2005 Nevada Revised Statutes - Chapter 287 — Programs for Public Employees

CHAPTER 287 - PROGRAMS FOR PUBLIC EMPLOYEES

GROUP INSURANCE, PLAN OF BENEFITS AND MEDICAL AND HOSPITALSERVICES FOR OFFICERS AND EMPLOYEES OF LOCAL GOVERNMENTAL AGENCIES

NRS 287.010 Localgovernmental agency may adopt system of group insurance; payment of costs ofpremiums or contributions; provision of group insurance to members of board oftrustees of school district. [Effective through June 30, 2006.]

NRS 287.010 Localgovernmental agency may adopt system of group insurance; payment of costs ofpremiums or contributions; provision of group insurance to members of board oftrustees of school district. [Effective July 1, 2006.]

NRS 287.015 Trustfund to provide health and welfare benefits: Establishment; contributions;administration.

NRS 287.020 Localgovernmental agency may adopt system of medical and hospital service; paymentof part of dues for membership; coverage of members of board of trustees ofschool district.

NRS 287.021 Optionof surviving spouse or child of police officer or firefighter killed in line ofduty to accept or continue coverage for group insurance, plan of benefits ormedical and hospital service; notification; payment of costs for coverage;duration of eligibility.

NRS 287.023 Optionof retired officer or employee or his dependent to cancel or continue groupinsurance, plan of benefits or medical and hospital service or to join PublicEmployees Benefits Program; notice of selection of option; payment of costsfor coverage.

NRS 287.024 Optionof former member of board of trustees of school district to cancel or continuecoverage for group insurance, plan of benefits or medical and hospital service;payment of costs for coverage; notice of selection of option.

NRS 287.025 Localgovernmental agency may contract with Public Employees Benefits Program orother local governmental agency or participate as member of nonprofitcooperative association or corporation for group insurance, related medicalservices or health-related information.

NRS 287.027 Coveragefor colorectal cancer screening required to be provided by local governmentalagency that provides health insurance through plan of self-insurance.

NRS 287.029 Moneyfor coverage for group insurance for officers and employees of school districtprovided through self-insurance reserve fund or other self-funded system to bedeposited in trust fund or held in trust; limitations on use of such money.

NRS 287.030 Assignmentor deduction of wages or salary for group insurance, plan of benefits ormedical and hospital services not prohibited.

NRS 287.040 Paymentsfor group insurance, plan of benefits or medical and hospital services notcompulsory for local governmental agency; assignment of wages or salary forsuch coverage not compulsory.

GROUP INSURANCE FOR STATE OFFICERS AND EMPLOYEES

NRS 287.0402 Definitions.

NRS 287.0404 Boarddefined.

NRS 287.0405 Participatinglocal governmental agency defined.

NRS 287.04052 Participatingpublic agency defined.

NRS 287.04054 Participatingstate agency defined.

NRS 287.0406 Programdefined.

NRS 287.041 Boardof the Public Employees Benefits Program: Creation; composition;qualifications; terms; vacancies; removal.

NRS 287.0415 Boardof the Public Employees Benefits Program: Quorum; Chairman; meetings; closedsessions; posting of transcripts of meetings and closed sessions on website.

NRS 287.042 Boardof the Public Employees Benefits Program: Compensation; administrative leavefrom service of State.

NRS 287.0422 Boardof the Public Employees Benefits Program: Reimbursement of expenses ofwitnesses.

NRS 287.0424 Boardof the Public Employees Benefits Program: Executive Officer.

NRS 287.0426 Boardof the Public Employees Benefits Program: Staff.

NRS 287.0428 Boardof the Public Employees Benefits Program: Continuing education.

NRS 287.043 Boardof the Public Employees Benefits Program: Powers and duties.

NRS 287.0433 Boardof the Public Employees Benefits Program: Power to establish plan of life,accident or health insurance; reinsurance.

NRS 287.04335 Boardof the Public Employees Benefits Program: Compliance with certain provisionsrequired to provide health insurance through plan of self-insurance. [Effectivethrough June 30, 2006.]

NRS 287.04335 Boardof the Public Employees Benefits Program: Compliance with certain provisionsrequired to provide health insurance through plan of self-insurance. [EffectiveJuly 1, 2006.]

NRS 287.0434 Boardof the Public Employees Benefits Program: Power to use assets, contract forservices and charge certain fees.

NRS 287.0435 Fundfor the Public Employees Benefits Program: Creation; investment;disbursements; administration by State Treasurer; checking account for paymentof claims.

NRS 287.0438 Recordsof Public Employees Benefits Program are public records; exception.

NRS 287.0439 Participatingpublic agency required to furnish certain notice and information to Board ofthe Public Employees Benefits Program and make records available forinspection; reimbursement of Program for premiums or contributions if agencyfails to notify Program of change in status of employee.

NRS 287.044 Paymentof part of cost of premiums or contributions by State for coverage of stateofficers and employees participating in Public Employees Benefits Program fromappropriated or authorized money; limitations; coverage of dependents.

NRS 287.0445 Paymentof premiums or contributions for state officer or employee injured while memberof Public Employees Benefits Program.

NRS 287.045 Personseligible to participate in Public Employees Benefits Program; limitedaffiliation period.

NRS 287.046 Paymentof premiums or contributions for active and retired state officers and employees.

NRS 287.0465 Boardof the Public Employees Benefits Program subrogated to rights of officer,employee or dependent; lien upon proceeds of recovery from person liable forillness or injury.

NRS 287.0467 Retentionby state employees with certain positions of limited duration of membership inand dependents coverage by Public Employees Benefits Program.

NRS 287.047 Retentionof membership in and dependents coverage by Public Employees Benefits Programupon retirement of certain state officers and employees.

NRS 287.0475 Reinstatementof insurance by retired public officer or employee or his spouse.

NRS 287.0477 Optionof surviving spouse or child of police officer, firefighter or volunteerfirefighter killed in line of duty to join or continue coverage under PublicEmployees Benefits Program; notification; payment of costs for coverage;duration of eligibility.

NRS 287.0479 Optionof large group of state officers and employees to leave Public EmployeesBenefits Program and obtain group insurance from insurer or employee benefitplan; approval of proposed contracts by Board of Program; disbursement of premiumsand contributions; regulations.

NRS 287.048 Membershipin or assignment of wages or salary in payment of premiums or contributions forPublic Employees Benefits Program not compulsory.

NRS 287.049 Costsof premiums or contributions to be budgeted.

PARTICIPATION OF EMPLOYEES OF STATE AND ITS POLITICALSUBDIVISIONS IN FEDERAL OLD-AGE AND SURVIVORS INSURANCE

NRS 287.050 Declarationof legislative policy.

NRS 287.060 Employeedefined.

NRS 287.070 Employeetax defined.

NRS 287.080 Employmentdefined.

NRS 287.090 FederalInsurance Contributions Act defined.

NRS 287.100 Politicalsubdivision defined.

NRS 287.110 Secretarydefined.

NRS 287.120 SocialSecurity Act defined.

NRS 287.130 Stateagency defined.

NRS 287.140 Wagesdefined.

NRS 287.150 Federal-stateagreement: Provisions.

NRS 287.160 Interstateinstrumentality: Powers.

NRS 287.170 Contributionsby state employees.

NRS 287.180 Plansfor coverage of employees of political subdivisions.

NRS 287.190 Exclusionof service of employee eligible for participation in Public EmployeesRetirement System; exception.

NRS 287.200 SocialSecurity Revolving Fund: Creation; sources; administration; disbursements;duties of State Treasurer.

NRS 287.210 SocialSecurity Administration Fund: Creation; sources; disbursements.

NRS 287.220 Regulationsof state agency.

NRS 287.230 Studiesof state agency; reports to Legislature.

NRS 287.240 Repealof chapter 103, Statutes of Nevada 1953; liabilities, obligations andagreements to continue.

PROGRAMS FOR REDUCTION OF TAXABLE INCOME FOR PUBLIC EMPLOYEES

NRS 287.245 Employermay agree with employee to reduce taxable compensation; federal requirementsprerequisite for operation of program; powers of Board of the Public EmployeesBenefits Program.

DEFERRED COMPENSATION FOR STATE EMPLOYEES

NRS 287.250 Definitions.

NRS 287.260 Committeedefined.

NRS 287.270 Deferredcompensation defined.

NRS 287.300 Investmentdefined.

NRS 287.310 Programdefined.

NRS 287.320 Employermay agree with employee to defer compensation; investment of withheld money;deferred compensation and related property, rights and income held in trust.

NRS 287.325 Committeeto administer Program: Appointment, terms and compensation of members;vacancies.

NRS 287.330 Committeeto administer Program: Duties; powers; exemption from liability for certaindecisions relating to investments.

NRS 287.335 Interestand income earned on money in deferred compensation account.

NRS 287.340 Deferralsof compensation: Deductions from payroll; limitation on amount deferred.

NRS 287.350 Federalrequirements prerequisite for operation of plan; taxation of deferred income byState or political subdivision.

NRS 287.360 Programadditional to other retirement, pension and benefit systems.

NRS 287.365 Useof money withdrawn or appropriated from Program; deposit of certain moneywithdrawn from Program in deferred compensation account.

NRS 287.370 Useof appropriated money in administration of Program.

DEFERRED COMPENSATION FOR EMPLOYEES OF POLITICAL SUBDIVISIONS

NRS 287.381 Definitions.

NRS 287.391 Committeedefined.

NRS 287.401 Deferredcompensation defined.

NRS 287.411 Programdefined.

NRS 287.420 Employermay agree with employee to defer compensation; investment of withheld money.

NRS 287.430 Fundfor administration of money and other assets; deferred compensation and relatedincome, property and rights held in trust.

NRS 287.440 Governingbody may appoint committee to administer program; powers of committee.

NRS 287.450 Deferralsof compensation: Deductions from payroll; limitation on amount deferred.

NRS 287.460 Federalrequirements prerequisite for operation of plan; taxation of deferred income byState or political subdivision.

NRS 287.470 Programadditional to other retirement, pension and benefit systems.

NRS 287.480 Useof appropriated money in administration of program.

CONTRACTS FOR PREPAID PROFESSIONAL SERVICES

NRS 287.500 Definitions.

NRS 287.510 Contractsauthorized; payment.

NRS 287.520 Dutiesof employee organization.

NRS 287.530 Employeeorganization as trustee of money collected; claims.

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GROUP INSURANCE, PLAN OF BENEFITS AND MEDICAL AND HOSPITALSERVICES FOR OFFICERS AND EMPLOYEES OF LOCAL GOVERNMENTAL AGENCIES

NRS 287.010 Localgovernmental agency may adopt system of group insurance; payment of costs ofpremiums or contributions; provision of group insurance to members of board oftrustees of school district. [Effective through June 30, 2006.]

1. The governing body of any county, school district,municipal corporation, political subdivision, public corporation or other localgovernmental agency of the State of Nevada may:

(a) Adopt and carry into effect a system of group life,accident or health insurance, or any combination thereof, for the benefit ofits officers and employees, and the dependents of officers and employees whoelect to accept the insurance and who, where necessary, have authorized thegoverning body to make deductions from their compensation for the payment ofpremiums on the insurance.

(b) Purchase group policies of life, accident or healthinsurance, or any combination thereof, for the benefit of such officers andemployees, and the dependents of such officers and employees, as haveauthorized the purchase, from insurance companies authorized to transact thebusiness of such insurance in the State of Nevada, and, where necessary, deductfrom the compensation of officers and employees the premiums upon insurance andpay the deductions upon the premiums.

(c) Provide group life, accident or health coveragethrough a self-insurance reserve fund and, where necessary, deductcontributions to the maintenance of the fund from the compensation of officersand employees and pay the deductions into the fund. The money accumulated forthis purpose through deductions from the compensation of officers and employeesand contributions of the governing body must be maintained as an internalservice fund as defined by NRS 354.543.The money must be deposited in a state or national bank or credit unionauthorized to transact business in the State of Nevada. Any independentadministrator of a fund created under this section is subject to the licensingrequirements of chapter 683A of NRS, andmust be a resident of this State. Any contract with an independentadministrator must be approved by the Commissioner of Insurance as to thereasonableness of administrative charges in relation to contributions collectedand benefits provided. The provisions of NRS689B.030 to 689B.050, inclusive,and 689B.575 apply to coverageprovided pursuant to this paragraph, except that the provisions of NRS 689B.0359 do not apply to suchcoverage.

(d) Defray part or all of the cost of maintenance of aself-insurance fund or of the premiums upon insurance. The money forcontributions must be budgeted for in accordance with the laws governing thecounty, school district, municipal corporation, political subdivision, publiccorporation or other local governmental agency of the State of Nevada.

2. If a school district offers group insurance to itsofficers and employees pursuant to this section, members of the board oftrustees of the school district must not be excluded from participating in thegroup insurance. If the amount of the deductions from compensation required topay for the group insurance exceeds the compensation to which a trustee isentitled, the difference must be paid by the trustee.

[1:27:1947; 1943 NCL 3655.05](NRS A 1960, 76;1963, 214; 1969, 888; 1977, 389; 1979, 973; 1981, 1770; 1983, 616; 1985, 1449;1989, 1274; 1991, 451; 1995, 1011; 1999, 1467, 2005, 3106; 2001, 141, 144, 1925; 2003, 115, 3260, 3372, 3535)

NRS 287.010 Local governmental agency may adoptsystem of group insurance; payment of costs of premiums or contributions;provision of group insurance to members of board of trustees of schooldistrict. [Effective July 1, 2006.]

