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Archives - 99th Legislature

99th Legislature - 2006 & 2005

2006 Legislative Action

LB 215 State	Creates early retirement options for State plan members who are at least 53 years of age and retiring prior to the "standard" retirement age of 55. Allows additional deferred compensation contributions for these employees, and allows such employees to retain health coverage.	Indefinitely postponed
LB 366 State County	Retirement Committee Priority Bill Provides that State and County employees would begin participation in their respective retirement plan immediately upon permanent full-time employment rather than waiting 12 months. Full-time elected County officials would also begin immediate participation upon taking office. Permanently employed part-time State and County employees who have attained the age of 20 may exercise the option to begin immediate participation in the retirement plan. All part-time elected County officials may exercise the option to begin immediate participation upon taking office. The bill also provides that the State plan employee contribution rate would be 4.8% of compensation. Currently, State employees contribute 4.33% on the first $19,954 of annual compensation and 4.8% of compensation thereafter. Removes the language regarding eligibility credit in response to immediate plan participation. Changes vesting language to reflect immediate plan participation. Prior language stipulated 3 years to vest which included the 12 months of eligibility and 24 months of plan participation. New language clarifies vesting as 3 years of plan participation.	Vetoed on 4/11. Veto overridden by Unicameral on 4/13. Provisions effective 1/1/2007.
LB 447 State	Creates a retirement health care account for members of the State Employees Retirement System. Employers would contribute an amount equal to seventeen percent of an employee’s compensation. The money could be used for health expenses of the member, member’s spouse, or member’s dependents. Upon the death of the member, the account would revert to the state.	Indefinitely postponed
LB 495 School	Creates a medical cost of living adjustment (COLA) for members of the School Employees Retirement System who were receiving an annuity for at least ten years. The supplemental annuity so provided would be capped at $250.	Indefinitely postponed
LB 529 State County	Beutler Priority Bill Changes the clerks of the district court from an elected to an appointed position. If passed, clerks of the district court would be appointed by District Judges and participate in the State (Cash Balance) Retirement System. Those members who are already participating in the County Defined Contribution benefit would be allowed to participate in the State Defined Contribution benefit. The bill includes language that would create a $5 increase in court fees to offset the State's cost in funding these positions.	Indefinitely postponed
LB 643 Judges	Increases several court fees with the proceeds intended to fund Judicial retirement costs.	Indefinitely postponed
LB 671 State County	Allows the transfer of employees from the state to a county having a population of 150,000 to 300,000. Provides for the transfer from one retirement system to the other.	Amended into LB808. Passed and signed into law.
LB 711	The intent of LB 711 is to create a statewide defined benefit retirement plan for law enforcement officers employed in cities of the first and second class or a village. LB 711 represents the beginning of a process to develop and implement such a plan.	Indefinitely postponed
LB 976 State County School Judges State Patrol	Provides for exemption of Nebraska State income taxes on retirement benefits issued by the Nebraska Public Employees Retirement Systems. No State income taxes would be assessed on the first $24,000 of retirement benefits for married taxpayer's filing a joint return, or $12,000 for taxpayer's filing any other return. If passed, would be effective for the 2006 tax year.	Indefinitely postponed
LB 1019 State County School Judges State Patrol	Retirement Committee "Clean-Up" bill. Clarifies the final retirement annuity payment date shall be the end of the calendar month. Establishes appointees to the Nebraska Investment Council shall "serve for a term of five years that begins on January 1 and may be removed by the Governor for cause after notice and an opportunity to be heard." Changes the language regarding the Employer matching contributions in the school plan, but does not change the actual contribution rate. Stipulates that members of the Retirement Board "shall not have a duty in their official capacity to seek the enhancement of plan benefits through the legislative process if such benefits are not already contained within the plan document." Includes Language amended from LB 1020, LB 1023, and LB 1140 (see below). Retirement Committe Priority	Passed and signed into law.
LB 1020 School Judges State Patrol	Changes the actuarial valuation in the School, Judges and State Patrol plans. Beginning July 1st, 2006, changes in the funded actuarial accrued liability shall be measured and amortized over a 30 year period. Previously the liability was amortized over a 25 year period.	Amended into LB 1019
LB 1021 State County	See LB 366	Language incorporated into LB 366
LB 1023 County	Stipulates that officers and employees of a District Health Department formed by two or more counties shall be eligible to participate in the County retirement plan.	Amended into LB 1019
LB 1024 School	Education Committee Priority Proposal to resolve the metro area school situation by establishing learning communities. Contemplates additional Class V retirement systems.	Passed and signed into law.
LB 1140 State County	Clarifies the procedure by which the Retirement Board may issue dividends to Cash Balance plan participants.	Amended into LB 1019
LB 1142 School	Stipulates that for all School plan members hired on or after July 1, 2007, compensation shall include "employer-paid amounts used by an employee toward the cost of health insurance premiums and amounts received by an employee in lieu of previously provided employer-paid group health insurance coverage."	Indefinitely postponed

