All Roll Calls
Yes: 215 • No: 0
NebraskaLB820109th Legislature 1st and 2nd SessionslegislatureWALLET
Change retirement provisions relating to approved identification documents, participation in certain retirement systems, state contributions, ex officio members of the Nebraska Investment Council, contributions by school districts, computation of tax withholdings, retirement allowances, cost-of-living adjustments, and the Nebraska State Patrol and change the title of the executive director of the Nebraska Public Employees Retirement Systems
Sponsored By: Nebraska Retirement Systems Committee
Signed by Governor
Nebraska Retirement Systems Committee
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Bill Overview
Analyzed Economic Effects
19 provisions identified: 3 benefits, 3 costs, 13 mixed.
Stable state funding for judges' pensions
Beginning July 1, 2023, the state pays each year 5% of judges’ total annual pay into the Judges Retirement Fund. The law caps this state rate at 5%. This strengthens plan funding for members.
Citizenship or lawful presence needed for pensions
You must be a U.S. citizen or lawfully present to join any Nebraska public retirement plan or the state’s deferred comp plan. You and your employer must each keep at least one approved, unexpired ID (or one lawfully extended by DHS/USCIS) and show it when NPERS asks. This rule applies to state employees, county workers, judges, and State Patrol members.
State Patrol: earlier retirement, no DROP
State Patrol officers must retire at age 60, not 65, if they meet service rules. Members who joined on or after July 1, 2016 cannot use the Deferred Retirement Option Program (DROP).
Clear rules for divorce pension splits
When a court order may split retirement money, the plan sets that amount aside. It has 18 months from when the first payment would be due to decide if it is a QDRO. If it qualifies, the alternate payee gets the set‑aside plus interest and investment control of their share. If not, the member or other beneficiaries get the money with interest, and any later decision applies only going forward.
Vesting credit for prior public service
If you are hired full-time, you can apply for vesting credit for past full-time years in another Nebraska government plan. You must apply within your first 180 days. The retirement board sets rules for how credit is granted.
Class V moves to NPERS administration
Beginning September 1, 2024, NPERS runs the Class V school retirement system. Districts no longer manage the plan but keep funding duties, must supply accurate records, and can be billed for transition work. Monthly pensions take effect the first day and pay on the last business day; first checks include accrued amounts. Refunds over $1,000 roll to an IRA by default if no choice is made. Most member data stays private; only name and participation dates are public.
Class V school pension rates and funding
Starting July 1, 2025, employee rates are tied to the funded ratio: under 96% = 9.75%; 96%–<98% = 8.75%; 98%–<100% = 8.00%; 100%+ = 7.25%. Each year, districts must pay the larger of 101% of employee contributions or the actuary’s solvency amount (due by August 31). The State also pays into the fund each July 1: 2% of pay if funded ratio is under 96%, 0.7% if 96%–<100%, and nothing if 100%+.
County retirement enrollment and exit rules
Counties must enroll eligible workers in the retirement plan and start required contributions right away at hire. If a county plans a deal that could end its plan’s tax-qualified status, it must give 180 days’ written notice. If removal happens, affected workers become fully vested and inactive within 90 days. The employer must pay any funding shortfall, admin costs, and actuary study costs.
New funding rules for judges’ pension
The judges’ plan uses yearly valuations with the entry-age method. Starting July 1, 2021, changes in unfunded liability are spread over 25 years, and past bases reset if unfunded liability hits zero. If required funding is higher than all statutory contributions, the state must make a supplemental appropriation to cover the gap.
Stronger powers to fix pension mistakes
Retirement boards can correct wrong contributions or benefit payments. They can refund money, require extra contributions, change future benefits, or recover overpayments with interest. They must pay material underpayments with interest. The director can investigate, demand records, and issue subpoenas. Boards must set clear rules, notices, and dispute steps.
Deferred comp: who qualifies and inherits
The law clarifies who can use the state deferred comp plan, including all state workers, some pre‑1999 contractors, and certain county employees or elected officials when no plan is offered. If a member dies, the money goes to the named beneficiary, then the spouse married on the death date, then the estate. This order does not apply if the member retired under a joint‑and‑survivor option.
