7.0

9 years and 1 month through 10 years............................................................... 7.5

10 years and 1 month through 11years............................................................. 8.0

11 years and 1 month through 12years............................................................. 8.5

12 years and 1 month through 13years............................................................. 9.0

13 years and 1 month through 14years............................................................. 9.5

14 years and 1 month and more........................................................................ 10.0

 

2. The increase for a retired employee or beneficiarywho has been receiving benefits for less than 12 full calendar months on July 1is 3 percent prorated for the number of full calendar months in which he hasreceived benefits.

3. In addition to the other postretirement allowancesand increases provided by law, the System shall provide a monthlypostretirement increase of $100 per month, beginning on July 1, 1981, tosurviving spouses who receive benefits pursuant to subsection 2 of NRS 286.674.

4. The increases provided in this section are payableonly if and to the extent that they respectively do not exceed the increase inthe Consumer Price Index (All Items) for the calendar year preceding theirpayment.

(Added to NRS by 1983, 1929)

NRS 286.579 Postretirementincreases: Increase for persons receiving benefits before January 1, 1977.

1. In addition to the other postretirement allowancesand increases provided by law, the System shall provide a monthlypostretirement increase to each person who began receiving benefits beforeJanuary 1, 1977, or to his designated beneficiary upon his death in theseamounts:

 

BaseBenefit MonthlyIncrease

 

$0$100......................................................................................................... $20

101 200........................................................................................................... 15

201 300

............................................................................................................................ 10

301 500............................................................................................................. 5

501 and above..................................................................................................... 3

 

2. A single postretirement increase pursuant to thissection must be prorated among two or more recipients of benefits for survivorson behalf of one deceased member.

(Added to NRS by 1981, 576)

NRS 286.590 Alternativesto unmodified service retirement allowance. Thealternatives to an unmodified service retirement allowance are as follows:

1. Option 2 consists of a reduced service retirementallowance payable monthly during the retired employees life, with theprovision that it continue after his death for the life of the beneficiary whomhe nominates by written designation acknowledged and filed with the Board atthe time of retirement should the beneficiary survive him.

2. Option 3 consists of a reduced service retirementallowance payable monthly during the retired employees life, with theprovision that it continue after his death at one-half the rate paid to him andbe paid for the life of the beneficiary whom he nominates by writtendesignation acknowledged and filed with the Board at the time of retirementshould the beneficiary survive him.

3. Option 4 consists of a reduced service retirementallowance payable monthly during the retired employees life, with theprovision that it continue after his death for the life of his beneficiary,whom he nominates by written designation acknowledged and filed with the Boardat the time of the election, should his beneficiary survive him, beginning onthe attainment by the surviving beneficiary of age 60. If a beneficiarydesignated under this option dies after the date of the retired employeesdeath but before attaining age 60, the contributions of the retired employeewhich have not been returned to him or his beneficiary must be paid to theestate of the deceased beneficiary.

4. Option 5 consists of a reduced service retirementallowance payable monthly during the retired employees life, with theprovision that it continue after his death at one-half the rate paid to him andbe paid for the life of his beneficiary whom he nominates by writtendesignation acknowledged and filed with the Board at the time of the election,should his beneficiary survive him, beginning on the attainment by thesurviving beneficiary of age 60. If a beneficiary designated under this optiondies after the date of the retired employees death but before attaining age60, the contributions of the retired employee which have not been returned tohim or his beneficiary must be paid to the estate of the deceased beneficiary.

5. Option 6 consists of a reduced service retirementallowance payable monthly during the retired employees life, with theprovision that a specific sum per month, which cannot exceed the monthlyallowance paid to the retired employee, be paid after his death to thebeneficiary for the life of the beneficiary whom he nominates by writtendesignation acknowledged and filed with the Board at the time of retirement,should the beneficiary survive him.

6. Option 7 consists of a reduced service retirementallowance payable monthly during the retired employees life, with theprovision that a specific sum per month, which cannot exceed the monthlyallowance paid to the retired employee, be paid after his death to thebeneficiary for the life of the beneficiary whom he nominates by writtendesignation acknowledged and filed with the Board at the time of election,should the beneficiary survive him, beginning on the attainment by thesurviving beneficiary of age 60 years. If a surviving beneficiary dies afterthe date of the retired employees death, but before attaining age 60, allcontributions of the retired employee which have not been returned to him orhis beneficiary must be paid to the estate of the beneficiary.

[Part 20:181:1947; A 1951, 269; 1953, 386; 1955,23](NRS A 1957, 522; 1961, 200; 1975, 1051; 1977, 1593; 1979, 250, 753; 1983,483; 1993, 2781)

NRS 286.592 Optionalplans: Death of beneficiary; change of selection; effective date of terminationor adjustment of allowance.

1. If a member enters retirement status under one ofthe optional plans described in NRS 286.590and the designated beneficiary predeceases the retired employee, the retiredemployees monthly retirement allowance must be automatically adjusted to theunmodified retirement allowance provided in NRS286.551.

2. A retired employee may not change the selectedoption or designated beneficiary after the effective date of retirement exceptas provided in subsection 4 of this section and subsection 3 of NRS 286.525.

3. A retired employee who selects an unmodifiedretirement allowance may relinquish his right to that allowance and apply for arefund of his remaining contributions at any time. A retired employee whoselects one of the optional plans described in NRS 286.590 may relinquish his right andthe right of the beneficiary under that plan and apply for a refund of hisremaining contributions at any time. If the designated beneficiary is thespouse of the retired employee, or if the right of the beneficiary is thesubject of a court order, the retired employee shall provide an acknowledgedrelease by the beneficiary of any claim against the System or the employeescontributions when applying for a refund.

4. A retired employee may cancel his selected optionand designation of beneficiary and revert to the unmodified retirementallowance. He shall make this election by written designation, acknowledged andfiled with the Board. The written election must be accompanied by a written,notarized acknowledgment of the change by the beneficiary if the beneficiary isthe spouse of the retired employee. The election to cancel a selected optionand revert to the unmodified allowance does not abrogate any obligation of theretired employee respecting community property.

5. The termination or adjustment of a monthly retirementallowance resulting from the death of a retired employee or beneficiary mustnot become effective until the first day of the month immediately following thedeath of the retired employee or beneficiary.

(Added to NRS by 1983, 491; A 1985, 1718; 1987, 682)

NRS 286.612 Chargesfor deferred protection: Termination; adjustments of allowances or benefits.

