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LB 461

Change provisions of the Cities of the First Class Firefighters Retirement Act

109th Legislature (2025-2026) Introduced by Margo Juarez

Nebraska LB 461 adds annual, quarterly, and monthly payout options for first-class city firefighters’ retirement, replacing only lump-sum with flexible distributions.

Provisions/portions of LB461 amended into LB179 by AM592
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Bill Summary · LB 461

Summary of Nebraska LB 461 (as amended into LB 179 by AM592)

Note on status: Provisions of LB 461 have been amended into LB 179 by Amendment AM592. Introduced January 21, 2025. The version content below reflects LB 461’s proposed changes as they were introduced and as discussed in committee, with AM426 clarifying the options and an operative date of October 1, 2025.

Purpose and intent

LB 461 aims to update how firefighters in cities of the first class access and receive their retirement funds. At its core, the bill expands the form of retirement benefit distributions available to retiring firefighters beyond the existing single lump-sum option, aligning benefits with common industry practice and increasing flexibility for retirees. The changes are requested by the Nebraska Professional Firefighters Association and supported by related municipal and public safety groups.

Key provisions and changes

  • Optional benefit forms (new flexibility): For firefighters whose retirement date is on or after January 1, 1997, the optional forms of annuity/benefit must include:
    • Annual payments
    • Quarterly payments
    • Monthly payments
    • A single lump-sum payment (existing option)
  • Financing and administration: Optional forms are to be provided in the funding medium for the retirement system and must be consistent with actuarial standards. If the retiree selects a lump-sum option, the actuarial equivalent of the annuity applies unless the retiree chooses an alternate method for determining the lump-sum amount.
  • Amendments to the statute: LB 461 would amend Section 16-1027, Reissue Revised Statutes of Nebraska, to specify the above distribution options and the conditions under which each form can be elected.
  • Age and service considerations: The bill maintains the current minimum pension framework for firefighters employed before/after specific dates, and includes provisions regarding minimum benefits, spousal/beneficiary arrangements, and the treatment of remaining funds at death.
  • Deferral of first payment: Retirees may defer the date of the first payment or lump-sum distribution to the first day of any specified period.
  • Minimum pension balance and fallback: If the retirement value cannot support the minimum pension benefit, the city may use funds from the unallocated employer account to fulfill the benefit.
  • Special case for very small pensions: If the pension would be less than $25 per month on the straight-life option, a lump-sum settlement is paid instead, with no option to elect annuity.

Who would be affected

  • Retiring firefighters in cities of the first class who elect retirement on or after January 1, 1997.
  • Municipal retirement systems and city treasurers that administer the Firefighters Retirement Act for first-class cities.
  • Beneficiaries (spouses/children) who would continue to receive survivor benefits under the amended framework.

Procedural and timeline aspects

  • Date of introduction: January 21, 2025
  • Committee action: Nebraska Retirement Systems Committee advanced LB 461 to General File with amendments (AM426) after hearing on February 7, 2025.
  • Amendment details (AM426): Specifies that optional forms shall include either a lump-sum or one or more partial payments (annual/quarterly/monthly) as elected by the firefighter; operative date set for October 1, 2025.
  • Current status: Provisions amended into LB179 via AM592 (as of June 2025). Original bill LB 461 remains a reference point for the changes adopted.

Notable considerations

  • Actuarial neutrality and cost: The bill requires actuarial evaluation when choosing lump-sum options, including possible use of two contracted annuity comparisons and a city council hearing if the comparison exceeds a five percent difference.
  • Sex-neutral calculations: The framework for annuity comparisons uses sex-neutral basis calculations to ensure consistency.

Summary

LB 461 expands retirement payout options for first-class city firefighters to include annual, quarterly, and monthly payments in addition to the traditional lump-sum option, with AM426 clarifying the mechanics and an operative date of October 1, 2025. The changes are designed to improve flexibility and align with industry practices, while preserving minimum pension guarantees and survivor benefits under the state retirement system. The provisions have been incorporated into LB179 by AM592.

Compiled from official sources — confirm details with the bill’s official record.

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