# Nebraska LB295: Change provisions relating to the County Employees Retirement Act, the Judges Retirement Act, the Nebraska State Patrol Retirement Act, the School Employees Retirement Act, the State Employees Retirement Act, the Spousal Pension Rights Act, and the Public Employees Retirement Board Nebraska LB295, Change provisions relating to the County Employees Retirement Act, the Judges Retirement Act, the Nebraska State Patrol Retirement Act, the School Employees Retirement Act, the State Employees Retirement Act, the Spousal Pension Rights Act, and the Public Employees Retirement Board, is a 109th Legislature 1st and 2nd Sessions legislature bill sponsored by Nebraska Retirement Systems Committee; status signed, last action 2025-06-06 (Provisions/portions of LB420 amended into LB295 by AM404); PRIA reads it as touching household money (as of 2026-10-17). - Canonical: https://policyrisk.com/state-bill/NE-LB295-109 - As of: 2026-10-17 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Nebraska LB295 - State: Nebraska - Session: 109th Legislature 1st and 2nd Sessions - Title: Change provisions relating to the County Employees Retirement Act, the Judges Retirement Act, the Nebraska State Patrol Retirement Act, the School Employees Retirement Act, the State Employees Retirement Act, the Spousal Pension Rights Act, and the Public Employees Retirement Board - Status: signed - Chamber: legislature - Introduced: 2025-01-15 - Last action: 2025-06-06, Provisions/portions of LB420 amended into LB295 by AM404 - Sponsor: Nebraska Retirement Systems Committee - Cosponsors: 0 - Subjects: Nebraska Retirement Systems Committee - Touches household money: yes - Roll calls: 6 (234 yes, 0 no in all) - Economic provisions PRIA read: 23 ## Summary No summary available. ## Bill overview: provisions PRIA read - Class V retirees: COLA and supplement: benefit, high. Class V retirees get an annual COLA each January 1. If you joined before July 1, 2013, the cap is 1.5%; if on/after that date, the cap is 1.0%. The COLA equals the CPI‑U increase since your annuity start, minus past COLAs, up to the cap. If CPI‑U is ever ended, the board chooses a replacement index… - Vesting protections when plans change: benefit, high. If the board finds an employer no longer qualifies for a public plan, affected workers become fully vested right away and are made inactive within 90 days. If the old Department of Labor contributory plan ends, active participants get vesting credit for all years they were in that plan. These rules… - More stable funding for judges’ pensions: benefit, medium. Beginning July 1, 2023, the State pays each year an amount equal to 5% of total judge pay into the Judges Retirement Fund. Lawmakers can adjust or end the rate, but it cannot exceed 5%. The plan actuary reviews contribution needs when the plan is fully funded for two years or underfunded after a re… - No misleading use of retirement system logos: benefit, low. You cannot use a Nebraska retirement system’s name or logo in a written sales pitch to members without the board’s consent. Any written pitch must clearly say it is not sponsored by or affiliated with the board. Uses that would likely confuse people about sponsorship, approval, or endorsement are b… - Paid time for retirement‑planning sessions: benefit, low. You can attend board‑provided retirement‑planning sessions on paid time. County and State Employees get up to three days (24 hours). Judges, School, and State Patrol get up to two days (16 hours). Short online materials (4 hours or less) count if you view them within 48 hours. Starting September 1,… - Apply earlier for school retirement: benefit, low. You can file your first retirement application up to 270 days before the date you want benefits to start. This gives you more time to prepare paperwork and plan your transition. - Divorce orders now apply to Class V: benefit, low. Class V school retirement plans now follow the same QDRO rules as other statewide plans. Spouses, former spouses, and dependents can receive court‑ordered splits of benefits under the Spousal Pension Rights Act. - Paid leave now counts toward pension pay: benefit, low. Paid leave that meets the law’s rules now counts as pensionable pay. This can raise the pay used for your contributions and your future retirement benefit. - Separate death payments to each beneficiary: benefit, low. When a lump-sum death benefit goes to more than one person, the system can pay each person separately. This can speed payments to