State Employees Pension Plan


Annuity Rate Change

The most recent actuarial study prompted the Public Employees Retirement Board (PERB) to make changes to the Cash Balance Tier 1 and Tier 2 annuity rates. These changes will go into effect on , and the rate will decrease incrementally each month until . At that time, the annuity rate for both Tiers will be 6.75%.

  • The Cash Balance Tier One annuity rate is currently 7.75% and will decrease incrementally, each month, starting until it is 6.75% on .
  • The Cash Balance Tier Two annuity rate is currently 7.0% and will decrease incrementally, each month, starting until it is 6.75% on .

Plan Overview

The State Employees' Retirement plan began as a Defined Contribution plan in 1964. The Cash Balance benefit was added by passage of LB687 on . As of , members who begin participation in the State Retirement Plan participate in Cash Balance.


Defined Contribution Benefit

Employer and Employee contributions are invested into multiple fund options. Current rates of return for these funds can be viewed online by clicking View Historical Investment Returns or by accessing the Online Account (see below). Rates of return are typically updated and posted roughly 30 days after the close of each quarter.

Cash Balance Benefit

Cash Balance participants receive an "interest credit rate" based on the Federal Mid-term rate plus 1.5% and are guaranteed a minimum annual rate of return of 5%. Current rates of return can be viewed online by clicking View Current Cash Balance Interest Credit Rates



Participants in either benefit

  • Contribute 4.8% pre-tax to the plan. The State contributes 156% of employees' contributions.
  • May retire at age 55 and above.
  • Vested status occurs after three years of plan participation (36 months of contributions).


Recommended Reading for Members

Member Handbook (PDF, 5.3 MB)

New Member Information Packet (PDF, 764 KB)
This packet gives new members a brief overview regarding the retirement benefits offered to State employees. It also contains links to the forms that should be provided to all new members.

Required Minimum Distribution Packet (PDF, 264 KB)
This packet provides information and warnings regarding Required Minimum Distributions (RMDs).



Online Account Access

Retirement plan participants may monitor and make changes to their account using the Online Account Access and their username and password.

For instructions on creating an online account, click Online Account Login Instructions (PDF, 183 KB) .



Your Guide to Retirement: Videos Covering In-Person Seminar Topics

If you missed a seminar, a recorded webinar is available to watch anytime. This webinar covers the retirement plan. Additional videos cover Social Security, Medicare, and estate planning fundamentals, providing a convenient seminar-at-home experience.



A General Guide to Receiving Funds for an Alternate Payee

  1. If the plan member is under age 50 and still working:

    • Not yet eligible for a distribution.

  2. If the plan member:

    • Separates from service at any age,
    • Passes age 50 and is still working,
    • Retires at age 55, or
    • Dies before receiving any payment of the award,

    Then they will be eligible to:

    • Receive a lump sum payment,
    • Complete a rollover to another qualified plan.
    • Receive monthly annuity payments.
    • Receive systematic withdrawal payments (Defined Contribution participants only). These can be scheduled monthly, quarterly, semiannually, or annually, and must be a minimum withdrawal of $100.00.

Alternate payees are not subject to the 10 percent federal tax penalty for premature distributions that is assessed to plan members who cease work before age 55 and withdraw their funds before age 59 1/2.

If an alternate payee dies prior to receiving any payment of his or her interest in the member's benefit under a qualified domestic relations order, such interest reverts to the member. Alternate payees may wish to consider receiving their award, as described above, upon meeting eligibility requirements.