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LEGISLATIVE BILL 822
Approved by the Governor April 14, 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 retirement; to amend sections 16-1001, 16-1002,
16-1003, 16-1004, 16-1006, 16-1007, 16-1008, 16-1009, 16-1010, 16-1011,
16-1012, 16-1013, 16-1014, 16-1015, 16-1016, 16-1017, 16-1018, 16-1019,
and 81-8,317, Reissue Revised Statutes of Nebraska, section 18-1723,
Revised Statutes Cumulative Supplement, 2024, and section 16-1005, Revised
Statutes Supplement, 2025; to rename the Police Officers Retirement Act as
the Cities of the First Class Police Officers Retirement Act and change
provisions of such act; to define terms; to eliminate obsolete provisions;
to harmonize provisions; and to repeal the original sections.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 16-1001, Reissue Revised Statutes of Nebraska, is
amended to read:
16-1001 Sections 16-1001 to 16-1019 shall be known and may be cited as the
Cities of the First Class Police Officers Retirement Act and shall apply to all
police officers of a city of the first class.
Sec. 2. Section 16-1002, Reissue Revised Statutes of Nebraska, is amended
to read:
16-1002 For purposes of the Cities of the First Class Police Officers
Retirement Act, unless the context otherwise requires:
(1) Actuarial equivalent means equality in value of the aggregate amount
of benefit expected to be received under different forms of benefit or at
different times determined as of a given date as adopted by the city or the
retirement committee for use by the retirement system. Actuarial equivalencies
shall be specified in the funding medium established for the retirement system,
except that if benefits under the retirement system are obtained through the
purchase of an annuity contract, the actuarial equivalent of any such form of
benefit shall be the amount of pension benefit which can be purchased or
otherwise provided by the police officer's retirement value. All actuarial and
mortality assumptions adopted by the city or retirement committee shall be on a
sex-neutral basis;
(2) Annuity contract means the contract or contracts issued by one or more
life insurance companies and purchased by the retirement system in order to
provide any of the benefits described in the act. Annuity conversion rates
contained in any such contract shall be specified on a sex-neutral basis;
(3) Beneficiary means the person or persons designated by a police
officer, pursuant to a written instrument filed with the retirement committee
before the police officer's death, to receive death benefits that which may be
payable under the retirement system;
(4) City means a city of the first class that employs police officers;
(5) (4) Funding agent means any bank, trust company, life insurance
company, thrift institution, credit union, or investment management firm
selected by the city or retirement committee to hold or invest the funds of the
retirement system;
(6) (5) Regular interest means the rate of interest earned each calendar
year equal to the rate of net earnings realized for the calendar year from
investments of the retirement fund. Net earnings means the amount by which
income or gain realized from investments of the retirement fund exceeds the
amount of any realized losses from such investments during the calendar year;
(7) (6) Regular pay means the average salary of the police officer for the
period of five consecutive years preceding elective retirement, death, or date
of disability that which produces the highest average;
(8) (7) Retirement committee means the retirement committee created
pursuant to section 16-1014;
(9) (8) Retirement system means a retirement system established pursuant
to the act;
(10) (9) Retirement value means the accumulated value of the police
officer's employee account and employer account. The retirement value consists
of the sum of the contributions made or transferred to such accounts by the
police officer and by the city on the police officer's behalf and the regular
interest credited to the accounts as of the date of computation, reduced by any
realized losses which were not taken into account in determining regular
interest in any year, and further adjusted each year to reflect the pro rata
share for the accounts of the appreciation or depreciation of the fair market
value of the assets of the retirement system as determined by the retirement
committee. The retirement value shall be reduced by the amount of all
distributions made to or on the behalf of the police officer from the
retirement system. Such valuation shall be computed annually as of December 31.
If separate investment accounts are established pursuant to subsection (3) of
section 16-1004, a police officer's retirement value with respect to such
accounts shall be equal to the value of his or her separate investment accounts
as determined under such subsection;
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(11) (10) Salary means all amounts paid to a participating police officer
by the employing city for personal services as reported on the participant's
federal income tax withholding statement, including the police officer's
contributions picked up by the city as provided in subsection (2) of section
16-1005 and any salary reduction contributions that which are excludable from
income for federal income tax purposes pursuant to section 125 or 457 of the
Internal Revenue Code;
(12) (11) Sex-neutral basis means the benefit calculation provided to the
city of the first class by a licensed domestic or foreign insurance or annuity
company with a product available for purchase in Nebraska that utilizes a
blended, non-gender-specific rate for actuarial assumptions, mortality
assumptions, and annuity conversion rates for a particular participant, except
that if a blended, non-gender-specific rate is not available for purchase in
Nebraska, the benefit calculation shall be performed using the arithmetic mean
of the male-specific actuarial assumptions, mortality assumptions, or annuity
conversion rates and the female-specific actuarial assumptions, mortality
assumptions, or annuity conversion rates, as applicable, for a particular
participant, and the arithmetic mean shall be determined by adding the male-
specific actuarial assumptions, mortality assumptions, or annuity conversion
rates to the female-specific actuarial assumptions, mortality assumptions, or
annuity conversion rates applicable to a particular participant and dividing
the sum by two; and
(13) (12) Straight life annuity means an ordinary annuity payable for the
life of the primary annuitant only and terminating at his or her death without
refund or death benefit of any kind.
Sec. 3. Section 16-1003, Reissue Revised Statutes of Nebraska, is amended
to read:
16-1003 A police officer shall be credited with all years of his or her
service after the year 1965 for the purpose of determining vested retirement
benefits under the Cities of the First Class Police Officers Retirement Act.
