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LEGISLATIVE BILL 1101
Approved by the Governor April 7, 2026
Introduced by Nebraska Retirement Systems Committee: Ballard, 21, Chairperson;
Clements, 2; Hardin, 48; Juarez, 5; Sorrentino, 39.
A BILL FOR AN ACT relating to the Judges Retirement Act; to amend section
24-710.14, Reissue Revised Statutes of Nebraska, section 24-710, Revised
Statutes Cumulative Supplement, 2024, and section 24-703, Revised Statutes
Supplement, 2025; to change contribution rates; to change provisions
relating to retirement annuities and annual benefit adjustments; to define
a term; to repeal the original sections; and to declare an emergency.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 24-703, Revised Statutes Supplement, 2025, is amended
to read:
24-703 (1) Each original member shall contribute monthly four percent of
his or her monthly compensation to the fund until the maximum benefit as
limited in subsection (1) of section 24-710 has been earned. It shall be the
duty of the Director of Administrative Services in accordance with subsection
(7) of this section to make a deduction of four percent on the monthly payroll
of each original member who is a judge of the Supreme Court, a judge of the
Court of Appeals, a judge of the district court, a judge of a separate juvenile
court, a judge of the county court, a clerk magistrate of the county court who
was an associate county judge and a member of the fund at the time of his or
her appointment as a clerk magistrate, or a judge of the Nebraska Workers'
Compensation Court showing the amount to be deducted and its credit to the
fund. The Director of Administrative Services and the State Treasurer shall
credit the four percent as shown on the payroll and the amounts received from
the various counties to the fund and remit the same to the director in charge
of the judges retirement system who shall keep an accurate record of the
contributions of each judge.
(2)(a) In addition to the contribution required under subdivision (c) of
this subsection, beginning on July 1, 2004, each future member who became a
member prior to July 1, 2015, and who has not elected to make contributions and
receive benefits as provided in section 24-703.03 shall contribute monthly six
percent of his or her monthly compensation to the fund until the maximum
benefit as limited in subsection (2) of section 24-710 has been earned. After
the maximum benefit as limited in subsection (2) of section 24-710 has been
earned, such future member shall make no further contributions to the fund,
except that (i) any time the maximum benefit is changed, a future member who
has previously earned the maximum benefit as it existed prior to the change
shall contribute monthly six percent of his or her monthly compensation to the
fund until the maximum benefit as changed and as limited in subsection (2) of
section 24-710 has been earned and (ii) such future member shall continue to
make the contribution required under subdivision (c) of this subsection.
(b) In addition to the contribution required under subdivision (c) of this
subsection, beginning on July 1, 2004, a judge who became a member prior to
July 1, 2015, and who first serves as a judge on or after July 1, 2004, or a
future member who became a member prior to July 1, 2015, and who elects to make
contributions and receive benefits as provided in section 24-703.03 shall
contribute monthly eight percent of his or her monthly compensation to the fund
until the maximum benefit as limited by subsection (2) of section 24-710 has
been earned. In addition to the contribution required under subdivision (c) of
this subsection, after the maximum benefit as limited in subsection (2) of
section 24-710 has been earned, such judge or future member shall contribute
monthly four percent of his or her monthly compensation to the fund for the
remainder of his or her active service.
(c) Beginning on July 1, 2009, a member or judge described in subdivisions
(a) and (b) of this subsection shall contribute monthly an additional one
percent of his or her monthly compensation to the fund.
(d) Beginning on July 1, 2015, a judge who first serves as a judge on or
after such date shall contribute monthly ten percent of his or her monthly
compensation to the fund prior to July 1, 2026.
(e) Beginning on July 1, 2026, a judge who first serves as a judge on or
after July 1, 2015:
(i) If the benefits entitled to such judge under subsection (2) of section
24-710 have not reached the maximum retirement benefit base limit under such
subsection, shall contribute monthly nine percent of his or her monthly
compensation to the fund; and
(ii) If the benefits entitled to such judge under subsection (2) of
section 24-710 have reached the maximum retirement benefit base limit under
such subsection, shall contribute monthly five percent of his or her monthly
compensation to the fund for the remainder of his or her active service.
