NebraskaSchool retirement contributions would vary with fund levels
The indefinitely postponed proposal would set covered school employees’ retirement contribution rates according to the fund’s annual funded ratio.
What it does
The proposed schedule would set employee contribution rates by the retirement fund’s funded ratio, from 9.75% below 96% funding to 7.25% at 100% or more.
Argument forEmployees could see less deducted from cash pay when the fund reaches 100% funding, because the schedule sets the lowest rate at 7.25%.
Argument againstEmployees could see less cash compensation under the 9.75% rate than under the lower rates, because employers deduct picked-up contributions from cash pay.
More detail
The proposed schedule sets employee contribution rates based on the School Retirement Fund’s funded ratio. The schedule covers every employee whose contributions are required under the School Employees Retirement Act. The rate would be 9.75% below 96% funding; 8.75% at least 96% but below 98%; 8% at least 98% but below 100%; and 7.25% at 100% or more. The ratio uses the actuarial value of fund assets reported in the most recent annual valuation. The rate is calculated each July 1. The 2025 rate applies from July 1, 2025, to June 30, 2026; the 2026 rate applies from July 1, 2026, to August 31, 2027. From 2027 onward, each rate applies from September 1 through August 31 of the next year.
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Where it stands
- Introduced
- Postponed indefinitely
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 17Indefinitely postponedPostponed indefinitely
- Apr 17Provisions/portions of LB1166 amended into LB820 by AM2425
- Mar 4Placed on General FileMinor
- Jan 23Referred to Nebraska Retirement Systems CommitteeMinor
- Jan 23Notice of hearing for February 06, 2026
- Jan 22Kauth FA826 filedMinor
- Jan 21Date of introductionIntroduced
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