Omnibus retirement bill advanced

Senators amended and advanced the Nebraska Retirement Systems Committee’s omnibus bill March 22.

Introduced by the committee on behalf of the Nebraska Public Employees Retirement System, LB509 would make several changes to the county, state and Class V school retirement plans and the duties of the Public Employees Retirement Board and the Nebraska Investment Council.

Among other changes, the bill would:

• create the County Employees Retirement Fund for deposit of county late filing penalties;
• allow permanent and part-time county and state employees to participate in retirement plans at age 18;
• change the deadline from March 15 to March 31 for the Nebraska Investment Council to provide its annual report to the Nebraska Retirement Systems Committee;
• require the Class V School Retirement Plan board to provide comprehensive preretirement planning programs to plan members;
• remove requirements for the Class V Retirement System to file annual plan summaries;
• require the Class V Retirement System to file an actuarial report annually rather than every four years; and
• remove a requirement that the retirement board provide notification if a political subdivision fails to file annual pension reports.

A committee amendment, adopted 32-0, would allow a terminated state or county employee to receive a distribution of up to $25,000 or the balance of his or her portion of the account, whichever is less, after a grievance is filed. Following reinstatement, an employee would be required to repay any amount received.

The amendment also would clarify transfer language regarding direct rollover benefit distribution into an employee’s deferred compensation plan and would reinstate stricken language in the Class V School Employees Retirement Act regarding provisions related to previous contribution rates.

Finally, the amendment would incorporate provisions from the following three bills.

LB246, introduced by Wilber Sen. Russ Karpisek, would allow continuation of benefits to a surviving spouse of a deceased state patrol member if the surviving spouse remarries.

LB532, also introduced by Karpisek, would allow transfer of state Department of Labor independent retirement plan members to the State Employee Retirement System if the independent retirement plan is terminated. For vesting purposes, members would be credited for their years of service in the independent retirement plan.

LB486, introduced by Ellsworth Sen. LeRoy Louden, would increase from 7 to 9 percent the salary cap in the School Employees Retirement Plan beginning July 1, 2012, and would eliminate current salary cap exemptions for purposes of calculating benefits on annual compensation during the last five years of employment prior to actual retirement. The cap would be reduced to 8 percent beginning July 1, 2013.

The bill advanced on a 40-0 vote.