Retirement update advanced

A bill that would bring Nebraska’s state-administered retirement plans into compliance with recent federal changes advanced from general file Feb. 10.

LB1054, introduced by Seward Sen. Mark Kolterman, would update plans within the Nebraska Public Employees Retirement Systems to comply with new provisions under the SECURE Act passed by Congress and signed into law in late 2019.

Under the federal changes, the age trigger for the Required Minimum Distribution increases from age 70 1/2 to age 72 for individuals who reach 70 1/2 on or after Jan. 1, 2020, he said.

“The RMDs determine when the deferral ceases for the distribution of payments of pension benefits,” Kolterman said. “The stated congressional rationale for [changing] the RMD requirement is a recognition that individuals are working longer and living longer.”

He said a required actuarial report concluded that LB1054 would not have a cost impact on the defined benefit plans administered by the Nebraska Public Employees Retirement Board.

Lawmakers advanced the bill to select file on a 35-0 vote.