beneficiaries. - Citizenship or legal status required for school retirement: cost, high. School employees cannot join the retirement system unless they are U.S. citizens or lawfully present. The school and the employee must keep at least one valid document showing that status as of the hire date. The document must be unexpired or have a DHS or USCIS extension. You must provide it if th… - Costs and notice for employers risking plan status: cost, medium. Any participating government employer that plans a deal that may end its tax‑qualified status must give the board written notice as soon as possible and at least 180 days before it happens. If the employer loses qualification or completes the deal, it must pay the plan’s funding obligation, adminis… - Higher civil court fees for judges’ retirement: cost, low. The civil filing fee that supports judges’ retirement rises in steps: $8 on July 1, 2021; $9 on July 1, 2022; $10 on July 1, 2023; $11 on July 1, 2024; and $12 on July 1, 2025. Criminal, traffic, and city or village ordinance filings in district or county court stay at $6 on and after July 1, 2021.… - Late fees on slow remittances: cost, low. If required information or money is late, the retirement board can charge up to a $25 processing fee plus a daily late fee of 0.038% of the amount due for each day it is late. Collected fees go to the plan fund. - No refunds for contributions on pay above caps: cost, low. If you paid retirement contributions on pay above the legal caps, the board cannot refund those amounts. Contributions on capped pay stay in the fund and are not returned. - Cash‑balance interest and annuity math: mixed, medium. Cash‑balance accounts earn the higher of 5% or the IRS mid‑term rate plus 1.5%, compounded yearly. When you convert to an annuity, the law sets which mortality tables to use based on your hire date. For judges hired or rehired on or after July 1, 2017, the board uses a unisex table and interest rat… - Proof of status to join public pensions: mixed, medium. You must be a U.S. citizen or lawfully present to join Nebraska’s public retirement plans. Your employer and you must keep at least one approved document from your hire date and show it if asked. Accepted papers include a state driver’s license or ID, a state learner’s permit, a U.S. passport, a ce… - Quick rehire: no termination, possible payback: mixed, medium. If you return to a state or participating employer job in under 120 days, it is not treated as a termination. That keeps your service continuous, but any benefits paid out can be recovered. The board can require you to repay distributions or benefits if termination did not occur. It may waive some… - School staff coverage and early retirement: mixed, medium. Effective September 1, 2021, if you were hired for under 30 hours a week but average 30+ hours a week in each month of any three months in a fiscal year, you must start pension contributions and are treated as a regular employee. Class V hires on or after July 1, 2016 can choose early retirement at… - Stronger checks and repayments for overpaid benefits: mixed, medium. If the board finds you did not truly end employment but were paid a benefit, you must pay it back. The board can waive or reduce payback if it was an obvious mistake and repayment would cause major hardship. The board can investigate and require people to appear and provide records. It can issue su… - When your pension payout can start: mixed, low. Your required beginning date is April 1 of the year after you stop working and reach the federal age rule (70½, 72, 73, or 75, depending on when you hit those ages). The system sets your final account value on the date it pays you or buys your annuity, but not earlier than 45 days after you leave.… - How the 20-hour test is figured: mixed, low. To see if you meet the 20-hour-a-week test, add your hours for the month. Divide by the days in that month, then multiply by seven. If the result is 20 or more, you count as a regular employee for retirement. - Plan governance and 25-year funding rule: mixed, low. Starting July 1, 2021, changes in unfunded liabilities are spread over 25 years from the valuation date. Retirement board members get a $75 per diem for meetings or qualifying travel days, plus expense reimbursement. Several outdated statutory sections are repealed to reflect these updates. - New school retirement administrator on Sept. 1, 2024: mixed, low. Until September 1, 2024, the administrator is the person the board appointed. Starting