Police retirement rate increase amended, advanced

Lawmakers expanded a bill March 11 that would raise retirement contribution rates for certain Nebraska police officers to include a retirement change for certain firefighters before giving the measure second-round approval.

Under LB179, introduced by Sen. Stan Clouse of Kearney, the retirement contribution rate for police officers in first class cities would increase from the current 7% of their monthly salary to 9%, beginning Oct. 1, 2025. First class cities are those with a population between 501 and 100,000.

The bill also would result in a corresponding increase from 7% to 9% in the contribution rate that first class cities pay into the plan.

Omaha Sen. Margo Juarez offered a select file amendment to add provisions of her LB461 to the proposal. The amendment would provide firefighters in first class cities the option of receiving the value of their retirement benefits in one or more partial payments in any amount and frequency of their choosing, beginning Oct. 1, 2025.

Currently, Juarez said, the only required payment form is a single lump sum, which can subject firefighters to a variety of fines, fees and taxes.

Sen. Dave Wordekemper of Fremont, a retired firefighter, supported the amendment.

Firefighters are the only members of city retirement plans who currently must take a lump sum payment upon separation from employment, Wordekemper said. Allowing firefighters in first class cities more flexibility likely would keep more money in the retirement plan, he said, which should result in lower fees.

Lawmakers voted 30-0 to adopt the Juarez amendment and advanced LB179 to final reading by voice vote.