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Summary Plan Description
For Part-Time Employee Members
This document has been prepared for members of the Public Employees'
Retirement System of Nevada to provide general information.
It is based on retirement law effective from the 71st session of the
Nevada Legislature, 2001. This is not a legal document, nor is it
intended to serve as a basis for legal interpretation. Official
legal reference may be found in the Nevada Revised Statutes.
Introduction
This document has been prepared for you as a part-time employee member
of the Public Employees' Retirement System (PERS) to provide general
information concerning the system. This brochure will help explain
your benefits if you are a part-time employee member of PERS, and the position you fill
is half-time or more but less than full-time according to your
employers full-time work schedule.
Membership is not cancelled automatically upon termination of employment.
Membership can only be cancelled upon refund, retirement or death of
the member.
Types Of Contribution Plans
Your base pay, longevity pay, shift differential pay and call-back pay
are subject to retirement contribution. Overtime, terminal leave,
pay from secondary employment, and any other type of payment not
specifically listed as subject to retirement contribution within Chapter
286 of the NRS is not subject to contribution.
Employer Pay Contribution Plan (EPC)
If you are a part-time school employee or a part-time
employee of a large, local government employer, it is likely that you
are contributing under EPC. You might also be contributing under EPC
if you work for the State of Nevada or another employer whereby you
chose to participate under EPC. Such contributions are not deposited to
your individual member account and are not available for refund upon
termination of employment. The EPC contribution rate for regular
members is 18.75%
Employee/Employer Contribution Plan
Employees of the State of Nevada and many of the smaller employers have
the option to choose to contribute under this plan. You and your employer
share equally in the contribution to PERS, currently 9.75% each.
Your after tax contribution is refundable upon termination of
employment, if you do not elect to receive a monthly retirement benefit.
If you are unsure of which plan you are contributing under, contact
your employer or the Retirement System.
Service
As a part-time employee member of PERS (except part-time school
employees who work less than a 12 month year) you earn service credit
for years, months and days actually worked. For example, if you work
half-time for one calendar year, you earn six months of service credit.
If you are a part-time school district employee described above,
your service is credited on a ratio of one and one third days for each
day worked. As an example, if you are employed in a half-time 9-month
position you earn six months of service credit even though you worked
half-time for only nine months. This is because half-time employment
for nine months equates to six months when the actual credit earned
(4 1/2 months) is multiplied by one and one third.
Your earned service credit is an important element in determining your
retirement benefit (see the Benefits section further in this brochure).
Purchase of Service
If you are a member who has 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 purchase. 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.
Refund of Contributions
If you contribute under the employee/employer contribution plan, you
may withdraw your employee contributions if you terminate all employment
for which 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 any service
credit earned under the EPC plan.
Repayment of Refunded Contributions
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 payment or by monthly installments.
Service will not be restored until your installment agreement is paid in full.
Benefits
Service Retirement
Vesting
Special vesting rules apply to you as a part-time employee. Vesting
refers to the time period necessary for you to earn the right
to receive a retirement benefit. For purposes of vesting only PERS
will assume a full-day of employment for each day worked even though
you do not work in a full-time position. For example, if you work as
a half-time employee for five years and only have 2 1/2 years of
earned service credit, you are vested to receive a benefit. As a
part-time employee, you are eligible to retire as follows:
Eligibility for Monthly Unreduced Retirement Benefit
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Years Worked*
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Age
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5
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65
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10
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60
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30
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Any age
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*Not earned service credit
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Benefit Calculation Factors
Special rules also apply to you for the purposes of determining the
amount of your retirement benefit. The amount of your benefit will
be based on three factors:
- Service Credit
- The years, months and days of service actually earned by you as a
member of PERS (in the example above this is 2.5 years, not the 5 years
of service established for purposes of eligibility to receive a benefit).
- Average Compensation
- The average of the highest 36 consecutive months of your earnings
as if you worked full-time according to your employers full-time
work schedule. Therefore, if your highest 36 consecutive months
of average compensation is $1,000 as a half-time employee,
your benefit will be based on an average compensation of $2,000 a month.
- Selection of retirement option, your age and the age of your
beneficiary at the time of retirement.
Benefit Formula
The formula used for calculating your retirement benefit is as follows:
Service Credit x 2.5%* x Average Monthly
Compensation (as if you work full-time) = Unmodified Allowance
Example: 2.5 years x 2.5% = 6.25%
6.25% x $2,000 = $125.00
*For service credit earned after July 1, 2001, a 2.67% multiplier will be used.
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Retirement Options
Prospective retirees may elect one of seven retirement plans.
Option 1 - The Unmodified Allowance Pays you the full monthly
allowance you have earned but provides no income protection for
your beneficiary after your death.
Option 2
- Provides an actuarially reduced allowance for your lifetime.
After your death, the same allowance continues for the lifetime
of your beneficiary.
Option 3
- Provides an actuarially reduced allowance for your lifetime.
After your death, 50% of the allowance continues for the
lifetime of your beneficiary.
Options 4 and 5 are calculated the same as 2 and 3 but are not
payable to a beneficiary before age 60. In Options 6 and 7,
a retiree may designate the beneficiary amount.
The reduction from the unmodified allowance is determined by an
actuarial percentage based on the your age and your beneficiary's
age at the time of retirement.
