Judges Pension Plan

Legislative Changes to the Judges Plan

Recent legislation has been passed, resulting in important updates to the Judges Retirement Plan. Below is a summary of the key changes members should be aware of:

State of Nebraska Contribution Rate
The State of Nebraska previously contributed 5% of members' gross salaries toward overall plan funding when the plan's funded status was below 100%. Because the plan's funded status has now improved to above 100%, effective July 1, 2026, the State's contribution rate will decrease from 5% to 0%.

Member Contribution Rates
Changes have also been made to member contribution rates for Tier 2 and Tier 3 members. Effective July 1, 2026, these members will contribute:

9% of gross salary during the first 20 years of service
5% of gross salary for each year of service thereafter

These rates mirror the contribution structure applicable to Tier 1 members hired on or after July 1, 2004, as well as those who elected to participate under the provisions established by LB1097.

Cost-of-Living Adjustment (COLA)
A Cost-of-Living Adjustment (COLA) is applied annually to help maintain the purchasing power of a monthly benefit. Effective July 1, 2026, the maximum COLA for Tier 2 and Tier 3 members will increase from 1.0% to 2.5%. This change aligns their maximum COLA with that of Tier 1 members. However, the statutory guarantee of maintaining 75% purchasing power remains applicable only to Tier 1 members and does not extend to Tier 2 or Tier 3 members.

Plan Overview

The 1955 Legislature created the Judges Retirement Plan

Membership for district and Supreme Court judges became effective Jan. 3, 1957.
Workers' Compensation Court judges were added Sept. 20, 1957, county judges and separate juvenile judges were added Jan. 5, 1961, municipal judges were added Oct. 23, 1967, and court of appeals judges were added in September 1991.
In 1985, the Legislature combined the municipal and county court systems.
Court fees, as prescribed by law, are remitted by district and county courts to assist in the funding of retirement benefits.

Contribution Rates

Judges hired on or after July 1, 2015 (Tier 2 & 3) contribute 10% of compensation.
Judges hired on or after July 1, 2004, or Judges who elected to participate in the provisions created by LB1097 contribute 9% of compensation. Upon reaching 20 years of service credit, this rate decreases to 5%.
Judges hired before July 1, 2004 who elected not to participate in the provisions created by LB1097 contribute 7% of compensation. Upon reaching 20 years of service credit, this rate decreases to 1%.

Benefits

As a defined benefit plan, lifetime monthly retirement benefits are based on this formula:

Average Highest 12-month periods of compensation

Creditable Service Years

Formula Factor Currently 3.5%

Educational Videos for Judges Plan Members

This video recording of the Judges' Retirement Plan Webinar was presented on December 15, 2021, in cooperation with the Nebraska Judicial Branch's Education Division. It explains how the Judges' Retirement Plan works, outlines pertinent legislation, describes the tier structure and benefit options, and includes an overview of the Deferred Compensation Plan (DCP). Additional videos cover Social Security and Elder Fraud.