Archives - 101th Legislature

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

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.

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.

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%.

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.

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.

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.