1. Charges for deferred protection must not be made onor after July 1, 1995, against the:

(a) Allowance payable to a beneficiary pursuant to NRS 286.600 or 286.610, as those sectionsexisted on June 30, 1995.

(b) Service retirement allowance of a member whoselected deferred protection for a beneficiary before July 1, 1975, and whowill retire on or after July 1, 1995.

(c) Service retirement allowance of a member whoselected deferred protection for a beneficiary before July 1, 1975, and whoretired before July 1, 1995.

2. If a charge for deferred protection has been madeagainst the allowance or benefit of a member or beneficiary on or after July 1,1995, the member or beneficiary must notify the Board. The Board shall adjustthe allowance or benefit of the member or beneficiary for any charge madeduring the period between July 1, 1995, and the date of notification.

3. As used in this section, deferred protectionmeans the benefit which a member was permitted to select during employmentbefore July 1, 1975, pursuant to NRS 286.600 and 286.610, as those sectionsexisted on June 30, 1995, to provide an allowance to his beneficiary if themember died while employed and before retirement.

(Added to NRS by 1995, 250)

NRS 286.615 Optionaldeduction from benefits for payments for group insurance, plan of benefits ormedical and hospital service or other obligations; regulations; exemption ofExecutive Officer, Board and System from liability for errors or omissions.

1. In addition to the options provided in NRS 287.023 and subject to the requirementsof that section, any officer or employee of a governmental entity enumerated insubsection 1 of NRS 287.023 who retiresunder the conditions set forth in NRS1A.350, 1A.480, 286.510 or 286.620 and, at the time of his retirement,was covered or had his dependents covered by any group insurance, plan ofbenefits or medical and hospital service established pursuant to NRS 287.010, 287.015, 287.020or paragraph (b), (c) or (d) of subsection 1 of NRS 287.025, has the option of having theExecutive Officer deduct and pay his premium or contribution for that coverage,as well as the amount due or to become due upon any obligation designated bythe Board pursuant to subsection 2, from his monthly retirement allowanceuntil:

(a) He notifies the Executive Officer to discontinuethe deduction; or

(b) Any of his dependents elect to assume the premiumor contribution applicable to the dependents coverage before the death of sucha retired person and continue coverage pursuant to NRS 287.023 after his death.

2. The Board may adopt regulations to carry out theprovisions of subsection 1, including, but not limited to, regulationsgoverning the number and types of obligations, amounts for the payment of whichmay be deducted and paid by the Board at the option of the officer or employeepursuant to this section.

3. The Executive Officer, Board and System are not liablefor any damages resulting from errors or omissions concerning the deductionsand payment of premiums or contributions authorized pursuant to this sectionunless willful neglect or gross negligence is proven.

(Added to NRS by 1973, 327; A 1985, 40; 1987, 502,683; 1999, 3022; 2003, 2736, 3259)

NRS 286.620 Disabilityretirement allowance: Eligibility; calculation of amount; beneficiaries;effective date of termination or adjustment of allowance.

1. A member of the System who has 5 years or more ofservice credit and who becomes totally unable to perform his current job or anycomparable job for which he is qualified by his training and experience,because of injury or mental or physical illness of a permanent nature iseligible to apply for disability retirement if:

(a) Except as otherwise provided in subsection 5, hisemployment will be terminated because of the disability;

(b) He is in the employ of a participating publicemployer at the time of application for disability retirement;

(c) He proves that his disability renders him unable toperform the duties of his present position and of any other position he hasheld within the past year;

(d) He files a notarized application for disabilityretirement with the System which indicates a selection of option and to whichis attached a personal statement by the member, describing the disability, theduties which he can and cannot perform, and any benefits he is entitled toreceive for disability from any other public source;

(e) The public employer files an official statementcertifying the members employment record, job description, work evaluations,record of disability and absences that have occurred because of the disability;and

(f) The immediate supervisor of the member files anofficial statement regarding the effect upon the work of the member after thedisability, job functions that can and cannot be performed because of thedisability, and whether or not there are alternative jobs that can be performedby the member.

2. Except as otherwise required as a result of NRS 286.537, the amount of the disabilityretirement allowance must be calculated in the same manner as provided forservice retirement calculations in NRS286.551, except that no reduction for the members age may be made and thatthe allowance must be reduced by the amount of any other benefit received fromany source on account of the same disability:

(a) If the benefit is provided or was purchased by theexpenditure of money by a Nevada public employer; and

(b) To the extent that the total of the unmodifiedbenefit and the other benefit would otherwise exceed his average compensation.

3. A member may apply for disability retirement evenif he is eligible for service retirement.

4. Each child of a deceased recipient of a disabilityretirement allowance is entitled to receive the benefits provided by NRS 286.673 only if the decedent had notreached the age and completed the service required to be eligible for a serviceretirement allowance, except that these benefits must not be paid to anyone whois named as a beneficiary under one of the options to an unmodified allowance.

5. If a member whose application for disabilityretirement has been:

(a) Approved, dies before his employment is terminated,but within 60 days after his application was approved; or

(b) Mailed before his death as indicated by the date ofthe postmark dated by the post office on the envelope in which it was mailed,dies before the Board has acted upon his application and the Board approvesthereafter his application,

hisbeneficiary is entitled to receive an allowance under the option selectedrather than the benefit otherwise provided for a survivor.

6. The termination or adjustment of a disabilityretirement allowance resulting from the death of a recipient of an allowancepursuant to this section must not become effective until the first day of themonth immediately following the death of the recipient.

[Part 22:181:1947; A 1949, 174; 1951, 269](NRS A1957, 206, 526; 1965, 958; 1973, 624; 1975, 1055; 1979, 755, 943; 1981, 453;1983, 485; 1985, 1719; 1991, 2367)

NRS 286.630 Disabilityretirement allowance: Approval or denial of application; medical examination.

1. The Board shall designate medical advisers toreview information which has been submitted by the private physician of themember, conduct medical examinations, make recommendations and consult with theBoard concerning applications for disability retirement.

2. The Board shall require a medical examination ofeach applicant for disability retirement. The examination must at least consistof:

(a) An examination at an applicants expense and by hispersonal physician who shall submit a written statement to the Board describingthe nature and extent of the applicants disability, the physicians statementwhether or not the member is disabled, and copies of any medical informationnecessary to support the statement; and

(b) A review of the written statement from theapplicants physician by the Boards medical advisers.

