Legislative Information

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Committee on Nebraska Retirement Systems

  Sen. Mark Kolterman Chairperson
  Sen. Brett Lindstrom Vice Chair
  Sen. Kate Bolz
  Sen. Mike Groene
  Sen. Rick Kolowski
  Sen. John Stinner

Retirement Laws

  County 23-2301 through 23-2334
  Judges 24-701 through 24-714
  Domestic Relations Order 42-1101 through 42-1113
  Investment Council 72-1237 through 72-1269
  School 79-901 through 79-977.03
  Patrol/DROP 81-2014 through 81-2041
  State 84-1301 through 84-1333
  PERB/DCP 84-1501 through 84-1514

Legislative Archives

  106th Legislature - See Below
  105th Legislature - 2017/2018
  104th Legislature - 2015/2016
  103rd Legislature - 2013/2014
  102nd Legislature - 2011/2012
  101st Legislature - 2009/2010
  100th Legislature - 2007/2008
  99th Legislature - 2005/2006
  98th Legislature - 2003/2004

106th Legislature

2019 Legislative Action (As of 2/8/2019)

Please Note: The legislative descriptions below are not intended to serve as a comprehensive explanation of proposed or passed legislation. A link to each bill is provided for individuals who wish to review the full content.

Bill # Description Status
LB 31
PERB
This bill would ask the Public Employees Retirement Board (PERB) to create and submit a report examining the process and costs to transfer administration of the Omaha School Employee's Retirement System (OSERS) to the Nebraska Public Employees Retirement System (NPERS).

The report shall include:
  • A detailed analysis and recommendations regarding management, administration, actuarial service, information technology, computer infrastructure, accounting, member data and record transfer.
  • Necessary statutory changes to achieve the transfer of management and actuarial services.
  • Staff training and assessment of staffing needs.
  • Educational and communication plans to fully inform all system stakeholders and affected governmental entities regarding management changes.
  • Sufficient timeframes for an orderly transition and implementation of management and actuary changes.
  • Cost estimates associated with the tasks necessary to carry out the management transition.
  • A comparison of the current annual cost to administer OSERS with an estimate of the annual cost for the PERB and NPERS to administer OSERS after a transfer occurs.
The cost of the report shall be funded by Omaha Public Schools (OPS) and provided to the Clerk of the Legislature no later than June 30, 2020.
Referred to Retirement Committee
LB 32
State & County
DCP & DROP
This bill would allow the Nebraska Investment Council (NIC) to modify the 13 investment options currently provided to participants in the State and County Defined Contribution plan, . This will also result in a change to the investment options in the voluntary State Deferred Compensation Plan (DCP), and the State Patrol DROP program.

On or after January 1, 2021, investment options shall include, but not be limited to:
  • An investor select account which shall be invested under the direction of the state investment officer with an asset allocation and investment strategy substantially similar to the investment allocations made by the state investment officer for the defined benefit plans. These investments shall most likely include domestic and international equities, fixed income investments, and real estate, as well as potentially additional asset classes.
  • A stable return account which shall be invested by or under the direction of the state investment officer in a stable value strategy that provides capital preservation and consistent, steady returns.
  • An equities account which shall be invested by or under the direction of the state investment officer in equities.
  • A fixed income account which shall be invested by or under the direction of the state investment officer in fixed income instruments.
  • A life-cycle fund which shall be invested under the direction of the state investment officer with an asset allocation and investment strategy that adjusts from a position of higher risk to one of lower risk as the member ages.
Defined Contribution, DCP, and DROP participants shall be given a detailed current description of each new investment option. Participants who fail to make an investment election from the new funds shall have their account invested in the life-cycle fund.

Placed on Select File

LB 33
PERB
Would increase the Public Employees Retirement Board (PERB) per diem from $50 to $75. In addition, the bill would change the actuary contract limits to allow for two 3-year options, and remove the requirement for a competitive, formal, sealed bidding process for the legal compliance audit. Finally, the bill would change due date of the Annual Legislative Report from 3/31 to 4/10, effective 2020. Placed on Final Reading
LB 34
State & County
Under current law, State and County members who have filed a grievance regarding a termination may withdraw up to $25,000 from their account pending the outcome of the grievance. If reinstated, the member must repay the distribution. If passed, LB 34 would eliminate this grievance distribution provision. Hearing 2/5
LB 35
State & County
This bill makes changes to the eligibility and reemployment provisions of the County and State plans.

It would require permanent full-time State and County employees be at least 18 years old to participate in the plan, which is consistent with what is required of part-time employees.

Consistent with current practices, effective January 1, 2020 a State or County member who is reemployed in any capacity with less than a 120-day break in service shall not be deemed to have terminated employment. In this instance the member must:
  • Return to plan participation. A member previously participating in Defined Contribution shall resume participation in Defined Contribution. A member participating in Cash Balance shall resume participation in the Cash Balance Tier they were previously participating.
  • Repay all distributions, including annuity payments. No further distributions may be taken.
  • Make up any missed contributions.
Effective January 1, 2020 a State or County member who is reemployed on a permanent full or permanent part-time basis on or after a 120-day break in service:
  • A member previously participating in Defined Contribution shall resume participation in Defined Contribution. A member participating in Cash Balance shall resume participation in the Cash Balance Tier in which they were previously participating.
  • If the member purchased an annuity, these payments will continue.
  • No further distributions may be taken until the member again terminates employment at all employers/entities participating in the plan.
  • If the member did not take a distribution, prior vesting credit shall be restored.
  • If the member took a distribution, vesting credit for the prior service is forfeited. During the first three years after reemployment, the member may make a one-time election to repay lump sum and/or rollover distributions. If repayment is elected, vesting credit and forfeited employer matching contributions shall be restored in proportion to the percentage of repayment against the total value of all distributions. Repayment must be completed within five years of reemployment or prior to termination, whichever is earlier.
Hearing 2/5
LB 36
School
LB 36 modifies repayment of refund time frames and payment options, and clarifies and simplifies service credit provisions for School plan members.

Removes the separate service credit definitions for Tier Four. Service credit provisions will be the same for all four tiers. Clarifies service credit is not granted for service provided in an Omaha Public School.

Under current statute, members who were actively employed and participating in the plan on April 17, 2014, have until April 16, 2020, to apply for and repay a refund. Repayment must be completed no later than April 16, 2020, or termination, whichever is earlier. LB 36 requires these members submit an application for repayment no later than April 16, 2020 but extends the repayment date to April 16, 2021, or termination, whichever is earlier.

For all refund repayments, members who submit an application within one year of termination or within one year of the repayment deadlines outlined in statute cannot utilize the payroll deduction option to repay the refund.
Hearing 2/12
LB 565
State & County
School & DCP
If a married plan member dies and there is no beneficiary designation on file, the surviving spouse shall be considered the primary beneficiary of the retirement account.

Hearing 2/12

LB 683
PERB
Requests the Public Employees Retirement Board (PERB) develop a work plan, recommendations, and cost estimate of allowing members of OSERS who have terminated employment to elect a one-time lump sum payment of a their retirement account in lieu of the lifetime pension benefit. This payment amount shall be determined using a percentage of the actuarial present value of the member's retirement account.

The work plan is due 6/30/2020. The PERB may bill the OSERS system for all services and related expenses in completion of the work plan
Referred to Retirement Committee