Change to county retirement system advanced

The Nebraska Retirement Systems Committee heard testimony Jan. 20 on a bill that would change contributions to the Lancaster County retirement system.

LB126, introduced by Omaha Sen. Jeremy Nordquist, would increase the combined employee and employer contribution rates from a maximum of 13 percent to a maximum of 16 percent of the employees’ salaries.

Nordquist said the bill would allow the county to help employees better prepare for retirement.

Kerry Eagan, chief administrative officer for the Lancaster County Board of Commissioners, testified in support of the bill. Workers who don’t save enough for retirement remain employed longer, he said, which means the county pays more for salaries and benefits.

“Most employees simply aren’t able to save enough for retirement,” Eagan said, adding that increased contributions also would help the county attract highly skilled new employees.

Nordquist offered an amendment that would change the population size for counties authorized to create their own county retirement plan. The changes would increase the minimum population size from 200,000 to 250,000 and the maximum population size from 300,000 to 500,000.

“The county population descriptions are changed to accommodate anticipated population growth,” he said.

The amendment also would clarify that employees receiving a 150 percent employer contribution match could elect to switch to a 100 percent employer match for all future contributions. The election would be irrevocable.

No opposition testimony was given.

The committee voted 6-0 to advance the bill to general file with the amendment attached.