(f) (e) It shall be the duty of the Director of Administrative Services to
make a deduction on the monthly payroll of each such future member who is a
judge of the Supreme Court, a judge of the Court of Appeals, a judge of the
district court, a judge of a separate juvenile court, a judge of the county
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court, a clerk magistrate of the county court who was an associate county judge
and a member of the fund at the time of his or her appointment as a clerk
magistrate, or a judge of the Nebraska Workers' Compensation Court showing the
amount to be deducted and its credit to the fund. This shall be done each
month. The Director of Administrative Services and the State Treasurer shall
credit the amount as shown on the payroll and the amounts received from the
various counties to the fund and remit the same to the director in charge of
the judges retirement system who shall keep an accurate record of the
contributions of each judge.
(3)(a) Except as otherwise provided in this subsection, a Nebraska
Retirement Fund for Judges fee of six dollars through June 30, 2021, eight
dollars beginning July 1, 2021, through June 30, 2022, nine dollars beginning
July 1, 2022, through June 30, 2023, ten dollars beginning July 1, 2023,
through June 30, 2024, eleven dollars beginning July 1, 2024, through June 30,
2025, and twelve dollars beginning July 1, 2025, shall be taxed as costs in
each (i) civil cause of action, criminal cause of action, traffic misdemeanor
or infraction, and city or village ordinance violation filed in the district
courts, the county courts, and the separate juvenile courts, (ii) filing in the
district court of an order, award, or judgment of the Nebraska Workers'
Compensation Court or any judge thereof pursuant to section 48-188, (iii)
appeal or other proceeding filed in the Court of Appeals, and (iv) original
action, appeal, or other proceeding filed in the Supreme Court. In county
courts a sum shall be charged which is equal to ten percent of each fee
provided by sections 33-125, 33-126.02, 33-126.03, and 33-126.06, rounded to
the nearest even dollar. No judges retirement fee shall be charged for filing a
report pursuant to sections 33-126.02 and 33-126.06.
(b) The fee increases described in subdivision (a) of this subsection
shall not be taxed as a cost in any criminal cause of action, traffic
misdemeanor or infraction, or city or village ordinance violation filed in the
district court or the county court. The fee on such criminal causes of action,
traffic misdemeanors or infractions, or city or village ordinance violations
shall remain six dollars on and after July 1, 2021.
(c) When collected by the clerk of the district or county court, such fees
shall be remitted to the State Treasurer within ten days after the close of
each calendar month for credit to the Nebraska Retirement Fund for Judges. In
addition, information regarding collection of court fees shall be submitted to
the director in charge of the judges retirement system by the State Court
Administrator within ten days after the close of each calendar month.
(d) The board may charge a late administrative processing fee not to
exceed twenty-five dollars if the information is not timely received or the
money is delinquent. In addition, the board may charge a late fee of thirty-
eight thousandths of one percent of the amount required to be submitted
pursuant to this section for each day such amount has not been received. Such
late fees shall be remitted to the director who shall promptly thereafter remit
such fees to the State Treasurer for credit to the fund.
(e) No Nebraska Retirement Fund for Judges fee which is uncollectible for
any reason shall be waived by a county judge as provided in section 29-2709.
(4) All expenditures from the fund shall be authorized by voucher in the
manner prescribed in section 24-713. The fund shall be used for the payment of
all annuities and other benefits to members and their beneficiaries and for the
expenses of administration.
