Changes approved to judges’ retirement system

Lawmakers gave final approval April 1 to a measure that makes several changes to the Nebraska Retirement Fund for Judges.

Sponsored by the Nebraska Retirement Systems Committee, LB1101 eliminates the state’s contribution to the judges’ plan beginning July 1.

The state contribution will 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.

LB1101 also makes two changes to member contributions. Beginning July 1, the contribution rate for all judges will be reduced from 10% to 9% of compensation. At 20 years of service credit, the contribution rate will reduce further to 5% of compensation.

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

The measure passed 48-0 and takes effect immediately.