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LEGISLATURE OF NEBRASKA
ONE HUNDRED NINTH LEGISLATURE
SECOND SESSION
LEGISLATIVE BILL 1102
Introduced by Ballard, 21.
Read first time January 16, 2026
Committee: Nebraska Retirement Systems
A BILL FOR AN ACT relating to the Class V School Employees Retirement1
Act; to amend section 79-978.01, Reissue Revised Statutes of2
Nebraska, and sections 79-978 and 79-9,103, Revised Statutes3
Supplement, 2025; to redefine retirement date; to provide4
requirements for monthly payments of retirement allowances; to5
change when certain cost-of-living adjustments occur; to harmonize6
provisions; and to repeal the original sections.7
Be it enacted by the people of the State of Nebraska,8
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Section 1. Section 79-978, Revised Statutes Supplement, 2025, is1
amended to read: 2
79-978 For purposes of the Class V School Employees Retirement Act,3
unless the context otherwise requires: 4
(1) Accumulated contributions means the sum of amounts contributed5
by a member of the system together with regular interest credited6
thereon; 7
(2) Actuarial equivalent means the equality in value of the8
retirement allowance for early retirement or the retirement allowance for9
an optional form of annuity, or both, with the normal form of the annuity10
to be paid, as determined by the application of the appropriate actuarial11
table, except that use of such actuarial tables shall not effect a12
reduction in benefits accrued prior to September 1, 1985, as determined13
by the actuarial tables in use prior to such date;14
(3) Actuarial tables means: 15
(a) For determining the actuarial equivalent of any annuities other16
than joint and survivorship annuities: 17
(i) For members hired before July 1, 2018, a unisex mortality table18
using twenty-five percent of the male mortality and seventy-five percent19
of the female mortality from the 1994 Group Annuity Mortality Table with20
a One Year Setback and using an interest rate of eight percent compounded21
annually; and 22
(ii) For members hired on or after July 1, 2018, or rehired on or23
after July 1, 2018, after termination of employment and being paid a24
retirement benefit, the determinations shall be based on a unisex25
mortality table and an interest rate specified by (A) the board until26
September 1, 2024, or (B) the retirement board beginning on September 1,27
2024. Both the mortality table and the interest rate shall be recommended28
by the actuary retained pursuant to section 79-984 following an actuarial29
experience study, a benefit adequacy study, or a plan valuation. The30
mortality table, interest rate, and actuarial factors in effect on the31
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member's retirement date shall be used to calculate the actuarial1
equivalency of any retirement benefit. Such interest rate may be, but is2
not required to be, equal to the assumed rate; and 3
(b) For joint and survivorship annuities: 4
(i) For members hired before July 1, 2018, a unisex retiree5
mortality table using sixty-five percent of the male mortality and6
thirty-five percent of the female mortality from the 1994 Group Annuity7
Mortality Table with a One Year Setback and using an interest rate of8
eight percent compounded annually and a unisex joint annuitant mortality9
table using thirty-five percent of the male mortality and sixty-five10
percent of the female mortality from the 1994 Group Annuity Mortality11
Table with a One Year Setback and using an interest rate of eight percent12
compounded annually; and 13
(ii) For members hired on or after July 1, 2018, or rehired on or14
after July 1, 2018, after termination of employment and being paid a15
retirement benefit, the determinations shall be based on a unisex16
mortality table and an interest rate specified by (A) the board until17
September 1, 2024, or (B) the retirement board beginning on September 1,18
2024. Both the mortality table and the interest rate shall be recommended19
by the actuary retained pursuant to section 79-984 following an actuarial20
experience study, a benefit adequacy study, or a plan valuation. The21
mortality table, interest rate, and actuarial factors in effect on the22
member's retirement date shall be used to calculate the actuarial23
equivalency of any retirement benefit. Such interest rate may be, but is24
not required to be, equal to the assumed rate; 25
(4) Administrator of the retirement system or administrator means26
(a) until September 1, 2024, the person administering the retirement27
system who is appointed by the board or (b) beginning on September 1,28
2024, the director appointed by the retirement board pursuant to section29
84-1503; 30
(5) Annuitant means any member receiving an allowance;31
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(6) Annuity means annual payments, for both prior service and1
membership service, for life as provided in the Class V School Employees2
Retirement Act; 3
(7) Audit year means the period beginning January 1 in any year and4
ending on December 31 of that same year, which is the period of time used5
in the preparation of (a) the annual actuarial analysis and valuation and6
(b) a financial audit of the retirement system, including the investments7
of the retirement system; 8
