Existing law provides a retired public employee a retirement allowance through membership in and contributions to the Public Employees' Retirement System. (Chapter 286 of NRS) Existing law establishes within the System a Police and Firefighters' Retirement Fund. (NRS 286.225) Section 5 of this bill establishes the Deferred Retirement Option Program within the System to provide an active member who elects to participate access to a lump-sum benefit in addition to his or her service retirement allowance. Section 3 of this bill defines “active member” to mean an employee who is employed by a public employer as a police officer or firefighter and contributes to the Police and Firefighters' Retirement Fund. The plan allows participating members, upon enrollment, to have their retirement benefits placed in a separate account to which he or she may have full control upon termination of participation in the Program in addition to his or her service retirement allowance. Section 4 of this bill defines the term “Program” to mean the Deferred Retirement Option Program.
Section 6 of this bill provides that an active member is eligible to participate in the Program if the active member: (1) has at least 25 years of service credit in the System as a police officer or firefighter, not including purchase of service credit; and (2) is eligible to retire. Section 6 requires that an active member who elects to participate in the Program, irrevocably and in writing: (1) designate a period of participation in the Program that is not more than 84 consecutive months; and (2) agree to terminate employment upon the completion of the designated participation time. Section 6 also requires that the active member: (1) continue to perform the same job function for his or her public employer; and (2) work at least 110 hours per month. Finally, section 6 provides that an active member participating in the Program ceases to accrue service credit time in the System and is subject to all other terms and conditions of active employment.
Section 7 of this bill sets forth the circumstances pursuant to which an active member's participation in the Program terminates.
Section 8 of this bill requires the System to: (1) establish an account on behalf of each active member who participates in the Program in which all benefits accrued pursuant to participation in the Program must be accounted for; (2) contract with a financial service provider; (3) authorize an active member to make selections governing the interest or investment of the member's account balance; (4) make a monthly deposit into the active member's account in an amount equal to the active member's monthly service retirement allowance; and (5) provide the member with options for the transfer of the control of the account upon termination of the active member's participation in the Program.
Section 9 of this bill prohibits an active member who elects to participate in the Program from being eligible to receive a disability retirement allowance.
Section 10 of this bill requires a participant in the Program to designate in writing a survivor beneficiary.
Section 11 of this bill provides that upon termination of employment and participation in the Program, the active member is entitled to receive: (1) his or her service retirement allowance; and (2) control of the account established on behalf of the active member pursuant to section 8.
Section 12 of this bill prohibits a public employer from retaliating against an employee for participating in the Program.
Section 13 of this bill prohibits the Program from jeopardizing in any way the tax qualified status of the System under the rules of the Internal Revenue Service of the United States Department of Treasury.
Section 14 of this bill authorizes the Public Employees' Retirement Board to adopt regulations to carry out the provisions of this bill.