The membershall provide any additional information which the Board or medical advisersdeem necessary and shall submit to an additional medical examination upon therequest of the Board. The costs of such additional examination must be paidfrom the Public Employees Retirement Administrative Fund.

3. The Board shall consider the complete applicationfor disability retirement and the recommendations of its staff and the medicaladvisers, and approve or deny the application.

4. A member may apply to the Board for onereconsideration within 45 days after the denial by the Board of his application,if the member can present new evidence which was not available or the existenceof which was not known to him at the time the Board originally considered hisapplication.

[Part 22:181:1947; A 1949, 174; 1951, 269](NRS A1975, 1056; 1977, 63; 1981, 454)

NRS 286.634 Disabilityretirement allowance: Effective date of retirement.

1. The effective date of disability retirement for amember whose application for disability retirement has been approved by theBoard is:

(a) The day after his last day of employment; or

(b) The day after his death, if death intervenesbetween his application and his retirement.

2. A member whose application for disabilityretirement has been approved by the Board must retire from his employment andbegin drawing benefits within 60 days after the date of the approval or he mustreapply and be reapproved before he may draw benefits unless he remains on sickleave for the entire period of continued employment.

(Added to NRS by 1981, 443)

NRS 286.637 Disabilityretirement allowance: Recipient to provide copy of federal income tax return;Board may require medical examinations.

1. Each recipient of a disability retirement allowanceshall provide to the System a copy of his federal income tax return andwithholding statements for all income for the preceding calendar year by May 1of each year.

2. The Board may adopt regulations to require medicalexaminations of recipients of disability retirement allowances. Expenses forsuch medical examinations must be paid from the Public Employees RetirementAdministrative Fund. If any member receiving such benefits refuses a reasonablerequest from the Board to submit to a medical examination, the Board maydiscontinue the payment of his benefits and may provide for the forfeiture ofall his benefits which accrue during the discontinuance.

(Added to NRS by 1981, 443)

NRS 286.638 Disabilityretirement allowance: Reporting to Internal Revenue Service. The System shall, to the extent allowed by federal law,report to the Internal Revenue Service of the United States Department of theTreasury a disability retirement allowance that is paid to a member of theSystem as a disability benefit instead of as retirement income.

(Added to NRS by 2003, 1927)

NRS 286.640 Disabilityretirement allowance: Cancellation.

1. When the recipient of a disability retirementallowance is determined by the Board to be no longer disabled, his allowancemust be cancelled.

2. An employee retired on account of disability whosebenefit is cancelled may:

(a) Apply for a refund of unused contributions;

(b) Suspend his monthly benefit until eligible forservice retirement; or

(c) Elect a service retirement reduced for his age ifhe has the service credit necessary to retire.

[Part 22:181:1947; A 1949, 174; 1951, 269](NRS A1975, 1057; 1981, 455)

NRS 286.650 Disabilityretirement allowance: Consequences of employment of recipient.

1. Except as otherwise provided in subsection 2,whenever a recipient of a disability retirement allowance returns to employmentwith a participating public employer, the allowance must be discontinued, heshall again become a contributing member of the System and his service creditat time of disability retirement must be restored. An amount equivalent to histotal employee contributions at time of disability less 15 percent of totaldisability benefits paid must be returned to his individual member account. Themember shall retire under the same retirement plan previously selected forretirement on account of disability if he returns to disability retirement orelects service retirement within 1 year after his return to employment.

2. A recipient of a disability retirement allowance maybe employed and continue to receive his allowance if he applies to the Boardfor approval of the employment before he begins to work and the Board approveshis application. The application must include:

(a) A full description of the proposed employment; and

(b) A statement written by the member declaring thereasons why the proposed employment should not be found to conflict with hisdisability.

[Part 22:181:1947; A 1949, 174; 1951, 269](NRS A1975, 1057; 1981, 455; 1985, 1720; 1991, 1973)

NRS 286.655 Paymentsfor rehabilitation in lieu of disability retirement allowance. The Board may make direct payments to a public employerfor the rehabilitation of a member eligible to receive a disability retirementallowance. These payments, up to but not exceeding the disability retirementallowance, are payable at the request of the member in lieu of the disabilityretirement allowance.

(Added to NRS by 1977, 1572)

NRS 286.660 Deathof certain member before retirement: Disposition of money to his credit inPublic Employees Retirement Fund.

1. If a person who is a member of the System and hasless than 2 years of accredited contributing service or has more than 2 yearsof accredited service and payments are not due under NRS 286.673 to 286.677, inclusive, dies before retiring,the amount credited at the time of his death to his account in the PublicEmployees Retirement Fund shall be paid directly and without probate oradministration to the beneficiaries which he designates.

2. Should more than one beneficiary be named, theamount standing to the credit of the member shall be distributed equally amongsuch persons unless otherwise specifically directed by the member. Full paymentby the Board to persons designated as beneficiaries shall discharge the Boardand System completely on account of the death.

3. The death of any named beneficiary, prior to thedeath of the member, shall operate to distribute the share of the deceasedbeneficiary in equal shares to the other named beneficiaries who shall survive,but if the deceased beneficiary shall be survived by minor children the shareof the deceased beneficiary shall be distributed in equal shares among suchsurviving minor children.

4. Should no beneficiaries survive, or should themember not designate a beneficiary, the amount otherwise due shall be paiddirectly to the estate of the deceased member.

[21:181:1947; A 1951, 269](NRS A 1963, 985; 1967,744)

NRS 286.665 Deathof member, retired employee or beneficiary: Transfer of contributions toretirement fund under certain circumstances; procedure for claiming transferredmoney.

1. Any contributions remaining in a members, retiredemployees or beneficiarys individual account must be transferred to thePublic Employees Retirement Fund or the Police and Firefighters RetirementFund upon the death of the member, retired employee or beneficiary if there isno heir, devisee or legatee capable of receiving the money.

2. If, within 6 years after any transfer undersubsection 1, any person appears and claims any money which was transferred toa retirement fund, the claimant may file a petition in the District Court for CarsonCity stating the nature of his claim, with an appropriate prayer for the reliefdemanded. A copy of the petition must be served upon the Attorney Generalbefore or at the time of filing it. Within 20 days after service, the AttorneyGeneral shall appear in the proceeding and respond to the petition. If, afterexamining all the facts, the Attorney General is convinced that the System hasno 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 beconsidered at issue on the 20th day after its filing, and may be heard by theCourt on that day, or at such future day as the Court may order. Upon thehearing, the Court shall examine into the claim and hear the allegations andproofs. If the Court finds that the claimant is entitled to any moneytransferred under subsection 1 to a retirement fund, it shall order the PublicEmployees Retirement Board to pay such money forthwith to the claimant, butwithout interest or cost to the Board.