September 1, 2024, the administrator is the director appointed under state law. The change also clarifies who decides retirement dates before and after that date. ## Sponsors and cosponsors - Sponsor: Nebraska Retirement Systems Committee ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-04-25 | legislature | Final Reading | pass | 46 | 0 | 3 | | 2025-04-09 | legislature | Vote | fail | 38 | 0 | 11 | | 2025-03-14 | legislature | Vote | fail | 36 | 0 | 13 | | 2025-03-14 | legislature | Vote | fail | 40 | 0 | 9 | | | legislature | Vote | fail | 36 | 0 | 13 | | | legislature | Vote | fail | 38 | 0 | 11 | ## Actions (25) - 2025-06-06: Provisions/portions of LB420 amended into LB295 by AM404 (legislature) - 2025-04-30: Approved by Governor on April 30, 2025 (legislature) - 2025-04-25: Presented to Governor on April 25, 2025 (legislature) - 2025-04-25: President/Speaker signed (legislature) - 2025-04-25: Passed on Final Reading with Emergency Clause 46-0-3 (legislature) - 2025-04-25: Dispensing of reading at large approved (legislature) - 2025-04-15: Enrollment and Review ST17 recorded (legislature) - 2025-04-15: Enrollment and Review ST17 filed (legislature) - 2025-04-15: Placed on Final Reading with ST17 (legislature) - 2025-04-09: Advanced to Enrollment and Review for Engrossment (legislature) - 2025-04-09: Ballard AM797 adopted (legislature) - 2025-04-09: Enrollment and Review ER30 adopted (legislature) - 2025-03-27: Ballard AM797 filed (legislature) - 2025-03-25: Enrollment and Review ER30 filed (legislature) - 2025-03-25: Placed on Select File with ER30 (legislature) - 2025-03-14: Advanced to Enrollment and Review Initial (legislature) - 2025-03-14: Ballard AM18 withdrawn (legislature) - 2025-03-14: Nebraska Retirement Systems AM404 adopted (legislature) - 2025-03-06: Nebraska Retirement Systems AM404 filed (legislature) - 2025-03-06: Placed on General File with AM404 (legislature) - 2025-03-06: Nebraska Retirement Systems priority bill (legislature) - 2025-01-24: Notice of hearing for January 31, 2025 (legislature) - 2025-01-23: Ballard AM18 filed (legislature) - 2025-01-17: Referred to Nebraska Retirement Systems Committee (legislature) - 2025-01-15: Date of introduction (legislature) ## Bill text - Introduced, 2025-01-15: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Intro/LB295.pdf) - Enrolled / Slip Law: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Slip/LB295.pdf) - Final / Enacted: [PDF](https://nebraskalegislature.gov/FloorDocs/109/PDF/Final/LB295.pdf) ## Related bills - LB468: Change provisions relating to inheritance taxes, change certain fee and tax provisions, and eliminate a sales tax exemption relating to data centers (failed) - LB13: Require the Department of Health and Human Services to file a state plan amendment relating to child care (failed) - LB677: Change provisions of the Nebraska Medical Cannabis Regulation Act and provide for regulation of medical cannabis (failed) - LB170: Eliminate the sales tax exemptions for candy and soft drinks (failed) - LB646: Provide an exemption from brand inspections and change fees under the Livestock Brand Act (failed) - LB714: Change provisions relating to motor vehicle taxes and fees (failed) ## Sources - [Introduced (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Intro/LB295.pdf) - [Enrolled / Slip Law (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Slip/LB295.pdf) - [Final / Enacted (PDF)](https://nebraskalegislature.gov/FloorDocs/109/PDF/Final/LB295.pdf) ## Related - [LB468: Change provisions relating to inheritance taxes, change certain fee and tax pro…](https://policyrisk.com/state-bill/NE-LB468-109) - [LB13: Require the Department of Health and Human Services to file a state plan amendm…](https://policyrisk.com/state-bill/NE-LB13-109) - [LB677: Change provisions of the Nebraska Medical Cannabis Regulation Act and provide f…](https://policyrisk.com/state-bill/NE-LB677-109) - [LB170: Eliminate the sales tax exemptions for candy and soft drinks](https://policyrisk.com/state-bill/NE-LB170-109) - [LB646: Provide an exemption from brand inspections and change fees under the Livestock…](https://policyrisk.com/state-bill/NE-LB646-109) - [LB714: Change provisions relating to motor vehicle taxes and fees](https://policyrisk.com/state-bill/NE-LB714-109) - [Nebraska bills](https://policyrisk.com/states/nebraska/bills) - [Nebraska state hub](https://policyrisk.com/states/nebraska) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/NE-LB295-109 (as of 2026-10-17).