Internal Revenue Code changes to state retirement plans advance

Senators gave first-round approval April 4 to a bill that would make technical changes to state retirement provisions.

The Nebraska Retirement Systems Committee sponsored LB263 on behalf of the Nebraska Public
Employees Retirement System. The bill includes clarifications to the state Public Employees
Retirement Board governing statutes and updates Internal Revenue Code retirement plans for judges, state patrol officers, counties, school and state employees.

A committee amendment, adopted 33-0, replaced the bill.

Omaha Sen. Jeremy Nordquist, chairperson of the committee, said the changes reflect recommendations from a 2012 compliance audit of state-administered retirement plans.

The amendment also would incorporate provisions from two other bills.

LB594, introduced by Omaha Sen. Scott Price, would direct the Nebraska Investment Council, rather than the Board of Educational Lands and Funds, to manage and invest the Nebraska Veterans’ Aid Fund.

LB321, introduced by Bellevue Sen. Sue Crawford, would no longer require police officers to spend down their unused annual or sick leave before receiving temporary disability payments. Currently all pension or salary payments for a disability are subject to deduction of amounts paid under workers’ compensation. The payments do not begin until all unused annual, sick or other leave has been utilized.

Senators advanced the bill with an emergency clause on a 32-0 vote.