4. All persons, except minors and persons of unsoundmind, who fail to appear and file their petitions within the time limited insubsection 2 are forever barred. Minors and persons of unsound mind may appearand file their petitions at any time within 5 years after their respectivedisabilities are removed.

(Added to NRS by 1977, 1573; A 1979, 259; 2003, 2064)

NRS 286.667 Allowancefor retired police officer or firefighter: Benefits for spouse upon death;credit for certain other service prohibited; costs of benefit paid by employee.

1. A retired employee whose service or disabilityretirement allowance is payable from the Police and Firefighters RetirementFund is entitled to receive his allowance without modification.

2. Upon the death of such a person, a person who washis spouse at the time of his retirement is entitled, upon attaining the age of50 years, to receive a benefit equal to 50 percent of the allowance to whichthe retired employee was entitled.

3. This section does not apply to a person who:

(a) Begins receiving a service or disability retirementallowance or a benefit from the Police and Firefighters Retirement Fund beforeJuly 1, 1981.

(b) At the time of his retirement, elects one of thealternatives to an unmodified retirement allowance.

4. Service performed after July 1, 1981, in positionsother than as a police officer or firefighter, except military service, may notbe credited toward the benefit conferred by this section. A police officer orfirefighter who has performed service which is not creditable toward thisbenefit may elect to:

(a) Select a retirement option other than one permittedby this section;

(b) Receive the benefit conferred by this section witha spouses benefit reduced by a proportion equal to that which the servicewhich is not creditable bears to his total service; or

(c) Purchase the additional spouses benefit at thetime he retires by paying the full actuarial cost as computed for his situationby the actuary of the System.

5. The entire cost of the benefit conferred by thissection must be paid by the employee. Each employer must adjust the salaries ofits employees who are eligible for the benefit to offset its cost to theemployer. Employers who adjust salaries pursuant to this subsection do not bydoing so violate any collective bargaining agreement or other contract.

(Added to NRS by 1979, 945; A 1981, 441; 1983, 487,1931; 1985, 1721; 1999,2621; 2003, 2065)

NRS 286.669 Personconvicted of murder or voluntary manslaughter of member ineligible to receivebenefits. Any person convicted of the murderor voluntary manslaughter of a member of the System is ineligible to receiveany benefit conferred by any provision of this chapter by reason of the deathof that member. The System may withhold the payment of any benefit otherwisepayable under this chapter by reason of the death of any member from any personcharged with the murder or voluntary manslaughter of that member, pending finaldetermination of those charges.

(Added to NRS by 1979, 759)

NRS 286.670 Rightto benefits not subject to taxes, process, bankruptcy, assignment or assessmentfor impairment or insolvency of insurance company; exceptions.

1. Except as otherwise provided in NRS 31A.150 and 286.6703 and as limited by subsection 2,the right of a person to a pension, an annuity, a retirement allowance, thereturn of contributions, the pension, annuity or retirement allowance itself,any optional benefit or death benefit or any other right accrued or accruing toany person under the provisions of this chapter, and the money in the variousfunds created by this chapter, is:

(a) Exempt from all state, county and municipal taxes.

(b) Not subject to execution, garnishment, attachmentor any other process.

(c) Not subject to the operation of any bankruptcy orinsolvency law.

(d) Not assignable, by power of attorney or otherwise.

(e) Exempt from assessment for the impairment orinsolvency of any life or health insurance company.

2. The System may withhold money from a refund orbenefit when the person applying for or receiving the refund or benefit owesmoney to the System.

[24:181:1947; 1943 NCL 5230.24](NRS A 1959, 411;1969, 512; 1981, 456; 1983, 1878; 1985, 1431; 1987, 484; 1993, 478)

NRS 286.6703 Paymentof allowance or benefit to alternate payee pursuant to domestic relationsorder.

1. A person may submit a judgment, decree or order ofa district court or the Supreme Court of the State of Nevada relating to childsupport, alimony or the disposition of community property to the ExecutiveOfficer or his designee for a determination of whether the judgment, decree ororder entitles an alternate payee to receive from the System all or a portionof the allowance or benefit of a member or a retired employee.

2. The judgment, decree or order submitted to theExecutive Officer must be signed by a district judge or by the justices of theSupreme Court and entered and certified by the clerk of the district court orthe Clerk of the Supreme Court.

3. The Executive Officer or his designee shall, inaccordance with rules prescribed by the Board, determine whether the judgment,decree or order entitles the alternate payee to receive an allowance or benefitfrom the System. An alternate payee is entitled to receive an allowance orbenefit from the System if the judgment, decree or order:

(a) Specifies clearly the names and last known mailingaddresses, if any, of the member or retired employee and the alternate payee;

(b) Specifies clearly the amount, percentage or mannerof determining the amount of the allowance or benefit of the member or retiredemployee that must be paid by the System to each alternate payee;

(c) Specifically directs the System to pay an allowanceor benefit to the alternate payee;

(d) Does not require the System to provide an allowanceor benefit or any option not otherwise provided under this chapter; and

(e) Does not require the payment of an allowance orbenefit to an alternate payee before the retirement of a member or thedistribution to or withdrawal of contributions by a member.

4. For purposes of this subsection, alternate payeemeans a spouse, former spouse, child or other dependent of a member or retiredemployee who, pursuant to a judgment, decree or order relating to childsupport, alimony or the disposition of community property, is entitled toreceive all or a portion of the allowance or benefit of a member or retiredmember from the System.

(Added to NRS by 1993, 473; A 2005, 1066)

NRS 286.6705 Transferof unpaid check for benefits or refund to retirement fund; claim for payment ofmoney; period of limitation.

1. Any check for benefits or a refund which has notbeen paid within 5 years after being transferred to the account for unclaimedbenefits or refunds must be transferred to the Public Employees RetirementFund or Police and Firefighters Retirement Fund, whichever is appropriate.

2. If, within 6 years after a check for benefits or arefund has been transferred pursuant to subsection 1, any person appears andclaims the money, the claimant may file a petition in the District Court forCarson City stating the nature of his claim, with an appropriate prayer for therelief demanded. A copy of the petition must be served upon the AttorneyGeneral before or at the time it is filed. Within 20 days after service, theAttorney General shall appear in the proceeding and respond to the petition.If, after examining all the facts, the Attorney General is convinced that theSystem has no legal defense against the petition, he may, with the consent ofthe Court, confess judgment on behalf of the System.

