LB198 LB198
2024 2024
LEGISLATIVE BILL 198
Approved by the Governor March 18, 2024
Introduced by McDonnell, 5; Conrad, 46; Vargas, 7.
A BILL FOR AN ACT relating to retirement; to amend sections 4-108, 4-111,
4-112, 23-2306, 24-703.01, 60-1304, 79-955, 79-9,118, 81-2016, 84-1503.03,
and 84-1504, Reissue Revised Statutes of Nebraska, sections 79-901,
79-915, 79-978, 79-992, 79-9,117, 81-1316, 84-1307, and 84-1501, Revised Statutes Cumulative Supplement, 2022, and sections 79-902 and 79-920,
Revised Statutes Supplement, 2023; to change provisions relating to
participation in retirement programs by noncitizens; to change provisions relating to returning to work after termination and contributions under the School Employees Retirement Act and the Class V School Employees Retirement Act; to define and redefine terms; to change provisions relating to the preretirement planning program, the State Personnel System, and the members of the Public Employees Retirement Board; to provide for the hiring of assistant directors and deputies of the Nebraska Public Employees Retirement Systems and to authorize compensation for such employees to be determined by the director; to eliminate obsolete provisions; to harmonize provisions; to repeal the original sections; and to declare an emergency.
Be it enacted by the people of the State of Nebraska,
Section 1. Section 4-108, Reissue Revised Statutes of Nebraska, is amended to read:
4-108 (1) Notwithstanding any other provisions of law, unless exempted from verification under section 4-110 or pursuant to federal law, no state agency or political subdivision of the State of Nebraska shall provide public benefits to a person not lawfully present in the United States.
(2) Except as provided in section 4-110 or if exempted by federal law,
every agency or political subdivision of the State of Nebraska shall verify the lawful presence in the United States of any person who has applied for public benefits administered by an agency or a political subdivision of the State of
Nebraska. This section shall be enforced without regard to race, religion,
gender, ethnicity, or national origin.
(3) No On and after October 1, 2009, no employee of a state agency or
political subdivision of the State of Nebraska shall be authorized to
participate in any retirement system, including, but not limited to, the systems provided for in the Class V School Employees Retirement Act, the County Employees Retirement Act, the Judges Retirement Act, the Nebraska State Patrol Retirement Act, the School Employees Retirement Act, and the State Employees Retirement Act, unless the employee (a) is a United States citizen or (b) is a qualified alien under the federal Immigration and Nationality Act, 8 U.S.C.
1101 et seq., as such act existed on January 1, 2009, and is lawfully present in the United States. The employing state agency or political subdivision of
the State of Nebraska and the employee shall maintain at least one of the following documents which shall be unexpired, if applicable to the particular document, to demonstrate United States citizenship or lawful presence in the United States as of the employee's date of hire and produce any such document so maintained upon request of the Public Employees Retirement Board or the Nebraska Public Employees Retirement Systems:
(a) A state-issued driver's license;
(b) A state-issued identification card;
(c) A certified copy of a birth certificate or delayed birth certificate issued in any state, territory, or possession of the United States;
(d) A Consular Report of Birth Abroad issued by the United States Department of State;
(e) A United States passport;
(f) A foreign passport with a United States visa;
(g) A United States Certificate of Naturalization;
(h) A United States Certificate of Citizenship;
(i) A tribal certificate of Native American blood or similar document;
(j) A United States Citizenship and Immigration Services Employment Authorization Document, Form I-766;
(k) A United States Citizenship and Immigration Services Permanent Resident Card, Form I-551; or
(l) Any other document issued by the United States Department of Homeland Security or the United States Citizenship and Immigration Services granting employment authorization in the United States and approved by the Public Employees Retirement Board.
