Reduction sought in county retirement plan contribution rate

The Nebraska Retirement Systems Committee heard testimony Feb. 6 on a bill that would allow certain counties containing a city of the first class to reduce the employer’s contribution to the county employees retirement plan.

Under the bill, the contribution rate would be capped at 100 percent of the employee’s contribution for those hired after July 1, 2012. The current contribution rate is set in state law as 150 percent of an employee’s contribution.

Wilber Sen. Russ Karpisek sad he introduced LB867 at the request of the Lancaster County Board of Commissioners. He said the board sought the change to lower personnel costs and bring the county’s contribution rate in line with the private sector.

He said the bill was projected to save Lancaster County $42,000 in fiscal year 2012-13 and $119,000 in FY13-14.

“This is a real savings that the county can bank on immediately,” Karpisek said.

Kerry Eagan, chief administrative officer for the Lancaster County Board of Commissioners, testified in favor of the bill. The board often hears from citizens that the 150 percent match is far more than private sector employers contribute to retirement accounts, he said.

“[LB867] is an additional tool that we’ll need going forward to keep our budget under control,” Eagan said.

Lincoln attorney Joy Shiffermiller, testifying on behalf of the American Federation of State, County and Municipal Employees, opposed the bill.

County employees are not eligible for bonuses or merit pay increases, she said, and more generous retirement plans can help compensate for that reality. She added that many county jobs do not have an equivalent in the private sector, making benefit comparisons difficult.

“You really cannot compare the public sector job with the private sector job,” Shiffermiller said.

The committee took no immediate action on the bill.