1. The governing body of any county, school district,municipal corporation, political subdivision, public corporation or other localgovernmental agency of the State of Nevada may:

(a) Adopt and carry into effect a system of group life,accident or health insurance, or any combination thereof, for the benefit ofits officers and employees, and the dependents of officers and employees whoelect to accept the insurance and who, where necessary, have authorized thegoverning body to make deductions from their compensation for the payment ofpremiums on the insurance.

(b) Purchase group policies of life, accident or healthinsurance, or any combination thereof, for the benefit of such officers andemployees, and the dependents of such officers and employees, as haveauthorized the purchase, from insurance companies authorized to transact thebusiness of such insurance in the State of Nevada, and, where necessary, deductfrom the compensation of officers and employees the premiums upon insurance andpay the deductions upon the premiums.

(c) Provide group life, accident or health coveragethrough a self-insurance reserve fund and, where necessary, deductcontributions to the maintenance of the fund from the compensation of officersand employees and pay the deductions into the fund. The money accumulated forthis purpose through deductions from the compensation of officers and employeesand contributions of the governing body must be maintained as an internalservice fund as defined by NRS 354.543.The money must be deposited in a state or national bank or credit unionauthorized to transact business in the State of Nevada. Any independentadministrator of a fund created under this section is subject to the licensingrequirements of chapter 683A of NRS, andmust be a resident of this State. Any contract with an independentadministrator must be approved by the Commissioner of Insurance as to thereasonableness of administrative charges in relation to contributions collectedand benefits provided. The provisions of NRS689B.030 to 689B.050, inclusive, 689B.287 and 689B.575 apply to coverage providedpursuant to this paragraph, except that the provisions of NRS 689B.0359 do not apply to suchcoverage.

(d) Defray part or all of the cost of maintenance of aself-insurance fund or of the premiums upon insurance. The money forcontributions must be budgeted for in accordance with the laws governing thecounty, school district, municipal corporation, political subdivision, publiccorporation or other local governmental agency of the State of Nevada.

2. If a school district offers group insurance to itsofficers and employees pursuant to this section, members of the board oftrustees of the school district must not be excluded from participating in thegroup insurance. If the amount of the deductions from compensation required topay for the group insurance exceeds the compensation to which a trustee isentitled, the difference must be paid by the trustee.

[1:27:1947; 1943 NCL 3655.05](NRS A 1960, 76;1963, 214; 1969, 888; 1977, 389; 1979, 973; 1981, 1770; 1983, 616; 1985, 1449;1989, 1274; 1991, 451; 1995, 1011; 1999, 1467, 2005, 3106; 2001, 141, 144, 1925; 2003, 115, 3260, 3372, 3535; 2005, 2347,effective July 1, 2006)

NRS 287.015 Trustfund to provide health and welfare benefits: Establishment; contributions;administration.

1. A local government employer and any employeeorganization that is recognized by the employer pursuant to chapter 288 of NRS may, by written agreementbetween themselves or with other local government employers and employee organizations,establish a trust fund to provide health and welfare benefits to active andretired employees of the participating employers and the dependents of those employees.

2. All contributions made to a trust fund establishedpursuant to this section must be held in trust and used:

(a) To provide, from principal or income, or both, forthe benefit of the participating employees and their dependents, medical,hospital, dental, vision, death, disability or accident benefits, or anycombination thereof, and any other benefit appropriate for an entity thatqualifies as a voluntary employees beneficiary association under Section501(c)(9) of the Internal Revenue Code of 1986, 26 U.S.C. 501(c)(9), asamended; and

(b) To pay any reasonable administrative expensesincident to the provision of these benefits and the administration of thetrust.

3. The basis on which contributions are to be made tothe trust must be specified in a collective bargaining agreement between eachparticipating local government employer and employee organization or in awritten participation agreement between the employer and employee organization,jointly, and the trust.

4. The trust must be administered by a board oftrustees on which participating local government employers and employeeorganizations are equally represented. The agreement that establishes the trustmust:

(a) Set forth the powers and duties of the board oftrustees, which must not be inconsistent with the provisions of this section;

(b) Establish a procedure for resolving expeditiouslyany deadlock that arises among the members of the board of trustees; and

(c) Provide for an audit of the trust, at leastannually, the results of which must be reported to each participating employerand employee organization.

5. The provisions of paragraphs (b) and (c) ofsubsection 2 of NRS 287.029 apply to atrust fund established pursuant to this section by the governing body of aschool district.

6. As used in this section:

(a) Employee organization has the meaning ascribed toit in NRS 288.040.

(b) Local government employer has the meaning ascribedto it in NRS 288.060.

(Added to NRS by 2003, 2737; A 2003, 20thSpecial Session, 257)

NRS 287.020 Localgovernmental agency may adopt system of medical and hospital service; paymentof part of dues for membership; coverage of members of board of trustees ofschool district.

1. The governing body of any county, school district,municipal corporation, political subdivision, public corporation or other localgovernmental agency of the State of Nevada may adopt and carry into effect asystem of medical or hospital service, or a combination thereof, throughnonprofit membership corporations defraying the cost of medical service orhospital care, or both, open to participation by all licentiates of theparticular class, whether doctors of medicine, doctors of osteopathy or doctorsof chiropractic, offering services through such a nonprofit membershipcorporation, for the benefit of such of their officers and employees, and thedependents of such officers and employees, as may elect to accept membership insuch nonprofit corporation and who have authorized the governing body to makedeductions from their compensation for the payment of membership dues.

2. A part, not to exceed 50 percent, of the cost ofsuch membership dues may be defrayed by such governing body by contribution.The money for such contributions must be budgeted for in accordance with thelaws governing such county, school district, municipal corporation, politicalsubdivision, public corporation or other local governmental agency of the Stateof Nevada.

3. The power conferred in this section, with respectto the rendition of medical or hospital service, or a combination thereof, iscoextensive with the power conferred in NRS287.010 with respect to insurance companies.

4. If a school district offers coverage for medicalservice or hospital care, or both, to its officers and employees pursuant tothis section, members of the board of trustees of the school district must notbe excluded from participating in the coverage. If the amount of the deductionsfrom compensation required to pay for the coverage exceeds the compensation towhich a trustee is entitled, the difference must be paid by the trustee.

[2:27:1947; 1943 NCL 3655.06](NRS A 1960, 76;1963, 215; 1995, 1012; 2003,3260)

NRS 287.021 Optionof surviving spouse or child of police officer or firefighter killed in line ofduty to accept or continue coverage for group insurance, plan of benefits ormedical and hospital service; notification; payment of costs for coverage;duration of eligibility.

1. Except as otherwise provided in subsection 3, thesurviving spouse and any surviving child of a police officer or firefighter whowas:

(a) Employed by a local governmental agency that hadestablished group insurance, a plan of benefits or medical and hospital servicepursuant to NRS 287.010, 287.015, 287.020or paragraph (b), (c) or (d) of subsection 1 of NRS 287.025; and

(b) Killed in the line of duty,

may elect toaccept or continue coverage under that group insurance, plan or medical andhospital service if the police officer or firefighter was a participant orwould have been eligible to participate in the group insurance, plan or medicaland hospital service on the date of the death of the police officer orfirefighter. If the surviving spouse or child elects to accept coverage underthe group insurance, plan or medical and hospital service in which the policeofficer or firefighter would have been eligible to participate or todiscontinue coverage under the group insurance, plan or medical and hospitalservice in which the police officer or firefighter was a participant, thespouse, child or legal guardian of the child must notify in writing the localgovernmental agency that employed the police officer or firefighter within 60days after the date of death of the police officer or firefighter.

2. The local governmental agency that employed thepolice officer or firefighter shall pay the entire cost of the premiums orcontributions for the group insurance, plan of benefits or medical and hospitalservice for the surviving spouse or child who meets the requirements set forthin subsection 1.

3. A surviving spouse is eligible to receive coveragepursuant to this section for the duration of the life of the surviving spouse.A surviving child is eligible to receive coverage pursuant to this sectionuntil the child reaches:

(a) The age of 18 years; or

(b) The age of 23 years, if the child is enrolled as afull-time student in an accredited university, college or trade school.

4. As used in this section police officer has themeaning ascribed to it in NRS 617.135.

(Added to NRS by 1999, 2607; A 2003, 1613, 2737, 3261; 2005, 323)

NRS 287.023 Optionof retired officer or employee or his dependent to cancel or continue groupinsurance, plan of benefits or medical and hospital service or to join PublicEmployees Benefits Program; notice of selection of option; payment of costsfor coverage.

1. Whenever an officer or employee of the governingbody of any county, school district, municipal corporation, politicalsubdivision, public corporation or other local governmental agency of the Stateof Nevada retires under the conditions set forth in NRS 1A.350 or 1A.480, or 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, the officer or employee hasthe option upon retirement to cancel or continue any such coverage or join thePublic Employees Benefits Program to the extent that such coverage is notprovided to him or a dependent by the Health Insurance for the Aged Act, 42U.S.C. 1395 et seq.

2. A retired person who joins the Public EmployeesBenefits Program upon retirement pursuant to subsection 1 or continues coverageunder the Public Employees Benefits Program shall assume the portion of thepremium or contribution costs for the coverage which the governing body or theState does not pay on behalf of retired officers or employees. A dependent ofsuch a retired person has the option, which may be exercised to the same extentand in the same manner as the retired person, to cancel or continue coverage ineffect on the date the retired person dies. The dependent is not required tocontinue to receive retirement payments from the Public Employees RetirementSystem to continue coverage.

3. Notice of the selection of the option must be givenin writing to the last public employer of the officer or employee within 60days after the date of retirement or death, as the case may be. If no notice isgiven by that date, the retired officer or employee and his dependents shall bedeemed to have selected the option to cancel the coverage for the groupinsurance, plan of benefits or medical and hospital service establishedpursuant to NRS 287.010, 287.015, 287.020or paragraph (b), (c) or (d) of subsection 1 of NRS 287.025 or not to join the PublicEmployees Benefits Program, as the case may be.

4. The governing body of any county, school district,municipal corporation, political subdivision, public corporation or other localgovernmental agency of this State:

(a) May pay the cost, or any part of the cost, ofcoverage established pursuant to NRS 287.010,287.015 or 287.020 or paragraph (b), (c) or (d) ofsubsection 1 of NRS 287.025 for personswho continue that coverage pursuant to subsection 1, but it must not pay agreater portion than it does for its current officers and employees.

(b) Shall paythe same portion of the cost of coverage under the Public Employees BenefitsProgram for persons who join the Program upon retirement pursuant to subsection1 as the State pays pursuant to subsection 2 of NRS 287.046 for persons retired from stateservice who have continued to participate in the Program.

5. The governing body of any county, school district,municipal corporation, political subdivision, public corporation or other localgovernmental agency of this State shall, for the purpose of establishingactuarial data to determine rates and coverage for persons who continuecoverage for group insurance, a plan of benefits or medical and hospitalservice with the governing body pursuant to subsection 1, commingle the claimsexperience of those persons with the claims experience of active officers andemployees and their dependents who participate in the group insurance, a planof benefits or medical and hospital service.

(Added to NRS by 1967, 974; A 1979, 325, 1074; 1981,246; 1985, 40; 1987, 504; 1993, 875; 1995, 1957; 1999, 3025; 2001, 951; 2001 Special Session,95; 2003, 2738,3250, 3262)

NRS 287.024 Optionof former member of board of trustees of school district to cancel or continuecoverage for group insurance, plan of benefits or medical and hospital service;payment of costs for coverage; notice of selection of option.

1. If a member of the board of trustees of a schooldistrict who has served at least one full term of office does not seekreelection or is defeated for reelection and, upon the expiration of his termof office, was covered or had his dependents covered by any group insurance,plan of benefits 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, the board member has theoption upon the expiration of his term of office to cancel or continue any suchcoverage to the extent that coverage is not provided to him or a dependent bythe Health Insurance for the Aged Act, 42 U.S.C. 1395 et seq. A board memberwho continues coverage pursuant to this section shall assume all costs for thecontinued coverage. A dependent of such a board member has the option, whichmay be exercised to the same extent and in the same manner as the board member,to cancel or continue coverage in effect on the date the board member dies.

2. Notice of the selection of the option must be givenin writing to the board of trustees of the school district within 30 days afterthe expiration of the board members term of office or the date of his death,as the case may be. If no notice is given by that date, the board member andhis dependents shall be deemed to have selected the option to cancel thecoverage.

(Added to NRS by 1995, 1011; A 2003, 2739, 3263)

NRS 287.025 Localgovernmental agency may contract with Public Employees Benefits Program orother local governmental agency or participate as member of nonprofitcooperative association or corporation for group insurance, related medicalservices or health-related information.

1. The governing body of any county, school district,municipal corporation, political subdivision, public corporation or other localgovernmental agency of the State of Nevada may, in addition to the other powersgranted in NRS 287.010, 287.015 and 287.020:

(a) Negotiate and contract with the Board of the PublicEmployees Benefits Program to secure group insurance for its officers andemployees and their dependents by participation in the Public EmployeesBenefits Program.

(b) Negotiate and contract with another county, schooldistrict, municipal corporation, political subdivision, public corporation orother local governmental agency of the State of Nevada to secure groupinsurance for its officers and employees and their dependents by participationin any group insurance plan established or to be established by the other localgovernmental agency.

(c) To secure group health, life or workerscompensation insurance for its officers and employees and their dependents,participate as a member of a nonprofit cooperative association or nonprofitcorporation that has been established in this State to secure such insurancefor its members from an insurer licensed pursuant to the provisions of title 57of NRS.

