Archives - 101th Legislature

101th Legislature - 2009 & 2010

2010 Legislative Action

LB 140
All Plans

Restricts or prohibits investments with companies having ties to Sudan . The bill exempts self-directed investments (Defined Contribution and Deferred Compensation accounts) from the provisions of the Act.

Indefinitely postponed
LB 242
State Patrol
Increases the age for mandatory retirement from 60 to 65. Indefinitely postponed
LB 365
Judges

Changes the multiplier used to calculate pensions to 3.75% for the first ten years of service, 3.25% for the next ten years of service, then 1% for the next five years of service. The current benefit is 3.5% for each year of service up to a maximum of 20 years. The bill would increase the maximum benefit limit from 70% to 75% of final average compensation. It would apply to members who retire on or after July 1, 2010.

Indefinitely postponed
LB 366
State
Increases the member contribution rate from 4.8% to 5.0%. Employers would continue to contribute an amount equal to 156% of the employee amount. Indefinitely postponed
LB 427
County Law Enforcement
Creates the "County Law Enforcement Officer Retirement Act". This bill would create a separate retirement plan for County employees who are "any person employed by a county of the State of Nebraska on a permanent basis as a law enforcement officer". This plan would be a Defined Contribution design with five year vesting and unspecified contribution rates. This plan would be similar to the State & County Defined Contribution plan. Participants would make their own investment decisions using the same funds as offered in the State & County DC plan. There would be no guaranteed rate of return. Indefinitely postponed
LB 612
School

Restricts school districts from making or reimbursing an employee's retirement contributions "unless the employer does so for all employees".

Indefinitely postponed
LB 899
School, Judges, State Patrol

LB899 repeals the sunset on a state contribution to the School, Patrol, and Judges plans which is set to occur after the 2010/2011 fiscal year.

Amended into LB 950
LB 927
School

An "open ended" bill which would raise contribution rates to an unspecified amount during 2010. The bill is intended to be a "place-holder" in the event a contribution adjustment is necessary in the 2010 plan year.

Indefinitely postponed
LB 928
State Patrol

An "open ended" bill which would raise contribution rates to an unspecified amount during 2010. The bill is intended to be a "place-holder" in the event a contribution adjustment is necessary in the 2010 plan year.

Indefinitely postponed
LB 950
Multiple Plans

Clarifies in the County, State and School retirement plans that a disability must have occurred while the member was a participant in the plan. In the County Employees Retirement Plan it clarifies that disabled employees are not required to receive medical examinations after age 55.

Provisions related to the passage of LB 403 in 2009 (see below) are amended into the County, Judges, State Patrol, School, State and the Deferred Compensation retirement plans. LB 403 prohibits participation by non-citizens or those not lawfully in the United States.

Clarifies the definitions in the School plan for temporary, regular and substitute employees.
The definition of a temporary employee adds the following language, "an employee... who is hired to provide service for a limited period of time to accomplish a specific purpose or task. When such specific purpose or task is complete, the employment of such temporary employee shall terminate and in no case shall the temporary employment period exceed one year in duration."
The definition of a regular employee adds the following language, "an employee... hired as described in this subdivision to provide service for less than fifteen hours per week but who provides service for fifteen hours or more per week in any three calendar months of a plan year shall immediately commence contributions and shall be deemed a regular employee."
The definition of a substitute employee uses the following language, "Substitute employee means a person hired by a public school as a temporary employee to assume the duties of regular employees due to the temporary absence of the regular employees. Substitute employee does not mean a person hired as a regular employee on an ongoing basis to assume the duties of other regular employees who are temporarily absent."

Clarifies that retired, certificated School plan members hired by the Department of Education within 180 days of termination from their school employer will participate in the State plan.

Language is stricken in several sections of the County and State Employees Retirement Acts prohibiting use of forfeiture funds to pay administrative costs for the defined contribution and cash balance plans. Forfeiture funds are employer contributions deposited to plan member accounts that are forfeited by plan members who cease employment before vesting occurs.

Language from LB 899 added.

LB 950 contains an emergency clause and will go into effect "when passed and approved according to law", and its provisions are operative on July 1, 2010.

Passed and signed into law.
LB 958
All Plans

LB 958 provides that up to $20,000 of the federal adjusted gross income that comes from retirement benefits would be excluded from state income tax, with the exclusion phased in over a three-year period starting in 2011. Eligible retirement benefits would include Social Security benefits, public pension benefits, military retirement benefits, and other qualified retirement income under the Internal Revenue Code.

Taxpayers filing a single return in 2011 would be able to exclude up to $10,000 in retirement income. If both spouses receive qualifying retirement income, the exclusion would be up to $20,000. The exclusion would be phased in over a three-year period, increasing the excluded amount each year until the $20,000 maximum exclusion for single taxpayers is reached in 2013.

Indefinitely postponed


2009 Legislative Action

LB 23
All Plans

Makes the State Treasurer a voting member of the Nebraska Investment Council, but does not impose the education requirements nor make the Treasurer a fiduciary as those requirements apply to the current voting members (who are appointed by the Governor and approved by the Legislature). Under current law the State Treasurer is a non-voting member.

Indefinitely Postponed
LB 81
State Patrol
Increases the contribution rate for State Patrol employees from 13% to 15%. The employer contribution rate would remain unchanged at 15%. Amended into LB 188
LB 121
State & County

Transfers property tax assessment duties from the State back to certain counties. On or before July 1, 2012, property assessments will again be the responsibility of each county. If a county has not hired staff to perform these duties prior to this date, State employees of the Department of Revenue currently involved in the county assessment function would become County employees. All State employees transferred would immediately participate in the County retirement plan and have all retirement funds transferred from the State Employees Retirement System to the Retirement System for Nebraska Counties. Vesting credit will granted for transferred employees.

