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School Pension Plan
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The 1945 Legislature established the School Retirement System for Nebraska school employees.
- All permanent public school employees who work at least 15 hours per week on an ongoing, regular basis,
except Class V school districts, are members of the system.
- Temporary and substitute employees not hired on an ongoing, regular basis, cannot
participate.
- School Plan members contribute 7.28% of gross compensation to retirement. This is matched by the employer at 101%.
- A school employee may retire as early as age 60 with five years of service and receive a reduced benefit.
- The normal retirement age for unreduced benefits is age 65 (must have at least one half year of service credit).
- A school employee who retires prior to age 65 must have at least 5 years of service to apply for a benefit.
Employees who retire prior to age 65 with less than 5 years of service are eligible for a refund.
- In 1998, legislation for a "Rule of 85" benefit was passed. This legislation allows a member who is at least 55 to retire with unreduced benefits when the member's age and years of service equal 85.
- As a defined benefit plan, lifetime monthly retirement benefits are based on this formula:
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| Average 3 highest 12-month periods of compensation |
X |
Creditable Service Years |
X |
Formula Factor (currently 2%) |
X |
Option Factor |
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Pension Check Information
Pension checks are mailed on the last day of every month unless that day falls on a weekend or federal holiday. If the last day of the month is a weekend or holiday,
your check will be mailed on the prior business day. Allow ten days after mailing for receipt of your pension check. If you don't receive your check after 10 business
days from the mailing date, call the NPERS office to begin the procedure for a replacement check.
A Safer Way to Get Your Pension Check!
Direct Deposit is the fastest and safest way to get your pension check every month. Unlike receiving your check by mail, your direct deposit check cannot be lost in the
mail. The funds are transferred electronically right to your bank account. With direct deposit, your money is deposited in your account on the last day of every month
unless that day falls on a weekend or federal holiday. If the last day of the month is a weekend or holiday, your money will be available the next business day. With
direct deposit, you can rest assured your money is in the bank. You never have to wait to have a lost check replaced. If a major storm hits, you don't have to worry about
how you will get your check to the bank. You don't have to remember your bank's hours or waste your time standing in line. If you travel south for the winter, you don't
have to worry about changing your address with us each season. Your money continues to go straight to your bank account. It is easy to arrange for direct deposit. Simply
call us at (800) 245-5712 and request a direct deposit sign-up form or download it off this web site from the "Forms" link.
We will be happy to ensure you receive your pension money in the fastest and safest manner possible!
Leaving Service Before Normal Retirement
Deferral
If you terminate employment with five or more years of service, you may leave your
account on an inactive basis until you reach an age where you are eligible for a
benefit.
If you terminate employment prior to age 65 with less than five years of
service, you may defer the account (recommended if you plan to return to work in the
system) and continue to earn regular interest but you will
only be eligible for a refund/withdrawal at retirement (see below).
Members may defer receipt of benefits until no later than April 1 following the year
they reach age 70 1/2.
Withdrawal (refund)
If you terminate employment from the Nebraska public school system, you may withdraw
your accumulated contributions and interest in a lump sum refund. Per statute, you are eligible to apply
for a refund no earlier than four months after termination of employment. Your school must submit a
non-contributing member form to NPERS confirming your last date of employment. If you wish to apply for a refund,
NPERS recommends you contact our office to determine whether the
non-contributing member form has been received from your last school of employment
Please Note!!
- Taking a refund removes your years of service credit. Members with no service
credit are not eligible to receive a pension at retirement.
- Withdrawals/refunds do not include employer contributions.
- If you return to work for any Nebraska Public School (with the exception of Omaha
Public Schools) within 180 days, you will be required to repay the refund.
- You are not eligible to receive a refund if you cease active work at the end of
one school year and return to active work during the following school year with any
school district under the Plan.
- You are not required to take a refund when ceasing employment.
For additional information on refunds, please see:
Information on Lump Sum Withdrawals/Frequently Asked Questions.
To apply for a refund, download these documents:
Application for Refund/Rollover Form
IRS Tax Information
Repaying a Refund
Plan members who cease employment in the Nebraska public school system and take
a refund may be eligible to restore cancelled service credit by repaying the refund.
Only members who return to the plan are eligible to repay a refund. Members must notify
NPERS no later than 45 days prior to termination if they wish to repay a refund. Please
refer to the plan booklet for
additional information.
Below are two tables to help you estimate the cost of a repayment of refund. Find
the factor nearest the date of your refund and multiply the gross amount of your refund
by that factor. Actual cost of repayment will be determined by NPERS upon written receipt
of a request for repayment.
Per statute, the cost for members who elect repayment within three
years of the date they return to employment shall include the original amount of
the refund plus the interest which would have
accrued. Click here to see repayment factors.
Per statute, the cost for members who elect repayment more than three
years after returning to employment shall include the original amount of
the refund plus the actuarial assumed rate of return which would have been
earned. Click here to see repayment factors.
Optional Service Credit
Active School plan members may increase creditable years of service by purchasing Optional Service Credit (OSC).
OSC may be purchased for Out of State service, Leave of Absences,
or 12-Month Preretirement service. Please refer to the School plan booklet for
additional information.
Members who wish to purchase Out of State, Leave of Absence, or 12-month Preretirement service should contact NPERS in writing. Members who opt to purchase Out of State
or Leave of Absence service must submit a written request to NPERS at least 6 months prior to termination. Members purchasing the 12-Month Preretirement
service must submit a written request at least 60 days prior to termination.
School Seminar Schedules
All Preretirement Seminars for School members are held in the Spring. You will
receive registration information approximately four weeks prior to the seminar.
For more information, visit the Retirement Seminars main page.
Other School Plan Related Links
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