(d) In addition to the provisions of paragraph (c),participate as a member of a nonprofit cooperative association or nonprofitcorporation that has been established in this State to:

(1) Facilitate contractual arrangements for theprovision of medical services to its members officers and employees and theirdependents and for related administrative services.

(2) Procure health-related information anddisseminate that information to its members officers and employees and theirdependents.

2. Each contract negotiated pursuant to paragraph (a)or (b) of subsection 1:

(a) Must be submitted to the Commissioner of Insurancefor approval not less than 30 days before the date on which the contract is tobecome effective.

(b) Does not become effective unless approved by theCommissioner of Insurance.

(c) Shall be deemed to be approved if not disapprovedby the Commissioner within 30 days after its submission.

(Added to NRS by 1965, 1025; A 1969, 465; 1991, 658;1995, 2509; 1999, 189,2820, 3027; 2001, 204; 2003, 2739, 3264)

NRS 287.027 Coveragefor colorectal cancer screening required to be provided by local governmentalagency that provides health insurance through plan of self-insurance. The governing body of any county, school district, municipalcorporation, political subdivision, public corporation or other localgovernmental agency of the State of Nevada that provides health insurancethrough a plan of self-insurance shall provide coverage for colorectal cancerscreening in accordance with:

1. The guidelines concerning colorectal cancerscreening which are published by the American Cancer Society; or

2. Other guidelines or reports concerning colorectalcancer screening which are published by nationally recognized professionalorganizations and which include current or prevailing supporting scientificdata.

(Added to NRS by 2003, 1337; A 2003, 20thSpecial Session, 264)

NRS 287.029 Moneyfor coverage for group insurance for officers and employees of school districtprovided through self-insurance reserve fund or other self-funded system to bedeposited in trust fund or held in trust; limitations on use of such money.

1. If the governing body of a school district:

(a) Provides group life, accident or health coveragethrough a self-insurance reserve fund as described in paragraph (c) ofsubsection 1 of NRS 287.010; or

(b) Establishes or carries into effect any other systemof self-funded life, accident or health coverage,

any moneythat is paid toward such coverage by officers and employees of the schooldistrict in the form of contributions, deductions and premiums, and any moneythat is set aside by the school district for the matching of contributions, orfor the defraying of costs pursuant to paragraph (d) of subsection 1 of NRS 287.010, must be deposited in a trustfund or otherwise held in trust for the benefit of the officers and employeesof the school district.

2. Money that is deposited in a trust fund orotherwise held in trust pursuant to subsection 1:

(a) Must be used only for the purpose of funding,maintaining, operating and administering the program or system of groupinsurance;

(b) Must not be loaned to the school district or theboard of trustees of the school district or its agent or any other governmentalentity; and

(c) May be invested in any reasonable and prudentmanner, except that such money must not be invested to purchase any obligationsof the school district or the board of trustees of the school district or itsagent. All interest and income earned on the money in the fund must bedeposited in the fund.

(Added to NRS by 2003, 417)

NRS 287.030 Assignmentor deduction of wages or salary for group insurance, plan of benefits ormedical and hospital services not prohibited. Noprovisions of law prohibiting, restricting or limiting the assignment of ororder for wages or salary shall be deemed in any way to prohibit, restrict orlimit the powers enumerated in NRS 287.010,287.015, 287.020 or 287.025, nor the right and power ofofficers or employees to authorize and approve payment of premiums or contributionsby wage and salary deductions.

[3:27:1947; 1943 NCL 3655.07](NRS A 1999, 3028; 2003, 2740, 3265)

NRS 287.040 Paymentsfor group insurance, plan of benefits or medical and hospital services notcompulsory for local governmental agency; assignment of wages or salary forsuch coverage not compulsory. The provisionsof NRS 287.010 to 287.040, inclusive, do not make itcompulsory upon any governing body of any county, school district, municipalcorporation, political subdivision, public corporation or other localgovernmental agency of the State of Nevada, except as otherwise provided in NRS 287.021 or in an agreement entered intopursuant to subsection 3 of NRS 287.015,to pay any premiums, contributions or other costs for group insurance, a planof benefits or medical or hospital services established pursuant to NRS 287.010, 287.015, 287.020or paragraph (b), (c) or (d) of subsection 1 of NRS 287.025, or upon any officer oremployee of any county, school district, municipal corporation, politicalsubdivision, public corporation or other local governmental agency of thisState to accept any such coverage or to assign his wages or salary in paymentof premiums or contributions therefor.

[4:27:1947; 1943 NCL 3655.08](NRS A 1960, 77;1979, 1075; 1985, 268; 1995, 1013; 1999, 2609, 3028; 2003, 417, 1613, 2740, 3251, 3265)

GROUP INSURANCE FOR STATE OFFICERS AND EMPLOYEES

NRS 287.0402 Definitions. As used in NRS287.0402 to 287.049, inclusive,unless the context otherwise requires, the words and terms defined in NRS 287.0404 to 287.0406, inclusive, have the meaningsascribed to them in those sections.

(Added to NRS by 1999, 3023; A 2001, 2938; 2003, 3265)

NRS 287.0404 Boarddefined. Board means the Board of the PublicEmployees Benefits Program created by NRS287.041.

(Added to NRS by 1999, 3023)

NRS 287.0405 Participatinglocal governmental agency defined. Participatinglocal governmental agency means a county, school district, municipalcorporation, political subdivision, public corporation or other localgovernmental agency that has an agreement in effect with the Program pursuantto paragraph (a) of subsection 1 of NRS287.025 to obtain group insurance from the Program.

(Added to NRS by 2003, 3259)

NRS 287.04052 Participatingpublic agency defined. Participating publicagency means any participating local governmental agency and participatingstate agency.

(Added to NRS by 2003, 3259)

NRS 287.04054 Participatingstate agency defined. Participating stateagency means a department, commission, board, bureau or other agency of the Executive,Legislative and Judicial Branches of State Government, including, withoutlimitation, the Public Employees Retirement System and the Nevada System ofHigher Education.

(Added to NRS by 2003, 3259)

NRS 287.0406 Programdefined. Program means the Public EmployeesBenefits Program established pursuant to subsection 1 of NRS 287.043.

(Added to NRS by 1999, 3023)

NRS 287.041 Boardof the Public Employees Benefits Program: Creation; composition;qualifications; terms; vacancies; removal.

1. There is hereby created the Board of the PublicEmployees Benefits Program. The Board consists of nine members appointed as follows:

(a) One member who is a professional employee of theNevada System of Higher Education, appointed by the Governor upon considerationof any recommendations of organizations that represent employees of the NevadaSystem of Higher Education.

(b) One member who is retired from public employment,appointed by the Governor upon consideration of any recommendations oforganizations that represent retired public employees.

(c) Two members who are employees of the State,appointed by the Governor upon consideration of any recommendations oforganizations that represent state employees.

(d) One member appointed by the Governor uponconsideration of any recommendations of organizations that represent employeesof local governments that participate in the program.

(e) One member who is employed by this State in amanagerial capacity and has substantial and demonstrated experience in riskmanagement, portfolio investment strategies or employee benefits programsappointed by the Governor. The Governor may appoint the Executive Officer ofthe Public Employees Retirement System to fill this position.

(f) Two members who have substantial and demonstratedexperience in risk management, portfolio investment strategies or employeebenefits programs appointed by the Governor.

(g) The Director of the Department of Administration orhis designee.

2. Of the six persons appointed to the Board pursuantto paragraphs (a) to (e), inclusive, of subsection 1, at least one member musthave an advanced degree in business administration, economics, accounting,insurance, risk management or health care administration, and at least twomembers must have education or proven experience in the management ofemployees benefits, insurance, risk management, health care administration orbusiness administration.

3. Each person appointed as a member of the Boardmust:

(a) Except for a member appointed pursuant to paragraph(f) of subsection 1, have been a participant in the Program for at least 1 yearbefore his appointment;

(b) Except for a member appointed pursuant to paragraph(f) of subsection 1, be a current employee of the State of Nevada or anotherpublic employer that participates in the Program or a retired public employeewho is a participant in the Program; and

(c) Not be an elected officer of the State of Nevada orany of its political subdivisions.

4. Except as otherwise provided in this subsection,after the initial terms, the term of an appointed member of the Board is 4years and until his successor is appointed and takes office unless the member nolonger possesses the qualifications for appointment set forth in this sectionor is removed by the Governor. If a member loses the requisite qualificationswithin the last 12 months of his term, the member may serve the remainder ofhis term. Members are eligible for reappointment. A vacancy occurring in themembership of the Board must be filled in the same manner as the originalappointment.

5. The appointed members of the Board serve at thepleasure of the Governor. If the Governor wishes to remove a member from theBoard for any reason other than malfeasance or misdemeanor, the Governor shallprovide the member with written notice which states the reason for and theeffective date of the removal.

(Added to NRS by 1963, 1319; A 1967, 1580; 1977, 147;1991, 658; 1999, 3028,3043; 2001, 216; 2003, 3274)

NRS 287.0415 Boardof the Public Employees Benefits Program: Quorum; Chairman; meetings; closedsessions; posting of transcripts of meetings and closed sessions on website.

1. A majority of the members of the Board constitutesa quorum for the transaction of business.

2. The Governor shall designate one of the members ofthe Board to serve as the Chairman.

3. The Board shall meet at least once every calendarquarter and at other times upon the call of the Chairman.

4. The Board may meet in closed session:

(a) To discuss matters relating to personnel;

(b) To prepare a request for a proposal or othersolicitation for bids to be released by the Board for competitive bidding; or

(c) As otherwise provided pursuant to chapter 241 of NRS.

5. Except as otherwise provided in this subsection, ifthe Board causes a meeting to be transcribed by a court reporter who iscertified pursuant to chapter 656 of NRS, theBoard shall post a transcript of the meeting on its Internet website not laterthan 30 days after the meeting. The Board shall post a transcript of a closedsession of the Board on its Internet website when the Board determines that thematters discussed no longer require confidentiality and, if applicable, theperson whose character, conduct, competence or health was discussed in theclosed session has consented to the posting.

6. As used in this section, request for a proposalhas the meaning ascribed to it in subsection 8 of NRS 333.020.

(Added to NRS by 1999, 3023; A 2003, 549; 2005, 1409)

NRS 287.042 Boardof the Public Employees Benefits Program: Compensation; administrative leavefrom service of State.

1. No member who is a public employee may receive anycompensation for his services as a member of the Board. Any member who is apublic employee must be granted administrative leave from his duties to engagein the business of the Board without loss of his regular compensation. Suchleave does not reduce the amount of the members other accrued leave.

2. A member of the Board who is not a public employeeis entitled to receive $80 per day for his attendance at meetings of the Board.

(Added to NRS by 1963, 1319; A 1977, 122; 1985, 392;1987, 326; 1991, 659; 1999,3029)

NRS 287.0422 Boardof the Public Employees Benefits Program: Reimbursement of expenses ofwitnesses. The Board may reimburse a witnesswhom the Board requests appear before it and who has expertise in a field thatis relevant to the Program for any expenses relating to the testimony of thewitness that the Board deems reasonable.

(Added to NRS by 1999, 3023)

NRS 287.0424 Boardof the Public Employees Benefits Program: Executive Officer.

1. The Board shall employ an Executive Officer who isin the unclassified service of the State and serves at the pleasure of theBoard. The Board may delegate to the Executive Officer the exercise ordischarge of any power, duty or function vested in or imposed upon the Board.

2. The Executive Officer must:

(a) Be a graduate of a 4-year college or universitywith a degree in business administration or public administration or anequivalent degree, as determined by the Board; and

(b) Possess at least 5 years experience in ahigh-level administrative or executive capacity in the field of insurance,management of employees benefits or risk management, including, withoutlimitation, responsibility for a variety of administrative functions such aspersonnel, accounting, data processing or the structuring of insuranceprograms.

3. 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 with any vendor or provider to the Program.

4. The Executive Officer is entitled to an annualsalary fixed by the Board. The salary of the Executive Officer is exempt fromthe limitations set forth in NRS 281.123.

(Added to NRS by 1999, 3024; A 2005, 592)

NRS 287.0426 Boardof the Public Employees Benefits Program: Staff.

1. The Executive Officer may appoint a Quality ControlOfficer, Operations Officer, Accounting Officer, Information Technology SystemsOfficer and Executive Assistant, who are in the unclassified service of theState and serve at the pleasure of the Executive Officer. The appointment anddismissal of the Quality Control Officer are subject to the approval of theBoard.

2. The Quality Control Officer, Operations Officer,Accounting Officer and Information Technology Systems Officer must each be agraduate of a 4-year college or university with a degree that is appropriate totheir respective responsibilities or possess equivalent experience asdetermined by the Board.

3. The Quality Control Officer, Operations Officer,Accounting Officer, Information Technology Systems Officer and ExecutiveAssistant are entitled to annual salaries fixed by the Board. The salaries ofthese employees are exempt from the limitations set forth in NRS 281.123.

4. The Executive Officer may employ such staff in theclassified service of the State as are necessary for the performance of hisduties, within limits of legislative appropriations or other available money.

(Added to NRS by 1983, 1343; A 1985, 392; 1987, 327;1991, 661; 1999, 3032;2005, 593)

NRS 287.0428 Boardof the Public Employees Benefits Program: Continuing education.

1. Each member of the Board and the Executive Officershall complete at least 16 hours of continuing education relating to theadministration of group benefits for public employees each year.

2. While attending courses of continuing education, amember of the Board who is a public employee and the Executive Officer must begranted administrative leave with pay and are entitled to receive the travelexpenses provided for state officers and employees generally.

3. While attending courses of continuing education, amember of the Board who is not a public employee is entitled to receive the perdiem allowance and travel expenses provided for state officers and employeesgenerally.

