State retirement plan updates passed

Senators gave final approval April 2 to a bill that makes Internal Revenue Code compliance updates for county, judge, state patrol, school and state employee retirement provisions.

LB916, introduced by the Nebraska Retirement System Committee:
• removes per diems as compensation for purposes of retirement;
• allows terminated or retired plan members to rollover funds into a Roth IRA;
• allows a lump sum direct transfer of a death benefit into a qualified retirement plan;
• requires employers to notify the Public Employees Retirement Board upon the termination of an employee member;
• allows a non-spousal beneficiary to make a direct transfer or rollover of the member’s death benefit into a qualified retirement plan; and
• allows a member’s beneficiary to be entitled to an additional death benefit that he or she would be entitled to had the member been employed during the period of qualified military service when the death occurred.

Included in the measure are provisions of two additional bills:
• LB1036, introduced by Omaha Sen. Jeremy Nordquist, which provides an additional opportunity for active county and state defined contribution plan members to opt in to the cash balance plans between Sept. 1 and Oct. 31, 2012; and
• LB973, introduced by Lincoln Sen. Colby Coash, which allows a judge to order civil payment from a portion of a convict’s state or county benefits and annuities plan if he or she is a state or county employee who is convicted of or pleads guilty to felony assault, sexual assault, kidnapping, child abuse, false imprisonment or theft by embezzlement and is found civilly liable for resulting damages.

Benefits and annuities necessary for the support of the employee or appointee or his or her beneficiaries would be exempt from payment.

LB916 takes effect immediately and passed on a 46-0 vote.