Public Employees’ Retirement System (PERS)
Plan History and Purpose
Sixty years ago, the 1947 Session of the Nevada Legislature passed the Nevada Retirement Act. This Act created the Nevada Public Employees’ System and was signed into law on March 27, 1947, by Governor Vail Pittman.
The PERS is a tax-qualified defined benefit plan created by the Legislature as an independent public agency to provide a reasonable base income to qualified employees who have been employed by a public employer and whose earning capacity has been removed or has been substantially reduced by age or disability. It was also created to make government employment attractive to qualified employees and to encourage them to remain in government service for such periods of time as to give employers and the people of the state the full benefit of the training and experience gained by the employees while employed in public service.
PERS is the primary vehicle for providing retirement income to classified employees of NSHE.
How You Participate
You participate in the plan under either the Employer Pay Contribution Plan or the Employee/Employer Contribution Plan, at your discretion.
Employer Pay Contribution (EPC)
Under this plan, the employer pays the total PERS contribution on your behalf. These contributions are not deposited to your individual member account and are not available for refund upon termination of employment.
Employee/Employer Contribution Plan
You and NSHE share equally in the contribution to PERS. Your after tax contribution is refundable upon the termination of your employment, if you do not elect to receive a monthly retirement benefit. You can find current contribution rates at www.nvpers.org. If you are unsure of which plan you are contributing under, contact your employer or PERS.
Regular members earn service credit based on years, months and days actually worked. If you have five years of creditable service, you may purchase up to five years of additional service credit. You must pay the full actuarial cost associated with your age and average compensation at the time of the purchase. The cost to purchase one year of service averages about one-third of your annual salary. Payment may be made in a lump sum or by installment agreement.
Purchase of service may also be accomplished using certain types of retirement savings accounts such as 401(a), 401(k) qualified pension trusts, 403(b) and 457 retirement savings plans and IRAs.
If you contribute under the employee/employer contribution plan, you may withdraw your employee contributions if you terminate all employment for which a contribution is required or if you are employed in a position ineligible for membership for at least 90 days. A refund cancels all rights to membership including service credit earned under the EPC plan.
If you received a refund of employee contributions and later return to work and reestablish active membership for a period of at least six months, you may repay the refunded contributions and restore service credit. Repayment, including interest at the actuarially determined rate, may be made in a lump sum or by monthly installments. Service will not be restored until your agreement is paid in full.
How Are Retirement Contribution Rates Set?
Fact Sheet
- The State of Nevada sets retirement contribution rates for public employees through the Nevada Revised Statutes (NRS).
- The NRS includes a mechanism to ensure the NV PERS plan is appropriately funded to pay the future retirement benefits of current employees.
- The NV PERS employee and employer contribution rates govern the NSHE RPA contribution rates (see NRS 286.808 below).
Nevada Public Employees Retirement System (NV PERS)
- The employee contribution rate must be:
- The matching contribution rate for employees and employers that is actuarially determined for police officers and firefighters and for regular members, depending upon the retirement fund in which the member is participating.
- Except as otherwise provided in subsection 2, adjusted on the first monthly retirement reporting period commencing on or after July 1 of each odd-numbered year based on the actuarially determined contribution rate indicated in the biennial actuarial valuation and report of the immediately preceding year. The adjusted rate must be rounded to the nearest one-quarter of 1 percent.
- The employee’s portion of the matching contribution rate for employees and employers must not be adjusted in accordance with the provisions of paragraph (b) of subsection 1 if:
- The existing rate is lower than the actuarially determined rate but within one-quarter of 1 percent of the actuarially determined rate.
- The existing rate is higher than the actuarially determined rate but is within 1 percent of the actuarially determined rate. If the existing rate is more than 1 percent higher than the actuarially determined rate, the existing rate must be reduced by the amount by which it exceeds 1 percent above the actuarially determined rate.
- From each payroll during the period of the employee’s membership, the employer shall deduct the amount of the member’s contributions and transmit the deduction to the Board at intervals designated and upon forms prescribed by the Board. The contributions must be paid on compensation earned by a member from the member’s first day of service.