(Added to NRS by 1999, 3024)

NRS 287.043 Boardof the Public Employees Benefits Program: Powers and duties.

1. The Board shall:

(a) Establish and carry out a program to be known asthe Public Employees Benefits Program which:

(1) Must include a program relating to grouplife, accident or health insurance, or any combination of these; and

(2) May include a program to reduce taxablecompensation or other forms of compensation other than deferred compensation,

for thebenefit of all state officers and employees and other persons who participatein the Program.

(b) Ensure that the Program is funded on an actuariallysound basis and operated in accordance with sound insurance and businesspractices.

2. In establishing and carrying out the Program, theBoard shall:

(a) For the purpose of establishing actuarial data todetermine rates and coverage for active and retired state officers andemployees and their dependents, commingle the claims experience of such activeand retired officers and employees and their dependents.

(b) Except as otherwise provided in this paragraph,negotiate and contract pursuant to paragraph (a) of subsection 1 of NRS 287.025 with the governing body of anycounty, school district, municipal corporation, political subdivision, publiccorporation or other local governmental agency of the State of Nevada thatwishes to obtain group insurance for its active and retired officers andemployees and their dependents by participation in the Program. The Board shallestablish separate rates and coverage for active and retired officers andemployees of those local governmental agencies and their dependents based onactuarial reports that commingle the claims experience of such active andretired officers and employees and their dependents.

(c) Except as otherwise provided in paragraph (d),provide public notice in writing of any proposed changes in rates or coverageto each participating public agency that may be affected by the changes. Noticemust be provided at least 30 days before the effective date of the changes.

(d) If a proposed change is a change in the premium orcontribution charged for, or coverage of, health insurance, provide writtennotice of the proposed change to all participants in the Program. The noticemust be provided at least 30 days before the date on which a participant in theProgram is required to select or change his policy of health insurance.

(e) Purchase policies of life, accident or healthinsurance, or any combination of these, or, if applicable, a program to reducethe amount of taxable compensation pursuant to 26 U.S.C. 125, from anycompany qualified to do business in this State or provide similar coveragethrough a plan of self-insurance established pursuant to NRS 287.0433 for the benefit of alleligible participants in the Program.

(f) Except as otherwise provided in this title, developand establish other employee benefits as necessary.

(g) Investigate and approve or disapprove any contractproposed pursuant to NRS 287.0479.

(h) Adopt such regulations and perform such otherduties as are necessary to carry out the provisions of NRS 287.0402 to 287.049, inclusive, including, withoutlimitation, the establishment of:

(1) Fees for applications for participation inthe Program and for the late payment of premiums or contributions;

(2) Conditions for entry and reentry into theProgram by local governmental agencies that wish to enter or reenter theProgram pursuant to paragraph (a) of subsection 1 of NRS 287.025;

(3) Procedures by which a group of participantsin the Program may leave the Program pursuant to NRS 287.0479 and conditions and proceduresfor reentry into the Program by those participants; and

(4) Specific procedures for the determination ofcontested claims.

(i) Appoint an independent certified public accountant.The accountant shall:

(1) Provide an annual audit of the Program; and

(2) Report to the Board and the InterimRetirement and Benefits Committee of the Legislature created pursuant to NRS 218.5373.

(j) Appoint an attorney who specializes in employeebenefits. The attorney shall:

(1) Perform a biennial review of the Program todetermine whether the Program complies with federal and state laws relating totaxes and employee benefits; and

(2) Report to the Board and the InterimRetirement and Benefits Committee of the Legislature created pursuant to NRS 218.5373.

3. The Board shall submit an annual report regardingthe administration and operation of the Program to the Director of theLegislative Counsel Bureau not more than 6 months before the Board establishesrates and coverage for participants for the following plan year. The reportmust include, without limitation:

(a) The amount paid by the Program in the precedingplan year for the claims of active and retired participants in the Program; and

(b) The amount paid by the Program in the precedingplan year for the claims of retired participants in the Program who wereprovided coverage for medical or hospital service, or both, by the HealthInsurance for the Aged Act, 42 U.S.C. 1395 et seq., or a plan that providessimilar coverage.

4. The Board may use any services provided to stateagencies and shall use the services of the Purchasing Division of theDepartment of Administration to establish and carry out the Program.

5. The Board may make recommendations to theLegislature concerning legislation that it deems necessary and appropriateregarding the Program.

6. A participating public agency is not liable for anyobligation of the Program other than indemnification of the Board and itsemployees against liability relating to the administration of the Program,subject to the limitations specified in NRS41.0349.

7. As used in this section, employee benefitsincludes any form of compensation provided to a public employee except federalbenefits, wages earned, legal holidays, deferred compensation and benefitsavailable pursuant to chapter 286 of NRS.

(Added to NRS by 1963, 1319; A 1965, 1026; 1969, 466;1979, 629, 933; 1983, 1343; 1985, 543; 1987, 326, 1400; 1991, 249, 659; 1995,1647; 1999, 2609,3030; 2001, 952, 2709, 2939; 2003, 191, 333, 1613, 3251, 3265)

NRS 287.0433 Boardof the Public Employees Benefits Program: Power to establish plan of life,accident or health insurance; reinsurance. TheBoard may establish a plan of life, accident or health insurance and providefor the payment of contributions into the Fund for the Public EmployeesBenefits Program established pursuant to NRS287.0435, a schedule of benefits and the disbursement of benefits from theFund. The Board may reinsure any risk or any part of such a risk.

(Added to NRS by 1983, 1342; A 1985, 268; 1987, 327;1991, 660; 1999, 3031)

NRS 287.04335 Boardof the Public Employees Benefits Program: Compliance with certain provisionsrequired to provide health insurance through plan of self-insurance. [Effectivethrough June 30, 2006.] If the Board provideshealth insurance through a plan of self-insurance, it shall comply with theprovisions of NRS 689B.255, 695G.150, 695G.160, 695G.164, 695G.170, 695G.173, 695G.200 to 695G.230, inclusive, and 695G.241 to 695G.310, inclusive, in the same manneras an insurer that is licensed pursuant to title 57 of NRS is required tocomply with those provisions.

(Added to NRS by 2001, 2938; A 2003, 785, 3373, 3536)

NRS 287.04335 Board of the Public EmployeesBenefits Program: Compliance with certain provisions required to provide healthinsurance through plan of self-insurance. [Effective July 1, 2006.] If the Board provides health insurance through a plan ofself-insurance, it shall comply with the provisions of NRS 689B.255, 695G.150, 695G.160, 695G.164, 695G.170, 695G.173, 695G.200 to 695G.230, inclusive, 695G.241 to 695G.310, inclusive, and 695G.405, in the same manner as aninsurer that is licensed pursuant to title 57 of NRS is required to comply withthose provisions.

(Added to NRS by 2001, 2938; A 2003, 785, 3373, 3536; 2005, 2348,effective July 1, 2006)

NRS 287.0434 Boardof the Public Employees Benefits Program: Power to use assets, contract forservices and charge certain fees. The Boardmay:

1. Use its assets to pay the expenses of health carefor its members and covered dependents, to pay its employees salaries and topay administrative and other expenses.

2. Enter into contracts relating to the administrationof the Program, including, without limitation, contracts with licensedadministrators and qualified actuaries. Each such contract with a licensedadministrator:

(a) Must be submitted to the Commissioner of Insurancenot less than 30 days before the date on which the contract is to becomeeffective for approval as to the reasonableness of administrative charges inrelation to contributions collected and benefits provided.

(b) Does not become effective unless approved by theCommissioner.

(c) Shall be deemed to be approved if not disapprovedby the Commissioner within 30 days after its submission.

3. Enter into contracts with physicians, surgeons,hospitals, health maintenance organizations and rehabilitative facilities formedical, surgical and rehabilitative care and the evaluation, treatment andnursing care of members and covered dependents. The Board shall not enter intoa contract pursuant to this subsection unless:

(a) Provision is made by the Board to offer all theservices specified in the request for proposals, either by a health maintenanceorganization or through separate action of the Board.

(b) The rates set forth in the contract are based on:

(1) For active and retired state officers andemployees and their dependents, the commingled claims experience of such activeand retired officers and employees and their dependents; and

(2) For active and retired officers andemployees of public agencies enumerated in NRS287.010 that contract with the Program to obtain group insurance byparticipation in the Program and their dependents, the commingled claimsexperience of such active and retired officers and employees and theirdependents.

4. Enter into contracts for the services of otherexperts and specialists as required by the Program.

5. Charge and collect from an insurer, healthmaintenance organization, organization for dental care or nonprofit medicalservice corporation, a fee for the actual expenses incurred by the Board or aparticipating public agency in administering a plan of insurance offered bythat insurer, organization or corporation.

(Added to NRS by 1987, 325; A 1991, 660; 1999, 2821, 3032; 2001, 204, 2711; 2003, 3253, 3267)

NRS 287.0435 Fundfor the Public Employees Benefits Program: Creation; investment;disbursements; administration by State Treasurer; checking account for paymentof claims.

1. All money received for the Program, including,without limitation, premiums and contributions, must be deposited in the StateTreasury for credit to the Fund for the Public Employees Benefits Programwhich is hereby created as a trust fund. The Fund must be accounted for as aninternal service fund. Payments into and disbursements from the Fund must be soarranged as to keep the Fund solvent at all times.

2. The money in the Fund must be invested as othermoney of the State is invested and any income from investments paid into theFund for the benefit of the Fund.

3. Disbursements from the Fund must be made as anyother claims against the State are paid.

4. The State Treasurer may charge a reasonable fee forhis services in administering the Fund, but the State, the State General Fundand the State Treasurer are not liable to the Fund for any loss sustained bythe Fund as a result of any investment made on behalf of the Fund or any losssustained in the operation of the Program.

5. The Board shall deposit any disbursement receivedfrom the Fund into an interest-bearing checking account in a bank or creditunion qualified to receive deposits of public money. Claims that have beensubmitted to the Program and approved must be paid from the account, and anyrefund of such a claim must be deposited into the account.

(Added to NRS by 1983, 1342; A 1985, 544; 1991, 660; 1999, 3032; 2001, 953)

NRS 287.0438 Recordsof Public Employees Benefits Program are public records; exception. Except for the files of individual members and former members,the correspondence, files, minutes, audio recordings, transcripts and books ofthe Program are, except as otherwise provided in NRS 241.035, public records.

(Added to NRS by 1987, 326; A 1999, 3033; 2005, 1410)

NRS 287.0439 Participatingpublic agency required to furnish certain notice and information to Board ofthe Public Employees Benefits Program and make records available forinspection; reimbursement of Program for premiums or contributions if agencyfails to notify Program of change in status of employee.

1. A participating public agency shall furnish to theBoard:

(a) Written notice regarding a change in the status ofan employee of the participating public agency or a dependent of such anemployee that affects the eligibility of the employee or dependent toparticipate in the Program. Such notice must be provided to the Program, on aform prescribed by the Program, within 15 calendar days after the participatingpublic agency is notified or otherwise becomes aware of the change in status.

(b) Upon request, any other information necessary tocarry out the provisions of this chapter.

2. Members of the Board and its employees or agentsmay examine under oath any officer, agent or employee of a participating publicagency concerning the information required pursuant to this section.

3. The books, records and payrolls of a participatingpublic agency must be available for inspection by members of the Board and itsemployees and agents to obtain any information necessary for the administrationof the Program, including, without limitation, the accuracy of the payroll andidentity of employees.

4. A participating public agency shall reimburse theProgram for any premium or contribution that was not paid to the Program as aresult of the failure of the participating public agency to furnish the noticerequired pursuant to paragraph (a) of subsection 1. The participating publicagency shall not require any employee or his dependent to reimburse theparticipating public agency for the amount of any premium or contribution forwhich the participating public agency is liable to the Program pursuant to thissubsection.

(Added to NRS by 1987, 326; A 1991, 661; 1999, 3033; 2003, 3268)

NRS 287.044 Paymentof part of cost of premiums or contributions by State for coverage of stateofficers and employees participating in Public Employees Benefits Program fromappropriated or authorized money; limitations; coverage of dependents.

1. A part of the cost of the premiums or contributionsfor group insurance provide by the Program, not to exceed the amount specifiedby law, applied to both group life and group accident or health coverage, foreach state officer, except a Senator or Assemblyman, or employee electing toparticipate in the Program, may be paid by the participating state agency whichemploys the officer or employee in whose behalf that part is paid from moneyappropriated to or authorized for that participating state agency for thatpurpose. Participation by the State in the cost of premiums or contributionsmust not exceed the amounts specified by law. If a state officer or employeechooses to cover his dependents, whenever this option is made available by theBoard, except as otherwise provided in NRS287.021 and 287.0477, he must paythe difference between the amount of the premium or contribution for thecoverage for himself and his dependents and the amount paid by theparticipating state agency that employs the officer or employee.

2. A participating state agency shall not pay any partof those premiums or contributions if the group life insurance or groupaccident or health insurance is not approved by the Board.