3. If judgment is not confessed, the petition must beconsidered at issue on the 20th day after its filing, and may be heard by theCourt on that day, or at such future day as the Court may order. Upon thehearing, the Court shall examine into the claim and hear the allegations andproofs. If the Court finds that the claimant is entitled to any moneytransferred pursuant to subsection 1 to a retirement fund, it shall order theBoard to pay the money forthwith to the claimant, but without interest or costto the Board.

4. All persons, except minors and persons of unsoundmind, who fail to appear and file their petitions within the time limited insubsection 1 are forever barred. Minors and persons of unsound mind may appearand file their petitions at any time within 5 years after their respectivedisabilities are removed.

(Added to NRS by 1987, 681; A 2003, 2065)

BENEFITS FOR SURVIVORS

General Provisions

NRS 286.671 Definitions. As used in NRS 286.671to 286.679, inclusive:

1. Child means an unmarried person under 18 years ofage who is the issue or legally adopted child of a deceased member. As used inthis subsection, issue means the progeny or biological offspring of thedeceased member.

2. Dependent parent means the surviving parent of adeceased member who was dependent upon the deceased member for at least 50percent of his support for at least 6 months immediately preceding the death ofthe deceased member.

3. Spouse means the surviving husband or wife of adeceased member.

(Added to NRS by 1963, 983; A 1975, 1058; 1977, 1594;1989, 1563; 1995, 253)

NRS 286.672 Eligibility.

1. Except as otherwise provided in subsection 3, if adeceased member had 2 years of accredited contributing service in the 2 1/2years immediately preceding his death or was a regular, part-time employee whohad 2 or more years of creditable contributing service before and at least 1day of contributing service within 6 months immediately preceding his death, orif the employee had 10 or more years of accredited contributing service,certain of his dependents are eligible for payments as provided in NRS 286.671 to 286.679, inclusive. If the death of themember resulted from a mental or physical condition which required him to leavethe employ of a participating public employer or go on leave without pay,eligibility pursuant to the provisions of this section extends for 18 monthsafter his termination or commencement of leave without pay.

2. If the death of a member occurs while he is onleave of absence granted by his employer for further training and if he met therequirements of subsection 1 at the time his leave began, certain of hisdependents are eligible for payments as provided in subsection 1.

3. If the death of a member is caused by anoccupational disease or an accident arising out of and in the course of hisemployment, no prior contributing service is required to make his dependentseligible for payments pursuant to NRS286.671 to 286.679, inclusive,except that this subsection does not apply to an accident occurring while themember is traveling between his home and his principal place of employment orto an accident or occupational disease arising out of employment for which nocontribution is made.

4. As used in this section, dependent includes asurvivor beneficiary designated pursuant to NRS286.6767.

(Added to NRS by 1963, 983; A 1967, 1064; 1975, 1058;1977, 1594; 1979, 756, 944; 1989, 1025; 1995, 253; 2001, 1290)

Children

NRS 286.673 Paymentsto child of deceased member.

1. Except as limited by NRS 286.6775, each child of a deceasedmember is entitled to receive a cumulative benefit of at least $400 per month,beginning on the first day of the month following the members death.

2. Payments to any child cease on the last day of themonth of:

(a) His adoption;

(b) His death;

(c) His marriage; or

(d) Except as otherwise provided in subsection 3, 4 or5, his attaining the age of 18 years.

3. Except as otherwise provided in subsection 4, thesebenefits may be paid to the child of a deceased member until the last day ofthe month of his 23rd birthday if, at the time that he attains 18 years, he is,and continues thereafter to be, a full-time student in any accredited:

(a) High school;

(b) Vocational or technical school; or

(c) College or university.

4. If the Board ceases the payment of benefits to achild of a deceased member who received benefits pursuant to subsection 3because the child ceased being a full-time student, the Board may resume thepayment of such benefits until the last day of the month of the childs 23rdbirthday if the child returns to full-time status at an accredited:

(a) High school;

(b) Vocational or technical school; or

(c) College or university.

5. These benefits may be commenced or extendedindefinitely beyond a childs 18th birthday if and so long as he is determinedby the System to be:

(a) Financially dependent; and

(b) Physically or mentally incompetent.

6. All benefits under this section may be paid by theSystem to the childs:

(a) Surviving parent; or

(b) Legal guardian.

7. The Board shall establish uniform standards andprocedures for determining whether a child is:

(a) A full-time student;

(b) Financially dependent; and

(c) Physically or mentally incompetent.

(Added to NRS by 1963, 983; A 1975, 1058; 1977, 1595;1979, 757; 1983, 487; 1989, 1026; 1995, 254; 1999, 2621; 2005, 1066)

Spouses

NRS 286.674 Paymentsto spouse of deceased member.

1. The spouse of a deceased member is entitled toreceive a cumulative benefit of at least $450 per month. The payments mustbegin on the first day of the month immediately following the death of themember and must cease on the last day of the month in which the spouse dies. Ifpayments cease before the total amount of contributions made by the deceasedmember have been received by the spouse, the surplus of contributions overpayments received must be paid to the spouse.

2. The benefits paid pursuant to this section are inaddition to any benefits paid pursuant to NRS286.673.

(Added to NRS by 1963, 984; A 1975, 1059; 1983, 488;1989, 1026; 1995, 254; 1999,2622)

NRS 286.676 Paymentsto spouse of deceased member who had 10 or more years of accreditedcontributing service.

1. Except as limited by subsections 3 and 4, thespouse of a deceased member who had 10 or more years of accredited contributingservice is entitled to receive a monthly allowance equivalent to that providedby:

(a) Option 3 in NRS286.590, if the deceased member had less than 15 years of service on thedate of his death; or

(b) Option 2 in NRS286.590, if the deceased member had more than 15 years of service on thedate of his death.

To apply theprovisions of Options 2 and 3, the deceased member shall be deemed to haveretired on the date of his death immediately after having named the spouse asbeneficiary under the applicable option. This benefit must be computed withoutany reduction for age for the deceased member. The benefits provided by thissubsection must be paid to the spouse for the remainder of the spouses life.

2. The spouse may elect to receive the benefitsprovided by any one of the following only:

(a) This section;

(b) NRS 286.674;or

(c) NRS 286.6766.

