Retirement changes approved

Lawmakers gave final approval April 25 to an omnibus retirement systems measure.

LB103, sponsored by Sen. Mike McDonnell of Omaha, makes technical changes to a bill passed in 2022 that codified retirement practices and rules for certified teachers covered by the State Code Agency Teachers Association contract who previously or subsequently are employed by a school district, educational service unit or other state agency.

The measure includes provisions of three additional bills sponsored by McDonnell.

LB104 changes the state, county, judges, school and state patrol retirement plans by raising the age from 72 to 73 for required minimum distributions in order to align with recently passed federal legislation. The RMD age will increase to 75 beginning in 2033.

LB105 changes various retirement plans to align with federal legislation that changed the definition of military service to include preparations for military service, rest and recovery after military service and state active service.

Under LB160, the supplemental retirement benefit rate for counties that participate in the County Employees Retirement Plan increases from 1 to 2 percent of compensation in counties with a population of 85,000 or less. The rate in counties with a population greater than 85,000 increases from 2 to 3 percent.

The measure passed on a 41-0 vote and takes effect immediately.