(Added to NRS by 1963, 1320; A 1965, 1026; 1967,1580; 1969, 466; 1971, 509; 1973, 261; 1975, 1137; 1977, 454; 1979, 208, 933;1981, 222, 1330; 1983, 1343, 2013; 1985, 845; 1991, 661; 1999, 2610, 3033; 2003, 1613, 3268)

NRS 287.0445 Paymentof premiums or contributions for state officer or employee injured while memberof Public Employees Benefits Program. Theparticipating state agency which employed a state officer or employee who:

1. Was injured in the course of that employment;

2. Receives compensation for a temporary totaldisability pursuant to NRS 616C.475;and

3. Was a member of the Program at the time of theinjury,

shall paythe States share of the cost of the premiums or contributions for the Programfor that officer or employee for not more than 9 months after the injury oruntil the officer or employee is able to return to work, whichever is less. Ifthe previous injury recurs within 1 month after the employee returns to workand the employee again receives compensation pursuant to NRS 616C.475 as a result of the previousinjury, the participating state agency shall not, except as otherwise providedin this section, pay the States share of the cost of the premiums orcontributions for the period during which the employee is unable to work as aresult of the recurring previous injury. If the initial period of disability wasless than 9 months, the participating state agency shall pay, during therecurrence, the States share of the costs of the premiums or contributions fora period which, when added to the initial period, equals not more than 9months.

(Added to NRS by 1983, 668; A 1991, 250; 1999, 3034; 2003, 3269)

NRS 287.045 Personseligible to participate in Public Employees Benefits Program; limitedaffiliation period.

1. Except as otherwise provided in this section, everystate officer or employee is eligible to participate in the Program on thefirst day of the month following the completion of 90 days of full-timeemployment.

2. Professional employees of the Nevada System ofHigher Education who have annual employment contracts are eligible toparticipate in the Program on:

(a) The effective dates of their respective employmentcontracts, if those dates are on the first day of a month; or

(b) The first day of the month following the effectivedates of their respective employment contracts, if those dates are not on thefirst day of a month.

3. Every officer or employee who is employed by a participatinglocal governmental agency on a permanent and full-time basis on the date onwhich the participating local governmental agency enters into an agreement toparticipate in the Program pursuant to paragraph (a) of subsection 1 of NRS 287.025, and every officer or employeewho commences his employment with that participating local governmental agencyafter that date, is eligible to participate in the Program on the first day ofthe month following the completion of 90 days of full-time employment.

4. Every Senator and Assemblyman is eligible toparticipate in the Program on the first day of the month following the 90th dayafter his initial term of office begins.

5. An officer or employee of the governing body of anycounty, school district, municipal corporation, political subdivision, publiccorporation or other local governmental agency of the State of Nevada whoretires under the conditions set forth in NRS1A.350 or 1A.480, or 286.510 or 286.620 and was not participating in the Programat the time of his retirement is eligible to participate in the Program 60 daysafter notice of the selection to participate is given pursuant to NRS 287.023.

6. Notwithstanding the provisions of subsections 1, 3and 4, if the Board does not, pursuant to NRS689B.580, elect to exclude the Program from compliance with NRS 689B.340 to 689B.590, inclusive, and if the coverageunder the Program is provided by a health maintenance organization authorizedto transact insurance in this State pursuant to chapter695C of NRS, any affiliation period imposed by the Program may not exceedthe statutory limit for an affiliation period set forth in NRS 689B.500.

(Added to NRS by 1963, 1320; A 1965, 124, 1026; 1967,1581; 1969, 466, 1428; 1981, 222; 1985, 622; 1989, 1966; 1993, 385, 876; 1995,1958; 1997, 2961; 1999,3034; 2001, 216,954, 1926; 2001 Special Session,96; 2003, 3254,3269)

NRS 287.046 Paymentof premiums or contributions for active and retired state officers andemployees.

1. Except as otherwise provided in subsection 6, anyactive state officer or employee who elects to participate in the Program mayparticipate, and the participating state agency that employs the officer oremployee shall pay the States share of the cost of the premiums orcontributions for the Program from money appropriated or authorized as providedin NRS 287.044. State officers andemployees who elect to participate in the Program must authorize deductionsfrom their compensation for the payment of premiums or contributions for theProgram. Any deduction from the compensation of a state officer or employee forthe payment of a premium or contribution for health insurance must be based onthe actual amount of the premium or contribution after deducting any amount ofthe premium or contribution which is paid by the participating state agencythat employs the employee.

2. The Department of Personnel shall pay a percentageof the base amount provided by law for that fiscal year toward the cost of thepremiums or contributions for the Program for persons who have retired withstate service and who elect to participate in the Program. Except as otherwiseprovided in subsection 3, the percentage to be paid must be calculated asfollows:

(a) For those persons who retire before January 1,1994, 100 percent of the base amount provided by law for that fiscal year.

(b) For those persons who retire on or after January 1,1994, with at least 5 years of state service, 25 percent plus an additional 7.5percent for each year of state service in excess of 5 years to a maximum of137.5 percent, excluding service purchased pursuant to NRS 1A.310 or 286.300, of the base amount provided by lawfor that fiscal year.

3. If the amount calculated pursuant to subsection 2exceeds the actual premium or contribution for the plan of the Program that theretired participant selects, the balance must be credited to the Fund for thePublic Employees Benefits Program created pursuant to NRS 287.0435.

4. For the purposes of subsection 2:

(a) Credit for service must be calculated in the mannerprovided by chapter 286 of NRS.

(b) No proration may be made for a partial year ofstate service.

5. The Department shall agree through the Board withthe insurer for billing of remaining premiums or contributions for the retiredparticipant and his dependents to the retired participant and to his dependentswho elect to continue coverage under the Program after his death.

6. A Senator or Assemblyman who elects to participatein the Program shall pay the entire premium or contribution for his insurance.

(Added to NRS by 1963, 1320; A 1965, 1026; 1969, 467;1979, 1075; 1981, 222, 875, 1684; 1983, 640, 1344; 1985, 41; 1987, 504; 1991,661; 1993, 1155; 1999,3035; 2001, 2940;2001 SpecialSession, 97; 2003,258, 3255, 3270)

NRS 287.0465 Boardof the Public Employees Benefits Program subrogated to rights of officer,employee or dependent; lien upon proceeds of recovery from person liable forillness or injury.

1. If an officer or employee of the State or adependent of such an officer or employee incurs an illness or injury for whichmedical services are payable under the plan for self-insurance established bythe Board and the illness or injury is incurred under circumstances creating alegal liability in some person, other than the officer, employee or dependent,to pay all or part of the cost of those services, the Board is subrogated tothe right of the officer, employee or dependent to the extent of all suchcosts, and may join or intervene in any action by the officer, employee ordependent or his successors in interest, to enforce that legal liability.

2. If an officer, employee or dependent or hissuccessors in interest fail or refuse to commence an action to enforce thatlegal liability, the Board may commence an independent action, after notice tothe officer, employee or dependent or his successors in interest, to recoverall costs to which it is entitled. In any such action by the Board, theofficer, employee or dependent may be joined as a third party defendant.

3. If the Board is subrogated to the rights of theofficer, employee or dependent or his successors in interest as provided insubsection 1, the Board has a lien upon the total proceeds of any recovery fromthe persons liable, whether the proceeds of the recovery are by way of ajudgment or settlement or otherwise. Within 15 days after recovery by receiptof the proceeds of the judgment, settlement or other recovery, the officer,employee or dependent or his successors in interest shall notify the Board ofthe recovery and pay the Board the amount due to it pursuant to this section.The officer, employee or dependent or his successors in interest are notentitled to double recovery for the same injury.

4. The officer, employee or dependent or hissuccessors in interest shall notify the Board in writing before entering anysettlement or agreement or commencing any action to enforce the legal liabilityreferred to in subsection 1.

(Added to NRS by 1987, 1399; A 1991, 662; 1999, 3036)

NRS 287.0467 Retentionby state employees with certain positions of limited duration of membership inand dependents coverage by Public Employees Benefits Program.

1. A participating state employee whose position isonly authorized for 4 to 6 months every other year and who plans to return tothe same or a similar position for the next period during which such a positionis authorized may retain his membership in and his dependents coverage by theProgram after his employment ceases for:

(a) Six full calendar months in addition to the periodof extended coverage required by federal law following the termination ofemployment; or

(b) Twenty-four full calendar months, if no period ofextended coverage is required by federal law.

2. An employee who elects to continue hisparticipation in the program pursuant to subsection 1 shall pay the entirepremium or contribution plus allowable administrative fees for his insuranceuntil the date on which he is reemployed.

3. Failure to return to the same or a similar positionfor any reason, whether the decision was made by the former employee or theState, does not affect the application of this section.

(Added to NRS by 1999, 3024)

NRS 287.047 Retentionof membership in and dependents coverage by Public Employees Benefits Programupon retirement of certain state officers and employees. If the retention is consistent with the terms of anyagreement between the State and the insurance company which issued the policiespursuant to the Program or with the plan of self-insurance of the Program:

1. A participating state officer or employee whoretires on or after July 1, 1985, may retain his membership in and hisdependents coverage by the Program.

2. A participating Legislator who retires from theservice of the State or who completes 8 years of service as such may retain hismembership in and his dependents coverage by the Program.

(Added to NRS by 1963, 1320; A 1965, 1027; 1969, 467;1979, 1076; 1981, 223; 1983, 1100, 1344; 1985, 41; 1991, 250; 1999, 3037; 2003, 3271)

NRS 287.0475 Reinstatementof insurance by retired public officer or employee or his spouse.

1. A public officer or employee who has retiredpursuant to NRS 1A.350 or 1A.480, or 286.510 or 286.620, or a retirement program providedpursuant to NRS 286.802, or thesurviving spouse of such a retired public officer or employee who is deceasedmay, in any even-numbered year, reinstate any insurance, except life insurance,which was provided to him and his dependents at the time of his retirementpursuant to NRS 287.010, 287.015, 287.020or paragraph (b), (c) or (d) of subsection 1 of NRS 287.025 or the Program as a publicofficer or employee by:

(a) Giving written notice of his intent to reinstatethe insurance to the last public employer of the public officer or employee notlater than January 31 of an even-numbered year;

(b) Accepting the public employers current program orplan of insurance and any subsequent changes thereto; and

(c) Paying any portion of the premiums or contributionsof the public employers program or plan of insurance, in the manner set forthin NRS 1A.470 or 286.615, which are due from the date ofreinstatement and not paid by the public employer.

The lastpublic employer shall give the insurer notice of the reinstatement no laterthan March 31 of the year in which the public officer or employee or survivingspouse gives notice of his intent to reinstate the insurance.

2. Reinstatementof insurance excludes claims for expenses for any condition for which medicaladvice, treatment or consultation was rendered within 12 months beforereinstatement unless the reinstated insurance has been in effect more than 12consecutive months.

3. The last public employer of a retired officer oremployee who reinstates insurance, except life insurance, which was provided tohim and his dependents at the time of his retirement pursuant to NRS 287.010, 287.015, 287.020or paragraph (b), (c) or (d) of subsection 1 of NRS 287.025, shall, for the purpose ofestablishing actuarial data to determine rates and coverage for such persons,commingle the claims experience of such persons with the claims experience ofactive and retired officers and employees and their dependents who participatein that group insurance, plan of benefits or medical and hospital service.

(Added to NRS by 1987, 503; A 1993, 482; 1999, 3037; 2001 Special Session,98; 2003, 2740,3256, 3271)

NRS 287.0477 Optionof surviving spouse or child of police officer, firefighter or volunteerfirefighter killed in line of duty to join or continue coverage under PublicEmployees Benefits Program; notification; payment of costs for coverage;duration of eligibility.

1. Except as otherwise provided in subsection 4, thesurviving spouse and any surviving child of a police officer or firefighter whowas employed by a participating public agency and who was killed in the line ofduty may join or continue coverage under the Public Employees Benefits Programor another insurer or employee benefit plan approved by the Board pursuant to NRS 287.0479 if the police officer orfirefighter was a participant or would have been eligible to participate on thedate of the death of the police officer or firefighter. If the surviving spouseor child elects to join or discontinue coverage under the Public EmployeesBenefits Program pursuant to this subsection, the spouse, child or legalguardian of the child must notify in writing the participating public agencythat employed the police officer or firefighter within 60 days after the dateof death of the police officer or firefighter.

2. Except as otherwise provided in subsection 4, thesurviving spouse and any surviving child of a volunteer firefighter who waskilled in the line of duty and who was officially a member of a volunteer firedepartment in this State is eligible to join the Public Employees BenefitsProgram. If such a spouse or child elects to join the Public EmployeesBenefits Program, the spouse, child or legal guardian of the child must notifyin writing the Board within 60 days after the date of death of the volunteer firefighter.

3. The participating public agency that employed thepolice officer or firefighter shall pay the entire cost of the premiums orcontributions for the Public Employees Benefits Program or another insurer oremployee benefit plan approved by the Board pursuant to NRS 287.0479 for the surviving spouse orchild who meets the requirements set forth in subsection 1. The State of Nevadashall pay the entire cost of the premiums or contributions for the PublicEmployees Benefits Program for the surviving spouse or child who elects tojoin the Public Employees Benefits Program pursuant to subsection 2.

4. A surviving spouse is eligible to receive coveragepursuant to this section for the duration of the life of the surviving spouse.A surviving child is eligible to receive coverage pursuant to this sectionuntil the child reaches:

(a) The age of 18 years; or

(b) The age of 23 years, if the child is enrolled as afull-time student in an accredited university, college or trade school.

5. As used in this section police officer has themeaning ascribed to it in NRS 617.135.

(Added to NRS by 1999, 2608; A 1999, 3046, 3047; 2003, 1613; 2005, 324)

NRS 287.0479 Optionof large group of state officers and employees to leave Public EmployeesBenefits Program and obtain group insurance from insurer or employee benefitplan; approval of proposed contracts by Board of Program; disbursement of premiumsand contributions; regulations.

