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Legislative Information
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Link to Nebraska Legislature Webcam
Committee on Nebraska Retirement Systems
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Sen. John Synowiecki, Chairperson |
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Sen. Tom White, Vice Chairperson |
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Sen. Lavon Heidermann |
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Sen. Philip Erdman |
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Sen. Russ Karpisek |
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Sen. LeRoy J. Louden |
Summary of the Retirement Laws
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County |
23-2301 through 23-2334 |
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Investment Council |
72-1237 through 72-1269 |
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Judge's |
24-701 through 24-714 |
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Patrol |
81-2014 through 81-2040 |
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PERB |
84-1501 through 84-1513 |
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QDRO |
42-1101 through 42-1113 |
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School |
79-901 through 79-977.03 |
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State |
84-1301 through 84-1333 |
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2008 Legislative Action - Updated 5/2/08
LR 310
Patrol |
Interim study to examine mandatory retirement age and purchase of service provisions in the Patrol Plan. |
Interim Study |
LR 311
All Plans |
Interim study to examine the employee retirement systems administered by the Public Employees Retirement Board and the Class V Retirement System. The study will examine funding needs, benefits, contributions, and the administration of each system. |
Interim Study |
LR 403
Law Enforcement |
Interim study to examine law enforcement retirement plans including retirement plans for peace officers employed by cities of the second class and villages. The study will also examine whether law enforcement personnel of counties and first class cities should be moved to another plan, and funding for any such plan developed. |
Interim Study |
LB 329
All Plans |
Reduces the years of experience necessary for the qualifications of director of NPERS from
5 years to 3 years. |
Indefinitely postponed |
LB 365
Judges |
Provides an early retirement benefit for members of the Judges Plan. Under the bill, a
judge may retire as early as age 62 and receive a reduced monthly retirement benefit. The benefit would be the actuarial equivalent of
the normal retirement annuity except it would be reduced by 9% if the member retires at age 62, 6% at age 63, or 3% at age 64. |
Amended into LB1147 |
LB 371
Law Enforcement Officers |
Creates the Nebraska Peace Officer Retirement Plan to be administered by NPERS. The plan
would be a defined benefit plan with provisions similar to the State Patrol Plan and includes a DROP provision. By definition, the plan would include "any town marshal, chief of police, police officer, sheriff, or deputy sheriff and also include conservation officers of the Game and Parks Commission". Individuals NOT covered would include, "any individual employed as a police officer by a city of the metropolitan or primary classes, any Nebraska State Patrol officer, or any individual employed by a county containing a city of the metropolitan class". Both the member and the
employer would contribute 8% of monthly compensation. If an additional contribution was necessary to meet an unfunded actuarial
liability, the political subdivisions would be required to contribute the additional amount.
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Indefinitely postponed |
LB 372
Law Enforcement Officers |
Creates the Nebraska Law Enforcement Officer Retirement Act to be administered by NPERS.
The plan is a cash balance plan which requires members to contribute 6% of monthly compensation and employers to contribute 9%. The
crediting rate on member accounts would be the greater of 5% or the federal mid-term rate plus 1½%. The employers would be liable
for any actuarial liability which might result if the contributions were insufficient. |
Indefinitely postponed |
LB 611
State Patrol |
Changes the State Patrol contribution rates effective after July 1, 2007 , to 14% of monthly compensation by the
member, and 16% by the employer. |
Indefinitely postponed |
LB 612
School |
Further defines compensation for the School Plan. Adds a subsection that deals with two exceptions to the requirement
that compensation which exceeds 107% of the previous year’s compensation will not be considered during the 60 months immediately prior to retirement. The
first exception change allows compensation over 107% if the district’s collective bargaining resulted in an average increase of more than 7% over
the previous year. The second one allows compensation that resulted because the employee obtained an education degree (for instance, completed a Masters). |
Indefinitely postponed |
LB 613
School |
Changes contribution percentages for employees and employers in the School Plan. Employees currently pay 7.83% of
monthly compensation as their retirement contribution and the employers match at 101% of that rate (about 7.91%). The rates were scheduled to go back down to
7.25%, employee, and about 7.32%, employer, on September 1, 2007 . This bill would establish the rate at 7.30% for employees and change the employer match to 108%
of the employee amount (about 7.88%) instead of going down to the old rates. |
Indefinitely postponed |
LB 711
Judges
School |
Changes the time periods in which members of the Judges Plan and the School Plan may apply for
retirement disability benefits. Current law requires the application to be made within one year of termination of employment, or in the case of school members
whose disability is employment-related, five years. LB 711 would allow disability applications at any time prior to the date of normal retirement eligibility. |
Indefinitely postponed |
LB 937
State
County |
Contains “clean-up” language to further clarify immediate plan participation for State and
County members. |
Amended into LB1147 |
LB 938
State
County |
Allows beneficiaries of deceased State and County members the ability to make investment changes.