Sec. 4. Section 16-1004, Reissue Revised Statutes of Nebraska, is amended
to read:
16-1004 (1) Each city of the first class shall keep and maintain a Police
Officers Retirement System Fund for the purpose of investing payroll deductions
and city contributions to the retirement system. Any such The fund shall:
(a) Be be maintained separate and apart from all city money and funds; .
(b) Be The fund shall be administered under the direction of the city and
the retirement committee exclusively for the purposes of the retirement system
and for the benefit of participating police officers and their beneficiaries of
such police officers; .
(c) Be The fund shall be established as a trust under the laws of this
state for all purposes of section 401(a) of the Internal Revenue Code; .
(d) Accrue regular interest Regular interest shall accrue on any
contributions transferred into the fund; and .
(e) Be Such funds shall be invested in the manner prescribed in section
16-1016.
(2)(a) Each (2) The city shall establish a medium for funding of the
retirement system, which may be a pension trust fund, custodial account, group
annuity contract, or combination thereof, for the purpose of investing money
for the retirement system in the manner prescribed by section 16-1016 and to
provide the retirement, death, and disability benefits for police officers
pursuant to the Cities of the First Class Police Officers Retirement Act.
(b) The trustee or custodian of any such trust fund may be a designated
funding agent that which is qualified to act as a fiduciary or custodian in
this state, the city treasurer, a city officer authorized to administer funds
of the city, or a combination thereof.
(3)(a) (3) Upon direction of the city, there may be established separate
investment accounts for each participating police officer for the purpose of
allowing each police officer to direct the investment of all or a portion of
such police officer's his or her employee account or employer account subject
to the requirements of section 16-1016 and any other rules or limitations that
may be established by the city or the retirement committee.
(b) If separate investment accounts are established, each account shall be
separately invested and reinvested, separately credited with all earnings and
gains with respect to the investment of the assets of the investment account,
and separately debited with the losses of the account.
(c) Each investment account shall be adjusted each year to reflect the
appreciation or depreciation of the fair market value of the assets held in
such account as determined by the retirement committee.
(d) The expenses incurred by the retirement system when a police officer
directs the investment of all or a portion of such police officer's his or her
individual investment account shall be charged against the police officer's
investment account and shall reduce the police officer's retirement value.
Sec. 5. Section 16-1005, Revised Statutes Supplement, 2025, is amended to
read:
16-1005 (1)(a)(i) Prior to October 1, 2025, each police officer shall
contribute to the retirement system a sum equal to seven percent of his or her
salary.
(ii) Beginning October 1, 2025, each police officer shall contribute to
the retirement system a sum equal to nine percent of such police officer's his
or her salary.
(b) Such payment under subdivision (a) of this subsection shall be made by
regular payroll deductions from the police officer's periodic salary and shall
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be credited to his or her employee account on a monthly basis.
(c) Each such account shall also be credited with regular interest.
(2)(a) (2) Each city of the first class shall pick up the police officers'
contributions required by subsection (1) of this section, and the contributions
so picked up shall be treated as employer contributions in determining federal
tax treatment under the Internal Revenue Code, except that the city shall
continue to withhold federal income taxes based upon these contributions until
the Internal Revenue Service or the federal courts rule that, pursuant to
section 414(h) of the Internal Revenue Code, these contributions shall not be
included as gross income of the employee until such time as they are
distributed from the retirement system.
(b) The city shall pay such these employee contributions from the same
source of funds that which is used in paying earnings to the employee. The city
shall pick up such these contributions by a salary deduction either through:
(i) A a reduction in the cash salary of the employee; or
(ii) A a combination of a reduction in salary and an offset against a
future salary increase.
(c) A police officer shall not be given an option to choose to receive the
amount of the required contribution in lieu of having such contribution paid
directly to the retirement system.
(3) Each police officer shall be entitled to make voluntary cash
contributions to the retirement system in an amount not to exceed the
contribution limitations established by the Internal Revenue Code. Such
voluntary Voluntary contributions shall:
(a) Be be credited to the police officer's employee account and shall
thereafter be credited with regular interest; and .
(b) Become A police officer's voluntary contribution shall become a part
of the Police Officers Retirement System Fund of the city and shall be held,
administered, invested, and distributed in the same manner as any other
employee contribution to the retirement system.
Sec. 6. Section 16-1006, Reissue Revised Statutes of Nebraska, is amended
to read:
16-1006 (1) Each city of the first class shall contribute to the
retirement system a sum equal to one hundred percent of the amounts deducted,
in accordance with subsection (1) of section 16-1005, from each such police
officer's periodic salary. Such payment shall be contributed as provided in
subsection (1) of section 16-1005 for employee contributions and shall be
credited to the police officer's employer account on a monthly basis. Each such
account shall also be credited with regular interest.
(2) The city shall also contribute to the employer account of any police
officer employed by the city on January 1, 1984, an amount equal to the
employee contributions of such police officer that were made to the city prior
to January 1, 1984, without interest, with such contribution to be made at the
time the police officer retires or terminates employment with the city. The
city may contribute such amount before the police officer's retirement or
termination of employment or credit interest on such contribution.
Sec. 7. Section 16-1007, Reissue Revised Statutes of Nebraska, is amended
to read:
16-1007 (1)(a) (1) At any time before the police officer's retirement
date, the retiring police officer may elect to receive on such at his or her
retirement date a pension benefit provided under a purchased annuity contract
either in the form of a straight life annuity or any optional form of annuity
benefit established by the retirement committee and provided under a purchased
annuity contract.
