Nebraska retirement funds would avoid investments in certain Chinese entities

The Nebraska Investment Council and state investment officer would avoid investments in covered entities and sell covered retirement holdings. The council’s rule would cover retirement systems it manages, including Class V school employee systems. The officer’s rule would cover systems administered by the Public Employees Retirement Board. Officials would sell holdings as soon as practical, but would not have to sell before investment terms end or in ways that conflict with their duties. Covered entities include Chinese entities named in specified federal restrictions, Chinese entities they control, and Chinese government agencies. Many listed restrictions refer to their January 1, 2026, versions. The proposal names July 1, 2026, as its start date and says it takes effect upon passage and approval. It was indefinitely postponed.

The state investment officer would send electronic reports twice a year to the Legislature’s Nebraska Retirement Systems Committee and Clerk. Reports would cover investments tied to restricted entities in retirement systems administered by the Public Employees Retirement Board. Each report would name the covered entities, give their investment categories and sectors, and state how much retirement money was invested. Reports would be due on or before January 15 and July 15, starting in 2027. January reports would cover the six months ending December 31; July reports would cover the six months ending June 30.

The State Treasurer would publish and maintain a list of restricted entities on the office’s website. The list would identify entities covered by the proposed retirement investment restrictions. The Treasurer would notify the Nebraska Investment Council and state investment officer of any updates. The initial list would be due on or before October 1, 2026. Updates would be required at least every six months.