All Roll Calls
Yes: 78 • No: 0
NebraskaLB822109th Legislature 1st and 2nd SessionslegislatureWALLET
Rename the Police Officers Retirement Act as the Cities of the First Class Police Officers Retirement Act and change provisions of such act
Sponsored By: Nebraska Retirement Systems Committee
Signed by Governor
Nebraska Retirement Systems Committee
Your PRIA Score
Score Hidden
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
7 provisions identified: 3 benefits, 1 costs, 3 mixed.
Bigger protected line-of-duty death payment
For deaths in 2022, the line‑of‑duty payment is $250,000. For deaths in 2023 and later, the amount equals last year’s payment increased by the CPI‑U percent change for the 12 months ending June 30 of the prior year. These payments are not counted as regular pay or salary for pension plans, and employers have no subrogation rights to them.
Police disability pay and return rules
If you are disabled in the line of duty, you get a disability pension equal to 50% of your regular pay. For a temporary duty disability, you receive full salary for up to 12 months; if it becomes permanent in that time, pay stops and the disability pension begins. Workers’ compensation reduces salary or pension, and you cannot get full salary and full workers’ comp at the same time. Your total pay above workers’ comp is at least your retirement value at disability; the city must fund any shortfall at first payment. You must provide medical proof from a neutral Nebraska‑licensed doctor; the city can require exams for three years at its expense and may seek court proof later if fraud is suspected. If you are found not disabled within the first three years, you may return to duty at not less than your prior pay grade if a position exists or is created under city rules. For officers and firefighters with 5+ years, certain heart or lung conditions causing death or disability are presumed duty‑related if they arise in service or within three months after leaving.
Cities may levy taxes for pensions
The mayor and city council may levy property taxes, within legal limits, to pay for police pensions. This can raise homeowners’ tax bills to fund required pension payments.
Police pension vesting, transfers, cash-outs
Vesting for service after July 1, 2012 is: under 2 years 0%; 2–<4 years 40%; 4–<5 years 60%; 5–<7 years 80%; 7+ years 100%. Reaching age 60 while employed makes you 100% vested. If you start a new first‑class city police job within 120 days, you can transfer your employee account and vested employer share to the new city’s plan. A deferred pension starts at 60, or you can choose 55 if you elect before payments begin. You may take your vested value as a lump sum at termination; the city may cash out amounts under $3,500. A lump sum ends deferred‑pension rights, and any nonvested employer share is forfeited first to fees and then to reduce city contributions. Regular pay means your highest five‑year average, and retirement value is calculated each December 31.
Renamed law now covers first-class police
The law is now the Cities of the First Class Police Officers Retirement Act and applies to all police officers in those cities. It repeals earlier sections that this act replaces.
Stronger oversight and fairer pension rules
Each city has a six‑member police retirement committee: four chosen by officers and two by the city council. Members serve four‑year terms and get no pay. The city council runs the plan unless it gives duties to the committee by ordinance. The committee directs investments and may hire registered managers, following Nebraska Investment Council policies. The chair must file a yearly report by June 30 with an independent actuarial analysis; if over six months late, the Auditor may audit and bill the plan. Plans must keep tax‑qualified status under IRS section 401(a), and actuarial assumptions and annuity rates must be sex‑neutral.
Protections and fixes for police pensions
Your pension rights and plan assets cannot be assigned, seized, or used in bankruptcy. The plan follows only qualified domestic relations orders that meet IRS section 414(p); orders cannot change the amount, form, or timing beyond plan rules. If the committee finds a past overpayment or underpayment, it corrects it. Overpayments can be taken from future checks with regular interest, and you can ask the city council to review the change.
Sponsors & Cosponsors
Sponsor
Nebraska Retirement Systems Committee
Affiliation unavailable
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
legislature vote • 4/9/2026
Final Reading
Yes: 49 • No: 0
legislature vote • 2/11/2026
Vote
Yes: 29 • No: 0 • Other: 20
Actions Timeline
Approved by Governor on April 14, 2026
4/17/2026legislaturePresident/Speaker signed
4/10/2026legislaturePresented to Governor on April 10, 2026
4/10/2026legislatureDispensing of reading at large approved
4/9/2026legislaturePassed on Final Reading 49-0-0
4/9/2026legislaturePlaced on Final Reading
3/11/2026legislatureEnrollment and Review ER123 adopted
3/6/2026legislatureKauth FA451 withdrawn
3/6/2026legislatureAdvanced to Enrollment and Review for Engrossment
3/6/2026legislaturePlaced on Select File with ER123
2/23/2026legislatureEnrollment and Review ER123 filed
2/23/2026legislatureAdvanced to Enrollment and Review Initial
2/11/2026legislaturePlaced on General File
2/2/2026legislatureNotice of hearing for January 30, 2026
1/15/2026legislatureReferred to Nebraska Retirement Systems Committee
1/9/2026legislatureKauth FA451 filed
1/8/2026legislatureDate of introduction
1/7/2026legislature
Bill Text
Introduced
4/17/2026
Enrolled / Slip Law
Final / Enacted