(5)(a) Prior to July 1, 2021:
(i) Beginning July 1, 2013, and each fiscal year thereafter, the board
shall cause an annual actuarial valuation to be performed that will value the
plan assets for the year and ascertain the contributions required for such
fiscal year. The actuary for the board shall perform an actuarial valuation of
the system on the basis of actuarial assumptions recommended by the actuary,
approved by the board, and kept on file with the board using the entry age
actuarial cost method. Under this method, the actuarially required funding rate
is equal to the normal cost rate, plus the contribution rate necessary to
amortize the unfunded actuarial accrued liability on a level percentage of
salary basis. The normal cost under this method shall be determined for each
individual member on a level percentage of salary basis. The normal cost amount
is then summed for all members;
(ii) Beginning July 1, 2006, any existing unfunded liabilities shall be
reinitialized and amortized over a thirty-year period, and during each
subsequent actuarial valuation through June 30, 2021, changes in the unfunded
actuarial accrued liability due to changes in benefits, actuarial assumptions,
the asset valuation method, or actuarial gains or losses shall be measured and
amortized over a thirty-year period beginning on the valuation date of such
change;
(iii) If the unfunded actuarial accrued liability under the entry age
actuarial cost method is zero or less than zero on an actuarial valuation date,
then all prior unfunded actuarial accrued liabilities shall be considered fully
funded and the unfunded actuarial accrued liability shall be reinitialized and
amortized over a thirty-year period as of the actuarial valuation date; and
(iv) If the actuarially required contribution rate exceeds the rate of all
contributions required pursuant to the Judges Retirement Act, there shall be a
supplemental appropriation sufficient to pay for the differences between the
actuarially required contribution rate and the rate of all contributions
required pursuant to the Judges Retirement Act.
(b) Beginning July 1, 2021, and each fiscal year thereafter:
(i) The board shall cause an annual actuarial valuation to be performed
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that will value the plan assets for the year and ascertain the contributions
required for such fiscal year. The actuary for the board shall perform an
actuarial valuation of the system on the basis of actuarial assumptions
recommended by the actuary, approved by the board, and kept on file with the
board using the entry age actuarial cost method. Under such method, the
actuarially required funding rate is equal to the normal cost rate, plus the
contribution rate necessary to amortize the unfunded actuarial accrued
liability on a level percentage of salary basis. The normal cost under such
method shall be determined for each individual member on a level percentage of
salary basis. The normal cost amount is then summed for all members;
(ii) Any changes in the unfunded actuarial accrued liability due to
changes in benefits, actuarial assumptions, the asset valuation method, or
actuarial gains or losses shall be measured and amortized over a twenty-five-
year period beginning on the valuation date of such change;
(iii) If the unfunded actuarial accrued liability under the entry age
actuarial cost method is zero or less than zero on an actuarial valuation date,
then all prior unfunded actuarial accrued liabilities shall be considered fully
funded and the unfunded actuarial accrued liability shall be reinitialized and
amortized over a twenty-five-year period as of the actuarial valuation date;
and
(iv) If the actuarially required contribution rate exceeds the rate of all
contributions required pursuant to the Judges Retirement Act, there shall be a
supplemental appropriation sufficient to pay for the differences between the
actuarially required contribution rate and the rate of all contributions
required pursuant to the act.
(c) Upon the recommendation of the actuary to the board, and after the
board notifies the Nebraska Retirement Systems Committee of the Legislature,
the board may combine or offset certain amortization bases to reduce future
volatility of the actuarial contribution rate. Such notification to the
committee shall be in writing and include, at a minimum, the actuary's
projection of the contributions to fund the plan if the combination or offset
were not implemented, the actuary's projection of the contributions to fund the
plan if the combination or offset were implemented, and the actuary's
explanation of why the combination or offset is in the best interests of the
plan at the proposed time.
(d) For purposes of this subsection, the rate of all contributions
required pursuant to the Judges Retirement Act includes (i) member
contributions, (ii) state contributions pursuant to subsection (6) of this
section which shall be considered as a contribution for the plan year ending
the prior June 30, (iii) court fees as provided in subsection (3) of this
section, and (iv) all fees pursuant to sections 25-2804, 33-103, 33-103.01,
33-106.02, 33-123, 33-124, 33-125, 33-126.02, 33-126.03, and 33-126.06, as
directed to be remitted to the fund.