Applies to Defined Contribution accounts only. |
Amended into LB1147 |
LB 967
School |
Removes the language that requires fees for annual audits to be paid from School Plan assets. |
Indefinitely postponed |
LB 992
All Plans |
Restricts or prohibits investments with ties to Sudan. |
Indefinitely postponed |
LB 1133
All Plans |
Appropriates $6,000 from the General Fund to conduct an actuarial study to design a service purchase provision for the State Patrol Plan.
The results of the study shall be presented to the Legislature before December 1, 2008. |
Indefinitely postponed |
LB 1143
All Plans |
LB1143 would require a review of the current statutory, regulatory, and organizational structure of the Nebraska Investment Council in comparison to the best practices of similar state investment offices. A qualified independent organization will be hired to make recommendations to the Council, the Governor and the Legislature. |
Amended into LB1147 |
LB 1146
School |
Minor change in the definition of compensation for the School Plan. Under prior language, only contributions made
by the member to tax sheltered entities (such as section 125 “cafeteria plans”, or 403(b) and 457 retirement plans) were included as part of
compensation. This bill would remove “by the member” from the language thereby including contributions made by an employer. |
Indefinitely postponed |
LB 1147
All Plans |
Modifies the language used to determine annual cost of living adjustments for the School, Judges and
State Patrol Plans. Proposed changes would not change the actual amount of COLA adjustments but merely clarify the language.
Amendments:
Language from LB365, LB 937, LB 938 & LB1143 amended into this bill. |
Passed and signed into law |
2007 Legislative Action
LB 303
State Patrol |
Adds a Deferred Retirement Option Plan (DROP) to the State Patrol retirement plan.
Under the DROP, a member who is at least age 50 and who has 25 years of service would be allowed enter the program. Upon entry, both
the member and the employer (State) would cease making the monthly contributions to the patrol retirement plan (currently 13%,
employee, and 15%, employer). The member’s retirement benefits would be calculated as of the DROP entry date, but the member
would continue to work, and the member’s monthly retirement benefits would be deposited in one or more investment accounts
chosen by the member and maintained by the Investment Council. The monthly benefit checks would continue to accumulate in the
account(s) for up to 5 years, at which time the member would be required to retire. (Patrol members currently have a mandatory age
60 retirement provision.) Upon retirement, the monthly benefits would commence being paid to the member, and the member would have
access to the DROP account(s) which had accumulated up to that date together with the investment earnings on them. The current COLA
for patrol plan retirees would not apply to the member during the time the member was participating in the DROP. Thus, after the
DROP participation, the member would have a slightly smaller monthly retirement benefit, but would have the employee retirement
contributions which were not made during the period, and would have up to 5 years of benefits and investment income to take as a
distribution, rollover, or annuity. |
Amended into LB324 |
LB 324
State Patrol |
Retains
the State Patrol contribution rates as they currently exist (13% of monthly compensation by the member; 15% of monthly
compensation by the employer). Under existing statutes, the rates are scheduled to drop to 12%, employee; and 13%, employer, on July 1,
2007.