3. The benefit payable to the spouse of a member whodied before May 19, 1975, is limited to a spouse who received at least 50percent of his support from the member during the 6 months immediatelypreceding the members death and to the amounts provided in this subsection.If, at the time of his death, the member had 15 or more years of service anddid not elect an optional retirement plan as offered in this chapter, hisspouse, upon attaining the age of 60 years, may receive a cumulative benefit ofat least $450 per month or 50 percent of the average salary received by themember for the 3 consecutive highest salaried years of his last 10 years ofservice, whichever is less. Payments, or the right to receive payments, mustcease upon the death of the spouse. Benefits under this section are not renewablefollowing termination.

4. The benefits provided by paragraph (a) ofsubsection 1 may only be paid to the spouses of members who died on or afterMay 19, 1975.

(Added to NRS by 1963, 984; A 1967, 1093; 1975, 1059;1979, 260, 758; 1981, 457; 1987, 684; 1989, 1027; 1995, 254; 1999, 2622)

NRS 286.6765 Paymentsto spouse if deceased member was eligible to retire.

1. Except as limited by subsection 2, the spouse of adeceased member who was fully eligible to retire, both as to service and age,is entitled to receive a monthly allowance equivalent to that provided byoption 2 in NRS 286.590. This sectiondoes not apply to the spouse of a member who was eligible to retire only undersubsection 6 of NRS 286.510. For thepurposes of applying the provisions of option 2, the deceased member shall be deemedto have retired on the date of his death immediately after having named thespouse as beneficiary under option 2. The benefits provided by this sectionmust be paid to the spouse for the remainder of the spouses life. The spousemay elect to receive the benefits provided by any one of the following only:

(a) This section;

(b) NRS 286.674;

(c) NRS 286.676;or

(d) NRS 286.6766.

2. The benefits provided by this section may only bepaid to the spouses of members who died on or after May 19, 1975.

(Added to NRS by 1981, 442; A 1999, 973)

NRS 286.6766 Paymentin lump sum to spouse; exception. Any spouseeligible for payments under the provisions of NRS286.674 or 286.676 may elect towaive payment of a monthly allowance and to receive instead in a lump sum arefund of all contributions to the Public Employees Retirement Fund or thePolice and Firefighters Retirement Fund made by a deceased member plus anycontributions made by a public employer in lieu of the employeescontributions, but if more than one person is eligible for benefits on accountof the contributions of any one deceased member, no such lump-sum payment maybe made.

(Added to NRS by 1963, 985; A 1975, 1060; 1977, 1595;1983, 488; 2003, 2066)

Survivor Beneficiaries and Additional Payees

NRS 286.6767 Designationof survivor beneficiary and additional payees by member.

1. A member may designate, in writing, a survivorbeneficiary and one or more additional payees to receive the payments providedpursuant to NRS 286.67675, 286.6768 or 286.67685 if the member is unmarried onthe date of his death.

2. A designation pursuant to subsection 1 must be madeon a form approved by the Executive Officer. If a member has designated one ormore payees in addition to the survivor beneficiary, the member must designatethe percentage of the payments that the survivor beneficiary and eachadditional payee is entitled to receive.

(Added to NRS by 2001, 1287; A 2003, 2066)

NRS 286.67675 Paymentsto survivor beneficiary of and to additional payees designated by deceasedmember.

1. Except as otherwise provided in this subsection,the survivor beneficiary of a deceased member is entitled to receive a cumulativebenefit of at least $450 per month. If a member has designated one or morepayees in addition to the survivor beneficiary pursuant to NRS 286.6767, the cumulative benefit paidpursuant to this subsection must be divided between the survivor beneficiaryand any additional payee in the proportion designated by the member pursuant toNRS 286.6767. The payments must beginon the first day of the month immediately following the death of the member andmust cease on the last day of the month in which the survivor beneficiary dies.

2. Except asotherwise provided in this subsection, if payments made pursuant to subsection1 cease before the total amount of contributions made by the deceased memberhave been received by the survivor beneficiary, the surplus of contributionsover payments received must be paid to the survivor beneficiary. If the memberhad designated one or more payees in addition to the survivor beneficiarypursuant to NRS 286.6767, the surplusof contributions over payments received must be divided between the survivorbeneficiary and any additional payee in the proportion designated by the memberpursuant to NRS 286.6767.

3. The benefits paid pursuant to this section are inaddition to any benefits paid pursuant to NRS286.673.

4. As used in this section, survivor beneficiarymeans a person designated pursuant to NRS286.6767.

(Added to NRS by 2001, 1287; A 2003, 2066)

NRS 286.6768 Paymentsto survivor beneficiary of and to additional payees designated by deceasedmember who had 10 or more years of accredited contributing service.

1. Except as otherwise provided in subsection 2 and aslimited by subsection 4, the survivor beneficiary of a deceased member who had10 or more years of accredited contributing service is entitled to receive amonthly allowance equivalent to that provided by:

(a) Option 3 in NRS286.590, if the deceased member had less than 15 years of service on thedate of his death; or

(b) Option 2 in NRS286.590, if the deceased member had 15 or more years of service on the dateof his death.

To apply theprovisions of Options 2 and 3, the deceased member shall be deemed to haveretired on the date of his death immediately after having named the survivorbeneficiary as beneficiary pursuant to the applicable option. This benefit mustbe computed without any reduction for age for the deceased member. The benefitsprovided by this subsection must be paid to the survivor beneficiary for theremainder of the life of the survivor beneficiary.

2. If themember had designated one or more payees in addition to the survivorbeneficiary pursuant to NRS 286.6767,the monthly allowance to which a survivor beneficiary is entitled pursuant tosubsection 1 must be divided between the survivor beneficiary and anyadditional payee in the proportion designated by the member pursuant to NRS 286.6767.

3. The survivor beneficiary may elect to receive thebenefits provided by any one of the following only:

(a) This section;

(b) NRS 286.67675;or

(c) NRS 286.6769.

4. The benefits provided by paragraph (a) ofsubsection 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.

5. As used in this section, survivor beneficiarymeans a person designated pursuant to NRS286.6767.

(Added to NRS by 2001, 1287; A 2001 Special Session,99; 2003, 2067)

NRS 286.67685 Paymentto survivor beneficiary of and to additional payees designated by deceasedmember if deceased member was eligible to retire.

