Lawmakers made several changes to the state\u2019s retirement systems this session.<\/p>\n
LB306, introduced by Omaha Sen. Jeremy Nordquist, extends an increase in Nebraska judges\u2019 retirement contribution rates by removing a pending July 1, 2014 sunset on a 1 percent employee contribution rate increase that was established in 2009.<\/p>\n
The bill incorporates provisions of LB229, also introduced by Nordquist, which remove a scheduled July 1, 2014 sunset of an additional $1 fee on various court filings that was added in 2009. The fee increase is directed to the Judges Retirement Plan and will help offset any unfunded liabilities.<\/p>\n
The bill also incorporates provisions of LB232, introduced by Omaha Sen. Steve Lathrop, which provides a 5 percent salary increase for Supreme Court judges beginning July 1, 2013. An additional 5 percent increase takes effect July 1, 2014.<\/p>\n
LB306 passed on a 41-6 vote.<\/p>\n
Nordquist also sponsored LB553, which creates a new tier of reduced benefits for employees under the School Employees Retirement System (SERS) who begin work for the first time on or after July 1, 2013.<\/p>\n
The new benefits tier will take into account a five-year salary average to determine benefits instead of the three-year average used currently. The maximum cost-of-living adjustment will be 1 percent instead of the current 2.5 percent adjustment figure. The changes will not apply to members of SERS prior to July 1, 2013.<\/p>\n
The bill makes a series of other changes to the plans, some of which include:
\n\u2022 the state statutory contribution rate will be increased from 1 percent to 2 percent of total compensation of all school employees beginning July 1, 2014;
\n\u2022 the amortization method in the School Employees Retirement Act will be changed from level dollar to level percentage of salary beginning July 1, 2013;
\n\u2022 eligibility for membership in the school retirement plan will be changed from 15 hours per week to 20 hours; and
\n\u2022 the sunset will be eliminated from the school budget and lid exclusions for expenditures above the Class V employer contribution rate of 7.37 percent and the school employer contribution of 7.35 percent.<\/p>\n
Finally, the bill incorporates provisions from three additional bills sponsored by Nordquist:
\n\u2022 LB554 applies the provisions of LB553 to all Class V school employees hired after July 1, 2013;
\n\u2022 LB305 changes the amortization method in the Nebraska State Patrol Retirement Act from level dollar to level percentage of salary beginning July 1, 2013; and
\n\u2022 LB306 changes the amortization method in the Judges Retirement Act from level dollar to level percentage of salary beginning July 1, 2013.<\/p>\n
Senators initially voted 27-8 to approve LB553, which was insufficient for passage of a bill with an emergency clause. Nordquist filed a motion to reconsider the vote, which was adopted, and the bill passed with the emergency clause 34-0.<\/p>\n
LB553 subsequently was vetoed by Gov. Dave Heinemann. Senators voted 32-1 to override the veto.<\/p>\n
Also approved this session was a bill that makes technical changes to various state retirement plans.
\nThe Nebraska Retirement Systems Committee sponsored LB263 on behalf of the Nebraska Public
\nEmployees Retirement System. The bill includes clarifications to the state Public Employees
\nRetirement Board governing statutes and updates Internal Revenue Code and other provisions for judges, state patrol officers, counties, school and state employees.<\/p>\n
Among other changes, the bill:
\n\u2022 amends the definition of employee in the county plan;
\n\u2022 requires elected county officials to participate in the county plan within 30 of days of taking office;
\n\u2022 clarifies in the school plan that only per diems paid as expenses are not considered compensation; and
\n\u2022 makes it permissive to charge a fee for retirement education and financial planning programs.<\/p>\n
The bill also incorporates provisions from two other bills:
\n\u2022 LB594, introduced by Bellevue Sen. Scott Price, directs the Nebraska Investment Council, rather than the Board of Educational Lands and Funds, to manage and invest the Nebraska Veterans\u2019 Aid Fund; and
\n\u2022 LB321, introduced by Bellevue Sen. Sue Crawford, clarifies that only permanently disabled police officers are required to spend down their unused annual or sick leave credits to receive disability salary or pension.<\/p>\n
The bill passed on a 45-0 vote and takes effect immediately.<\/p>\n
Among the bills heard by the committee were three that did not advance.<\/p>\n
LB138, introduced by Omaha Sen. Bob Krist, would transfer all existing funds in the University of Nebraska\u2019s health benefits trust fund to a new fund held by the Nebraska Investment Council. The bill remains in committee.<\/p>\n
Omaha Sen. John Nelson introduced LB638, which would create a cash balance benefit plan for school employees hired after July 1, 2014. Currently, school employees participate in a defined benefit plan.
\nLB639, also introduce by Nelson, would switch state patrol officers and judges employed after July 1, 2014 from a defined benefit plan to a cash balance plan.<\/p>\n
The committee voted 6-0 to indefinitely postpone both bills.<\/p>\n","protected":false},"excerpt":{"rendered":"
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