Amendments:
AM653 - Amends language from LB303 into this bill. |
Passed by Legislature & signed into law by Governor |
LB 328
State
County |
LB 328 was prepared at NPERS’ request and makes two changes to the State plan
and the same two changes to the County plan. First, the bill creates the County Employees Cash Balance Expense Fund
and the State Employees Cash Balance Expense Fund. Currently, NPERS accounts for cash balance expenses in sub-funds of the applicable
plans. The second change removes the 60 day period during which to reenroll County and State plan
members who return to permanent, full-time employment. The members would begin participation immediately under the bill. (Immediate
participation for county and state employees was instituted last year in LB 366.)
Amendments:
AM391 - Would require NPERS to conduct a survey of all law enforcement retirement systems in the state and file
a report with the Retirement Committee of the Legislature not later than October 1, 2007 . Such information as the types of retirement plans currently
available to law enforcement officers and demographic information of the officers would be included in the survey. Political subdivisions of the state
would be required to provide the information to NPERS. After the survey is complete, an actuarial analysis of the data would be conducted.
AM479 - Allows a new period in which members of the County plan and the State plan could elect to
participate in the cash balance option of their respective plans. The new election period would be from November 1, 2007 , through December 31, 2007.
Members who previously elected to participate in the cash balance option would not be required to reelect. Defined contribution members who did not file
an election during the new election period would continue to participate in the defined contribution option.
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Passed by Legislature & signed into law by Governor |
LB 329
All Plans |
Reduces the years of experience necessary in the qualifications of the director of NPERS from the current
5 years to 3 years. |
Bill Introduced |
LB 365
Judges |
Provides an early retirement benefit for members of the Judges plan. Under the bill, a
judge may retire as early as age 62 and receive a reduced monthly retirement benefit. The benefit would be the actuarial equivalent of
the normal retirement annuity except it would be reduced by 9% if the member retires at age 62, 6% at age 63, or 3% at age 64. |
Bill Introduced |
LB 370
Law Enforcement Officers |
Would require NPERS to conduct a survey of all law enforcement retirement systems in the
state and file a report with the Retirement Committee of the Legislature not later than October 1, 2007 . Such information as the types
of retirement plans currently available to law enforcement officers and demographic information of the officers would be included in
the survey. Political subdivisions of the state would be required to provide the information to NPERS. After the survey is complete,
an actuarial analysis of the data would be conducted. |
Amended into LB328 |
LB 371
Law Enforcement Officers |
Creates the Nebraska Peace Officer Retirement Act to be administered by NPERS. The plan
is a defined benefit plan with provisions similar to the State Patrol plan and incorporates a DROP plan. Both the member and the
employer would contribute 8% of monthly compensation. If an additional contribution was necessary to meet an unfunded actuarial
liability, the political subdivisions would be required to contribute the additional amount. |
Bill Introduced |
LB 372
Law Enforcement Officers |
Creates the Nebraska Law Enforcement Officer Retirement Act to be administered by NPERS.
The plan is a cash balance plan which requires members to contribute 6% of monthly compensation and employers to contribute 9%. The
crediting rate on member accounts would be the greater of 5% or the federal mid-term rate plus 1½%. The employers would be liable
for any actuarial liability which might result if the contributions were insufficient. |
Bill Introduced |
LB 468
All Plans |
Prohibits the state from directly holding investments in entities which have a business relationship
with the government of Sudan, which provide little or no benefit to disadvantaged Sudanese, and which have not acknowledged and
addressed Sudanese genocide. Plan participant-directed investments (State and County defined contribution and Deferred Compensation
plans) are exempted from the provisions of the bill. |
Bill Withdrawn |
LB 508
School
Judges |
Changes the periods in which members of the Judges plan and the School plan may make
application for disability benefits and for death benefits. Under current law, the surviving spouse of a judge or a school employee must make
application for certain benefits within 120 days of the member’s death. If an application is not filed with the time period, the surviving
spouse will only be entitled to the member contributions and regular interest. The bill would extend the application period to 12 months. For
disability applications, current law requires the application to be made within one year of termination of employment, or in the case of school
members whose disability is employment-related, five years. The bill would allow disability applications at any time prior to the date of normal
retirement eligibility.
