School, state patrol retirement contributions increased

Employee contribution rates for the school employee, Class V school employee and state patrol retirement plans will increase under a bill given final approval April 28.

Introduced by Omaha Sen. Jeremy Nordquist at the request of the governor, LB382 is part of the governor’s budget recommendation to the Legislature.

Under the bill, the employee contribution rate for the State Patrol Retirement System will increase 3 percent to 19 percent of an employee’s monthly compensation on July 1, 2011. The state’s contribution rate also will increase to 19 percent. On July 1, 2013, contribution rates for both employees and the state will decrease to 16 percent.

Beginning Sept. 1, 2011, the member contribution rate in the School Employees Retirement System will increase 0.6 percent to 8.88 percent. The rate then will increase to 9.78 percent on Sept. 1, 2012 and remain in effect through August 31, 2017, when the contribution rate will be reduced to 7.28 percent.

In addition, the bill extends to fiscal year 2016-17 the 1 percent state contribution rate in the school employee plan and the Omaha Class V School Employee Retirement System, currently scheduled to sunset in FY2013-14. The rate will return to 0.7 percent on July 1, 2017.

State funding for the purchasing power cost-of-living allowance in the Class V school plan will sunset in FY2013-14.

Finally, the bill incorporates provisions of LB510, introduced by the committee, which will increase the contribution rate for members of the Class V school plan by 1 percent to 9.3 percent beginning Sept. 1, 2011.

LB382 passed on a 43-0 vote.