Omnibus retirement bill approved

Senators passed the Nebraska Retirement Systems Committee’s omnibus bill April 8.

Introduced by the committee on behalf of the Nebraska Public Employees Retirement System, LB509 makes several changes to the county, state and Class V school retirement plans and the duties of the Public Employees Retirement Board and the Nebraska Investment Council.

Among other changes, the bill:

• creates the County Employees Retirement Fund for deposit of county late filing penalties;
• allows permanent and part-time county and state employees to participate in retirement plans at age 18;
• changes the deadline from March 15 to March 31 for the Nebraska Investment Council to provide its annual report to the Nebraska Retirement Systems Committee;
• requires the Class V School Retirement Plan board to provide comprehensive preretirement planning programs to plan members;
• removes requirements for the Class V Retirement System to file annual plan summaries;
• requires the Class V Retirement System to file an actuarial report annually rather than every four years;
• clarifies transfer language regarding direct rollover benefit distribution into an employee’s deferred compensation plan;
• removes a requirement that the retirement board provide notification if a political subdivision fails to file annual pension reports; and
• allows a terminated state or county employee to receive a distribution of up to $25,000 or the balance of his or her portion of the account, whichever is less, after a grievance is filed. Following reinstatement, an employee will be required to repay any amount received.

The bill also incorporates provisions from the following three bills.

LB246, introduced by Wilber Sen. Russ Karpisek, allows continuation of benefits to a surviving spouse of a deceased state patrol member if the surviving spouse remarries.

LB532, also introduced by Karpisek, allows transfer of state Department of Labor independent retirement plan members to the State Employee Retirement System if the independent retirement plan is terminated. For vesting purposes, members will be credited for their years of service in the independent retirement plan.

LB486, introduced by Ellsworth Sen. LeRoy Louden, increases from 7 to 9 percent the salary cap in the School Employees Retirement Plan beginning July 1, 2012, and eliminates current salary cap exemptions for purposes of calculating benefits on annual compensation during the last five years of employment prior to actual retirement. The cap will be reduced to 8 percent beginning July 1, 2013.

The bill passed on a 44-0 vote.