(6)(a)(i) (6)(a) In addition to the contributions otherwise required by
this section, beginning July 1, 2023, and on July 1 of each year thereafter,
the state shall contribute from the General Fund to the Nebraska Retirement
Fund for Judges an amount equal to the following five percent of the total
annual compensation of all members of the retirement system except as otherwise
provided in this subsection and as such rate shall be adjusted or terminated by
the Legislature: .
(A) Prior to July 1, 2026, five percent; and
(B) Beginning July 1, 2026, zero percent.
(ii) No adjustment may cause the total contribution rate established in
this subsection to exceed five percent.
(iii) For purposes of this subsection: ,
(A) Total (i) total annual compensation is based on the total member
compensation reported in the most recent annual actuarial valuation report for
the retirement system produced for the board pursuant to section 84-1503; and
(B) The (ii) the contribution described in this subsection shall be
considered as a contribution for the plan year ending the prior June 30.
(b) If the funded ratio on the actuarial value of assets is at or above
one hundred percent for two consecutive years as reported in the annual
actuarial valuation report, the actuary shall assess whether the percentage of
the state contribution rate should be adjusted based on projected annual
actuarial valuation report results including the funded ratio, actuarial
contribution, and expected revenue sources using several assumed investment
return scenarios that the actuary deems to be reasonable, and shall make a
recommendation to the board as part of the annual actuarial valuation report.
(c) If the state contribution rate has been adjusted to less than five
percent and the funded ratio on the actuarial value of assets is below one
hundred percent for two consecutive years as reported in the annual actuarial
valuation report, the actuary shall assess whether the percentage of the state
contribution rate should be adjusted based on projected annual actuarial
valuation report results including the funded ratio, actuarial contribution,
and expected revenue sources using several assumed investment return scenarios
that the actuary deems to be reasonable, and shall make a recommendation to the
board as part of the annual actuarial valuation report.
(d) If an annual actuarial valuation report includes a recommendation from
the actuary to adjust the contribution rate as described in subdivision (b) or
(c) of this subsection, the board shall provide written notice electronically
to the Nebraska Retirement Systems Committee of the Legislature, to the
Governor, and to the Supreme Court of such recommendation within seven business
days after voting to approve an annual actuarial valuation report. The notice
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shall include the actuary's recommendation and analysis regarding such
adjustment.
(e) Following receipt of the actuary's recommendation and analysis
pursuant to this subsection, the Nebraska Retirement Systems Committee of the
Legislature shall determine the amount of any adjustment of the contribution
rate and, if necessary, shall propose any such adjustment to the Legislature.
(7) The state or county shall pick up the member contributions required by
this section for all compensation paid on or after January 1, 1985, and the
contributions so picked up shall be treated as employer contributions pursuant
to section 414(h)(2) of the Internal Revenue Code in determining federal tax
treatment under the code and shall not be included as gross income of the
member until such time as they are distributed or made available. The
contributions, although designated as member contributions, shall be paid by
the state or county in lieu of member contributions. The state or county shall
pay these member contributions from the same source of funds which is used in
paying earnings to the member. The state or county shall pick up these
contributions by a compensation deduction through a reduction in the
compensation of the member. Member contributions picked up shall be treated for
all purposes of the Judges Retirement Act in the same manner and to the extent
as member contributions made prior to the date picked up.
Sec. 2. Section 24-710, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
24-710 (1) The retirement annuity of a judge who is an original member,
who has not made the election provided for in section 24-710.01, and who
retires under section 24-708 or 24-709 shall be computed as follows: Each such
judge shall be entitled to receive an annuity, each monthly payment of which
shall be in an amount equal to three and one-third percent of his or her final
average compensation as such judge, multiplied by the number of his or her
years of creditable service. The amount stated in this section shall be
supplemental to any benefits received by such judge under the Nebraska and
federal old age and survivors' insurance acts at the date of retirement, but
the monthly combined benefits received thereunder and by the Judges Retirement
Act shall not exceed sixty-five percent of the final average compensation such
judge was receiving when he or she last served as such judge. The amount of
retirement annuity of a judge who retires under section 24-708 or 24-709 shall
not be less than twenty-five dollars per month if he or she has four years or
more of service credit.
