Nebraska Administrative Code Topic - PUBLIC EMPLOYEES RETIREMENT SYSTEMS
1. Overview of Nebraska Administrative Code – Public Employees Retirement Systems
The Nebraska Public Employees Retirement Systems (PERS) is a statewide program that provides retirement, disability, and survivor benefits to eligible public employees in Nebraska. The administrative code governing PERS sets out the rules for membership, contributions, benefits, and administration of the system.
It ensures:
Compliance with state law
Fair and consistent retirement benefits
Proper funding and administration of retirement funds
PERS generally covers employees of state agencies, cities, counties, school districts, and other public entities that participate in the system.
2. Key Definitions (General NAC PERS Provisions)
“Member” – An individual employed by a public employer participating in PERS who makes contributions toward retirement benefits.
“Employer” – Any Nebraska public entity that participates in the retirement system.
“Service Credit” – Credit earned for periods of employment used to calculate retirement benefits.
“Normal Retirement Age” – The age at which a member can retire with full retirement benefits.
“Retirement Allowance” – The monthly benefit a member receives upon retirement.
“Disability Retirement” – Benefits provided to members unable to work due to a medical condition.
3. Membership and Enrollment
Eligibility:
Most full-time employees of participating public employers automatically become members.
Some part-time or temporary employees may be excluded, depending on employer participation.
Enrollment:
Upon employment, employees are enrolled in the system and begin contributing to their retirement account.
Membership records are maintained by PERS and the participating employer.
4. Contributions
Employee Contributions:
A fixed percentage of salary is deducted from member paychecks and contributed to PERS.
Employer Contributions:
Employers also contribute a percentage of member salaries to fund benefits.
Contribution rates are set by the PERS Board and actuaries to ensure financial stability.
Mandatory vs. Voluntary Contributions:
Standard contributions are mandatory.
Additional voluntary contributions may be allowed for members seeking to increase benefits.
5. Service Credit and Vesting
Service Credit:
Members earn service credit for each month of eligible employment.
Service credit determines retirement eligibility and benefit amounts.
Vesting:
Members typically become vested after a certain number of years of service (e.g., 5 years).
Vested members are entitled to retirement benefits even if they leave employment before normal retirement age.
6. Retirement Benefits
Normal Retirement:
Members receive monthly benefits based on salary history, service credit, and retirement formula.
Early Retirement:
Members may retire before normal retirement age with reduced benefits.
Disability Retirement:
Members unable to work due to medical reasons may apply for disability benefits.
Survivor Benefits:
Spouses or beneficiaries of deceased members may receive lump-sum payments or ongoing benefits.
7. Refunds and Termination
Members who leave public employment before vesting may:
Receive a refund of contributions (sometimes with interest).
Forego future benefits if not vested.
Termination procedures ensure proper accounting and transfer of contributions.
8. Administration and Governance
PERS Board:
Oversees the retirement system, investment policies, and funding.
Establishes rules for benefit calculation, contributions, and reporting.
Employer Responsibilities:
Submit accurate payroll and contribution information.
Provide records for employees’ service credit.
Member Responsibilities:
Keep personal information updated.
Apply for retirement or disability benefits following prescribed procedures.
9. Reporting, Audits, and Compliance
Annual Reports:
PERS issues annual reports on system funding, investments, and member statistics.
Audits:
Independent audits ensure financial integrity of the retirement system.
Compliance:
Employers and members must comply with NAC rules to ensure proper benefit calculations and legal adherence.
10. Miscellaneous Provisions
Cost-of-Living Adjustments (COLA):
PERS may provide periodic adjustments to retirement benefits to account for inflation.
Loans or Withdrawals:
Some systems may allow loans or early withdrawals under strict conditions.
Coordination with Other Retirement Systems:
Rules govern how PERS benefits interact with Social Security or other retirement programs.
Summary
Nebraska NAC provisions for Public Employees Retirement Systems ensure:
Fair and transparent management of public employee retirement benefits.
Defined contribution and benefit rules for employees and employers.
Vesting, service credit, and retirement options are clearly specified.
Disability, survivor, and early retirement benefits are administered consistently.
Compliance, auditing, and reporting maintain the system’s financial stability.
Essentially, the NAC creates a structured, reliable framework for Nebraska public employees to earn and receive retirement benefits while protecting the system’s integrity.
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