Archives - 102nd Legislature

102nd Legislature - 2011 & 2012

2012 Legislative Action

LB 505
State Patrol		 Allocates one-fourth of one percent of motor vehicle tax proceeds to the State Patrol retirement fund. In Committee
LB 679
Judges & State Patrol		 New Judges and new members of the State Patrol would participate in the state cash balance retirement plan. In Committee
LB 680
School		 New School plan members would participate in a cash balance retirement plan similar to the plan used for state and county employees. In Committee
LB 916
All Plans

Excludes per diem payments from the definition of compensation.

Implements provisions of the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act) requiring a member’s beneficiary be entitled to any additional death benefit that he or she would be entitled to had the member been employed during the period of qualified military service when the death occurred.

In addition, the bill contains the following “clean up” language.  Clarifies it is the responsibility of an employer to notify when a plan member terminates employment.  Clarifies language to conform to current IRS regulations regarding rollovers to another eligible retirement plan or IRA.

School Plan
Effective 9/1/12, employees under 18 are not eligible to join the plan. Clarifies that unpaid voluntary, or substitute service, during the first 180 calendar days after termination can only be provided on an intermittent basis.

County/State
Clarifies the definition of the Standard and Poor’s 500 Index fund.

AM1739
Incorporates language from LB973 and LB1036 (see below) with these changes:

Clarifies garnishment may only occur after distribution of retirement benefits.

State and County Defined Contribution members may elect to transfer to Cash Balance during an election period starting September 1, 2012, and ending October 31, 2012. Only members who are actively employed and contributing to the plan at the time of election will be eligible to transfer.

 Passed and Approved by Governor
AM1739 Adopted
LB 919
Judges		 The $6 court fee remitted to the Judges’ retirement fund scheduled to drop to $5 as of 7/1/2014 would remain at $6. In Committee
LB 973
All Plans

Provides for garnishment of retirement benefits when a plan member is convicted of or pleads no contest to a felony that is defined as assault, sexual assault, kidnapping, child abuse, false imprisonment, or theft by embezzlement and is subsequently found liable for civil damages.  The bill would exempt from garnishment any benefit or annuity payments "reasonably necessary for the support of the employee or appointee or any of his or her beneficiaries."

 Amended into LB916
LB 1022
State Patrol		 An "open ended" bill that would raise contribution rates to an unspecified amount. The legislation is intended to be a "place-holder bill" in the event a contribution adjustment is implemented in the upcoming plan years. In Committee
LB 1036
State & County

Allows a new period in which members of the State and County Defined Contribution retirement plans may elect to participate in the Cash Balance option of their respective plans. Defined Contribution members who do not file an election during the new election period would continue to participate in the Defined Contribution plan.

 Amended into LB916

2011 Legislative Action

LB 246
State Patrol		 Allows surviving spouses of deceased state patrol members to remarry and remain eligible for survivor benefits. Amended Into LB 509
LB 303
All Plans		 Eliminates restrictions on investments for certain corporations doing business in Northern Ireland. Passed and Approved by Governor
LB 307
State Patrol		 State patrol members who elect to participate in DROP will be required to continue making retirement contributions during the time the member is enrolled in DROP. Indefinitely Postponed
LB 337
State & County

Effective July 1st, plan year moves from a calendar year to fiscal year (July 1st – June 30th).  Jan 1, 2011 through June will be a "transitional" six month plan year.

AM275
 Eliminates retirement provision. This bill will make no changes to the State and County retirement plans.

 Passed and Approved by Governor
AM275 Adopted
LB 382
School &
State Patrol

Retirement Committee priority bill.
Beginning 9/1/2011, contribution rates for school members will increase (see AM1101 below).

Beginning 7/1/2011, contribution rates for state patrol members will increase from 16% to 19%. On 7/1/2013 this rate will decrease to 16%. The employer match remains unchanged at 100% of the member rate.

AM1101
Beginning 9/1/2011, contribution rates for school members will increase from 8.28% to 8.88%. On 9/1/2012 this rate will increase to 9.78%. On 9/1/2017 the rate will decrease to 7.28%. The employer match remains unchanged at 101% of the member rate. The current State of Nebraska contribution rate of 1% remains in effect until 7/1/17 at which time it will drop to 0.7%.

AM1265
Unrelated to retirement plan benefits.

Passed and Approved by Governor
AM1101 Adopted
AM1265 Adopted
LB 486
School		 Increases in compensation greater than 9% per year, during the five years prior to retirement, will be excluded when calculating retirement benefits. No exceptions increasing the 9% cap will be allowed. Provisions effective beginning 7/1/2012.
 Amended into LB 509 (with changes)
LB 505
State Patrol		 Allocates one-fourth of one percent of motor vehicle tax proceeds to the state patrol retirement fund. In Committee
LB 509
All Plans

Retirement Committee priority bill.
Suspends distributions from the state and county retirement plan pending the final outcome of a grievance filed by a plan member.
See AM549 Below

Lowers the minimum age from 20 to 18 for permanent part-time state and county employees who choose to participate in the mandatory plans.

Clarifies the Public Employees Retirement Board will not refund contributions made on compensation earned above the salary cap established in the school plan.

Clarifies cost of living adjustment language in the judges, state patrol and school plans. Proposed changes would not change the formula or process currently in use.

AM549
State and county members may withdraw up to $25,000 from the employee (member) account pending the final outcome of a filed grievance. If reinstated, the member must repay the distribution.

From July 1, 2012 up to July 1, 2013, increases in compensation for School plan members greater than 9% per year, during the five years prior to retirement, will be excluded when calculating retirement benefits. Beginning July 1, 2013, increases in compensation greater than 8% per year, during the five years prior to retirement, will be excluded when calculating retirement benefits. No exceptions increasing the 9% or 8% cap will be allowed.

Provides for the potential transfer of certain Department of Labor employees to the state retirement plan.

Clarifies rollover language in the voluntary Deferred Compensation plan.

AM1013
Technical changes.

Passed and Approved by Governor
AM549 Adopted
AM1013 Adopted
LB 532
State		 Provides for the potential transfer of certain Department of Labor employees to the state retirement plan. Amended into LB 509
LB 679
Judges & State Patrol		 New judges and new members of the state patrol would participate in the state cash balance retirement plan. In Committee
LB 680
School		 New school plan members would participate in a cash balance retirement plan similar to the plan used for state and county employees. In Committee