1. If approved by the Board pursuant to this section,a group of not less than 300 active state officers or employees or retiredstate officers or employees, or any combination thereof, that participate inthe Program may leave the Program and secure life, accident or healthinsurance, or any combination thereof, for the group from an:

(a) Insurer that is authorized by the Commissioner ofInsurance to provide such insurance; or

(b) Employee benefit plan, as defined in 29 U.S.C. 1002(3), that has been approved by the Board. The Board may approve an employeebenefit plan unless the Board finds that the plan is not operated pursuant tosuch sound accounting and financial management practices as to ensure that thegroup will continue to receive adequate benefits.

2. Before entering into a contract with the insurer orapproved employee benefit plan, the group shall submit the proposed contract tothe Board for approval. The Board may approve the contract unless the departureof the group from the Program would cause an increase of more than 5 percent inthe costs of premiums or contributions for the remaining participants in theProgram. In determining whether to approve a proposed contract, the Board shallfollow the criteria set forth in the regulations adopted by the Board pursuantto subsection 4 and may consider the cumulative impact of groups that have leftor are proposing to leave the Program. Except as otherwise provided in thissection, the Board has discretion in determining whether to approve a contract.If the Board approves a proposed contract pursuant to this subsection, thegroup that submitted the proposed contract is not authorized to leave theProgram until 120 days after the date on which the Board approves the proposedcontract.

3. The Board shall disburse periodically to theinsurer or employee benefit plan with which a group contracts pursuant to thissection the total amount set forth in the contract for premiums orcontributions for the members of the group for that period but not to exceed theamount appropriated to or authorized for the participating state agency thatemploys the members of the group for premiums or contributions for the membersof the group for that period, after deducting any administrative costs relatedto the group.

4. The Board shall adopt regulations establishing thecriteria pursuant to which the Board will approve proposed contracts pursuantto subsection 2.

(Added to NRS by 1999, 3025; A 2003, 3272)

NRS 287.048 Membershipin or assignment of wages or salary in payment of premiums or contributions forPublic Employees Benefits Program not compulsory. NRS 287.0402 to 287.047, inclusive, do not require anyofficer or employee of the State of Nevada to accept or join the Program, or toassign his wages or salary in payment of premiums or contributions for theProgram.

(Added to NRS by 1963, 1320; A 1965, 1027; 1969, 467;1983, 1344; 1991, 251; 1999,3038; 2003, 3273)

NRS 287.049 Costsof premiums or contributions to be budgeted. Thecost of premiums or contributions for the Program as provided in NRS 287.044 must be budgeted for as otherexpenditures of the State are budgeted for.

(Added to NRS by 1963, 1320; A 1967, 98; 1971, 509;1983, 1345; 1999,3038)

PARTICIPATION OF EMPLOYEES OF STATE AND ITS POLITICALSUBDIVISIONS IN FEDERAL OLD-AGE AND SURVIVORS INSURANCE

NRS 287.050 Declarationof legislative policy. In order to extend to employeesof the State and its political subdivisions, and to the dependents and survivorsof such employees, the basic protection accorded to others by the Old-Age andSurvivors Insurance System embodied in the Social Security Act, it is hereby declaredto be the policy of the Legislature, subject to the limitations of NRS 287.050 to 287.240, inclusive, that such steps betaken as to provide such protection to employees of the State and its politicalsubdivisions who are not eligible to participate in the Public EmployeesRetirement System (chapter 286 of NRS) on asbroad a basis as is permitted under the Social Security Act.

[1:420:1955](NRS A 1977, 478)

NRS 287.060 Employeedefined. For the purposes of NRS 287.050 to 287.240, inclusive, employee includes anofficer of a state or political subdivision thereof.

[Part 2:420:1955]

NRS 287.070 Employeetax defined. For the purposes of NRS 287.050 to 287.240, inclusive, employee tax meansthe tax imposed by section 1400 of the Internal Revenue Code of 1939 andsection 3101 of the Internal Revenue Code of 1954.

[Part 2:420:1955]

NRS 287.080 Employmentdefined.

1. For the purposes of NRS 287.050 to 287.240, inclusive, employment means anyservice performed by an employee in the employ of the State or any politicalsubdivision thereof for such employer, except:

(a) Service which in the absence of an agreemententered into under NRS 287.050 to 287.240, inclusive, would constituteemployment as defined in the Social Security Act; or

(b) Service which under the Social Security Act may notbe included in an agreement between the State and the Secretary entered intounder NRS 287.050 to 287.240, inclusive.

2. Civilian employees of the National Guard units ofthis state who are employed pursuant to section 90 of the National Defense Actof June 3, 1916 (32 U.S.C., sec. 42), and paid from funds allotted to suchunits by the Department of Defense, shall for the purposes of NRS 287.050 to 287.240, inclusive, be deemed to beemployees of the State and shall be deemed to be a separate coverage group.

3. Individuals employed pursuant to an agreemententered into pursuant to section 205 of the Agricultural Marketing Act of 1946(7 U.S.C., sec. 1624) or section 14 of the Perishable Agricultural CommoditiesAct, 1930 (7 U.S.C., sec. 499n), between this state and the United StatesDepartment of Agriculture to perform services as inspectors of agriculturalproducts shall be deemed by this state for the purposes of NRS 287.050 to 287.240, inclusive, to be employees of thisstate and shall be deemed to be a separate coverage group.

[Part 2:420:1955]

NRS 287.090 FederalInsurance Contributions Act defined. For thepurposes of NRS 287.050 to 287.240, inclusive, Federal InsuranceContributions Act means subchapter A of chapter 9 of the Internal Revenue Codeof 1939 and subchapters A and B of chapter 21 of the Internal Revenue Code of1954, as such codes have been and may from time to time be amended.

[Part 2:420:1955]

NRS 287.100 Politicalsubdivision defined. For the purposes of NRS 287.050 to 287.240, inclusive, political subdivisionincludes an instrumentality of a state, of one or more of its politicalsubdivisions, or of this State and one or more of its political subdivisions,but only if such instrumentality is a juristic entity which is legally separateand distinct from the State or subdivision and only if its employees are not byvirtue of their relation to such juristic entity employees of the State orsubdivision.

[Part 2:420:1955]

NRS 287.110 Secretarydefined. For the purposes of NRS 287.050 to 287.240, inclusive, Secretary means theSecretary of Health and Human Services and includes:

1. Any person to whom the Secretary has delegated anyof his functions under the Social Security Act with respect to coverage undersuch act of employees of states and their political subdivisions; and

2. With respect to any action taken prior to April 11,1953, the Federal Security Administrator and any person to whom theAdministrator had delegated any such function.

[Part 2:420:1955](NRS A 1983, 130)

NRS 287.120 SocialSecurity Act defined. For the purposes of NRS 287.050 to 287.240, inclusive, Social Security Actmeans the Act of Congress approved August 14, 1935, chapter 531, 49 Stat. 620,officially cited as the Social Security Act (including regulations andrequirements issued pursuant thereto), as such Act has been and may from timeto time be amended.

[Part 2:420:1955]

NRS 287.130 Stateagency defined. For the purposes of NRS 287.050 to 287.240, inclusive, state agency meansthe Employment Security Division of the Department of Employment, Training andRehabilitation or such other agency as the Governor may appoint to administer NRS 287.050 to 287.240, inclusive.

[Part 2:420:1955](NRS A 1993, 1552)

NRS 287.140 Wagesdefined. For the purposes of NRS 287.050 to 287.240, inclusive, wages means allremuneration for employment as defined in NRS287.080, including the cash value of all remuneration paid in any mediumother than cash, except that the term shall not include that part of suchremuneration which, even if it were for employment within the meaning of theFederal Insurance Contributions Act, would not constitute wages within themeaning of that Act.

[Part 2:420:1955]

NRS 287.150 Federal-stateagreement: Provisions. The state agency ishereby authorized on behalf of the State to maintain in full force and effectthe agreement and modifications thereof entered into between the State and theFederal Security Administrator on and after November 24, 1953, and with theapproval of the Governor to enter into modification thereof (hereafter includedin the term agreement) with the Secretary, consistent with the terms andprovisions of NRS 287.050 to 287.240, inclusive, for the purpose ofextending the benefits of the Federal Old-Age and Survivors Insurance System toemployees of the State or any political subdivision thereof with respect toservices specified in the agreement which constitute employment (as defined in NRS 287.080). The agreement may containprovisions relating to coverage, benefits, contributions, effective date,modification and termination of the agreement, administration and otherappropriate provisions which the state agency and the Secretary agree upon,but, except as may be otherwise required by or under the Social Security Act asto the services to be covered, the agreement shall provide in effect that:

1. Benefits will be provided for employees whoseservices are covered by the agreement (and their dependents and survivors) onthe same basis as though such services constituted employment within themeaning of Title II of the Social Security Act.

2. The state will pay to the Secretary of theTreasury, at the time or times prescribed under the Social Security Act, contributionswith respect to wages (as defined in NRS287.140), equal to the sum of the taxes which would be imposed by theFederal Insurance Contributions Act if the services covered by the agreementconstituted employment within the meaning of that Act.

3. The agreement shall be effective with respect toservices in employment covered by the agreement performed after a datespecified therein but in no event may it be effective with respect to anyservices performed earlier than the last day of the sixth calendar yearpreceding the year in which the agreement is entered into or in which themodification of the agreement making it applicable to such services is enteredinto, except that:

(a) A modification entered into after December 31,1954, and prior to January 1, 1958, may be effective with respect to servicesperformed after December 31, 1954, or after a later date specified in themodification; and

(b) Where the State or a political subdivision of theState has attempted to secure the extension of the benefits provided by TitleII of the Social Security Act to its employees, or to any of its employeesconstituting a coverage group as that term is defined in Section 218 of theSocial Security Act, but through error has pursued improper procedures, orwhere any modification to the agreement heretofore or hereafter executedcontains an error, a modification may be executed effective with respect toservices performed by those employees of the State or of the politicalsubdivision, as the case may be, as of that date as of which a modificationcould have been effective if proper procedures had been pursued or if no errorhad occurred in the modification by which benefits were sought to be secured.

4. All services which constitute employment (asdefined in NRS 287.080) and areperformed in the employ of the State by employees of the State may be coveredby the agreement.

5. All services which:

(a) Constitute employment (as defined in NRS 287.080);

(b) Are performed in the employ of a politicalsubdivision of the State; and

(c) Are covered by a plan which is in conformity withthe terms of the agreement and has been approved by the state agency under NRS 287.180,

shall becovered by the agreement.

[Part 3:420:1955](NRS A 1957, 185; 1977, 479)

NRS 287.160 Interstateinstrumentality: Powers.

1. Any instrumentality jointly created by this stateand any other state or states is authorized, upon the granting of likeauthority by such other state or states:

(a) To enter into an agreement with the Secretarywhereby the benefits of the Federal Old-Age and Survivors Insurance Systemshall be extended to employees of such instrumentality.

(b) To require its employees to pay (and for thatpurpose to deduct from their wages) contributions equal to the amounts whichthey would be required to pay under subsection 1 of NRS 287.170 if they were covered by anagreement made pursuant to NRS 287.150.

(c) To make payments to the Secretary of the Treasuryin accordance with such agreement, including payments from its own funds, andotherwise to comply with such agreements.

2. Such agreement shall, to the extent practicable, beconsistent with the terms and provisions of NRS287.150 and other provisions of NRS287.050 to 287.240, inclusive.

[Part 3:420:1955]

NRS 287.170 Contributionsby state employees.

1. Every employee of the State whose services arecovered by an agreement entered into under NRS287.150 shall be required to pay for the period of such coverage, into theSocial Security Revolving Fund established by NRS287.200, contributions, with respect to wages (as defined in NRS 287.140), equal to the amount of theemployee tax which would be imposed by the Federal Insurance Contributions Actif such services constituted employment within the meaning of that Act. Suchliability shall arise in consideration of the employees retention in theservice of the State, or his entry upon such service, after March 29, 1955.

2. The contribution imposed by this section shall becollected by deducting the amount of the contribution from wages as and whenpaid, but failure to make such deduction shall not relieve the employee fromliability for such contribution.

3. If more or less than the correct amount of thecontribution imposed by this section is paid or deducted with respect to anyremuneration, proper adjustments, or refund if adjustment is impracticable,shall be made, without interest, in such manner and at such times as the stateagency shall prescribe.

[4:420:1955]

NRS 287.180 Plansfor coverage of employees of political subdivisions.

1. Each political subdivision of the State isauthorized to submit for approval by the state agency a plan for extending thebenefits of Title II of the Social Security Act, in conformity with applicableprovisions of such Act, to employees of such political subdivision. Each suchplan and any amendment thereof shall be approved by the state agency if itfinds that such plan, or such plan as amended, is in conformity with suchrequirements as are provided in regulations of the state agency, except that nosuch plan shall be approved unless:

(a) It is in conformity with the requirements of theSocial Security Act and with the agreement entered into under NRS 287.150 or 287.160.

(b) It provides that all services which constituteemployment (as defined in NRS 287.080)and are performed in the employ of the political subdivision by employeesthereof shall be covered by the plan, except that it may exclude servicesperformed by individuals to whom section 218(c) (3) (c) of the Social SecurityAct is applicable.

(c) It specifies the source or sources from which thefunds necessary to make the payments required by paragraph (a) of subsection 3and by subsection 4 are expected to be derived and contains reasonableassurance that such sources will be adequate for such purpose.

(d) It provides for such methods of administration ofthe plan by the political subdivision as are found by the state agency to benecessary for the proper and efficient administration of the plan.

(e) It provides that the political subdivision willmake such reports, in such form and containing such information, as the stateagency may from time to time require, and comply with such provisions as thestate agency or the Secretary may from time to time find necessary to assurethe correctness and verification of such reports.

