Omnibus retirement bill advanced

A bill that would require certain political subdivisions to file an annual retirement plan report was amended March 20 to become the Nebraska Retirement Systems Committee omnibus bill.

Under LB759, introduced by Omaha Sen. Heath Mello, any political subdivision that offers a defined benefit retirement plan would be required to file a report with the committee if plan contributions do not equal the actuarial requirement for funding or the funded ratio of the plan is less than 80 percent.

The report would include an analysis of the conditions and recommendations for corrective actions.

Mello said the state currently engages in minimal oversight of such defined benefit plans and should encourage local government to adopt best practices to ensure their financial solvency.

“There is currently no requirement that political subdivisions notify the state that they have a defined benefit plan and thus should be meeting the reporting requirement,” he said.

A committee amendment, adopted 30-0, would clarify various aspects of LB759. The amendment would:
• clarify that only those political subdivisions that offer a defined benefit plan open to new members on Jan. 1, 2004, would be required to notify the Nebraska Retirement Systems Committee on or before Nov. 1, 2014, that it offers such a plan;
• clarify that all political subdivisions that offer such a plan must file a copy of the most recent actuarial valuation report with the committee on or before Nov. 15, 2014; and
• authorize the state auditor of public accounts to audit, or caused to be audited, the political subdivision at the political subdivision’s expense, if the report is not filed on time.

The amendment also added provisions of four additional bills.

LB713, introduced by Grand Island Sen. Mike Gloor, which would increase from $1 million to $6 million the maximum amount of time deposit open accounts made available to banks, capital stock financial institutions and qualifying mutual financial institutions willing to meet the rate and other requirements of the Nebraska Capital Expansion Act.

LB918, introduced by Omaha Sen. Jeremy Nordquist, which would remove a limitation on investment options for participants in the county and state employees defined contribution plans.

LB929, also introduced by Gloor, which would amend the city of the first class police and firefighter retirement acts to define the term sex-neutral basis.

LB977, introduced by Lincoln Sen. Danielle Conrad, which would add a city of the primary class and public power districts to the list of exempt entities that can offer investment in a fund as long as it is a prudent investment. Currently, only a city of the metropolitan class, a metropolitan utilities district and a county in which a city of the metropolitan class is located are exempt.

Following adoption of the committee amendment, LB759 advanced to select file on a 31-0 vote.