(8) Beneficiary means any person entitled to receive or receiving a9
benefit by reason of the death of a member; 10
(9) Board means the board of trustees until July 1, 2021, and the11
board of education beginning July 1, 2021, and until September 1, 2024;12
(10) Board of education means the board or boards of education of a13
school district or districts; 14
(11) Board of trustees means: 15
(a) Until September 1, 2024, the entity established pursuant to16
section 79-980; and 17
(b) Beginning September 1, 2024, the board of education shall be18
deemed to be the successor in interest for all liability associated with19
the actions or inactions of the entity identified under subdivision (11)20
(a) of this section and as specified in the Class V School Employees21
Retirement Act; 22
(12)(a) Compensation means gross wages or salaries payable to the23
member during a fiscal year and includes (i) overtime pay, (ii) member24
contributions to the retirement system that are picked up under section25
414(h) of the Internal Revenue Code, as defined in section 49-801.01,26
(iii) retroactive salary payments paid pursuant to court order,27
arbitration, or litigation and grievance settlements, and (iv) amounts28
contributed by the member to plans under sections 125, 403(b), and 457 of29
the Internal Revenue Code, as defined in section 49-801.01, or any other30
section of the code which defers or excludes such amounts from income.31
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(b) Compensation does not include (i) fraudulently obtained amounts1
as determined by the board, (ii) amounts for accrued unused sick leave or2
accrued unused vacation leave converted to cash payments, (iii) insurance3
premiums converted into cash payments, (iv) reimbursement for expenses4
incurred, (v) fringe benefits, (vi) per diems paid as expenses, (vii)5
bonuses for services not actually rendered, (viii) early retirement6
inducements, (ix) cash awards, (x) severance pay, or (xi) employer7
contributions made for the purposes of separation payments made at8
retirement and early retirement inducements. 9
(c) Compensation in excess of the limitations set forth in section10
401(a)(17) of the Internal Revenue Code, as defined in section 49-801.01,11
shall be disregarded; 12
(13) Council means the Nebraska Investment Council created and13
acting pursuant to section 72-1237; 14
(14) Creditable service means the sum of the membership service and15
the prior service, measured in one-tenth-year increments;16
(15) Early retirement date means, for members hired prior to July 1,17
2016, who have attained age fifty-five, that month and year selected by a18
member having at least ten years of creditable service which includes a19
minimum of five years of membership service. Early retirement date means,20
for members hired on or after July 1, 2016, that month and year selected21
by a member having at least five years of membership service and who has22
attained age sixty; 23
(16) Early retirement inducement means, but is not limited to:24
(a) A benefit, bonus, or payment to a member by an employer in25
exchange for an agreement by the member to retire with a reduced26
retirement benefit; 27
(b) A benefit, bonus, or payment paid to a member by an employer in28
addition to the member's retirement benefit; 29
(c) Lump-sum or installment cash payments by an employer, except30
payments for accrued unused leave converted to cash payments;31
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(d) An additional salary or wage component of any kind that is being1
paid by an employer as an incentive to leave employment and not for2
personal services performed for which creditable service is granted;3
(e) Partial or full employer payment of a member's health, dental,4
life, or long-term disability insurance benefits or cash in lieu of such5
insurance benefits that extend beyond the member's termination of6
employment and contract of employment dates. This subdivision does not7
apply to any period during which the member is contributing to the8
retirement system and being awarded creditable service; and9
(f) Any other form of separation payments made by an employer to a10
member at termination, including, but not limited to, purchasing11
retirement contracts for the member pursuant to section 79-514, or12
depositing money for the member in an account established under section13
403(b) of the Internal Revenue Code except for payments for accrued14
unused leave; 15
(17) Employee means the following enumerated persons receiving16
compensation from the school district: (a) Teachers, other than17
substitutes, employed on a written contract basis; (b) administrators18
employed on a written contract, agreement, or document basis; and (c)19
regular employees; 20
(18) Employer means a school district participating in a retirement21
system established pursuant to the Class V School Employees Retirement22
Act; 23
(19) Fiscal year means the period beginning September 1 in any year24
and ending on August 31 of the next succeeding year;25
(20) Hire date or date of hire means the first day of compensated26
service subject to retirement contributions; 27
(21) Interest means, for the purchase of service credit, the28
purchase of prior service credit, restored refunds, and delayed payments,29
the investment return assumption used in the most recent actuarial30