1. Except as otherwise provided in subsection 2 and aslimited by subsection 3, the survivor beneficiary of a deceased member who wasfully eligible to retire, both as to service and age, is entitled to receive amonthly allowance equivalent to that provided by Option 2 in NRS 286.590. This section does not apply tothe survivor beneficiary of a member who was eligible to retire only pursuantto subsection 6 of NRS 286.510. For thepurposes of applying the provisions of Option 2, the deceased member shall bedeemed to have retired on the date of his death immediately after having namedthe survivor beneficiary as beneficiary pursuant to Option 2. The benefitsprovided by this section must be paid to the survivor beneficiary for the remainderof the life of the survivor beneficiary. The survivor beneficiary may elect toreceive 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 themember had designated one or more payees in addition to the survivorbeneficiary pursuant to NRS 286.6767,the monthly allowance to which a survivor beneficiary is entitled pursuant tosubsection 1 must be divided between the survivor beneficiary and anyadditional payee in the proportion designated by the member pursuant to NRS 286.6767.

3. The benefits provided by this section may only bepaid to the survivor beneficiary and, if applicable, any additional payee of amember who died on or after January 1, 2002.

4. As used in this section, survivor beneficiarymeans a person designated pursuant to NRS286.6767.

(Added to NRS by 2001, 1288; A 2003, 2067)

NRS 286.6769 Paymentin lump sum to survivor beneficiary of and to additional payees designated bymember; exception.

1. Except as otherwise provided in subsection 2, anysurvivor beneficiary eligible for payments pursuant to the provisions of NRS 286.67675 or 286.6768 may elect to waive payment of amonthly allowance and to receive instead in a lump sum a refund of allcontributions to the Public Employees Retirement Fund or the Police andFirefighters Retirement Fund made by a deceased member plus any contributionsmade by a public employer in lieu of the employees contributions, but if morethan one person is eligible for benefits on account of the contributions of anyone deceased member, no such lump-sum payment may be made.

2. If themember had designated one or more payees in addition to the survivorbeneficiary pursuant to NRS 286.6767,the lump sum to which a survivor beneficiary is entitled pursuant to subsection1 must be divided between the survivor beneficiary and any additional payee inthe proportion designated by the member pursuant to NRS 286.6767.

3. As used in this section, survivor beneficiarymeans a person designated pursuant to NRS286.6767.

(Added to NRS by 2001, 1288; A 2003, 2068)

Parents

NRS 286.677 Paymentto dependent parents; conditions. If paymentsor refunds are not made pursuant to the provisions of NRS 286.673, 286.674, 286.676,286.67675 or 286.6768, the dependent parent of adeceased member is entitled to receive a cumulative benefit of at least $400per month, and if there are two dependent parents, each is entitled to receivea cumulative benefit of at least $400 per month. Payments to any parent pursuantto this section must cease upon the death of that parent.

(Added to NRS by 1963, 985; A 1975, 1060; 1989, 1028;1995, 255; 1999, 2623;2001, 1291)

Limitations and Disposition of Surplus

NRS 286.6775 Limitationon and reduction of amount of monthly allowance. Theamount of each monthly allowance paid since May 19, 1977, as specified in NRS 286.673 to 286.677, inclusive, shall not exceed thedeceased members average compensation and shall be reduced by the amount ofany other benefit received from any source:

1. If that benefit was provided or purchased by theexpenditure of money by a public employer in this state, except for lump-sumpayments under a group insurance program; and

2. To the extent that the total of the allowance andthe other benefit would otherwise exceed the deceased members averagecompensation.

(Added to NRS by 1977, 1573; A 1979, 758; 2001, 1291)

NRS 286.679 Dispositionof surplus of contributions if payments to beneficiary cease.

1. If payments to a beneficiary pursuant to NRS 286.671 to 286.679, inclusive, cease before the totalcontributions of a deceased member have been paid in benefits, and there is noperson entitled to receive such benefits pursuant to any provision of thischapter, the surplus of such contributions over the benefits actually receivedmay be paid in a lump sum to:

(a) The beneficiary whom the deceased member designatedfor this purpose in writing on a form approved by the System.

(b) If no such designation was made or the persondesignated is deceased, the beneficiary who previously received the payments.

(c) If no payment may be made pursuant to paragraphs(a) and (b), the persons entitled as heirs or residuary legatees to the estateof the deceased member.

2. A lump-sum payment made pursuant to this sectionfully discharges the obligations of the System.

(Added to NRS by 1963, 985; A 1983, 489; 1995, 255; 2001, 1291)

VESTING OF ALLOWANCES AND BENEFITS

NRS 286.6793 Timeof vesting; vesting of benefits upon termination of System.

1. The retirement allowance for a member who:

(a) Ceased being an active member before July 1, 1989,vested on the date that the employee completed 10 years of accreditedcontributing service; and

(b) Is active on or after July 1, 1989, becomes vestedon the date that the employee completes 5 years of accredited contributingservice.

2. Benefits for survivors offered pursuant to thischapter become vested on the date that the employee completes 10 years ofaccredited contributing service or becomes entitled to begin receiving benefitsor on the date of his death, whichever event occurs first.

3. Unless otherwise specifically provided by theamendatory act, any change in the provisions of this chapter is retroactive forall service of any member before the date of vesting, but no change may impairany vested allowance or benefit.

4. Upon the termination or partial termination of theSystem:

(a) Except as otherwise provided in paragraph (b), allaccrued benefits that are funded become 100 percent vested and nonforfeitable.

(b) A member who receives his vested accrued benefitsin a complete cash distribution before the termination is not entitled to thevesting of any benefits which have been forfeited.

(Added to NRS by 1967, 744; A 1975, 1060; 1977, 1595;1979, 261; 1981, 457; 1989, 1028; 1991, 2369; 2001, 1291)

INVESTMENT OF MONEY

NRS 286.680 Investmentby Board of money in funds; qualifications and employment of investmentcounsel; employment of other services; liability for investment decisions.

1. In addition to the provisions of chapter 355 of NRS, the Board may invest andreinvest the money in its funds as provided in this section and NRS 286.682 and may employ investmentcounsel for that purpose. The Board may also employ investment supervisoryservices, trust audit services and other related investment services which itdeems necessary to invest effectively and safeguard the money in the Systemsfunds.