Tax withholding on Roth deferrals
If you make a designated Roth deferral in the state deferred comp plan, that amount counts for tax withholding. Pre-tax deferrals do not count toward withholding. Expect more tax taken from each paycheck on Roth amounts.
Who counts as a temporary state hire
The law clarifies who is a temporary employee for retirement. It includes hires under six months, six to twelve months or up to 2,080 hours, and grant‑funded or special project jobs. This affects whether you can join the State Employees Retirement System.
Old retirement statutes repealed
The law repeals listed prior sections of Nebraska retirement law, including several in chapters 23, 24, 42, 79, and 84, and section 79‑958. Those provisions no longer apply.
When these retirement changes take effect
The act is in effect upon approval because it declares an emergency. Sections 1–50 and 52 start three calendar months after the Legislature adjourns. Other sections follow the dates written in the law.
Investment oversight and fee transparency
The Nebraska Investment Council manages State Patrol pension investments. Its fees come out of the fund’s returns and must be reported by March 31 each year. The state investment officer must sell assets when NPERS needs cash to pay benefits. The NPERS director sits on the Investment Council as a nonvoting member and represents Class V plans; appointed members get a $75 per‑diem.
Class V school pension move and costs
The Class V school retirement system moves under NPERS on a set timeline. The transition plan was due December 31, 2021. The board must finish transfer tasks by September 1, 2024. IT stabilization work can continue until September 1, 2025. From May 27, 2021 through September 1, 2025, employers must pay transition costs, and the board may bill monthly. The board also tells the State Treasurer to move money between the Class V processing and retirement funds to pay system expenses.
Staffing rules for retirement agency
The NPERS executive director, assistant directors, and deputies are exempt from the State Personnel System. The executive director sets pay for assistants and deputies. The board’s internal auditor and attorney are classified positions and follow State Personnel System rules.
Stronger privacy and data access rules
NPERS’ executive director can access state HR records to verify member data and run the systems. Agencies must provide records quickly. Most information the board gets is not public. Only your name, which system you’re in, and your start and end dates are public.
Sponsors & Cosponsors
Sponsor
Nebraska Retirement Systems Committee
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 4/24/2026
Vote
Yes: 29 • No: 0 • Other: 20
legislature vote • 4/24/2026
Vote
Yes: 39 • No: 0 • Other: 10
legislature vote • 4/10/2026
Final Reading
Yes: 49 • No: 0
legislature vote • 3/31/2026
Vote
Yes: 39 • No: 0 • Other: 10
legislature vote • 3/12/2026
Vote
Yes: 30 • No: 0 • Other: 19
legislature vote • 3/12/2026
Vote
Yes: 29 • No: 0 • Other: 20
Actions Timeline
Presented to Governor on April 10, 2026
4/17/2026legislatureApproved by Governor on April 14, 2026
4/17/2026legislatureDispensing of reading at large approved
4/10/2026legislaturePassed on Final Reading with Emergency Clause 49-0-0
4/10/2026legislaturePresident/Speaker signed
4/10/2026legislaturePlaced on Final Reading
4/7/2026legislatureEnrollment and Review ER149 adopted
3/31/2026legislatureKauth FA449 withdrawn
3/31/2026legislatureSorrentino AM2736 adopted
3/31/2026legislatureAdvanced to Enrollment and Review for Engrossment
3/31/2026legislatureSorrentino AM2736 filed
3/19/2026legislaturePlaced on Select File with ER149
3/18/2026legislatureEnrollment and Review ER149 filed
3/18/2026legislatureNebraska Retirement Systems AM2425 adopted
3/12/2026legislatureAdvanced to Enrollment and Review Initial
3/12/2026legislaturePlaced on General File with AM2425
3/9/2026legislatureNebraska Retirement Systems AM2425 filed
3/9/2026legislatureNebraska Retirement Systems priority bill
2/17/2026legislatureNotice of hearing for January 23, 2026
1/14/2026legislatureReferred to Nebraska Retirement Systems Committee
1/9/2026legislatureKauth FA449 filed
1/8/2026legislatureDate of introduction
1/7/2026legislature
Bill Text
Introduced
4/17/2026
Enrolled / Slip Law
Final / Enacted