(b) Each The optional annuity benefit shall be specified in the funding
medium for the retirement system and shall include a straight life annuity with
a guarantee of at least sixty monthly payments or an annuity payable for the
life of the retiring police officer and, after the death of the retiree,
monthly payments, as elected by the retiring police officer, of either one
hundred percent, seventy-five percent, or fifty percent of the amount of
annuity payable to the retiring police officer during such police officer's his
or her life, to the beneficiary selected by the retiring police officer at the
time of the original application for such an annuity.
(c) The optional benefit forms for the retirement system shall include a
single lump-sum payment of the police officer's retirement value.
(d) A The retiring police officer may further elect to defer the date of
the first annuity payment or lump-sum payment to the first day of any specified
month prior to such police officer's seventieth birthday age seventy. If the
retiring police officer elects to receive such police officer's his or her
pension benefit in the form of an annuity, the amount of annuity benefit shall
be the amount paid by the annuity contract purchased or otherwise provided by
such police officer's his or her retirement value as of the date of the first
payment. Any such annuity contract purchased by the retirement system may be
distributed to the police officer and, upon such distribution, all obligations
of the retirement system to pay retirement, death, or disability benefits to
the police officer and such police officer's his or her beneficiaries shall
terminate, without exception.
(2)(a) For all police officers employed on January 1, 1984, and
continuously employed by the city from such date through the date of their
retirement, the amount of the pension benefit, when determined on the straight
life annuity basis, shall not be less than the following amounts:
(i) If retirement occurs following age sixty and with twenty-five years of
service with the city, fifty percent of regular pay; or
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(ii) If retirement occurs following age fifty-five but before age sixty
and with twenty-five years of service with the city, forty percent of regular
pay.
(b) A police officer entitled to a minimum pension benefit under this
subsection may elect to receive such pension benefit in any form permitted by
subsection (1) of this section, including a single lump-sum payment. If the
minimum pension benefit is paid in a form other than a straight life annuity,
such benefit shall be the actuarial equivalent of the straight life annuity
that would otherwise be paid to the police officer pursuant to this subsection.
(c) If the police officer chooses the single lump-sum payment option, the
police officer can request that the actuarial equivalent be equal to the
average of the cost of three annuity contracts based on products available for
purchase in Nebraska. Of the three annuity contracts used for comparison, one
shall be chosen by the police officer, one shall be chosen by the retirement
committee, and one shall be chosen by the city. The annuity contracts used for
comparison shall all use the same type of sex-neutral basis benefit
calculation.
(3) If the retirement value of a police an officer entitled to a minimum
pension benefit under subsection (2) of this section is not sufficient at the
time of the first payment to purchase or provide the required pension benefit,
the city shall transfer such funds as may be necessary to the employer account
of the police officer so that the retirement value of such police officer is
sufficient to purchase or provide for the required pension benefit.
(4) Any retiring police officer whose pension benefit is less than twenty-
five dollars per month on the straight life annuity option shall be paid a
lump-sum settlement equal to the retirement value and shall not be entitled to
elect to receive annuity benefits.
Sec. 8. Section 16-1008, Reissue Revised Statutes of Nebraska, is amended
to read:
16-1008 (1) A police officer of a city of the first class may:
(a) Elect to retire and receive the applicable pension benefit provided in
section 16-1007 based on such police officer's his or her full retirement value
upon the attainment of age sixty;
(b) Elect to take early retirement and receive the applicable pension
benefit provided in section 16-1007 if such police officer he or she has
attained the age of fifty-five and has completed twenty-five years of service
with the city; or
(c) Retire as a result of disability while in the line of duty, as
determined under section 16-1011, at any age, and receive the applicable
pension benefit provided in section 16-1011.
(2) A police officer, who is eligible to retire pursuant to subsection (1)
of this section but does not retire, shall continue to contribute to such
police officer's his or her employee account, and the city shall continue to
contribute to such police officer's his or her employee account and to such
police officer's his or her employer account.
(3) The first day of the month that immediately follows following the last
day of work shall be the retirement date.
Sec. 9. Section 16-1009, Reissue Revised Statutes of Nebraska, is amended
to read:
16-1009 (1)(a) (1) When prior to retirement any police officer dies other
than in the line of duty and except as provided in subsection (2) of this
section, the entire retirement value shall be payable to the beneficiary or
beneficiaries specified by the deceased police officer prior to such police
officer's his or her death or to the deceased police officer's estate if no
beneficiary was specified.
(b) The retirement value or portion thereof to be received by the
beneficiary may be paid in the form of a single lump-sum payment, straight life
annuity, or other optional form of benefit specified in the retirement system's
funding medium.
(c) If benefits are paid in the form of an annuity, the annuity shall be
the amount paid by the annuity contract purchased or otherwise provided by the
amount of the beneficiary's share of the retirement value as of the date of the
first payment. Upon the purchase and distribution of such annuity contract to
the beneficiary, all obligations of the retirement system to the beneficiary
shall terminate, without exception.
(2)(a) (2) If any police officer employed by a such city as a member of
its paid police department on January 1, 1984, except those who were formerly
employed in such department who are now in military service, dies while
employed by the city as a police officer, other than in the line of duty, after
becoming fifty-five years of age and before electing to retire, and after
serving in the paid police department of such city for at least twenty-one
years, then a pension of at least twenty-five percent of such police officer's
his or her regular pay in the form of a straight life annuity shall be paid to
the surviving spouse of such deceased police officer.