2. No person engaged in business as a broker or dealerin securities or who has a direct pecuniary interest in any such business whoreceives commissions for transactions performed as agent for the Board iseligible 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 bythe Board consists of giving continuous advice as to the investment of money onthe basis of the individual needs of each client;

(b) The person and his predecessors have beencontinuously engaged in such a business for a period of 5 or more years;

(c) The person is registered as an investment adviserunder the laws of the United States as from time to time in effect, or is abank or an investment management subsidiary of a bank; and

(d) The contract between the Board and the investmentcounsel is of no specific duration and is voidable at any time by either party.

4. The Board and its individual members are not liablefor investment decisions made by investment counsel if they obtain qualified investmentcounsel, establish proper objectives and policies for investments, and issueappropriate interim directives. Investment counsel is liable for any investmentdecision that is not made in accordance with the objectives and policiesestablished by the Board and any applicable interim directives.

5. The expenses incurred in obtaining and reviewingservices pursuant to the provisions of this section and the reimbursements toemployees for their expenses incurred in connection with investment decisionsmust be paid out of the Public Employees Retirement Fund and the Police andFirefighters Retirement Fund in proportion to their respective assets.

6. The Board shall tender invitations to banks andcredit unions for commercial banking and trust services, consider proposalssubmitted by interested banks and credit unions, and consider contracts forcommercial banking and trust services at least every 5 years.

(Added to NRS by 1959, 882; A 1965, 685, 959; 1973,857; 1975, 1061; 1977, 1595; 1983, 489; 1987, 512; 1993, 478; 1999, 1467; 2003, 2068)

NRS 286.682 Authorizedinvestments: Prudent person standard. TheBoard may invest the money in its funds in every kind of investment whichpersons of prudence, discretion and intelligence acquire or retain for theirown account.

(Added to NRS by 1973, 850; A 1975, 1062; 1997, 1607)

UNIVERSITY OF NEVADA RETIREMENT PROGRAM

NRS 286.802 Boardof Regents to establish separate program for retirement of certain employees;contributions; enrollment.

1. The Board of Regents of the University of Nevadashall provide a retirement program separate from the Public EmployeesRetirement System. The program must provide retirement and death benefits formembers of the professional staff. The State and the participants shallcontribute to the cost of the program.

2. A person employed as a member of the professionalstaff who is enrolled in the Public Employees Retirement System at the time ofhis employment shall remain a member of that System. Any other eligibleemployee must be enrolled in the retirement program.

(Added to NRS by 1969, 242; A 1977, 1597; 1993, 480)

NRS 286.804 Programmay be separate system or fund; participation in larger system or fund;provision of benefits through investment entity or combination of entities.

1. The retirement program may be a separate system orfund or may participate in a larger system or fund with respect to some or allof the benefits provided under the program. The benefits under the retirementprogram may be provided through any investment entity or combination ofentities, including, but not limited to:

(a) An insurance or annuity contract, either fixed orvariable in nature;

(b) A mutual fund;

(c) A bank or other depository institution; and

(d) An investment adviser who is registered pursuant tothe Investment Advisers Act of 1940,

as specifiedin the program.

2. If benefits are provided through insurance orannuity contracts, the contracts may be obtained from any life insurance orannuity company authorized to do business in this State, or from an affiliateof such a company if the affiliate is organized as a nonprofit educationalcorporation and issues annuities only to nonprofit institutions of educationand research.

3. As used in this section, depository institutionhas the meaning ascribed to it in NRS657.037.

(Added to NRS by 1969, 242; A 1977, 1597; 1987, 484;1993, 481)

NRS 286.808 Contributions;payment by Board of Regents on behalf of participant.

1. The Board of Regents of the University of Nevadashall contribute on behalf of each participant an amount equal to 10 percent ofthe participants gross compensation during continuance of employment. Eachparticipant shall also contribute 10 percent of his gross compensation, but thecontributions required by this section must not be less than those authorizedby NRS 286.410 and 286.450. Payment of the contributionsrequired by this section must be made by the disbursing officer for the NevadaSystem of Higher Education to the designated investment entities for thebenefit of each participant.

2. The Board of Regents of the University of Nevadamay, on behalf of each participant, pay the contribution required to be paid bythe participant in subsection 1. Any such payment must be:

(a) Made in lieu of an equivalent increase in the basicsalary or in the cost of living for the participant, or both; or

(b) Counterbalanced by an equivalent reduction in theparticipants salary.

(Added to NRS by 1969, 243; A 1973, 1418; 1975, 1062;1985, 1722; 1991, 1748; 1993, 384, 481; 1995, 512)

NRS 286.810 Designationof investment entities; approval of contracts. TheBoard of Regents of the University of Nevada shall designate the investmententities to provide investment services under the retirement program and shallapprove the form and contents of the contracts. In making the designation andgiving the approval, the Board shall consider:

1. The nature and extent of the rights and benefits tobe provided by such contracts for staff members and their beneficiaries;

2. The relation of such rights and benefits to theamount of contributions to be made;

3. The suitability of such rights and benefits to theneeds of the staff members and the interests of the Nevada System of HigherEducation in the recruitment and retention of staff members; and

4. The ability of the designated investment entitiesto provide such suitable rights and benefits under such contracts.

(Added to NRS by 1969, 243; A 1977, 1597; 1993, 384,481; 1995, 512)

NRS 286.812 Administrationof program. The Board of Regents of theUniversity of Nevada shall provide for the administration of the program and performall functions which may be necessary for the accomplishment of the program.

(Added to NRS by 1969, 243; A 1977, 1597)

NRS 286.814 Participantsineligible for membership in Public Employees Retirement System. Any member of the professional staff of the Nevada Systemof Higher Education enrolled in the retirement program is ineligible formembership in the Public Employees Retirement System so long as he remainscontinuously employed in any position by the Nevada System of Higher Educationand continues in the retirement program.

(Added to NRS by 1969, 244; A 1977, 1597; 1993, 385)

NRS 286.816 Benefitspayable only by designated investment entities. Aretirement, death or other benefit must not be paid by the State of Nevada orthe Board of Regents of the University of Nevada under the retirement program.Benefits are payable to participating employees or their beneficiaries only bythe designated investment entities in accordance with the terms of thecontracts.

(Added to NRS by 1969, 244; A 1977, 1598; 1993, 482;1995, 526)

UNLAWFUL ACTS; PENALTIES

NRS 286.820 Falsestatement or certification; withholding of information. Any person who knowingly makes a false statement,certifies to an incorrect document or withholds information for the purpose ofreceiving or assisting another person in receiving benefits under this chapterto which he is not entitled is guilty of a gross misdemeanor.

(Added to NRS by 1975, 1062)

 

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