Nebraska Legislature Bill LR158

Nebraska 2023-2024 Regular Session

• Introduced: 5/11/23
• Refer: 5/11/23
• Refer: 5/23/23

Caption

Interim study to carry out the provisions of section 13-2402, which requires the Nebraska Retirement Systems Committee to monitor underfunded defined benefit plans

Impact

The implementation of LR158 could have substantial implications for state laws concerning retirement systems and their funding status. By mandating monitoring of underfunded plans, the bill aims to safeguard the financial health of these defined benefit systems. This vigilance is crucial in maintaining public confidence in state-managed retirement plans, particularly as demographic trends continue to affect funding ratios.

Summary

LR158 is an interim study initiated to carry out the provisions outlined in section 13-2402, which mandates that the Nebraska Retirement Systems Committee monitor underfunded defined benefit plans. This bill focuses on assessing the condition and sustainability of pension systems that may be financially impaired. Such monitoring is necessary to ensure that retirement systems for state employees remain viable and can meet their obligations to retirees.

Contention

While the bill's primary focus is on monitoring and assessment, it may face scrutiny regarding the measures needed to address identified issues within underfunded plans. Discussions may arise around the appropriate methods for dealing with underfunding, whether through increased state contributions, pension reform, or changes in benefit structures. Stakeholders may express varying opinions about the best approaches to ensure that the retirement systems are adequately funded without placing undue burdens on state budgets or impacting the benefits for current and future retirees.