- The employer contribution rate must be:
- The matching contribution rate for employees and employers that is actuarially determined for police officers and firefighters and for regular members, depending upon the retirement fund in which the member is participating.
- Except as otherwise provided in subsection 2, adjusted on the first monthly retirement reporting period commencing on or after July 1 of each odd-numbered year based on the actuarially determined contribution rate indicated in the biennial actuarial valuation and report of the immediately preceding year. The adjusted rate must be rounded to the nearest one-quarter of 1 percent.
- The employer’s portion of the matching contribution rate for employees and employers must not be adjusted in accordance with the provisions of paragraph (b) of subsection 1 if:
- The existing rate is lower than the actuarially determined rate but is within one-quarter of 1 percent of the actuarially determined rate.
- The existing rate is higher than the actuarially determined rate but is within 1 percent of the actuarially determined rate. If the existing rate is more than 1 percent higher than the actuarially determined rate, the existing rate must be reduced by the amount by which it exceeds 1 percent above the actuarially determined rate.
University of Nevada Retirement Program (NSHE RPA) Statutes
- The Board of Regents of the University of Nevada shall contribute on behalf of each participant an amount equal to 10 percent of the participant’s gross compensation during continuance of employment. Each participant shall also contribute 10 percent of the participant’s gross compensation, but the contributions required by this section must not be less than those authorized by NRS 286.410 and 286.450. Payment of the contributions required by this section must be made by the disbursing officer for the Nevada System of Higher Education to the designated investment entities for the benefit of each participant.
- The Board of Regents of the University of Nevada may, on behalf of each participant, pay the contribution required to be paid by the participant in subsection 1. Any such payment must be:
- Made in lieu of an equivalent increase in the basic salary or in the cost of living for the participant, or both; or
- Counterbalanced by an equivalent reduction in the participant’s salary.
When You are Eligible to Receive Your Retirement Benefits
Service Retirement for Participants Hired Before January 1, 2010
Vesting
If you are a contributing member of PERS after June 30, 1989, you earn the right to receive a retirement allowance after five years of service.
| Years of Service | Age |
|---|---|
| 5 Years | 65 |
| 10 Years | 60 |
| 30 Years | Any Age |
Early Retirement Reduction
In the event you earn the years of service necessary to receive a retirement benefit but have not reached the age required for an unreduced benefit, you may retire at any age with your benefit reduced by 4% for each full year you retire early.
Disability Retirement
If you have five or more years of service and become totally unable to perform your current or any comparable job because of an injury or mental or physical illness of a permanent nature, you are eligible to apply for disability retirement. Your application must be filed with PERS prior to your termination of employment.
Service Retirement for Participants Hired After January 1, 2010
Vesting
If you are a contributing member of PERS after June 30, 1989, you earn the right to receive a retirement allowance after five years of service.
| Years of Service | Age |
|---|---|
| 5 Years | 65 |
| 10 Years | 62 |
| 30 Years | Any Age |
Early Retirement Reduction
In the event you earn the years of service necessary to receive a retirement benefit but have not reached the age required for an unreduced benefit, you may retire at any age with your benefit reduced by 6% for each full year you retire early.
Disability Retirement
If you have five or more years of service and become totally unable to perform your current or any comparable job because of an injury or mental or physical illness of a permanent nature, you are eligible to apply for disability retirement. Your application must be filed with PERS prior to your termination of employment.
Service Retirement for Participants Hired After July 1, 2015
Vesting
If you are a contributing member of PERS after June 30, 1989, you earn the right to receive a retirement allowance after five years of service.
| Years of Service | Age |
|---|---|
| 5 Years | 65 |
| 10 Years | 62 |
| 30 Years | 55 |
| 33.3 Years | Any Age |
Early Retirement Reduction
In the event you earn the years of service necessary to receive a retirement benefit but have not reached the age required for an unreduced benefit, you may retire at any age with your benefit reduced by 6% for each full year you retire early.
Disability Retirement
If you have five or more years of service and become totally unable to perform your current or any comparable job because of an injury or mental or physical illness of a permanent nature, you are eligible to apply for disability retirement. Your application must be filed with PERS prior to your termination of employment.