(b) If the deceased police officer is not survived by a spouse or if the
surviving spouse dies before the children of the police officer attain the age
of majority, the pension benefit shall be paid to the police officer's minor
children until they attain the age of majority. Each such child shall share
equally in the total pension benefit to the age of his or her majority of such
child, except that as soon as a child attains the age of majority, such pension
as to such child shall cease.
(c) To the extent that the retirement value at the date of death exceeds
the amount required to purchase the specified pension, the excess shall be paid
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in the manner provided in subsection (1) of this section.
(d) If the actuarial equivalent of the pension benefit payable under this
subsection exceeds the retirement value at the time of the first payment, the
city shall contribute such additional amounts as may be necessary to purchase
or provide for the required pension benefit.
(e) If a deceased police officer described in this subsection is not
survived by a spouse or minor children, such police officer's his or her death
benefits shall be provided under subsection (1) of this section as if such
police officer was not employed by the city on January 1, 1984.
(3) Any payments for the benefit of a minor child shall be made on behalf
of the child to the surviving parent or, if there is no surviving parent, to
the legal guardian of the child.
Sec. 10. Section 16-1010, Reissue Revised Statutes of Nebraska, is amended
to read:
16-1010 (1) When prior to retirement any police officer dies in the line
of duty or such police officer's his or her death is caused by or is the result
of injuries received while in the line of duty and if such police officer is
not survived by a spouse or by minor children, the entire retirement value
shall be payable to the beneficiary specified by the deceased police officer
prior to such police officer's his or her death or to the deceased police
officer's estate if no beneficiary was specified.
(2) The retirement value or portion thereof to be received by the
beneficiary may be paid in the form of a single lump-sum payment, straight life
annuity, or other optional form of benefit specified in the retirement system's
funding medium.
(3)(a) For a police officer who is survived by a spouse or minor children,
a retirement pension of fifty percent of regular pay shall be paid to the
surviving spouse or, upon the his or her remarriage or death of such surviving
spouse, to the minor children during each child's minority subject to deduction
of the amounts paid as workers' compensation benefits on account of death as
provided in section 16-1012.
(b) Each such child shall share equally in the total pension benefit to
the age of his or her majority of such child, except that as soon as a child
attains the age of majority, such pension as to such child shall cease.
(c) Any payments for the benefit of a minor child shall be made on behalf
of such child to the surviving parent or, if there is no surviving parent, to
the legal guardian of the child.
(4) To the extent that the retirement value at the date of death exceeds
the amount required to purchase or provide the specified retirement pension, as
reduced by any amounts paid as workers' compensation benefits, the excess shall
be paid in the manner provided in subsection (1) of section 16-1009.
(5) If the actuarial equivalent of the pension benefit payable to a
surviving spouse or minor children under this section exceeds the retirement
value at the time of the first payment, the city shall contribute such
additional amount as may be necessary to purchase or provide for the required
pension benefit.
Sec. 11. Section 16-1011, Reissue Revised Statutes of Nebraska, is amended
to read:
16-1011 (1) For purposes of this section, disability means the complete
inability of the police officer, for reasons of accident or other cause while
in the line of duty, to perform the duties of a police officer.
(2) (1) If any police officer becomes disabled, such police officer shall
be placed upon the roll of pensioned police officers at the regular retirement
pension of fifty percent of regular pay for the period of such disability. For
purposes of this section, disability shall mean the complete inability of the
police officer, for reasons of accident or other cause while in the line of
duty, to perform the duties of a police officer.
(3)(a) (2) No disability benefit payment shall be made except upon
adequate proof furnished to the city . Such , such proof shall include to
consist of a medical examination conducted by a competent, disinterested
physician who is duly licensed to practice medicine and surgery in this state
and who certifies to the city that the police officer is unable to perform the
duties of a police officer.
(b) The city, during the first three years of the payment of such
benefits, shall have the right, at reasonable times, to require the disabled
police officer to undergo a medical examination at the city's expense to
determine the continuance of the disability claimed.
(c) After such three-year period, the city may request the district court
to order the police officer to submit proof of the continuance of the
disability claimed if the city has reasonable grounds to believe the police
officer is fraudulently receiving disability payments.
(d) The city shall have the right to demand a physical examination of the
police officer by a competent, disinterested physician who is duly licensed to
practice medicine and surgery in this state, and who is chosen by the city. The
expense of such examination shall be borne by the city.
(4) (3) In case of temporary disability of a police officer received while
in the line of duty, such police officer he or she shall receive such police
officer's his or her salary during the continuance of such disability for a
period not to exceed twelve months . If , except that if it is ascertained by
the city council or other proper municipal authorities determine within twelve
months that such temporary disability has become a disability during such
period as defined in this section, then the salary shall cease and such police
officer he or she shall be entitled to the benefits for pensions in case of
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disability as provided in this section.
(5)(a) (4) All payments of pension or salary provided by this section
shall be subject to deduction of amounts paid under the Nebraska Workers'
Compensation Act. In case of a permanent disability of a police officer, such
payments shall not commence until all credit for unused annual or sick leave
and other similar credits have been fully utilized by the disabled police
officer if there will be no impairment to such police officer's his or her
salary during the period of disability.
(b) Total payments to a disabled police officer, in excess of amounts paid
as workers' compensation benefits, shall not be less than the retirement value
at the date of disability.