(f) It authorizes the state agency to terminate theplan in its entirety, in the discretion of the state agency, if it finds thatthere has been a failure to comply substantially with any provision containedin such plan, such termination to take effect at the expiration of such noticeand on such conditions as may be provided by regulations of the state agencyand may be consistent with the provisions of the Social Security Act.

2. The state agency shall not finally refuse toapprove a plan submitted by a political subdivision under subsection 1, andshall not terminate an approved plan, without reasonable notice and opportunityfor hearing to the political subdivision affected thereby.

3. Each political subdivision:

(a) As to which a plan has been approved under thissection shall pay into the Social Security Revolving Fund, with respect towages (as defined in NRS 287.140) atsuch time or times as the state agency may by regulation prescribe,contributions in the amounts and at the rates specified in the applicableagreement entered into by the state agency under NRS 287.150 or 287.160.

(b) Required to make payments under paragraph (a) ofthis subsection is authorized, in consideration of the employees retention in,or entry upon, employment after March 29, 1955, to impose upon each of itsemployees, as to services which are covered by an approved plan, a contributionwith respect to his wages (as defined in NRS287.140), not exceeding the amount of the employee tax which would be imposedby the Federal Insurance Contributions Act if such services constituted employmentwithin the meaning of that Act, and to deduct the amount of such contributionfrom his wages as and when paid. Contributions so collected shall be paid intothe Social Security Revolving Fund in partial discharge of the liability ofsuch political subdivision or instrumentality under paragraph (a) of thissubsection. Failure to deduct such contribution shall not relieve the employeeor employer of liability therefor.

4. Delinquent payments due under paragraph (a) ofsubsection 3 may, with interest at the rate of 6 percent per annum, berecovered by action in a court of competent jurisdiction against the politicalsubdivision liable therefor or may, at the request of the state agency, bededucted from any other moneys payable to such subdivision by any department oragency of the State.

[5:420:1955]

NRS 287.190 Exclusionof service of employee eligible for participation in Public Employees RetirementSystem; exception.

1. Except as provided in subsection 2, service ofemployees of the State of Nevada or of any political subdivision thereof whoare eligible to participate in the Retirement System established pursuant to chapter 286 of NRS is specifically excluded from NRS 287.050 to 287.240, inclusive.

2. Any certified public school teacher receiving aservice retirement allowance under the provisions of chapter 286 of NRS may, upon subsequentemployment in the position of substitute teacher in any school district in theState, file a written request with the school district for coverage under theSocial Security Act, pursuant to the provisions of NRS 287.050 to 287.240, inclusive.

[6:420:1955](NRS A 1971, 18; 1977, 480)

NRS 287.200 SocialSecurity Revolving Fund: Creation; sources; administration; disbursements;duties of State Treasurer.

1. There is hereby established a special fund to beknown as the Social Security Revolving Fund. Such Fund shall consist of, andthere shall be deposited in such Fund:

(a) All contributions, interest and penalties collectedunder NRS 287.170 and 287.180.

(b) All moneys appropriated thereto under NRS 287.050 to 287.240, inclusive.

(c) Any property or securities and earnings thereofacquired through the use of moneys belonging to the Fund.

(d) Interest earned upon any moneys in the Fund.

(e) All sums recovered upon the bond of the custodianor otherwise for losses sustained by the Fund.

(f) All other moneys received for the Fund from anyother source.

All moneysin the Fund shall be mingled and undivided. Subject to the provisions of NRS 287.050 to 287.240, inclusive, the state agency isvested with full power, authority and jurisdiction over the Fund, including allmoneys and property or securities belonging thereto, and may perform any andall acts, whether or not specifically designated, which are necessary to theadministration thereof and are consistent with the provisions of NRS 287.050 to 287.240, inclusive.

2. The Social Security Revolving Fund shall beestablished and held separate and apart from any other funds or moneys of theState and shall be used and administered exclusively for the purposes of NRS 287.050 to 287.240, inclusive. Withdrawals from suchFund shall be made for:

(a) Payment of amounts required to be paid to theSecretary of the Treasury pursuant to the agreement entered into pursuant tosection 218 of the Social Security Act.

(b) Payment of refunds provided for in subsection 3 of NRS 287.170.

(c) Refunds of overpayments, not otherwise adjustable,made by a political subdivision or instrumentality.

3. From the Social Security Revolving Fund the StateTreasurer shall pay to the Secretary of the Treasury such amounts and at suchtime or times as may be directed by the state agency in accordance with anyagreement entered into under NRS 287.150and the Social Security Act.

4. The State Treasurer shall be ex officio treasurerand custodian of the Social Security Revolving Fund and shall administer suchFund in accordance with the provisions of NRS287.050 to 287.240, inclusive, andthe directions of the state agency and shall pay all warrants drawn upon it inaccordance with the provisions of this section and with such regulations as thestate agency may prescribe pursuant thereto.

5. All moneys in the Social Security Revolving Fundcreated under the provisions of chapter 103, Statutes of Nevada 1953, on March29, 1955, including the sum of $750 transferred thereto by the State Treasurerfrom the General Fund pursuant to chapter 103, Statutes of Nevada 1953, shallremain in the Social Security Revolving Fund created by this section and shallnot revert without further legislative enactment. These moneys, including thesum of $750, in addition to the contributions collected and paid into theSocial Security Revolving Fund under NRS287.170 and 287.180, are to be madeavailable for the purposes of subsections 2 and 3 of this section untilexpended, along with such additional sums as are found to be necessary to makethe payments to the Secretary of the Treasury which this state is obligated tomake pursuant to the agreement of November 24, 1953, and modifications thereofentered into under NRS 287.150.

[7:420:1955]

NRS 287.210 SocialSecurity Administration Fund: Creation; sources; disbursements.

1. There is hereby established a special fund to beknown as the Social Security Administration Fund. The Fund consists of andthere must be deposited in the Fund:

(a) All payments made by participating coverage groupsfor assessments established by regulations adopted pursuant to NRS 287.050 to 287.240, inclusive, to provide for thecosts incurred by the state agency in administering NRS 287.050 to 287.240, inclusive.

(b) All money appropriated thereto under NRS 287.050 to 287.240, inclusive.

(c) All remaining money collected for administrationexpense pursuant to chapter 103, Statutes of Nevada 1953, and regulations relatingthereto.

2. The Social Security Administration Fund must not becommingled with other state funds but must be maintained in a separate accounton the books of the depository. Withdrawals from the Fund are authorized andmay be used for:

(a) The payment of administrative costs of NRS 287.050 to 287.240, inclusive;

(b) The payment of advances to the administrative fundof the state agency covering estimated administrative costs of NRS 287.050 to 287.240, inclusive;

(c) Refunds of assessments paid by participatingcoverage groups which are not otherwise adjustable; and

(d) Reimbursement of advances made by the EmploymentSecurity Division of the Department of Employment, Training and Rehabilitationfor costs of administration of chapter 103, Statutes of Nevada 1953.

[8:420:1955](NRS A 1993, 1553)

NRS 287.220 Regulationsof state agency. The state agency shall adoptsuch regulations, not inconsistent with the provisions of NRS 287.050 to 287.240, inclusive, as it finds necessaryor appropriate to the efficient administration of the functions with which itis charged under NRS 287.050 to 287.240, inclusive.

[9:420:1955]

NRS 287.230 Studiesof state agency; reports to Legislature. Thestate agency shall:

1. Make studies concerning the problem of Old-Age andSurvivors Insurance protection for employees of the State and local governmentsand their instrumentalities and concerning the operation of agreements made andplans approved under NRS 287.050 to 287.240, inclusive.

2. Submit a report to the Legislature at the beginningof each regular session covering the administration and operation of NRS 287.050 to 287.240, inclusive, during the precedingbiennium, including such recommendations for amendments as it considers proper.

[10:420:1955]

NRS 287.240 Repealof chapter 103, Statutes of Nevada 1953; liabilities, obligations andagreements to continue. Chapter 103, Statutesof Nevada 1953, is repealed, but all liabilities and obligations created bychapter 103, Statutes of Nevada 1953, or by any agreements entered into underthe authority thereof, shall continue in full force and effect as if chapter103, Statutes of Nevada 1953, had not been repealed.

[12:420:1955]

PROGRAMS FOR REDUCTION OF TAXABLE INCOME FOR PUBLIC EMPLOYEES

NRS 287.245 Employermay agree with employee to reduce taxable compensation; federal requirementsprerequisite for operation of program; powers of Board of the Public EmployeesBenefits Program.

1. The State may agree with any of its employees, andthe Board of Regents of the University of Nevada may agree with any of itsemployees, to reduce the amount of taxable compensation due to an employee inaccordance with a program established pursuant to 26 U.S.C. 125 by the Boardof the Public Employees Benefits Program.

2. Political subdivisions of this State may agree withany of their employees to reduce the amount of taxable compensation due to anemployee in accordance with a program established pursuant to 26 U.S.C. 125.

3. The employer shall deduct an amount from thetaxable compensation of an employee pursuant to the agreement between theemployer and the employee.

4. An employer shall not make any reduction in thetaxable compensation of an employee pursuant to this section until the programestablished meets the requirements of 26 U.S.C. 125 for eligibility.

5. The Board of the Public Employees Benefits Programmay establish and administer a program pursuant to 26 U.S.C. 125. The Boardmay:

(a) Create an appropriate fund for administration ofmoney and other assets resulting from the money deducted pursuant to theprogram.

(b) Delegate to one or more state agencies orinstitutions of the Nevada System of Higher Education the responsibility foradministering the program for their respective employees, including, withoutlimitation:

(1) Collection of money deducted;

(2) Transmittal of money collected todepositories within the State designated by the Board; and

(3) Payment for eligible uses.

(c) Contract with a natural person, corporation,institution or other entity, directly or through a state agency or institutionof the Nevada System of Higher Education, for services necessary to theadministration of the plan, including, without limitation:

(1) Consolidated billing;

(2) The keeping of records for each participatingemployee and the program;

(3) The control and safeguarding of assets;

(4) Programs for communication with employees;and

(5) The administration and coordination of theprogram.

6. Each employee who participates in a programestablished by the Board of the Public Employees Benefits Program pursuant tothis section shall pay a proportionate share of the cost to administer theprogram as determined by the Board.

7. The provisions of this section do not supersede,make inoperative or reduce the benefits provided by the Public EmployeesRetirement System or by any other retirement, pension or benefit programestablished by law.

(Added to NRS by 1989, 937; A 1991, 663; 1993, 385,2509; 1999, 3038)

DEFERRED COMPENSATION FOR STATE EMPLOYEES

NRS 287.250 Definitions. As used in NRS 287.250to 287.370, inclusive, unless thecontext otherwise requires, the words and terms defined in NRS 287.260 to 287.310, inclusive, have the meaningsascribed to them in those sections.

(Added to NRS by 1977, 893; A 1995, 1868; 1999, 33)

NRS 287.260 Committeedefined. Committee means the Committeeestablished to administer the Program.

(Added to NRS by 1977, 894)

NRS 287.270 Deferredcompensation defined. Deferred compensationmeans income which a state employee or employee of the Nevada System of HigherEducation may legally set aside under the Program, which may consist of one ormore plans authorized by 26 U.S.C. 401(a), 401(k), 403(b), 457 or 3121,including, without limitation, a FICA alternative plan, or any other planauthorized by any federal law to reduce taxable compensation or other forms ofcompensation, and which income, while invested under the Program, is exemptfrom federal income taxes on the employees contributions and interest,dividends and capital gains.

(Added to NRS by 1977, 894; A 1979, 797; 1985, 1122;1987, 1823; 1993, 386; 2001,1004; 2003, 1408)

NRS 287.300 Investmentdefined. Investment means a savings account,certificate of deposit, fixed or variable annuity contract, life insurance contract,mutual fund or other investment which the Committee has approved for theProgram.

(Added to NRS by 1977, 894)

NRS 287.310 Programdefined. Program means the Public EmployeesDeferred Compensation Program authorized by NRS287.250 to 287.370, inclusive.

(Added to NRS by 1977, 894)

NRS 287.320 Employermay agree with employee to defer compensation; investment of withheld money;deferred compensation and related property, rights and income held in trust.

1. The State may agree with any of its employees, andthe Board of Regents of the University of Nevada may agree with any of itsemployees, to defer the compensation due to them in accordance with a programapproved by the Committee which may consist of one or more plans authorized by26 U.S.C. 401(a), 401(k), 403(b), 457 or 3121, including, without limitation,a FICA alternative plan, or any other plan authorized by any federal law toreduce taxable compensation or other forms of compensation. The Board ofRegents may agree with any of its employees to defer the compensation due tothem as authorized by 26 U.S.C. 403(b) without submitting the program to theCommittee for its approval. An employee may defer compensation under one ormore plans in the Program.

2. The employer shall withhold the amount ofcompensation which an employee has, by such an agreement, directed the employerto defer.

3. The employer may invest the withheld money in anyinvestment approved by the Committee or, in the case of deferred compensationunder 26 U.S.C. 403(b) for employees of the Nevada System of Higher Educationby the Board of Regents of the University of Nevada.

4. The investments must be underwritten and offered incompliance with all applicable federal and state laws and regulations, and maybe offered only by persons who are authorized and licensed under all applicablestate and federal regulations.

5. All amounts of compensation deferred pursuant tothe Program, all property and all rights purchased with those amounts and allincome attributable to those amounts, property or rights must, in accordancewith 26 U.S.C. 401(a), 401K, 403(b), 457(g) or 3121, including, withoutlimitation, a FICA alternative plan, or any other federal law authorizing aplan to reduce taxable compensation or other forms of compensation, asapplicable, be held in trust for the exclusive benefit of the participants inthe Program and their beneficiaries.

