Bill > LB645

This bill makes several changes to retirement systems for school employees and Nebraska State Patrol officers. For school employees, the bill modifies contribution rates for both employees and the state based on the funded ratio of the School Retirement Fund. Beginning in 2025, employee contribution rates will range from 7.25% to 9.75% of compensation, depending on the fund's financial health. Similarly, state contributions will vary from 0% to 2% based on the fund's funded ratio. The bill also adjusts how the state transfers funds to Class V school district retirement systems. For Nebraska State Patrol retirement, the bill increases survivor benefits for spouses and dependent children, gradually raising the surviving spouse's benefit from 75% to 100% of the officer's annuity by July 1, 2027. The changes aim to provide more flexible and responsive funding mechanisms for these retirement systems while ensuring financial stability and improving survivor benefits. The bill takes effect immediately upon passage, with the Legislature explicitly stating that the state's contributions do not constitute additional financial responsibility beyond the existing retirement system obligations.