2005 Legislative Action

LB 144 (Price)	Removes the 90 day time limit for School Members to dispute salary or service history reported on their annual statements. Clarifies that NPERS shall make corrections regarding errors of salary or service history, and must do so within 60 days after the error is confirmed.	Passed and signed into law.
LB 329 (Stuhr)	Authorizes schools to establish and make contributions to IRC 401(a) and 403(b) plans for certain kinds of separation payments and early retirement inducements. The bill also provides that such payments are not compensation as defined in section 79-902(35).	Passed and signed into law.
LB 364	Several bills were rolled into LB 364 including: LB365 Provides that the six members of the PERB who are participants in a retirement system administered the Board may be either an active or a retired participant of their system. LB367 Extends provisions to assess late fees to Counties and to District and County Courts for late filings of employee and employer contributions. The late fee for Counties would be an amount equal to any costs incurred by an employee member within the County Employees Retirement System because of late submission of contributions. The board could charge that amount if it was greater than the existing late fee (0.038% of the amount required to be submitted for each day the contribution has not been received). The late fee for District and County Courts would be an amount not to exceed $25. Also, would permit the Retirement Board to charge district and county courts a late fee of 0.038% of the amount required to be submitted for each day such amount has not been received. LB 691 Provides that a transaction fee may be imposed on State and County participants in the Defined Contribution benefit to pay administrative expenses. Additionally, the bill provides for the treatment of forfeitures of employer accounts of members who fail to vest such accounts. New Language LB 364 also included new language. School districts are now required to notify NPERS when increases in compensation contained within a collective bargaining agreement are greater than the seven percent. Also clarifies that the compensation base is the lesser of seven percent or the actual annual compensation received by a plan member. Clarifies that if a member’s compensation has exceeded the compensation base by seven percent, the school employer will provide such information to the director of NPERS within ninety days of the end of the plan year. OPS Only In addition, LB364 included changes that would apply only to school employees covered within the Class V School District (Omaha Public Schools). OPS members should contact their plan administrator for details.	Passed and signed into law. Bill contains differing effective dates (see text). Includes language from: LB 365 LB 367 LB 691
LB 503	Changes several provisions of the Nebraska Investment Council (NIC) and the Public Employees Retirement Board (PERB). The Public Employees Retirement System would be required to test employer records of counties, schools, and state agencies to ensure compliance with retirement provisions. Members of the NIC would be required to have seven years of experience in investment management or analysis or at least twelve years of experience in financial management and would receive a $75/day per diem. Technical changes would be made to the analysis which is provided annually to the Legislature’s Retirement Systems Committee. Members of the PERB would receive a $50/day per diem. Provisions for the PERB’s internal auditor would be codified. Provide for the transfer of funds to conduct a compliance audit at least every five years. Language from other bills: LB368 Changes the employee contribution rates for School Plan members to 7.98% for the first year (Sept. 1, 2005 to August 31, 2006) and 7.83% for the second year (Sept 1, 2006 to August 31, 2007). Contribution rates return to 7.25% on September 1, 2007. LB411 Changes the definition of compensation in the School Employees Retirement System to provide that the amount of compensation which would be subject to retirement could increase no more than 7% per year (the current limit is 10%) during the five years before retirement unless certain conditions are met. The bill also stipulates the employer would report compensation which exceeds the limit to the Nebraska Public Employees Retirement System. LB412 Increases the contribution rate for the State Patrol Retirement System for two years. The new rates would go from the current 12% employee and 12% employer, to 13% employee and 15% employer, then decrease to 12% employee and 13% employer thereafter. LB494 Adds a retirement account investment option for members of the State and County Defined Contribution plans, and the State Deferred Compensation Plan. The account would by substantially similar to the allocation and investment strategy used by the Nebraska Investment Council for the assets of the School, State Patrol, and Judges retirement assets.	Passed and signed into law. Bill contains differing effective dates. Includes language from: LB 368 LB 411 LB 412 LB 494