valuation; 31
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(22) Member means any employee included in the membership of the1
retirement system or any former employee who has made contributions to2
the system and has not received a refund; 3
(23) Membership service means service on or after September 1, 1951,4
as an employee of the school district and a member of the system for5
which compensation is paid by the school district. Credit for more than6
one year of membership service shall not be allowed for service rendered7
in any fiscal year. Beginning September 1, 2005, a member shall be8
credited with a year of membership service for each fiscal year in which9
the member performs one thousand or more hours of compensated service as10
an employee of the school district. For an employee who becomes a member11
prior to July 1, 2018, an hour of compensated service shall include any12
hour for which the member is compensated by the school district during13
periods when no service is performed due to vacation or approved leave.14
For an employee who becomes a member on or after July 1, 2018, an hour of15
compensated service shall include any hour for which the member is16
compensated by the school district during periods when no service is17
performed due to used accrued sick days, used accrued vacation days,18
federal and state holidays, and jury duty leave for which the member is19
paid full compensation by an employer. If a member performs less than one20
thousand hours of compensated service during a fiscal year, one-tenth of21
a year of membership service shall be credited for each one hundred hours22
of compensated service by the member in such fiscal year. In determining23
a member's total membership service, all periods of membership service,24
including fractional years of membership service in one-tenth-year25
increments, shall be aggregated; 26
(24) Military service means service in the uniformed services as27
defined in 38 U.S.C. 4301 et seq., as such provision existed on March 27,28
1997; 29
(25) Normal retirement date means the end of the month during which30
the member attains age sixty-five and has completed at least five years31
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of membership service; 1
(26) Participation means qualifying for and making required deposits2
to the retirement system during the course of a fiscal year;3
(27) Primary beneficiary means the person or persons entitled to4
receive or receiving a benefit by reason of the death of a member;5
(28) Prior service means service rendered prior to September 1,6
1951, for which credit is allowed under section 79-999, service rendered7
by retired employees receiving benefits under preexisting systems, and8
service for which credit is allowed under sections 79-990, 79-991,9
79-994, 79-995, and 79-997; 10
(29)(a) Regular employee means a person hired on a full-time basis,11
which basis shall contemplate a work week of not less than thirty hours,12
and who is not (i) a teacher employed on a written contract basis or (ii)13
an administrator employed on a written contract, agreement, or document14
basis. 15
(b) Effective September 1, 2021, a person hired by an employer or16
under contract to provide service for less than thirty hours per week but17
who provides service for an average of thirty hours or more per week in18
each calendar month of any three calendar months of a fiscal year shall,19
beginning with the next full payroll period: 20
(i) Commence contributions; 21
(ii) Be deemed a regular employee; and 22
(iii) Remain a deemed regular employee regardless of hours worked23
thereafter; 24
(30) Regular interest means interest (a) on the total contributions25
of the member prior to the close of the last preceding fiscal year, (b)26
compounded annually, and (c)(i) beginning September 1, 2016, at a rate27
equal to the daily treasury yield curve for one-year treasury securities,28
as published by the Secretary of the Treasury of the United States, that29
applies on September 1 of each year and (ii) prior to September 1, 2016,30
at rates to be determined annually by the board, which shall have the31
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sole, absolute, and final discretionary authority to make such1
determination, except that the rate for any given year in no event shall2
exceed the actual percentage of net earnings of the system during the3
last preceding fiscal year; 4
(31) Retirement allowance means the total annual retirement benefit5
payable to a member for service or disability; 6
(32) Retirement application means beginning on and after September7
1, 2024, the form approved and provided by the retirement system for8
acceptance of a member's request for either regular or disability9
retirement; 10
(33) Retirement board means the Public Employees Retirement Board11
created and acting pursuant to section 84-1501; 12
(34) Retirement date means (a) the first day of the month following13
the date upon which a member's request for retirement is received on a14
retirement application if the member is eligible for retirement and has15
terminated employment or (b) the first day of the month following16
termination of employment if the member is eligible for retirement and17
has filed an application but has not yet terminated employment; (34)18