(Added to NRS by 1977, 894; A 1979, 797; 1985, 1122;1987, 1823; 1993, 386; 1999,32; 2001, 1004;2003, 1408)

NRS 287.325 Committeeto administer Program: Appointment, terms and compensation of members;vacancies.

1. The Governor shall appoint a Committee toadminister the Program. The Committee must consist of:

(a) Three members who are employed by state agencieswhose payrolls are administered by the Department of Personnel;

(b) One member who is employed by a state agency whosepayroll is administered by an entity other than the Department of Personnel;and

(c) One member who has retired from employment by theState of Nevada or the Nevada System of Higher Education.

Each memberof the Committee must be a participant in the Program, have participated in theProgram for not less than 2 years and have been nominated for membership byfive or more persons who have each participated in the Program for not lessthan 6 months.

2. After their initial terms, members of the Committeeserve terms of 4 years or until their successors have been appointed and havequalified.

3. A vacancy on the Committee occurs when a memberdies, resigns or becomes ineligible for membership on the Committee. A personbecomes ineligible for membership on the Committee when:

(a) He ceases to be a participant in the Program; or

(b) Except as otherwise provided in this paragraph, heceases to have the qualifications for membership required by the paragraph ofsubsection 1 under which he was appointed. A member of the Committee who ceasesto have those qualifications may serve the remainder of his term if that perioddoes not exceed 24 months.

4. The member appointed pursuant to paragraph (c) ofsubsection 1 must be compensated $80 per day from money appropriated from theProgram pursuant to NRS 287.365 for attendinga meeting of the Committee and for acting at the direction of or on behalf ofthe Committee.

5. For the purposes of this section, participant inthe Program means a person who is:

(a) Deferring compensation pursuant to the Program;

(b) Maintaining deferred compensation in the Program;or

(c) Receiving payments of deferred compensationpursuant to the Program.

(Added to NRS by 1995, 1867; A 1997, 25)

NRS 287.330 Committeeto administer Program: Duties; powers; exemption from liability for certaindecisions relating to investments.

1. The Committee shall:

(a) At its first meeting each year, designate one ofits members to serve as Chairman of the Committee for a term of 1 year or untilhis successor has been designated.

(b) Act in such a manner as to promote the collectivebest interests of the participants in the Program.

2. The Committee may:

(a) Create an appropriate account for administration ofmoney and other assets resulting from compensation deferred pursuant to theprogram.

(b) With the approval of the Governor, delegate to oneor more state agencies or institutions of the Nevada System of Higher Educationthe responsibility for administering the Program for their respectiveemployees, including:

(1) Collection of deferred compensation;

(2) Transmittal of money collected todepositories within the State designated by the Committee; and

(3) Payment of deferred compensation toparticipating employees.

(c) Contract with a private person, corporation,institution or other entity, directly or through a state agency or institutionof the Nevada System of Higher Education, for services necessary to theadministration of the plan, including, without limitation:

(1) Consolidated billing;

(2) The keeping of records for each participatingemployee and the Program;

(3) The purchase, control and safeguarding ofassets;

(4) Programs for communication with employees;and

(5) The administration and coordination of theProgram.

3. The Committee and its individual members are not liablefor any decision relating to investments if the Committee has:

(a) Obtained the advice of qualified counsel oninvestments.

(b) Established proper objectives and policies relatingto investments.

(c) Discharged its duties regarding the decision:

(1) Solely in the interest of the participantsin the program; and

(2) With the care, skill, prudence and diligencethat, under the circumstances existing at the time of the decision, a prudentperson who is familiar with similar investments would use while acting in asimilar capacity in conducting an enterprise of similar character and purpose.

(d) Selected at least two plans from separate anddistinct providers from which the participants in the Program may choose.

(e) Solicited proposals from qualified providers ofplans at least once every 5 years.

(Added to NRS by 1977, 894; A 1979, 797; 1985, 1122;1991, 1759; 1993, 387; 1995, 1868; 1997, 278)

NRS 287.335 Interestand income earned on money in deferred compensation account. The interest and income earned on the money in thedeferred compensation account created pursuant to subsection 2 of NRS 287.330 in the State General Fund,after deducting any applicable charges, must be credited to the account.

(Added to NRS by 1999, 33)

NRS 287.340 Deferralsof compensation: Deductions from payroll; limitation on amount deferred.

1. Deferrals of compensation may be withheld asdeductions from the payroll in accordance with the agreement between theemployer and a participating employee.

2. The amount of deferred compensation set aside bythe employer to a plan under the Program during any calendar year may notexceed the amount authorized by 26 U.S.C. 401(a), 401(k), 403(b), 457 or3121, including, without limitation, a FICA alternative plan, or any otherfederal law authorizing a plan to reduce taxable compensation or other forms ofcompensation, as applicable.

(Added to NRS by 1977, 895; A 1979, 798; 1985, 1123;1987, 1823; 2001,1005; 2003, 1409)

NRS 287.350 Federalrequirements prerequisite for operation of plan; taxation of deferred income byState or political subdivision.

1. No plan in the Program becomes effective and nodeferral may be made until the plan meets the requirements of 26 U.S.C. 401(a), 401(k), 403(b), 457 or 3121, including, without limitation, a FICAalternative plan, or any other federal law authorizing a plan to reduce taxablecompensation or other forms of compensation, as applicable, for eligibility.

2. Income deferred during a period in which no incometax is imposed by the State or a political subdivision may not be taxed whenpaid to the employee.

(Added to NRS by 1977, 895; A 1979, 798; 1987, 1824; 2001, 1005; 2003, 1409)

NRS 287.360 Programadditional to other retirement, pension and benefit systems. The Program must be established in addition to otherretirement, pension and benefit systems established by the State or the NevadaSystem of Higher Education, and does not supersede, make inoperative, or reducebenefits provided by the Public Employees Retirement System or by any otherretirement, pension or benefit program established by law.

(Added to NRS by 1977, 895; A 1985, 1123; 1993, 387)

NRS 287.365 Useof money withdrawn or appropriated from Program; deposit of certain moneywithdrawn from Program in deferred compensation account.

1. No money may be withdrawn or appropriated from theProgram, except:

(a) For payment to a participant or beneficiary of aparticipant pursuant to the terms of the Program;

(b) In the amount required to pay the necessaryexpenses of administering the Program;

(c) As specifically authorized by federal law orregulation or by a special act of the Legislature; or

(d) To compensate the member of the Committee appointedpursuant to paragraph (c) of subsection 1 of NRS287.325.

2. All money withdrawn from the Program pursuant toparagraphs (b) and (d) of subsection 1 must be deposited in the State GeneralFund for credit to the deferred compensation account created pursuant tosubsection 2 of NRS 287.330.

(Added to NRS by 1995, 1867; A 1997, 26; 1999, 33)

NRS 287.370 Useof appropriated money in administration of Program. Noappropriated money of the State may be spent in connection with the administrationof the Program except as compensation for employees who participated in theadministration as part of their regular duties, including without limitation:

1. Members and staff of the Committee; and

2. Employees of the state agency or the institution ofthe Nevada System of Higher Education selected to administer the Program.

(Added to NRS by 1977, 895; A 1985, 1123; 1993, 387)

DEFERRED COMPENSATION FOR EMPLOYEES OF POLITICALSUBDIVISIONS

NRS 287.381 Definitions. As used in NRS 287.381to 287.480, inclusive, unless thecontext otherwise requires, the words and terms defined in NRS 287.391 to 287.411, inclusive, have the meaningsascribed to them in those sections.

(Added to NRS by 1979, 799)

NRS 287.391 Committeedefined. Committee means the committeeestablished to administer the program.

(Added to NRS by 1979, 799)

NRS 287.401 Deferredcompensation defined. Deferred compensationmeans income which an employee of a political subdivision may legally set asideunder the program, which may consist of one or more plans authorized by 26U.S.C. 401(a), 401(k) or 457 and which income, while invested under theprogram, is exempt from federal income taxes on the employees contributionsand interest, dividends and capital gains.

(Added to NRS by 1979, 799; A 1985, 1124; 2001, 1005)

NRS 287.411 Programdefined. Program means the deferred compensationprogram for employees of political subdivisions authorized by NRS 287.381 to 287.480, inclusive.

(Added to NRS by 1979, 799)

NRS 287.420 Employermay agree with employee to defer compensation; investment of withheld money.

1. A political subdivision may agree with any of itsemployees to defer the compensation due to them in accordance with a programapproved by the committee which may consist of one or more plans authorized by26 U.S.C. 401(a) or 457. An employee may defer compensation under one or moreplans in the program.

2. The political subdivision shall withhold the amountof compensation which an employee has, by such an agreement, directed thepolitical subdivision to defer.

3. The political subdivision may invest the withheldmoney in any investment permitted by law and approved by the committee.

4. The investments must be underwritten and offered incompliance with all applicable federal and state laws and regulations, and maybe offered only by persons who are authorized and licensed under all applicablestate and federal regulations.

(Added to NRS by 1979, 799; A 2001, 1005)

NRS 287.430 Fundfor administration of money and other assets; deferred compensation and relatedincome, property and rights held in trust.

1. The governing body of a political subdivision maycreate an appropriate fund for administration of money and other assetsresulting from compensation deferred under the program.

2. All amounts of compensation deferred pursuant tothe program, all property and rights purchased with those amounts, and allincome attributable to those amounts, property or rights must, in accordancewith 26 U.S.C. 401(a) or 457(g), as applicable, be held in trust for theexclusive benefit of the participants in the program and their beneficiaries.

(Added to NRS by 1979, 799; A 1999, 161; 2001, 1005)

NRS 287.440 Governingbody may appoint committee to administer program; powers of committee.

1. The governing body of a political subdivision mayappoint a committee to which it may delegate the responsibility foradministering the program for its employees, including:

(a) Collection of deferred compensation;

(b) Transmittal of money collected to depositorieswithin the State; and

(c) Payment of deferred compensation to participatingemployees.

2. The committee may contract with a private person,corporation, institution or other entity, directly or through an agency of thepolitical subdivision, for services necessary to the administration of theplan, including without limitation:

(a) Consolidated billing;

(b) Recordkeeping for each participating employee andthe program;

(c) Purchase, control and safeguarding of assets;

(d) Communication with its employees; and

(e) Administration and coordination of the program.

(Added to NRS by 1979, 799)

NRS 287.450 Deferralsof compensation: Deductions from payroll; limitation on amount deferred.

1. Deferrals of compensation may be withheld aspayroll deductions in accordance with the agreement between the politicalsubdivision and a participating employee.

2. The amount of deferred compensation set aside by thepolitical subdivision to a plan under the program during any calendar year maynot exceed the amount authorized by 26 U.S.C. 401(a) or 457, as applicable.

(Added to NRS by 1979, 800; A 2001, 1005)

NRS 287.460 Federalrequirements prerequisite for operation of plan; taxation of deferred income byState or political subdivision.

1. No plan in the program becomes effective and nodeferral may be made until the plan meets the requirements of 26 U.S.C. 401(a) or 457, as applicable, for eligibility.

2. Income deferred during a period in which no incometax is imposed by the State or a political subdivision may not be taxed whenpaid to the employee.

(Added to NRS by 1979, 800, A 2001, 1006)

NRS 287.470 Programadditional to other retirement, pension and benefit systems. The program is in addition to other retirement, pensionand benefit systems available to employees of the political subdivision anddoes not supersede, make inoperative or reduce benefits provided by the PublicEmployees Retirement System or by any other retirement, pension or benefitprogram established by law.

(Added to NRS by 1979, 800)

NRS 287.480 Useof appropriated money in administration of program. Noappropriated money of the political subdivision may be spent in connection withthe administration of the program except as compensation for employees who participatedin the administration as part of their regular duties.

(Added to NRS by 1979, 800)

CONTRACTS FOR PREPAID PROFESSIONAL SERVICES

NRS 287.500 Definitions. As used in NRS 287.500to 287.530, inclusive, unless thecontext otherwise requires:

1. Employee organization means an organization ofany kind whose members are governmental employees and has as one of its purposesthe improvement of the terms and conditions of employment of governmentalemployees.

2. Professional service means any type of personalservice which may be performed only pursuant to a license, certificate ofregistration or other authorization issued by this state, except servicesprovided by any person licensed under chapter 630or 633 of NRS or by any medical facility orfacility for the dependent as defined in chapter449 of NRS.

(Added to NRS by 1977, 993; A 1985, 514, 1758)

NRS 287.510 Contractsauthorized; payment.

1. An employee organization may enter into a contractor other type of agreement with any person authorized in this state to provideprofessional services for the purpose of making the services available tomembers of the organization.

2. The contract or agreement shall provide that theorganization will make periodic payments to the person rendering theprofessional services and such payments will be made only after the serviceshave been performed.

(Added to NRS by 1977, 993)(Substituted in revisionfor NRS 287.390)

NRS 287.520 Dutiesof employee organization. The employeeorganization shall:

1. Establish procedures for collecting assessmentsfrom its members for the professional services; and

2. Report to its members the amount of money collectedand the types of professional services which are available.

(Added to NRS by 1977, 993)(Substituted in revisionfor NRS 287.400)

NRS 287.530 Employeeorganization as trustee of money collected; claims.

1. The employee organization is trustee of any moneycollected from its members for the payment of professional services.

2. Any claim by a member on account of money paid inshall be made against the employee organization.

(Added to NRS by 1977, 994)(Substituted in revisionfor NRS 287.410)

 

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