Retirement cleanup bill clears first round

Lawmakers advanced a cleanup measure from general file March 12 related to Nebraska’s public employee retirement systems.

LB820, introduced by the Nebraska Retirement Systems Committee, would amend various sections of state law governing state and county retirement plans administered by the Nebraska Public Employees Retirement Systems, the Public Employees Retirement Board and the Nebraska Investment Council.

As introduced, the bill would:
• consolidate language regarding approved identification documents for state retirement plan purposes;
• change the NPERS director’s title to executive director;
• clarify language regarding state contributions to the School Retirement Fund and the Omaha School Employees Retirement System Plan;
• provide for tax treatment of contributions under the Deferred Compensation Plan in designated Roth IROA accounts under the Internal Revenue Code; and
• delete obsolete provisions related to the transfer of OSERS governance to the PERB, which is now complete.

A committee amendment, adopted 29-0, incorporated provisions of three additional bills.

LB1102, sponsored by Lincoln Sen. Beau Ballard, would change the adjustment date of cost-of-living adjustments under the Class V School Employees Retirement Act to align with the beginning of the plan year. Beginning in 2026, COLAs would be calculated and adjusted Sept. 1 of each year. The measure also would change the annuity payment date and the definition of “retirement date” under the act to align with the School Employees Retirement Act.

LB1103, introduced by Sen. Eliot Bostar of Lincoln, would increase the mandatory retirement age for members of the Nebraska State Patrol from 60 to 65 and authorize members who joined the plan after July 1, 2016, to participate in the deferred retirement option plan.

LB1166, sponsored by Omaha Sen. Margo Juarez, would amend the School Employees Retirement Act to modify the timeline for annual adjustments to employee and employer contributions to the School Retirement Fund. Beginning in 2027, contribution rates would be calculated as of July 1 each year and apply beginning Sept. 1 of that year and prior to Sept. 1 the following year.

Following adoption of the committee amendment, senators advanced LB820 to select file on a 30-0 vote.