Retirement date means the date of retirement of a member for service or19
disability as fixed by (a) the board for retirements occurring prior to20
September 1, 2024, or (b) the retirement board for retirements occurring21
on or after September 1, 2024; 22
(35) Retirement system or system means the School Employees'23
Retirement System of (corporate name of the school district as described24
in section 79-405) as provided for by the act; 25
(36) School district means an employer participating in a retirement26
system established pursuant to the Class V School Employees Retirement27
Act; 28
(37) Secondary beneficiary means the person or persons entitled to29
receive or receiving a benefit by reason of the death of all primary30
beneficiaries prior to the death of the member. If no primary beneficiary31
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survives the member, secondary beneficiaries shall be treated in the same1
manner as primary beneficiaries; 2
(38) Solvency means the rate of all contributions required pursuant3
to the Class V School Employees Retirement Act is equal to or greater4
than the actuarially required contribution rate as annotated in the most5
recent valuation report prepared by the actuary retained for the6
retirement system as provided in section 79-984; 7
(39) State investment officer means the person appointed by the8
council pursuant to section 72-1240 and acting pursuant to the Nebraska9
State Funds Investment Act; 10
(40) Substitute employee means a person hired by an employer as a11
temporary employee to assume the duties of an employee due to a temporary12
absence of any employee. Substitute employee does not mean a person hired13
as an employee on an ongoing basis to assume the duties of other14
employees who are temporarily absent; 15
(41) Temporary employee means a person hired by an employer who is16
not an employee and who is hired to provide service for a limited period17
of time to accomplish a specific purpose or task. When such specific18
purpose or task is complete, the employment of such temporary employee19
shall terminate and in no case shall the temporary employment period20
exceed one year in duration; 21
(42)(a) Termination of employment or termination occurs on the date22
the member experiences a bona fide separation from service of employment23
with the member's employer, the date of which separation is the last day24
of service under the member's contractual agreement or, if there is no25
contract or only partial fulfillment of a contract, as determined by an26
employer. A member who experiences a separation from service shall comply27
with the return-to-work provisions of section 79-992 if the member28
returns to work for an employer. 29
(b) A member shall not be deemed to have incurred a termination of30
employment if the board determines that, based on the facts and31
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circumstances, (i) a claimed termination of employment was not a bona1
fide separation from service with the employer; (ii) a member was2
compensated for a full contractual period when the member stopped working3
prior to the end date of the member's employment as determined by the4
member's contract or labor agreement; or (iii) a member prearranged a5
return to work that violates the Class V School Employees Retirement Act.6
(c) Nothing in this subdivision (42) precludes an employer from7
adopting a policy which limits or denies employees who have experienced a8
separation from service from working as a volunteer or substitute9
employee within one hundred eighty days after the employee experiences a10
separation from service; 11
(43) Transfer of management means the transition and transfer of the12
general management, administration, and operation of the retirement13
system from the board of trustees, board of education, and school14
district to the retirement board as described in the Class V School15
Employees Retirement Act. Transfer of management does not include:16
(a) Transfer of the school district's funding obligations described17
in the Class V School Employees Retirement Act or assumption of financial18
liability for such funding obligations by (i) the State of Nebraska, (ii)19
the retirement board, (iii) the Nebraska Public Employees Retirement20
Systems, (iv) any other state entity with duties related to21
administration of the retirement system, or (v) the council for its22
investment duties regarding the assets of the retirement system; or23
(b) Merger or consolidation of any Class V school employees24
retirement system established under the Class V School Employees25
Retirement Act with the School Employees Retirement System of the State26
of Nebraska or any other retirement system administered by the retirement27
board; 28
(44) Trustee means a trustee provided for in section 79-980; and29
(45) Voluntary service or volunteer means providing bona fide unpaid30
service to an employer. 31
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Sec. 2. Section 79-978.01, Reissue Revised Statutes of Nebraska, is1
amended to read: 2
79-978.01 Sections 79-978 to 79-9,124 and section 3 of this act3
shall be known and may be cited as the Class V School Employees4
Retirement Act. 5
Sec. 3. For any retirement allowance of a member under the Class V6
School Employees Retirement Act: 7