(c) If the actuarial equivalent of the disability pension payable under
this section exceeds the police officer's retirement value at the time of the
first payment, the city shall contribute such additional amounts as may be
necessary, from time to time, to provide for the required disability pension.
(6) (5) If a police officer who was pensioned under this section is later
determined to be no longer disabled, the pension provided for under this
section shall terminate and the police officer's vested retirement value, as
reduced by any disability payments made from the retirement system, shall
thereafter be held and administered in the same manner as for any nondisabled
police officer or former police officer.
(7)(a) (6) If a police officer who has pensioned under this section is
later determined to be no longer disabled during the first three years when
disability benefit payments are being paid , the police officer may return to
duty with the police force under the following conditions:
(i) (a) If a vacancy exists on the police force for which the police
officer is qualified and the police officer wishes to return to the police
force, the city shall hire the police officer to fill the vacancy at a pay
grade of not less than such police officer's his or her previous pay grade; or
(ii) (b) If no vacancy exists on the police force and the police officer
wishes to return to the police force, the city may create a vacancy under the
city's reduction in force policy adopted under the Civil Service Act and rehire
the officer at a pay grade of not less than such police officer's his or her
previous pay grade.
(b) This The provisions of this subsection shall not apply to a police
officer whose disability benefit payments are terminated because of fraud on
the part of the police officer.
Sec. 12. Section 16-1012, Reissue Revised Statutes of Nebraska, is amended
to read:
16-1012 (1) No police officer shall be entitled during any period of
temporary disability to receive in full both such police officer's his or her
salary and such police officer's his or her benefits under the Nebraska
Workers' Compensation Act.
(2) All Nebraska workers' compensation benefits shall be payable in full
to such police officer as provided in the Nebraska Workers' Compensation Act,
but all amounts paid by the city or its insurer under the Nebraska Workers'
Compensation Act to any disabled police officer entitled to receive a salary
during such disability shall be considered as payments on account of such
salary and shall be credited thereon.
(3) The remaining balance of such salary, if any, shall be payable as
otherwise provided in the Cities of the First Class Police Officers Retirement
Act.
Sec. 13. Section 16-1013, Reissue Revised Statutes of Nebraska, is amended
to read:
16-1013 (1) If a police officer quits or is discharged before such police
officer's his or her normal or early retirement date, such police the officer
may request and receive as a lump-sum payment an amount equal to the retirement
value of such police officer's his or her employee account as determined at the
valuation date preceding such police officer's his or her termination of
employment. Such police officer, if vested, shall also receive a deferred
pension benefit in an amount purchased or provided by the retirement value at
the date of retirement. The retirement value at such retirement date shall
consist of the accumulated value of the police officer's employee account, as
reduced by any lump-sum distributions received prior to retirement, together
with a vested percentage of the accumulated value of such the police officer's
employer account at such police officer's the date of retirement.
(2) Until July 1, 2012, the vesting schedule shall be as follows:
(a) If the terminated police officer has been a member of the retirement
system for less than four years, such vesting shall be zero percent nil;
(b) If the terminated police terminating officer has been a member of the
paid department of the city of the first class for at least four years, such
vesting percentage shall be forty percent. Such vesting percentage shall be
fifty percent after five years, sixty percent after six years, seventy percent
after seven years, eighty percent after eight years, ninety percent after nine
years, and one hundred percent after ten years; and
(c) All police officers shall be one hundred percent vested upon
attainment of age sixty while employed by the city as a police officer.
(3) Beginning July 1, 2012, the vesting schedule shall be as follows:
(a) If the terminated police officer has been a member of the retirement
system for less than two years, such vesting shall be zero percent nil;
(b) If the terminated police terminating officer has been a member of the
paid department of the city of the first class for at least two years, such
vesting percentage shall be forty percent. Such vesting percentage shall be
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sixty percent after four years, eighty percent after five years, and one
hundred percent after seven years; and
(c) All police officers shall be one hundred percent vested upon
attainment of age sixty while employed by the city as a police officer.
(4)(a)(i) (4) The deferred pension benefit shall be payable on the first
day of the month that immediately follows following the police officer's
sixtieth birthday.
(ii) At the option of the terminated terminating police officer, such
pension benefit may be paid as of the first day of the month that follows after
such police officer's fifty-fifth birthday officer attains the age of fifty-
five. Such election may be made by the police officer any time prior to the
payment of the pension benefits.
(b) The deferred pension benefit shall be paid in the form of the benefit
options specified in subsection (1) of section 16-1007 as elected by the police
officer.
(c) If the police officer's vested retirement value at the date of such
police officer's his or her termination of employment is less than three
thousand five hundred dollars, the city may elect to pay such police officer
such his or her vested retirement value in the form of a single lump-sum
payment.
(5) A police officer may elect upon such police officer's his or her
termination of employment to receive such police officer's his or her vested
retirement value in the form of a single lump-sum payment.
(6) Upon any lump-sum payment of a terminated terminating police officer's
retirement value under this section, such police officer shall will not be
entitled to any deferred pension benefit and the city and the retirement system
shall have no further obligation to pay such police officer or such police
officer's his or her beneficiaries any benefits under the Cities of the First
Class Police Officers Retirement Act.
(7) If the terminated terminating police officer is not credited with one
hundred percent of such police officer's his or her employer account, the
nonvested portion of the account shall be forfeited and first used to meet the
expense charges incurred by the city in connection with administering the
retirement system and the remainder shall then be used to reduce the city
contribution that which would otherwise be required to fund pension benefits.
