There are currently over 150 public employers that participate in the Public Employees' Retirement System (PERS). With almost 85,000 active members distributed among these employers, PERS depends heavily on assistance from each of our public employers.

Under Nevada Revised Statute, each employer designates a member of staff to be the liaison between PERS and all participating employees. The Retirement Liaison Officer is responsible for certifying records and coordinating matters pertaining to retirement between the System and members or participating public employers. The newsletter that you are now reading, updates to account information forms, such as the most recent single survivor designation form, and individual member statements are all directed to your agency Retirement Liaison Officer for distribution. Retirement Liaison Officers also receive monthly Retirement Board meeting agendas, notices of public meetings related to retirement issues and updates to the Retirement Act and Official Policies.

Another responsibility that our public employers have is for the timely and accurate payment of contributions and reporting of monthly service, wage and contribution information. Persons responsible for reporting to PERS must have a comprehensive understanding of the statutes and policies related to eligibility for enrollment, plan coverage, compensation, and service categories. PERS provides each public employer with a staff contact. This contact person is available to provide assistance or training regarding the preparation of Monthly Retirement Reports.

Retirement Liaison Officers and designated members of their staff take on a great responsibility to be the conduit between PERS and our members. Their efforts and dedication help everyone be better informed and served by PERS.

Investment markets continue to be volatile, with U.S. and non-U.S. stocks producing negative returns during the fiscal year ended June 2002, offset by positive results in U.S. and non-U.S. bonds and real estate. The $13.1 billion PERS' fund generated a -2.8% return for the year, outperforming 84% of other public funds. Ten year and since inception performance captured our market objective and remains above our 8% actuarial assumption (see chart below). The resilience of our results in the face of recent negative equity markets underscores the importance of our conservative, diversified approach.

PERS' asset allocation as of June 30, 2002 is reflected below:

Diversification among asset classes, investment managers, and individual securities continues to be a hallmark of our strategy. In addition to the broad market exposures detailed above, we employ 25 investment firms, representing a variety of styles, and hold over 2,500 different securities. Recent events surrounding companies such as Enron and Worldcom reinforce the importance of diversification at all levels.

In the face of this extreme volatility, the Retirement Board remains focused on our long-term goal of maintaining the plan's funded health. We believe the investment program is well positioned to support this objective.

2002	2003
October 28th	January 28th	April 25th	July 28th	October 28th
November 22nd	February 25th	May 27th	August 26th	November 21st
December 26th	March 25th	June 25th	September 25th	December 26th

On January 1, 2003, the Public Employees' Retirement System (PERS) will begin administration of the new Judicial Retirement System (JRS). This new system will handle benefits for all actively employed judges in the state, as well as all current retirees from the previous judicial retirement plan. Staff at PERS has been working closely with the Administrative Office of the Courts (AOC) and other state agencies to make the transition as smooth as possible.

Shortly after the fall elections are completed, PERS will be contacting each sitting and newly elected judge to offer counseling on important retirement choices. Plan documents are presently being drafted in similar fashion to the regular PERS' fund Summary Plan Description and other documents.

The JRS was funded in part by an appropriation of $5,000,000 from the 2001 Nevada Legislature. These monies are invested in a well-diversified portfolio similar to the PERS' portfolio.

We here at PERS look forward to serving this new group to the best of our ability. Welcome to all our new members!

Assembly Bill 431 of the 2001 Nevada Legislature directs the PERS' Board to conduct a study of lump sum optional retirement programs, including, without limitation, deferred retirement option programs more commonly referred to as DROPs. The purpose of the study is to determine whether one or more such programs would be beneficial to the members and employers of PERS. The final report is to contain any language for recommended legislation changes, if applicable.

At its July 2002 meeting, the Public Employees' Retirement Board voted to accept the study on lump sum optional retirement plans. The Board's motion included language to submit the study to the Legislative Commission without recommendation for enabling legislation to create a lump sum optional benefit program.

This benefit is an enhancement to our Survivor Benefit program for active members and inactive members who are vested with at least 10 years of service. It does not apply to you if you already receive a retirement benefit. If you are an active member of PERS or an inactive vested member with 10 or more years, you may now designate one "survivor beneficiary" to receive a benefit after your death if --

• You are single at the time of your death;
• You die before retirement;
• You make this designation in writing on a form approved by the PERS Executive Officer; and
• The designation is on file in the PERS office prior to your death.

What benefit is available to a survivor beneficiary?
The benefit available under this new provision in the statute would be a lifetime benefit of $450, if at the time of your death, you have between 2 and 10 years of service credit, option 3 benefits, if you have between 10 and 15 years of service, and the equivalent of service retirement option 2 if you have 15 or more years of service in PERS. Previously this benefit was paid only to a surviving spouse. If there was no surviving spouse, no one received the benefit.

Who should designate a survivor beneficiary?
We encourage all members (married and unmarried) to complete a survivor beneficiary designation and to designate someone other than their spouse. If a member is married at the time of his death, his spouse is automatically covered for the benefit. The survivor beneficiary benefit only comes into play if there is no spouse as of the date of death.

Married members are encouraged to complete a Survivor Beneficiary Designation form to ensure payment of benefits under the new law if, due to a divorce or the death of a spouse, the member is unmarried at the time of his/her death. This designation may be changed at any time until the member dies or retires.

When will benefits cease to be paid?
A spouse or a survivor beneficiary would receive benefits for the remainder of their lifetime. This differs from a child's benefit under NRS 286.673 that is only payable until the child reaches age 18 or 23 if he/she continues to be a full time student.

Where can I find a form to designate my survivor beneficiary?
Forms to designate a survivor beneficiary can be obtained by calling PERS, by contacting your agency liaison officer, or by logging on to our website: www.nvpers.org. If you go to the PERS website, click on the "PERS Forms" button, then on Member Demographics.

If you have questions regarding this benefit, please call our office.

Beginning October 21, 2002 PERS will be located in new office space. Our new address will be:

The Las Vegas office will be closed from October 11, 2002, until we reopen on the 21st. We apologize for any inconvenience this may cause, and urge our members to use our brand new toll-free number to contact the Carson City office with any retirement questions during this period.

We want to thank the Las Vegas Police Protective Association for our previous location. We truly appreciate our office suite in the O.C. Lee building, but PERS simply has outgrown the space available to us. This new location provides individual offices for all four retirement counselors (PERS staff size in Las Vegas is doubling!), as well as a board and conference room.