(1) Monthly payments become effective on the first day of a calendar8
month and shall be paid to the member on the last business day of such9
month; 10
(2) The first such payment shall include all amounts of money that11
accrued since the effective date of the award of the annuity; and12
(3) The last such payment shall be paid: 13
(a) On the last business day of the calendar month in which the14
member dies; or 15
(b) In accordance with the payment option chosen by the member.16
Sec. 4. Section 79-9,103, Revised Statutes Supplement, 2025, is17
amended to read: 18
79-9,103 (1) Any annuity paid on or after September 1, 1983, to a19
member who retired prior to February 21, 1982, pursuant to the Class V20
School Employees Retirement Act, or to such member's beneficiary, or to a21
person who retired under the provisions of the retirement system22
established by statute for employees of Class V school districts in23
effect prior to September 1, 1951, or to such person's beneficiary, shall24
be adjusted by the increase in the cost of living or wage levels between25
the effective date of retirement and June 30, 1983, except that such26
increase shall not exceed the sum of one dollar and fifty cents per month27
for each year of creditable service and one dollar per month for each28
completed year of retirement as measured from the effective date of29
retirement to June 30, 1983. No separate adjustment in such annuity shall30
be made as a result of the changes made in section 79-9,113 pursuant to31
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Laws 1983, LB 488. If a joint and survivor annuity was elected, the1
increase shall be actuarially adjusted so that the joint and survivor2
annuity remains the actuarial equivalent of the life annuity otherwise3
payable. 4
(2) In addition to the cost-of-living adjustment provided in5
subsection (1) of this section, any annuity paid on or after September 1,6
1986, pursuant to the act or pursuant to the provisions of the retirement7
system established by statute for employees of Class V school districts8
in effect prior to September 1, 1951, and on which the first payment was9
dated on or before September 1, 1985, shall be adjusted by the increase10
in the cost of living or wage levels between the effective date of11
retirement and June 30, 1986, except that such increase shall not exceed12
(a) three and one-half percent for annuities first paid on or after13
September 1, 1984, (b) seven percent for annuities first paid on or after14
September 1, 1983, but before September 1, 1984, or (c) ten and one-half15
percent for all other annuities. 16
(3) In addition to the cost-of-living adjustments provided in17
subsections (1) and (2) of this section, any annuity paid on or after18
September 1, 1989, pursuant to the act or pursuant to the provisions of19
the retirement system established by statute for employees of Class V20
school districts in effect prior to September 1, 1951, and on which the21
first payment was dated on or before September 1, 1988, shall be adjusted22
by the increase in the cost of living or wage levels between the23
effective date of retirement and June 30, 1989, except that such increase24
shall not exceed (a) three percent for annuities first paid on or after25
September 1, 1987, (b) six percent for annuities first paid on or after26
September 1, 1986, but before September 1, 1987, or (c) nine percent for27
all other annuities. 28
(4) In addition to the cost-of-living adjustments provided in29
subsections (1), (2), and (3) of this section, any annuity paid on or30
after September 1, 1992, pursuant to the act or pursuant to the31
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provisions of the retirement system established by statute for employees1
of Class V school districts in effect prior to September 1, 1951, and on2
which the first payment was dated on or before October 1, 1991, shall be3
adjusted by the increase in the cost of living or wage levels between the4
effective date of retirement and June 30, 1992, except that such increase5
shall not exceed (a) three percent for annuities first paid after October6
1, 1990, (b) six percent for annuities first paid after October 1, 1989,7
but on or before October 1, 1990, or (c) nine percent for all other8
annuities. 9
(5) In addition to the cost-of-living adjustments provided in10
subsections (1), (2), (3), and (4) of this section, any annuity paid on11
or after September 1, 1995, pursuant to the act or pursuant to the12
provisions of the retirement system established by statute for employees13
of Class V school districts in effect prior to September 1, 1951, and on14
which the first payment was dated on or before October 1, 1994, shall be15
adjusted by the increase in the cost of living or wage levels between the16
effective date of retirement and June 30, 1995, except that such increase17
shall not exceed (a) three percent for annuities first paid after October18
1, 1993, (b) six percent for annuities first paid after October 1, 1992,19
but on or before October 1, 1993, or (c) nine percent for all other20
annuities. 21
(6) In addition to the cost-of-living adjustments provided in22
subsections (1), (2), (3), (4), and (5) of this section, any annuity paid23
pursuant to the act or pursuant to the provisions of the retirement24
system established by statute for employees of Class V school districts25
