Changes to judges’ retirement system clear first round

Lawmakers gave first-round approval March 5 to a measure that would make several changes to the Nebraska Retirement Fund for Judges.

As introduced by the Nebraska Retirement Systems Committee, LB1101 would reduce the state contribution from 5% to 4% of the total annual compensation of all members, beginning July 1.

Lincoln Sen. Beau Ballard, chairperson of the committee, said the change was recommended following an actuarial study that indicated the system was 105% funded as of July 1, 2025.

A committee amendment, adopted 37-0, replaced the bill with a series of changes to the Judges Retirement Act. Rather than lowering the state’s contribution to the plan beginning July 1, the amendment would eliminate the state’s contribution entirely.

Under the amendment, the state contribution would continue to be reviewed by the actuary employed by the Nebraska Public Employees Retirement System for possible adjustment in the future based on the funded ratio on the actuarial value of plan assets.

The amendment also would make two changes to member contributions. Beginning July 1, the contribution rate for all judges would be reduced from 10% to 9% of compensation. At 20 years of service credit, the contribution rate would reduce further to 5% of compensation.

Finally, the amendment would increase the maximum cost-of-living adjustment from 1% to 2.5% for judges who became plan members after July 1, 2015.

Ballard said the provisions would revert all judges’ contribution rates and the maximum COLA rate to those that existed prior to 2015. The changes would provide savings to taxpayers and increase the state’s ability to recruit and retain judges, he said.

In addition, Ballard said, the changes would put all judges on equal footing, making the plan easier for the NPERS to manage and administer.

Senators voted 37-0 to advance LB1101 to select file.