Amendments:
AM968 - Removes the language regarding disability applications.
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Passed by Legislature & signed into law by Governor |
LB 596
School |
Provides for a one time adjustment to the annuities of School and Class V School plan members
so that the current annuity is not less than 90% of the original annuity amount as adjusted by the Consumer Price Index for Urban Wage Earners and
Clerical Workers for the period from the date of the original annuity until June 30, 2007.
Amendments:
AM610 - Changes the percentage from 90% to 85%.
AM1015 - Changes School member contribution rates. Current rate is 7.83 which was to reduce to 7.25 on September 1, 2007.
This amendment will slightly increase that rate on 9/1/2007 to 7.28. |
Passed by Legislature & signed into law by Governor |
LB 611
State Patrol |
Changes the State Patrol contribution rates effective after July 1, 2007 , to 14% of monthly compensation by the member, and 16% by the employer. |
Bill Introduced |
LB 612
School |
Further defines compensation for the School plan members. It would add a new subsection that deals with two exceptions to the requirement that compensation which exceeds 107% of the previous year’s compensation will not be considered during the 60 months immediately prior to retirement. The first exception change [(f)(i)(B)] allows compensation over 107% if the district’s collective bargaining resulted in an average increase of more than 7% over the previous year. The second one [(f)(i)(D)] allows compensation that resulted because the employee obtained an education degree (for instance, completed a Masters). |
Bill Introduced |
LB 613
School |
Changes contribution percentages for employees and employers in the School plan. Employees currently pay 7.83% of monthly compensation as their retirement contribution and the employers match at 101% of that rate (about 7.91%). The rates were scheduled to go back down to 7.25%, employee, and about 7.32%, employer, on September 1, 2007 . This bill would establish the rate at 7.30% for employees and change the employer match to 108% of the employee amount (about 7.88%) instead of going down to the old rates. |
Bill Introduced |
LB 665
State
County |
Allows a new period in which members of the County plan and the State plan could elect to participate in the cash balance option of their respective plans. The new election period would be from November 1, 2007 , through December 31, 2007 . Members who previously elected to participate in the cash balance option would not be required to reelect. Defined contribution members who did not file an election during the new election period would continue to participate in the defined contribution option. |
Amended into LB328 |
2006 Legislative Action
| LB 215
State |
Creates early retirement options for State plan members who are at least 53 years
of age and retiring prior to the "standard" retirement age of 55. Allows additional deferred compensation
contributions for these employees, and allows such employees to retain health coverage. |
Indefinitely postponed |
LB 366
State
County |
Retirement Committee Priority Bill
Provides that State and County employees would begin participation in their respective
retirement plan immediately upon permanent full-time employment rather than waiting 12 months.
Full-time elected County officials would also begin immediate participation upon taking office.
Permanently employed part-time State and County employees who have attained the age of 20 may
exercise the option to begin immediate participation in the retirement plan. All part-time elected County
officials may exercise the option to begin immediate participation upon taking office.
The bill also provides that the State plan employee contribution rate would be 4.8% of compensation. Currently,
State employees contribute 4.33% on the first $19,954 of annual compensation and 4.8% of compensation thereafter.
Removes the language regarding eligibility credit in response to immediate plan participation.
Changes vesting language to reflect immediate plan participation. Prior language stipulated 3 years to vest which
included the 12 months of eligibility and 24 months of plan participation. New language clarifies
vesting as 3 years of plan participation.
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Vetoed on 4/11. Veto overridden by Unicameral on 4/13.
Provisions effective 1/1/2007.