Sec. 14. Section 16-1014, Reissue Revised Statutes of Nebraska, is amended
to read:
16-1014 (1) A retirement committee shall be established by each city to
supervise the general operation of the retirement system established by such
city pursuant to the Cities of the First Class Police Officers Retirement Act.
(2) The city council shall continue to be responsible for the general
administration of such retirement system unless specific functions or all
functions with regard to the administration of the retirement system are
delegated, by ordinance, to the retirement committee.
(3) Whenever duties or powers are vested in the city or the retirement
committee under the act or whenever the act fails to specifically allocate the
duties or powers of administration of the retirement systems system, such
powers or duties shall be vested in the city unless such powers or duties have
been delegated by ordinance to the retirement committee.
(4) A The city and the retirement committee established by such city shall
have all powers that which are necessary for or appropriate to establishing,
maintaining, managing, and administering the retirement system established by
such city.
Sec. 15. Section 16-1015, Reissue Revised Statutes of Nebraska, is amended
to read:
16-1015 (1) Each retirement committee established pursuant to section
16-1014 shall consist of the following six members: members from both the
police force and designees of the city council.
(a) Four The committee shall consist of six members of which four members
shall be selected by the police officers from the police force of the city ;
and .
(b) Two members selected shall be designated by the city council of the
city.
(2) The members who are not participants in the such retirement system
shall have a general knowledge of retirement plans.
(3) Members of the governing body of such city may serve on the retirement
committee.
(4) The committee members shall be appointed to four-year terms.
(5) Vacancies on a retirement committee shall be filled for the remainder
of the term with by a person selected in the same manner as the vacating
committee member was selected with the same representation as his or her
predecessor.
(6) Members of any such the retirement committee shall receive no salary
for serving on such retirement committee and shall not be compensated for
expenses related to serving on such retirement committee.
Sec. 16. Section 16-1016, Reissue Revised Statutes of Nebraska, is amended
to read:
16-1016 (1) The funds of a the retirement system shall be invested under
the general direction of the retirement committee for such retirement system.
(2) A The city or the retirement committee established by such city if
delegated such function by the city shall select and contract with a funding
agent or agents to hold or invest the assets of the retirement system
established by such city and to provide for the benefits provided by the Cities
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of the First Class Police Officers Retirement Act. Such The city or retirement
committee may select and contract with investment managers registered under the
federal Investment Advisers Act of 1940 to invest, reinvest, and otherwise
manage such portion of the assets of the retirement system as may be assigned
by such the city or retirement committee.
(3) All funds of a the retirement system shall be invested pursuant to the
policies established by the Nebraska Investment Council.
Sec. 17. Section 16-1017, Reissue Revised Statutes of Nebraska, is amended
to read:
16-1017 (1) It shall be the duty of each the retirement committee to:
(a) Provide each employee a summary of plan eligibility requirements and
benefit provisions;
(b) Provide, within thirty days after a request is made by a participant,
a statement describing the amount of benefits such participant is eligible to
receive; and
(c) Make available for review an annual report of the retirement system's
operations describing both (i) the amount of contributions to the retirement
system from both employee and employer sources and (ii) an identification of
the total assets of the retirement system.
(2) Beginning December 31, 1998, through December 31, 2017:
(a) The chairperson of the retirement committee shall file with the Public
Employees Retirement Board a report on each retirement plan established
pursuant to section 401(a) of the Internal Revenue Code and administered by a
retirement system established pursuant to the Police Officers Retirement Act
and shall submit copies of such report to the Auditor of Public Accounts. The
Auditor of Public Accounts may prepare a review of such report pursuant to
section 84-304.02 but is not required to do so. The annual report shall be in a
form prescribed by the Public Employees Retirement Board and shall contain the
following information for each such retirement plan:
(i) The number of persons participating in the retirement plan;
(ii) The contribution rates of participants in the plan;
(iii) Plan assets and liabilities;
(iv) The names and positions of persons administering the plan;
(v) The names and positions of persons investing plan assets;
(vi) The form and nature of investments;
(vii) For each defined contribution plan, a full description of investment
policies and options available to plan participants; and
(viii) For each defined benefit plan, the levels of benefits of
participants in the plan, the number of members who are eligible for a benefit,
and the total present value of such members' benefits, as well as the funding
sources which will pay for such benefits.
If a plan contains no current active participants, the chairperson may
file in place of such report a statement with the Public Employees Retirement
Board indicating the number of retirees still drawing benefits and the sources
and amount of funding for such benefits; and
(b) If such retirement plan is a defined benefit plan which was open to
new members on January 1, 2004, in addition to the reports required by section
13-2402, the retirement committee shall cause to be prepared an annual report
and the chairperson shall file the same with the Public Employees Retirement
Board and the Nebraska Retirement Systems Committee of the Legislature and
submit to the Auditor of Public Accounts a copy of such report. The Auditor of
Public Accounts may prepare a review of such report pursuant to section
84-304.02 but is not required to do so. If the retirement committee does not
submit a copy of the report to the Auditor of Public Accounts within six months
after the end of the plan year, the Auditor of Public Accounts may audit, or
cause to be audited, the city. All costs of the audit shall be paid by the
city. The report shall consist of a full actuarial analysis of each such
retirement plan administered by a retirement system established pursuant to the
act. The analysis shall be prepared by an independent private organization or
public entity employing actuaries who are members in good standing of the
American Academy of Actuaries, and which organization or entity has
demonstrated expertise to perform this type of analysis and is unrelated to any
organization offering investment advice or which provides investment management
services to the retirement plan. The report to the Nebraska Retirement Systems
Committee shall be submitted electronically.