Passed and signed into law.
LB 140
All Plans
Restricts or prohibits investments with companies having ties to Sudan . The bill exempts self-directed investments (Defined Contribution and Deferred Compensation accounts) from the provisions of the Act. Bill Introduced
LB 187
School
Changes contribution rates for School members. From 9/1/2009 up to 9/1/2014, the member contribution rate increases from 7.28% to 8.28%. On 9/1/2014 this rate returns to 7.28%. In addition, from 7/1/2009 up to 7/1/2014 the State match of 0.7% will increase to 1.0%, then return to 0.7% on 7/1/2014. The employer match remains at 101% of the member rate. Passed and signed into law.
LB 188
State, Patrol, County & DCP

All State & County:
Increases the time frame for new employees to apply for vesting credit from 30 to 180 days.
Increases the time frame whereby a surviving spouse may apply for the 100% Joint & Survivor annuity from the current 120 days to 180 days following the death of the member.
State & County Defined Contribution:
Clarifies that Defined Contribution (DC) members who terminate and are reemployed after a 120 day or longer break in service will participate in the Cash Balance benefit (CB). Any funds remaining (deferred) in the DC account will also transfer to CB.
Provides a required minimum distribution “holiday” for retired participants in the Defined Contribution Plan (DC) who have deferred funds in their account. These individuals may have incurred significant investment losses due to the market downturn. In response, Federal and State laws have been modified to waive the required minimum distribution which would otherwise have been due for calendar year 2009, providing participants the potential to recover losses should the market improve. (Note: It is anticipated the PERB will adopt the same provision for the voluntary Deferred Compensation Plan)
State Cash Balance:
Allows terminating members to transfer all or part of the funds in their account to the voluntary Deferred Compensation Plan (DCP). If all of their funds are not transferred or taken as a lump sum distribution, the remaining funds in the CB account must be taken in the form of an annuity at the time of the transfer. The member must have enrolled and contributed to the Deferred Compensation Plan prior to termination.
Patrol:
Increases the contribution rate for State Patrol members from 13% to 15% on July 1 st 2009. The employer contribution rate remains unchanged at 15%. On July 1 st 2010, both the member and employer contribution rates increase to 16%.

Passed and signed into law.
LB 226
State Patrol

Decreases the age of majority from 19 to 18. Changes the definition of a dependent child from "under the age of 19 years" to "under the age of majority". If passed, this would reduce by one year the length of time a dependent child is eligible to receive survivor benefits after the death of the member (either before or after retirement).

Bill Introduced
LB 242
State Patrol
Increases the age for mandatory retirement from 60 to 65. Bill Introduced
LB 365
Judges
Changes the multiplier used to calculate pensions to 3.75% for the first ten years of service, 3.25% for the next ten years of service, then 1% for the next five years of service. The current benefit is 3.5% for each year of service up to a maximum of 20 years. The bill would increase the maximum benefit limit from 70% to 75% of final average compensation. It would apply to members who retire on or after July 1, 2010 . Bill Introduced
LB 366
State

Increases the member contribution rate from 4.8% to 5.0% effective July 1, 2009. Employers would continue to contribute an amount equal to 156% of the employee amount.

Bill Introduced
LB 403
All Plans

Individuals who are not in the United States lawfully would not be eligible to participate in the State or County retirement plan after October 1, 2009, the operative date of the bill. Members who had previously accrued a benefit would not be denied their benefit by the legislation.

Passed and signed into law.
LB 414
Judges
Increases retirement contribution rates 1%, and the Nebraska Retirement Fund for Judges court fee from $5 to $6, beginning July 1, 2009 until July 1, 2014. Also increases Judges' salaries each year for the next two years. Passed and signed into law.
LB 424
Judges
An "open ended" bill which would raise contribution rates to an unspecified amount beginning July 1, 2009. The bill is intended to be a “place-holder” in the event a contribution adjustment is necessary in the next plan year. Amended into LB 414
LB 425
State Patrol

An "open ended" bill which would raise both the employee and employer contribution rates to an unspecified amount beginning July 1, 2009. The bill is intended to be a “place-holder” in the event a contribution adjustment is necessary in the next plan year.

Indefinitely Postponed
LB 427
County Law Enforcement
Creates the "County Law Enforcement Officer Retirement Act". This bill would create a separate retirement plan for County employees who are "any person employed by a county of the State of Nebraska on a permanent basis as a law enforcement officer". This plan would be a Defined Contribution design with five year vesting and unspecified contribution rates. This plan would be similar to the State & County Defined Contribution plan. Participants would make their own investment decisions using the same funds as offered in the State & County DC plan. There would be no guaranteed rate of return. Bill Introduced
LB 449
School

Allows School members who are drawing disability retirement benefits to return to service and continue to receive the benefit. It applies to members who are under age 65 and have been certified as permanently disabled. Upon return to service, they may retain the disability retirement benefit provided they work fewer than 15 hours per week.

Passed and signed into law.
LB 538
All Plans
Would exempt government employee retirement benefits, up to a set amount, from Nebraska State income taxes. For 2009 the exemption is $30,000 for individuals filling a joint return and $15,000 for all others. For 2010 the exemption is $60,000 for individuals filling a joint return and $30,000 for all others. For 2011 the exemption is $90,000 for individuals filling a joint return and $45,000 for all others. For 2012 the exemption is $120,000 for individuals filling a joint return and $60,000 for all others. For years beginning on or after 2013 the exemption is $150,000 for individuals filling a joint return and $75,000 for all others. Federal income taxes would still apply to the benefits. Indefinitely Postponed
LB 612
School
Restricts school districts from making or reimbursing an employee's retirement contributions "unless the employer does so for all employees." Bill Introduced