After retirement, the named beneficiary under one of the retirement
options cannot be changed. However, you may under certain conditions
revert to the Unmodified Option. If your beneficiary predeceases
you, the law provides that your benefit will revert to the Unmodified Option.
Benefit Calculation Formula
Unreduced Service Retirement Benefit
Using the example in the benefit formula mentioned earlier, let us assume
that you have worked in a half-time position for 5 years and will
retire at age 65 with 2.5 years of actual service credit and an
average monthly compensation (as if you worked full-time)
of $2,000. Your beneficiary is age 64.
Average Compensation = $2,000
Service = 2.5 years x 2.5%* = 6.25%
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Benefits:
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Monthly Amount
Retiree Will Receive
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Monthly Amount
Beneficiary Will Receive
After Retiree's Death
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Unmodified Option 1
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$125.00
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- $0 -
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Option 2
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$102.25
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$102.25
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Option 3
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$112.38
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$56.19
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*For service credit earned after July 1, 2001, a 2.67% multiplier will be used.
Note: The additional options can be calculated upon request.
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Early Retirement Reduction
In the event you have worked the years necessary to receive a retirement
benefit but have not reached the age for an unreduced benefit,
you may retire at any age with your benefit reduced by four
percent for each full year that you retire early. An example
of how this reduction would work is provided below for a
64-year-old retiree with 2.5 years of service, a $2,000
per month average compensation, (as if you worked full-time)
and a beneficiary who is age 64.
Benefit Calculation Formula
Reduced Service Retirement Benefit
Average Compensation = $2,000
Service Credit = 2.5 years x 2.5% = 6.25%
Unmodified Allowance (Option 1) = $125
Early Retirement Penalty:
4% (12 months) x $125 = $5
Reduced Unmodified Allowance = $120
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Monthly Amount
Retiree Will Receive
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Monthly Amount
Beneficiary Will Receive
After Retiree's Death
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Unmodified
(Option 1)
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$120.00
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- $0 -
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Option 2
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$99.84
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$99.84
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Option 3
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$108.96
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$54.48
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*For service credit earned after July 1, 2001, a 2.67% multiplier will be used.
Note: The additional options can be calculated upon request.
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How to Apply
Between three and six months before your retirement, request an estimate of retirement allowance and an application for retirement. The request should include:
- Your anticipated retirement date
- Your name and Social Security number
- If you plan to select one of the Options 2-7, include your
beneficiary's name, birth date and Social Security number
It is also wise to consult a PERS counselor prior to your retirement.
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.
How to Apply
The disability application has four parts:
- Member's statement of disability and retirement plan selection
- Personnel officer's report
- Supervisor's report
- Physician's statement
The completed application is submitted to the Retirement Board for
consideration at its regular monthly meetings. Disability
retirement benefits are calculated in the same manner as service
retirement benefits described before, but without reduction for age.
To apply for disability benefits, you are urged to contact PERS' or
the retirement liaison officer where you work.
For special information regarding disability retirement, ask for a
copy of the PERS Disability Retirement Document.
Survivor Benefits
Eligibility
If you were to die prior to retirement, your eligible survivors
would be entitled to a survivor benefit if:
- You had two years of service in the two and one half years
immediately preceding your death or, as a regular part-time
employee, you had 2 or more years of creditable contributing
service before and at least 1 day of contributing service
within 6 months immediately preceding your death; or
- You had more than 10 years of accredited service; or
- Your death was caused by an occupational disease or an accident
arising out of or in the course of your employment, regardless
of service credit.
Effective January 1, 2002, single members of the plan can designate
a beneficiary to receive survivor benefits in the event of your
death prior to retirement. The designation must be made on PERS
forms entitled "Beneficiary Designation for Unmarried Members of
PERS" or "Member Demographics" form. Your named beneficiary
would receive the same benefits that your spouse would receive
had you been married at the time of death.
Who is Included
Your eligible survivors include:
- Your spouse
- Your single survivor beneficiary
- Your dependent children under age 18 or up to age 23 if they are full-time students
- Your dependent parents, provided there are no other eligible
survivors at the time of your death.
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Amount of Survivor Benefits
The following monthly benefits are payable to a surviving spouse, single
survivor beneficiary and/or dependent children if your death occurs
prior to retirement:
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Service Credit
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Spouse/
Single Survivor
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Each Child*
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2+
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$450
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$400
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10+
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Option 3
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$400
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(If member was under age for full eligibility; if member
had not reached minimum retirement age)
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10+
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Option 2
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$400
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(If member was fully eligible to retire; if member
had reached the minimum retirement age)
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15+
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Option 2
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$400
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* Until age 18 or to age 23 if a full time, unmarried
student. Incapacitated adult children may be eligible
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(Other restrictions may apply)
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PERS Counseling Services
In Carson City: Weekdays at our office located at 693 W. Nye Lane,
from 8:00 a.m. to 5:00 p.m. If possible, please call 1-775-687-4200 or
toll free at 1-866-473-7768 for an appointment.
In Las Vegas:Weekdays at the office building located at 5820
South Eastern Ave., Suite 220, from 8:00 a.m. to 5:00 p.m. If
possible please call 1-702-486-3900 for an appointment.
In rural Nevada: Counselors are available during the Spring
and Fall. Please watch for our notices and call our Carson City
office for an appointment.
For further information, contact your agency's retirement liaison
officer or PERS office.
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