Reduction sought in Lancaster County retirement match

Senators advanced a bill from general file March 19 that would allow certain counties containing a city of the first class to reduce the employer’s contribution to the county employees retirement plan.

The bill, which would affect only Lancaster County, would cap the contribution rate at 100 percent of the employee’s contribution for individuals hired after July 1, 2012. The current contribution rate is set in state law as 150 percent of an employee’s contribution.

Wilber Sen. Russ Karpisek said he introduced LB867 at the request of the Lancaster County Board of Commissioners. He said the board sought the change to lower personnel costs and bring the county’s contribution rate in line with nongovernmental entities.

“The match is significantly out of line with the private sector,” Karpisek said.

He said the bill was projected to save Lancaster County approximately $35,000 to $40,000 annually, noting that personnel costs constitute 85 percent of the county’s budget.

Holdrege Sen. Tom Carlson supported the bill, saying very few private sector businesses contribute more than a 50 percent match of an employee’s contribution.

The bill advanced to select file on a 37-0 vote.