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LB 295

Change provisions relating to 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, the Spousal Pension Rights Act, and the Public Employees Retirement Board

109th Legislature (2025-2026)

LB 295 updates and harmonizes Nebraska public retirement laws, clarifying contributions, eligibility, benefits, and administration across multiple systems.

Provisions/portions of LB420 amended into LB295 by AM404
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Bill Summary · LB 295

Summary — LB 295 (2025)

Title: Change provisions relating to 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, the Spousal Pension Rights Act, and the Public Employees Retirement Board

Status: Enacted (Governor approved April 30, 2025). Provisions of LB 420 were incorporated into LB 295 by AM404; an emergency clause applies only to those incorporated LB 420 provisions.

Purpose

LB 295 is a NPERS-requested "clean‑up" bill that updates, clarifies, and harmonizes statutory provisions across multiple public retirement systems administered by the Nebraska Public Employees Retirement Systems (NPERS) and adjusts certain Public Employees Retirement Board (PERB) authorities and procedures.

Key provisions and changes

  • Repayment waivers: Authorizes PERB to waive repayment of inadvertent overpayments of benefits, but only if repayment would cause a significant hardship (clarified by AM404).
  • Identification documents: Updates and standardizes the list of acceptable documents that employing state agencies and political subdivisions must maintain to demonstrate U.S. citizenship or lawful presence for retirement-system participation (e.g., state driver’s license, birth certificate, U.S. passport, USCIS Employment Authorization Document Form I-766, Permanent Resident Card Form I-551, and other DHS/USCIS documents approved by PERB).
  • Spousal Pension Rights Act: Includes the Class V (OSERS) school employees retirement system in the definition of “statewide public retirement system.”
  • School Employees Retirement Act / Class V (OSERS):
    • Adds leave-of-absence pay to the statutory definition of compensation.
    • Codifies NPERS’ existing formula for determining whether a school employee is full‑time or part‑time; employees deemed full‑time remain so once deemed.
    • Extends the retirement application deadline for initial benefits from 120 days to 270 days before the benefit effective date (AM18).
    • Changes the lump‑sum election deadline for beneficiaries from 60 days to 90 days (AM404).
    • Allows lump‑sum payments to multiple beneficiaries to be made independently.
    • Clarifies the definition of “early retirement.”
    • Ensures paid leave to attend PERB-sponsored preretirement planning and permits PERB to offer online preretirement programs.
  • Judges Retirement Fund: Incorporates provisions (from LB 420 as amended) that change how contributions/funding mechanics are handled (including striking language requiring state contributions by administrative transfer by the State Treasurer). Those LB 420 provisions include an emergency clause.
  • Nebraska State Patrol Retirement Act: Clarifies appropriation language. (AM404 struck some proposed changes regarding actuarially required contributions.)
  • PERB governance and expenses:
    • Clarifies that the vice‑chairperson may call board meetings.
    • Authorizes mileage reimbursement for PERB members and clarifies per diem/expense provisions.
    • Prohibits the use of any name, logo, symbol, or similar identifier related to a state retirement plan in written solicitations to plan members without PERB approval.
  • Deferred compensation participation: Harmonizes and updates documents acceptable to demonstrate citizenship/lawful presence for deferred compensation plan participation.
  • Technical, harmonization, and drafting corrections across multiple retirement statutes.

Who is affected

  • Active and retired members of Nebraska’s public retirement systems: county employees, school employees (including Class V/OSERS), state employees, judges, Nebraska State Patrol members.
  • Beneficiaries and survivors eligible for lump-sum distributions or annuities.
  • Employing state agencies and political subdivisions required to maintain identity/immigration documentation.
  • PERB board members (meeting authority, reimbursement, program delivery).
  • Entities or third parties sending written solicitations to plan members (subject to PERB approval restrictions).

Procedural/timeline notes

  • Introduced: January 15, 2025; committee hearing January 31, 2025 (advanced with amendments).
  • Multiple amendments adopted (notably AM404, which incorporated LB 420 provisions; AM18; AM797; ER30 technical edits).
  • Passed Legislature with emergency clause attached to incorporated LB 420 provisions (Final Reading passed April 25, 2025, vote 46–0–3).
  • Approved by Governor: April 30, 2025.
  • Operative timing: The emergency clause applies only to the LB 420 provisions incorporated into LB 295. Other sections follow the act’s stated operative dates (AM797 placed one added section to become operative three months after adjournment; consult the final enrolled act for exact operative dates by section).

Fiscal impact

  • Multiple fiscal notes were filed during consideration (dates: Jan 30, Mar 14, Apr 10, 2025). No single statewide dollar amount is provided in this summary; consult the fiscal notes for specific estimated costs or savings related to particular provisions.

For precise statutory text, operative dates by section, and fiscal figures, consult the enrolled bill and associated fiscal notes on the Nebraska Legislature or NPERS websites.

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

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