in effect prior to September 1, 1951, and on which the first payment was26
dated on or before October 1, 1994, shall be subject to adjustment to27
equal the greater of (a) the annuity payable to the member or beneficiary28
as adjusted, if applicable, under the provisions of subsection (1), (2),29
(3), (4), or (5) of this section or (b) ninety percent of the annuity30
which results when the original annuity that was paid to the member or31
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beneficiary (before any cost-of-living adjustments under this section),1
is adjusted by the increase in the cost of living or wage levels between2
the commencement date of the annuity and June 30, 1995.3
(7) In addition to the cost-of-living adjustments provided in4
subsections (1), (2), (3), (4), (5), and (6) of this section, any annuity5
paid on or after September 1, 1998, pursuant to the act or pursuant to6
the provisions of the retirement system established by statute for7
employees of Class V school districts in effect prior to September 1,8
1951, and on which the first payment was dated on or before October 3,9
1997, shall be adjusted by the increase in the cost of living or wage10
levels between the effective date of retirement and June 30, 1998, except11
that such increase shall not exceed (a) three percent for annuities first12
paid after October 1, 1996, (b) six percent for annuities first paid13
after October 1, 1995, but on or before October 1, 1996, or (c) nine14
percent for all other annuities. 15
(8)(a) (8) Beginning January 1, 2000, and on January 1 of every year16
thereafter, for employees of Class V school districts who were members17
prior to July 1, 2013, a cost-of-living adjustment shall be made for any18
formula annuity being paid pursuant to the act, or pursuant to the19
provisions of the retirement system established by statute for employees20
of Class V school districts in effect prior to September 1, 1951, and on21
which the first payment was dated on or before October 3 preceding the22
such January 1 adjustment date. 23
(b)(i) Beginning January 1, 2000, and on and before January 1, 2026,24
such adjustment shall occur on January 1 of each year.25
(ii) Beginning September 1, 2026, such adjustment shall occur on26
September 1 of each year. 27
(c) The cost-of-living adjustment for any such annuity shall be the28
lesser of: 29
(i) One (a) one and one-half percent; or 30
(ii) The (b) the increase in the consumer price index from the date31
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such annuity first became payable through the August 31 preceding the1
January 1 adjustment date as reduced by the aggregate cost-of-living2
adjustments previously made to the annuity pursuant to this section.3
(9)(a) (9) Beginning January 1, 2014, and on January 1 of every year4
thereafter, for employees of Class V school districts who became members5
on or after July 1, 2013, a cost-of-living adjustment shall be made for6
any formula annuity being paid pursuant to the act and on which the first7
payment was dated on or before October 3 preceding the such January 18
adjustment date. 9
(b)(i) Beginning January 1, 2014, and on and before January 1, 2026,10
such adjustment shall occur on January 1 of each year.11
(ii) Beginning September 1, 2026, such adjustment shall occur on12
September 1 of each year. 13
(c) The cost-of-living adjustment for any such annuity shall be the14
lesser of: 15
(i) One (a) one percent; or 16
(ii) The (b) the increase in the consumer price index from the date17
such annuity first became payable through the August 31 preceding the18
January 1 adjustment date as reduced by the aggregate cost-of-living19
adjustments previously made to the annuity pursuant to this section.20
(10) Beginning September 1, 1999, the actuary shall make an annual21
valuation of the assets and liabilities of the system. If the annual22
valuation made by the actuary, as approved by the board of trustees,23
indicates that the system has sufficient actuarial surplus to provide for24
a cost-of-living adjustment in addition to the adjustment made pursuant25
to subsection (8) or (9) of this section, the board of trustees may, in26
its discretion, declare by resolution that each annuity being paid27
pursuant to the act, or pursuant to the provisions of the retirement28
system established by statute for employees of Class V school districts29
in effect prior to September 1, 1951, and on which the first payment was30
dated on or before October 3 of the year such resolution is adopted,31
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shall be increased beginning as of the January 1 following the date of1
the board of trustees' resolution by such percentage as may be declared2
by the board of trustees, except that such increase for any such annuity3
shall not exceed the increase in the consumer price index from the date4
such annuity first became payable through the applicable valuation date5
as reduced by the aggregate cost-of-living adjustments previously made to6
the annuity pursuant to this section. 7
(11) Except for the adjustments pursuant to subsection (13) of this8
section, the consumer price index to be used for determining any cost-of-9
living adjustment under this section shall be the Consumer Price Index -10
All Urban Consumers, as published by the Bureau of Labor Statistics of11
