Nevada Revised Statutes 286.300 – Purchase of credit for service: Requirements; sources; refund of contributions; defaults
Except as otherwise required as a result of NRS 286.537:
Terms Used In Nevada Revised Statutes 286.300
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Contract: A legal written agreement that becomes binding when signed.
- person: means a natural person, any form of business or social organization and any other nongovernmental legal entity including, but not limited to, a corporation, partnership, association, trust or unincorporated organization. See Nevada Revised Statutes 0.039
- Statute: A law passed by a legislature.
1. Any member of the System may, except as otherwise provided in subsection 5, purchase all previous creditable service performed with the member’s present employing agency if that service was performed before the enrollment of the member’s agency in the System, even if the service is still creditable in some other system where it cannot be cancelled. The public employer must certify the inclusive dates of employment and number of hours regularly worked by the member to validate the service. The member must pay the full actuarial cost as determined by the actuary.
2. In addition to the purchases authorized pursuant to the provisions of subsections 1 and 3, any member who has 5 years of creditable service may, except as otherwise provided in subsection 5, purchase up to 5 years of service. The member must pay the full actuarial cost of the service as determined by an actuary of the System.
3. In addition to the purchases authorized pursuant to the provisions of subsections 1 and 2 and in addition to any free credit received pursuant to NRS 286.303 and 286.479, any member who has 5 years of creditable service, served on active military duty during the period beginning on the date proclaimed by the President of the United States as the date on which Operation Desert Storm, Operation Enduring Freedom or Operation Iraqi Freedom began and was honorably discharged or released from active duty may, except as otherwise provided in subsection 5, purchase a number of months of service equal to the number of full months the member served on active military duty, but in no case may the service purchased pursuant to this subsection exceed 3 years. The member must pay the full actuarial cost of the service as determined by an actuary of the System.
4. In addition to the purchases authorized pursuant to the provisions of subsections 1 and 3, any member who:
(a) Is a licensed teacher;
(b) Has 5 years of creditable service;
(c) Is, pursuant to statute, regulation or contract, entitled to payment for unused sick leave; and
(d) Is employed by the board of trustees of a school district that has, pursuant to subsection 5 of NRS 391.180, provided for the payment of unused sick leave in the form of purchase of service, may, except as otherwise provided in subsection 5, cause to be purchased on the member’s behalf service credit, not to exceed the number of hours of unused sick leave or 1 year, whichever is less. The full actuarial cost of the service as determined by an actuary of the System must be paid for such a purchase. Any service credit purchased pursuant to this subsection must be included as a part of, and is not in addition to, service purchased pursuant to subsection 2.
5. A person who becomes a member of the System for the first time on or after January 1, 2000, may, on or after July 1, 2001, purchase creditable service pursuant to subsection 1, 2 or 3, or cause to be purchased on the person’s behalf service credit pursuant to subsection 4, only if, at the time of the purchase, the person is employed by a participating public employer in a position eligible for membership in the System.
6. Any member of the System may use:
(a) All or any portion of the balance of the member’s interest in a qualified trust pursuant to section 401(a) of the Internal Revenue Code, 26 U.S.C. § 401(a); or
(b) The money contained in an individual retirement account or an individual retirement annuity of a member, the entire amount of which is:
(1) Attributable to a qualified distribution from a qualified trust pursuant to section 401(a) of the Internal Revenue Code, 26 U.S.C. § 401(a); and
(2) Qualified as an eligible rollover distribution pursuant to section 402 of the Internal Revenue Code, 26 U.S.C. § 402, to purchase creditable service pursuant to subsection 1, 2 or 3.
7. A member of the System who purchases creditable service pursuant to subsection 1, 2 or 3 is entitled to receive a refund of any contributions paid toward the purchase of the service only if the member is no longer in the employ of a participating public employer.
8. If a member of the System enters into an agreement whereby the member agrees to pay for the purchase of service credit in installments and the member defaults on that agreement, the member is entitled to receive service credit in the proportion that the principal paid bears to the principal due under the agreement.