(2)(a) For each city offering a defined benefit plan as part of the
retirement system established by such city, (3)(a) Beginning December 31, 2018,
and each December 31 thereafter, for a defined benefit plan the chairperson of
the retirement committee established by such city or such chairperson's his or
her designee shall prepare and electronically file an annual report not later
than June 30 of each year with the Auditor of Public Accounts and the Nebraska
Retirement Systems Committee of the Legislature. If such retirement plan is a
defined benefit plan which was open to new members on January 1, 2004, the
annual report shall be in addition to the reports required by section 13-2402.
(b) The annual report shall be on a form prescribed by the Auditor of
Public Accounts and shall include, but not be limited to, the following
information:
(i) The levels of benefits of participants in the plan, the number of
members who are eligible for a benefit, the total present value of such
members' benefits, and the funding sources that which will pay for such
benefits; and
(ii) A copy of a full actuarial analysis of each such defined benefit
plan. Such The analysis shall be prepared by an independent private
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organization or public entity that:
(A) Employs employing actuaries who are members in good standing of the
American Academy of Actuaries;
(B) Has , and which organization or entity has demonstrated expertise to
perform this type of analysis; and
(C) Is is unrelated to any organization that which offers investment
advice or provides investment management services to the retirement plan.
(3)(a) (b) The Auditor of Public Accounts may prepare a review of any
annual such report filed pursuant to this section. Any such review shall be
performed pursuant to section 84-304.02 but is not required to do so.
(b) If a the retirement committee does not file an annual report that is
required by this section with submit a copy of the report to the Auditor of
Public Accounts within the dates specified in subdivision (2)(a) of this
section for filing such annual report six months after the end of the plan
year, the Auditor of Public Accounts may audit, or cause to be audited, such
the retirement committee. All costs of the audit shall be paid by such the
retirement committee.
Sec. 18. Section 16-1018, Reissue Revised Statutes of Nebraska, is amended
to read:
16-1018 (1) For purposes of this section:
(a) New employment city means a city with which a police officer has
started employment as a police officer;
(b) Qualifying change of employment means the termination of employment of
If a police officer with a termination city that is initiated by such police
officer terminates his or her employment for the purpose of becoming a police
officer employed by a new employment city if such employment begins another
city of the first class in Nebraska and such new employment commences within
one hundred twenty days of such termination; and ,
(c) Termination city means a city with which a police officer has
terminated employment as a police officer to become employed by a new
employment city.
(2) A such police officer who makes a qualifying change of employment
shall be entitled to transfer , from the Police Officers Retirement System Fund
of the termination city to the Police Officers Retirement System Fund of the
new employment city by which he or she is newly employed, the full amount of
such police officer's his or her employee account and the vested portion of the
value of such police officer's his or her employer account at the time of
termination with the termination city.
(3) Any such The transferred funds shall be directly transferred to the
police officer's employee account in the retirement system of the new
employment city to which transferred and administered by the retirement
committee of such the city to which transferred.
(4) Upon such a transfer, the termination city and the retirement system
for such city shall have no further obligation regarding such police officer's
retirement benefits to such police officer or such police officer's
beneficiaries his or her beneficiary.
(5) Following the commencement of new employment with a new employment
city, the transferring police officer shall be deemed a new employee for all
purposes of the retirement system of the new employment city to which he or she
transferred.
Sec. 19. Section 16-1019, Reissue Revised Statutes of Nebraska, is amended
to read:
16-1019 (1)(a) (1) The right to any benefits under the retirement system
and the assets of any fund of the retirement system shall not be assignable or
subject to execution, garnishment, attachment, or the operation of any
bankruptcy or insolvency laws, except that the retirement system may comply
with the directions set forth in a qualified domestic relations order meeting
the requirements of section 414(p) of the Internal Revenue Code. The city or
retirement committee may require appropriate releases from any person as a
condition to complying with any such order.
(b) The retirement system shall not recognize any domestic relations order
that:
(i) Alters which alters or changes benefits;
(ii) Provides , provides for a form of benefit not otherwise provided for
by the retirement system;
(iii) Increases , increases benefits not otherwise provided by the
retirement system; , or
(iv) Accelerates accelerates or defers the time of payment of benefits.
(c) No participant or beneficiary shall have any right to any specific
portion of the assets of the retirement system.
(2)(a) (2) The retirement system shall be administered in a manner
necessary to comply with the tax-qualification requirements applicable to
government retirement plans under section 401(a) of the Internal Revenue Code,
including:
(i) Section section 401(a)(9) relating to the time and manner in which
benefits are required to be distributed and section 401(a)(9)(G) relating to
incidental death benefit requirements;
(ii) Section , section 401(a)(16) relating to compliance with the maximum
limitation on the plan benefits or contributions under section 415;
(iii) Section , section 401(a)(17) that which limits the amount of
compensation that which can be taken into account under a retirement plan;
(iv) Section , section 401(a)(25) relating to the specification of
actuarial assumptions;
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(v) Section , section 401(a)(31) relating to direct rollover distributions
from eligible retirement plans; , and
(vi) Section section 401(a)(37) relating to the death benefit of a police
officer who dies while performing qualified military service.
(b) Any requirements for compliance with section 401(a) of the Internal
Revenue Code may be set forth in any trust or funding medium for the retirement
system.