the United States Department of Labor. If this consumer price index is12
discontinued or replaced, a substitute index published by the United13
States Department of Labor shall be selected by the board if before14
September 1, 2024, or by the retirement board if on or after September 1,15
2024. Any substitute index selected shall be a reasonable representative16
measurement of the cost of living for retired employees. An annuity as17
increased by any cost-of-living adjustment made under this section shall18
be considered the base annuity amount for the purpose of future19
adjustments pursuant to this section. In no event shall any cost-of-20
living adjustment be deemed to affect or increase the amount of the base21
retirement annuity of a member as determined under section 79-999 or22
79-9,100. 23
(12) Any decision or determination by the board or retirement board,24
as applicable, (a) to declare or not declare a cost-of-living adjustment,25
(b) as to whether the annual valuation indicates a sufficient actuarial26
surplus to provide for a cost-of-living adjustment, or (c) pursuant to27
the selection of a substitute index shall be made in the sole, absolute,28
and final discretion of the board or retirement board, as applicable, and29
shall not be subject to challenge by any member or beneficiary. In no30
event shall the Legislature be constrained or limited in amending the31
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system or increasing the benefits of members under the system, nor shall1
the board or retirement board, as applicable, be constrained from2
supporting any such change to the system, notwithstanding the effect of3
any such change upon the actuarial surplus of the system and the ability4
of the board or retirement board, as applicable, to declare future cost-5
of-living adjustments. 6
(13)(a) (13) The Legislature finds and declares that:7
(i) There there exists in this state a pressing need to attract and8
retain qualified and dedicated public school employees and that one of9
the factors prospective public school employees consider when seeking or10
continuing public school employment is the retirement system and benefits11
the employment provides; . 12
(ii) Over The Legislature further finds that over the past decades,13
as reflected by the Medical Price Index published by the United States14
Department of Labor, the cost of medical care, including the cost of15
medications and insurance coverages, has increased at a rate in excess of16
that by which the Consumer Price Index - All Urban Consumers has17
increased; and . 18
(iii) There The Legislature further finds and declares that there19
accordingly exists a need to adjust the amount of retirement benefits20
paid to retired public school employees in order to assist them in21
meeting the increased cost of medical care. 22
(b) Therefor, in addition to the cost-of-living adjustments provided23
in subsections (1) through (12) of this section: ,24
(i) Commencing commencing on October 3, 2001, and on October 3 of25
every year thereafter until cost-of-living adjustments under subdivision26
(13)(b)(ii) of this section apply, a medical cost-of-living adjustment27
shall be paid to any annuitant who became a member prior to July 1, 2016,28
and has been paid an annuity from the retirement system for at least ten29
years through the October 3 adjustment date. 30
(ii) On September 1, 2026, and on September 1 of every year31
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thereafter, a medical cost-of-living adjustment shall be paid to any1
annuitant who became a member prior to July 1, 2016, and has been paid an2
annuity from the retirement system for at least ten years through the3
September 1 adjustment date. 4
(c)(i) The medical cost-of-living adjustment shall be paid in the5
form of a supplemental annuity providing monthly payments equal to the6
amount that which results when (A) (a) the fraction, not to exceed one,7
that results when the annuitant's years of creditable service at his or8
her retirement date is divided by twenty, is multiplied by (B) (b) the9
product of ten dollars times the number of years, including attained one-10
half years, that such annuitant has received annuity payments from the11
retirement system through the medical cost-of-living October 3 adjustment12
date. 13
(ii) The supplemental annuity being paid to an annuitant shall14
increase by ten dollars on the medical cost-of-living adjustment date15
October 3 of each subsequent year to reflect the additional year of16
annuity payments to the annuitant until the total amount of the17
supplemental annuity is two hundred fifty dollars.18
(iii) In no event shall the medical cost-of-living adjustment for19
any annuitant pursuant to this subsection result in the payment of a20
supplemental annuity exceeding two hundred fifty dollars per month.21
(d) The supplemental annuity paid to an annuitant pursuant to this22
subsection shall cease at the death of the annuitant regardless of the23
form of retirement annuity being paid to the annuitant at the time of his24
or her death. 25
Sec. 5. Original section 79-978.01, Reissue Revised Statutes of26
Nebraska, and sections 79-978 and 79-9,103, Revised Statutes Supplement,27
2025, are repealed. 28
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