Bills Amended into other Bills:

LB 365	Provides that the members of the Retirement Board could be active members or retired members. Currently, school, county, and state plan members must be active members of the plan which they represent.	Language amended into LB 364.
LB 367	Extends provisions to assess late fees to counties and to district and county courts for late filings of employee and employer contributions. The administrative fee would be $25 and the late fee would be equal to 38/1000ths of one percent per day.	Language amended into LB 364.
LB 368	Increases School employee contribution rates to 7.98% for the first year (Sept. 1, 2005 to August 31, 2006) and 7.83% for the second year (Sept 1, 2006 to August 31, 2007). Contribution rates return to 7.25% on September 1, 2007.	Language amended into LB 503.
LB 411	Changes the definition of compensation in the School Employees Retirement System to provide that the amount of compensation which would be subject to retirement could increase no more than 7% per year (the current limit is 10%) during the five years before retirement unless certain conditions are met. The bill also stipulates the employer would report compensation which exceeds the limit to the Nebraska Public Employees Retirement System.	Language amended into LB 503.
LB 412	Increases the contribution rate for the State Patrol Retirement System for two years. The new rates would go from the current 12% employee and 12% employer, to 13% employee and 15% employer, then decrease to 12% employee and 13% employer thereafter.	Language amended into LB 503.
LB 493 (Stuhr)	Clarifies that the Public Employees Retirement Board has a duty to correct school member statements without regard to lapse of time. NPERS shall make corrections regarding errors of salary or service history, and must do so within 60 days. This bill would place into statute what is currently NPERS office policy.	Language amended into LB 144.
LB 494 (Stuhr)	Adds a retirement account investment option for members of the state, county, and deferred compensation plans. The account would by substantially similar to the allocation and investment strategy used by the Nebraska Investment Council for the assets of the School, State Patrol, and Judges retirement assets.	Language amended into LB 503.
LB 691 (Stuhr, D. Pederson)	Provides that a transaction fee may be imposed on State and County participants in the Defined Contribution benefit to pay administrative expenses. Additionally, the bill provides for the treatment of forfeitures of employer accounts of members who fail to vest such accounts.	Language amended into LB 364.

Bills Held in Committee or General File:

LB 215 (Brown)	Creates early retirement options for State plan members who are at least 53 years of age and retiring prior to the "standard" retirement age of 55. Allows additional deferred compensation contributions for these employees, and allows such employees to retain health coverage.	Held in committee.
LB 366	Provides that state and county employees would begin participation in their respective retirement plan immediately upon employment rather than waiting 12 months under current statutes. The bill also provides that the state plan employee contribution rate would be 4.8% of compensation. Currently, employees contribute 4.33% on the first $19,954 of annual compensation and 4.8% of compensation thereafter.	Held in general file.
LB 369	Increases the contribution rate for members of the Judges Retirement System by 1% of monthly compensation for two years.	Held in committee.
LB 447 (Bourne)	Creates a retirement health care account for members of the State Employees Retirement System. Employers would contribute an amount equal to seventeen percent of an employee’s compensation. The money could be used for health expenses of the member, member’s spouse, or member’s dependents. Upon the death of the member, the account would revert to the state.	Held in committee.
LB 495 (Stuhr)	Creates a medical cost of living adjustment (COLA) for members of the School Employees Retirement System who were receiving an annuity for at least ten years. The supplemental annuity so provided would be capped at $250.	Held in committee.

Bills Indefinitely Postponed:

LB 165 (Synowiecki)	Increases the membership of the Public Employees Retirement Board to nine members by adding a retired certificated school employee.	Indefinitely postponed.
LB 468 (Bourne)	Adds an early retirement benefit for members of the Judges Retirement System. Members would be able to retire at age sixty and receive the maximum benefit if they had at least twenty years of service. Members with fewer than twenty years of service would be subject to a three percent reduction for each year remaining before the member’s sixty-fifth birthday.	Indefinitely postponed.