ONE HUNDRED NINTH LEGISLATURE - FIRST SESSION - 2025
COMMITTEE STATEMENT
LB645
Hearing Date: Friday March 14, 2025
Committee On: Nebraska Retirement Systems
Introducer: Ballard
One Liner: Change provisions relating to the School Retirement Fund
Roll Call Vote - Final Committee Action:
Advanced to General File with amendment(s)
Vote Results:
Aye: 4 Senators Ballard, Clements, Juarez, Sorrentino
Nay:
Absent: 2 Senators Conrad, Hardin
Present Not Voting:
Testimony:
Proponents: Representing:
Senator Beau Ballard (at the request of the Governor) Opening Presenter
Kenny Zoeller Governor Jim Pillen
Nicole Fox Platte Institute
Opponents: Representing:
Jeremy Knajdl Nebraska Council of School Administrators
Colby Coash Nebraska Association of School Boards
Neutral: Representing:
Tim Royers Nebraska State Education Association
* ADA Accommodation Written Testimony
Summary of purpose and/or changes:
LB 645 amends the School Employees Retirement Act to provide for a gradual reduction in state contributions to the
School Retirement Fund, contingent on the actuarially funded ratio of the fund. The currently required state
contribution to the fund is an amount equal to 2% of the compensation of all members of the retirement system.
Under the bill, for each fiscal year beginning July 1, 2025, the state contribution to the School Retirement Fund would
be:
• If the actuarially funded ratio is less than 92%, an amount equal to 2% of the compensation of all members of the
retirement system;
• If the actuarially funded ratio is 92% or greater and less than 94%, an amount equal to 1.6% of the compensation of
all members of the retirement system;
• If the actuarially funded ratio is 94% or greater and less than 96%, an amount equal to 1.2% of the compensation of
Committee Statement: LB645
Nebraska Retirement Systems Committee
Page 1 d2986ead782eab666d67451a4af99adf all members of the retirement system;
• If the actuarially funded ratio is 96% or greater and less than 98%, an amount equal to 0.8% of the compensation of
all members of the retirement system;
• If the actuarially funded ratio is 98% or greater and less than 100%, an amount equal to 0.4% of the compensation
of all members of the retirement system; and
• If the actuarially funded ratio is 100% or greater, the state shall not be required to make a contribution.
Should the actuarially funded ratio decrease, the state contribution would automatically be increased accordingly in
the following fiscal year.
Explanation of amendments:
AM 876 strikes the original provisions of LB 645 and replaces them with provisions providing for a gradual reduction
in employee, employer, and state contributions to the School Retirement Fund, contingent on the funded ratio on the
actuarial value of assets in the fund for the most recent previous year as reported to the Public Employees Retirement
Board (PERB) pursuant to Nebraska Revised Statute §84-1503.
Under the amendment, for each fiscal year beginning with July 1, 2025, state contributions to the School Retirement
Fund would be:
• If the funded ratio on the actuarial value of assets in the fund is less than 96%, an amount equal to 2% of the
compensation of all members of the retirement system;
• If the funded ratio on the actuarial value of assets in the fund is 96% or greater and less than 100%, an amount
equal to 0.7% of the compensation of all members of the retirement system; and
• If the funded ratio on the actuarial value of assets in the fund is 100% or greater, the state shall not be required to
make a contribution.
Under the amendment, beginning July 1, 2025, employee contributions to the School Retirement Fund would be:
• If the funded ratio on the actuarial value of assets in the fund is less than 96%, 9.75% of employee compensation;
• If the funded ratio on the actuarial value of assets in the fund is 96% or greater and less than 98%, 8.75% of
employee compensation;
• If the funded ratio on the actuarial value of assets in the fund is 98% or greater and less than 100%, 8% of employee
compensation; and
• If the funded ratio on the actuarial value of assets in the fund is 100% or greater, 7.25% of employee compensation.
Employer contributions to the School Retirement Fund under AM 876 would continue to be coupled to employee
contributions, and would continue be set at the current 101% of employee contributions pursuant to Nebraska
Revised Statute §79-958.
Should the funded ratio on the actuarial value of assets in the fund decrease, the respective employee, employer, and
state contributions would automatically be increased accordingly in the following year.
Beau Ballard, Chairperson
Committee Statement: LB645
Nebraska Retirement Systems Committee
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