Existing law provides that certain public employees receive retirement allowances through membership in and contributions to the Public Employees' Retirement System. (Chapter 286 of NRS) Existing law requires that: (1) the contribution rates of employees and employers to the System be adjusted every 2 years based on the actuarially determined contribution rate indicated in the biennial actuarial valuation and report of the immediately preceding year, unless the existing rate is higher or lower than the actuarially determined rate by a specified percentage; and (2) the employee and employer are responsible for an equal portion of any increase or decrease in the contribution rate. (NRS 286.410, 286.421, 286.450) Section 5 of this bill revises the contribution rate for an employee of a participating state agency from a rate equal to that paid by the employer to one-half of the normal cost that is actuarially determined for police officers and firefighters and for regular members, depending on the retirement fund in which the member is participating. Section 7 of this bill revises the employer contribution rate for a participating state agency to be the total contribution rate actuarially determined for police officers and firefighters and for regular members, depending on the retirement fund in which the member is participating, less the employee contribution rate of one-half of the normal costs determined pursuant to section 5. Sections 5 and 7 also provide for the rounding of any adjusted contribution rate to the nearest one-quarter of 1 percent. Section 6 of this bill makes conforming changes to the Public Employees' Retirement System to require, for purposes of the adjustment of salary increases and cost-of-living increases or of salary reductions, that the division of total contributions be determined in the same manner as provided for determining the employee and employer contribution rates. Section 3 of this bill defines the term “normal costs” as that portion of the present value of projected benefits that is attributable to the current year of service, as determined by an actuary of the System. Section 4 of this bill defines the term “participating state agency” to mean the following public employers that participate in the System: (1) an agency, bureau, board, commission, department, division, officer or other unit of the Executive Branch of the State Government, the Nevada System of Higher Education and the Public Employees' Retirement System; (2) the Legislative Branch of the State Government; and (3) the Judicial Branch of the State Government. Existing law requires the Board of Regents of the University of Nevada to provide a retirement program separate from the Public Employees' Retirement System which provides retirement benefits for members of the professional staff. (NRS 286.802) Existing law further requires the Board of Regents and a participant in the retirement program to each contribute an amount equal to 10 percent of the participant's gross compensation, but those contributions must not be less than the contributions made for the Public Employees' Retirement System. (NRS 286.808) Section 8 of this bill eliminates that threshold and increases to 17.5 percent of a participant's gross compensation the amount that the Board of Regents and each participant is required to contribute to the retirement program. Sections 9-13 of this bill make appropriations for the purpose of meeting any deficiencies between the money appropriated to the departments, commissions and agencies of the State of Nevada for the 2023-2025 biennium and the increase in employer contributions to the Public Employees' Retirement System pursuant to this bill.

Statutes affected:
As Introduced: 286.410, 286.421, 286.450
Reprint 1: 286.410, 286.421, 286.450, 286.808
As Enrolled: 286.410, 286.421, 286.450, 286.808
BDR: 286.410, 286.421, 286.450