(2)(a) (2) The retirement annuity of a judge who is a future member and
who retires after July 1, 1986, under section 24-708 or 24-709 shall be
computed as follows: Each such judge shall be entitled to receive an annuity,
each monthly payment of which shall be in an amount equal to three and one-half
percent of his or her final average compensation as such judge, multiplied by
the number of his or her years of creditable service, except that prior to an
actuarial factor adjustment for purposes of calculating an optional form of
annuity benefits under subsection (3) of this section, the monthly benefits
received under this subsection shall not exceed the maximum retirement benefit
base limit.
(b) For purposes of this subsection, maximum retirement benefit base limit
means the benefits that are received under this subsection that are seventy
percent of the final average compensation such judge was receiving when he or
she last served as such judge.
(3) Except as provided in section 42-1107, any member may, when filing an
application as provided by the retirement system, elect to receive, in lieu of
the normal form annuity benefits to which the member or his or her beneficiary
may otherwise be entitled under the Judges Retirement Act, an optional form of
annuity benefits which the board may by rules and regulations provide, the
value of which, determined by accepted actuarial methods and on the basis of
actuarial assumptions recommended by the actuary, approved by the board, and
kept on file in the office of the director, is equal to the value of the
benefit replaced. The board may (a) adopt and promulgate appropriate rules and
regulations to establish joint and survivorship annuities, with and without
reduction on the death of the first annuitant, and such other forms of
annuities as may in its judgment be appropriate and establishing benefits as
provided in sections 24-707 and 24-707.01, (b) prescribe appropriate forms for
making the election by the members, and (c) provide for the necessary actuarial
services to make the required valuations.
(4) A one-time cost-of-living adjustment shall be made for each retired
judge and each surviving beneficiary who is receiving a retirement annuity as
provided for in this section. The annuity shall be adjusted by the increase in
the cost of living or wage levels between the effective date of retirement and
June 30, 1992, except that such increases shall not exceed three percent per
year of retirement and the total increase shall not exceed two hundred fifty
dollars per month.
Sec. 3. Section 24-710.14, Reissue Revised Statutes of Nebraska, is
amended to read:
24-710.14 (1) This section applies to On July 1 of each year, for judges
who became members on or after July 1, 2015. :
(2)(a) (1) The board shall determine the number of retired members or
beneficiaries in the retirement system who became members on or after July 1,
2015, and an annual benefit adjustment shall be made by the board for each
retired member or beneficiary. The benefit paid to a retired member or
beneficiary under this section shall be increased annually by the lesser of:
(i) The (a) the percentage change in the Consumer Price Index for Urban
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Wage Earners and Clerical Workers for the period between June 30 of the prior
year to June 30 of the present year; or
(ii)(A) Prior to July 1, 2026, (b) one percent; or .
(B) Beginning on and after July 1, 2026, two and one-half percent.
(b) If the consumer price index used in this section is discontinued or
replaced, a substitute index published by the United States Department of Labor
shall be selected by the board which shall be a reasonable representative
measurement of the cost-of-living for retired employees. ;
(3) (2) Each retired member or beneficiary shall receive the sum of the
annual benefit adjustment and such retiree's total monthly benefit less
withholding, which sum shall be the retired member's or beneficiary's adjusted
total monthly benefit. Each retired member or beneficiary shall receive the
adjusted total monthly benefit until the expiration of the annuity option
selected by the member or until the retired member or beneficiary again
qualifies for the annual benefit adjustment, whichever occurs first. ; and
(4) (3) The annual benefit adjustment pursuant to this section shall not
cause a current benefit to be reduced, and a retired member or beneficiary
shall never receive less than the adjusted total monthly benefit until the
annuity option selected by the member expires.
Sec. 4. Original section 24-710.14, Reissue Revised Statutes of Nebraska,
section 24-710, Revised Statutes Cumulative Supplement, 2024, and section
24-703, Revised Statutes Supplement, 2025, are repealed.
Sec. 5. Since an emergency exists, this act takes effect when passed and
approved according to law.
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