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LB 447
State |
Creates a retirement health care account for members of the State Employees Retirement System. Employers would contribute an amount equal to seventeen percent of an employee’s compensation. The money could be used for health expenses of the member, member’s spouse, or member’s dependents. Upon the death of the member, the account would revert to the state. |
Indefinitely postponed |
LB 495
School |
Creates a medical cost of living adjustment (COLA) for members of the School Employees Retirement System who were receiving an annuity for at least ten years. The supplemental annuity so provided would be capped at $250. |
Indefinitely postponed |
LB 529
State
County
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Beutler Priority Bill
Changes the clerks of the district court from an elected to an appointed position. If passed, clerks of the district court would be appointed by District Judges and participate in the State (Cash Balance) Retirement System. Those members who are already participating in the County Defined Contribution benefit would be allowed to participate in the State Defined Contribution benefit.
The bill includes language that would create a $5 increase in court fees to offset the State's cost in funding these positions.
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Indefinitely postponed |
LB 643
Judges |
Increases several court fees with the proceeds intended to fund Judicial retirement costs. |
Indefinitely postponed |
LB 671
State
County |
Allows the transfer of employees from the state to a county having a population of 150,000 to 300,000. Provides for the transfer from one retirement system to the other. |
Amended into LB808
Passed and signed into law 4/12 |
| LB 711 |
The intent of LB 711 is to create a statewide defined benefit retirement plan for law enforcement officers employed in cities of the first and second class or a village. LB 711 represents the beginning of a process to develop and implement such a plan. |
Indefinitely postponed |
LB 976
State
County
School
Judges
State Patrol |
Provides for exemption of Nebraska State income taxes on retirement benefits
issued by the Nebraska Public Employees Retirement Systems. No State income taxes would be assessed on the first $24,000 of
retirement benefits for married taxpayer's filing a joint return, or $12,000 for taxpayer's filing any other return. If passed, would be effective for the 2006 tax year. |
Indefinitely postponed |
LB 1019
State
County
School
Judges
State Patrol |
Retirement Committee "Clean-Up" bill.
Clarifies the final retirement annuity payment date shall be the end of the calendar month.
Establishes appointees to the Nebraska Investment Council shall "serve for a term of five years that
begins on January 1 and may be removed by the Governor for cause after notice and an opportunity to be
heard."
Changes the language regarding the Employer matching contributions in the school plan, but does not
change the actual contribution rate.
Stipulates that members of the Retirement Board "shall not have a duty in their official capacity to seek
the enhancement of plan benefits through the legislative process if such benefits are not already contained
within the plan document."
Includes Language amended from LB 1020, LB 1023, and LB 1140 (see below).
Retirement Committe Priority
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Passed and signed by Governor Heineman |
LB 1020
School
Judges
State Patrol |
Changes the actuarial valuation in the School, Judges and State Patrol plans.
Beginning July 1st, 2006, changes in the funded actuarial accrued liability shall be measured and amortized over
a 30 year period. Previously the liability was amortized over a 25 year period. |
Amended into LB 1019 |
LB 1021
State
County |
See LB 366 |
Language is incorporated into LB 366 |
LB 1023
County |
Stipulates that officers and employees of a District Health Department formed by
two or more counties shall be eligible to participate in the County retirement plan. |
Amended into LB 1019 |
LB 1024
School |
Education Committee Priority
Proposal to resolve the metro area school situation by establishing learning communities. Contemplates additional Class V retirement systems.
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Passed and signed by Governor Heineman |
LB 1140
State
County |
Clarifies the procedure by which the Retirement Board may issue dividends to Cash
Balance plan participants. |
Amended into LB 1019 |
LB 1142
School |
Stipulates that for all School plan members hired on or after July 1, 2007, compensation shall include "employer-paid amounts used by an employee toward the cost of health insurance premiums and amounts received by an employee in lieu of previously provided employer-paid group health insurance coverage." |
Indefinitely postponed |
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