(c) This subsection shall be in full force and effect only so long as
conformity with section 401(a) of the Internal Revenue Code is required for
public retirement systems in order to secure the favorable income tax treatment
extended to sponsors and beneficiaries of tax-qualified retirement plans.
(3) If a the retirement committee of a city determines that the retirement
system for such city has previously overpaid or underpaid a benefit payable
under the Cities of the First Class Police Officers Retirement Act, such
retirement committee it shall have the power to correct such error. In the
event of an overpayment, such the retirement system may, in addition to any
other remedy that the retirement system possesses may possess , offset future
benefit payments by the amount of the prior overpayment, together with regular
interest thereon.
(4) A police officer whose benefit payment is adjusted by a the retirement
committee pursuant to subsection (3) of this section may request a review by
the city council of the city that employs such police officer of the adjustment
made by such the retirement committee.
(5) In order to provide the necessary amounts to pay for or fund a pension
plan established under the Cities of the First Class Police Officers Retirement
Act act, the mayor and council may make a levy that which is within the levy
restrictions of section 77-3442.
Sec. 20. Section 18-1723, Revised Statutes Cumulative Supplement, 2024, is
amended to read:
18-1723 (1) The Legislature finds and declares the subject of this section
to be a matter of general statewide concern.
(2) For purposes of this section:
(a) Tenured firefighter means any firefighter who was employed as a
firefighter for at least five years by any city or village in this state,
including any city with a home rule charter; and
(b) Tenured police officer means any police officer who was employed as a
police officer for at least five years by any city or village in this state,
including any city with a home rule charter.
(3) For any tenured firefighter or tenured police officer who suffers
Whenever any firefighter who has served a total of five years as a member of a
paid fire department of any city in this state or any police officer of any
city or village, including any city having a home rule charter, shall suffer
death or disability as a result of hypertension or heart or respiratory defect
or disease, there shall be a rebuttable presumption that such death or
disability resulted from accident or other cause while in the line of duty for
all purposes of:
(a) The Cities of the First Class the Police Officers Retirement Act ; ,
sections 15-1012 to 15-1027, and
(b) The the Cities of the First Class Firefighters Retirement Act; , and
(c) Sections 15-1012 to 15-1027; and
(d) Any any firefighter's or police officer's pension plan established
pursuant to any home rule charter . , the Legislature specifically finding the
subject of this section to be a matter of general statewide concern.
(4) Such The rebuttable presumption applies shall apply to death or
disability as a result of hypertension or heart or respiratory defect or
disease after the tenured firefighter or tenured police officer separates from
his or her applicable employment if the death or disability occurs within three
months after such separation. Such rebuttable presumption shall apply in any
action or proceeding arising out of death or disability incurred prior to
December 25, 1969, and which has not been processed to final administrative or
judicial conclusion prior to such date.
Sec. 21. Section 81-8,317, Reissue Revised Statutes of Nebraska, is
amended to read:
81-8,317 (1) If a public safety officer is killed in the line of duty,
compensation shall be paid as provided in the In the Line of Duty Compensation
Act to recognize the ultimate sacrifice made by such public safety officer.
(2) The amount of compensation to be paid under the act shall be as
follows:
(a) For deaths occurring during calendar year 2022, the amount of such
compensation shall be two hundred fifty thousand dollars; and
(b) For deaths occurring in calendar year 2023 and each calendar year
thereafter, the amount of such compensation shall be equal to the compensation
amount from the previous calendar year increased by the percentage increase, if
any, in the Consumer Price Index for All Urban Consumers, as published by the
United States Department of Labor, Bureau of Labor Statistics, for the twelve
months ending on June 30 of such previous calendar year.
(3) The person entitled to receive such compensation shall be determined
as follows:
(a) If the public safety officer designated a person to receive the
compensation in accordance with subsection (4) of this section, the
compensation shall be paid to the designated person; or
(b) If no person is designated by the public safety officer or if the
designated person is not alive at the death of the public safety officer, the
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compensation shall be paid in accordance with the laws of this state regarding
intestate succession.
(4) The Risk Manager shall prescribe a form that may be used by a public
safety officer to designate a person to receive the compensation. The public
safety officer shall file such form with his or her employer or, if he or she
is a volunteer, with the entity for which the volunteer service is provided.
(5) Amounts paid under the In the Line of Duty Compensation Act shall not
be considered:
(a) Compensation under the County Employees Retirement Act, the Judges
Retirement Act, the Nebraska State Patrol Retirement Act, the School Employees
Retirement Act, the State Employees Retirement Act, or any other retirement
plan administered by the Public Employees Retirement Board and shall not be
eligible for deferral under any deferred compensation plan administered by the
Public Employees Retirement Board; or
(b) Regular pay or salary under the Cities of the First Class Police
Officers Retirement Act or the Cities of the First Class Firefighters
Retirement Act.
(6) An employer of the public safety officer shall not have any right of
subrogation under section 48-118 with respect to compensation paid under the In
the Line of Duty Compensation Act.
Sec. 22. Original sections 16-1001, 16-1002, 16-1003, 16-1004, 16-1006,
16-1007, 16-1008, 16-1009, 16-1010, 16-1011, 16-1012, 16-1013, 16-1014,
16-1015, 16-1016, 16-1017, 16-1018, 16-1019, and 81-8,317, Reissue Revised
Statutes of Nebraska, section 18-1723, Revised Statutes Cumulative Supplement,
2024, and section 16-1005, Revised Statutes Supplement, 2025, are repealed.
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