Sec. 2. Section 4-111, Reissue Revised Statutes of Nebraska, is amended to
read:
4-111 (1) Verification of lawful presence in the United States pursuant to
section 4-108 requires, in addition to any requirements imposed by section
4-108, that the applicant for public benefits attest in a format prescribed by
the Department of Administrative Services that such applicant : (a) He or she is a United States citizen; or (b) He or she is a qualified alien under the
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federal Immigration and Nationality Act, 8 U.S.C. 1101 et seq., as such act existed on January 1, 2009, and is lawfully present in the United States.
(2) A state agency or political subdivision of the State of Nebraska may adopt and promulgate rules and regulations or procedures for the electronic filing of the attestation required under subsection (1) of this section if such attestation is substantially similar to the format prescribed by the Department of Administrative Services.
(3)(a) The Legislature finds that it is in the best interest of the State of Nebraska to make full use of the skills and talents in the state by ensuring that a person who is work-authorized is able to obtain a professional or
commercial license and practice his or her profession.
(b) For purposes of a professional or commercial license, the Legislature finds that a person not described in subsection (1) subdivision (1)(a) or (1)
(b) of this section who submits (i) an unexpired employment authorization document issued by the United States Department of Homeland Security, Form
I-766, and (ii) documentation issued by the United States Department of
Homeland Security, the United States Citizenship and Immigration Services, or any other federal agency, such as one of the types of Form I-797 used by the United States Citizenship and Immigration Services, demonstrating that such person is described in section 202(c)(2)(B)(i) through (x) of the federal REAL
ID Act of 2005, Public Law 109-13, has demonstrated lawful presence pursuant to
section 4-108 and is eligible to obtain such license. Such license shall be
valid only for the period of time during which such person's employment authorization document is valid. Nothing in this subsection shall affect the requirements to obtain a professional or commercial license that are unrelated to the lawful presence requirements demonstrated pursuant to this subsection.
(c) Nothing in this subsection shall be construed to grant eligibility for any public benefits other than obtaining a professional or commercial license.
(d) Any person who has complied with the requirements of this subsection shall have his or her employment authorization document verified through the Systematic Alien Verification for Entitlements Program operated by the United States Department of Homeland Security or an equivalent program designated by
the United States Department of Homeland Security.
(e) The Legislature enacts this subsection pursuant to the authority provided in 8 U.S.C. 1621(d), as such section existed on January 1, 2016.
Sec. 3. Section 4-112, Reissue Revised Statutes of Nebraska, is amended to
read:
4-112 For any applicant who is not a United States citizen but who has attested that such applicant is lawfully present in the United States as
provided in who has executed a document described in subdivision (1)(b) of section 4-111, eligibility for public benefits shall be verified through the Systematic Alien Verification for Entitlements Program operated by the United States Department of Homeland Security or an equivalent program designated by
the United States Department of Homeland Security. Until such verification of
eligibility is made, such attestation may be presumed to be proof of lawful presence for purposes of sections 4-108 to 4-113 unless such verification is
required before providing the public benefit under another provision of state or federal law.
Sec. 4. Section 23-2306, Reissue Revised Statutes of Nebraska, is amended to read:
23-2306 (1) The membership of the retirement system shall be composed of
all persons who are or were employed by member counties and who maintain an
account balance with the retirement system.
(2) The following employees of member counties are authorized to
participate in the retirement system: (a) All permanent full-time employees who have attained the age of eighteen years shall begin participation in the retirement system upon employment and full-time elected officials shall begin participation in the retirement system upon taking office, (b) all permanent part-time employees who have attained the age of eighteen years may exercise the option to begin participation in the retirement system within the first thirty days of employment, and (c) all part-time elected officials may exercise the option to begin participation in the retirement system within thirty days after taking office. An employee who exercises the option to begin participation in the retirement system shall remain in the system until termination or retirement, regardless of any change of status as a permanent or
temporary employee.
(3) No On and after July 1, 2010, no employee of a member county shall be
authorized to participate in the retirement system provided for in the County Employees Retirement Act unless the employee (a) is a United States citizen or
(b) is a qualified alien under the federal Immigration and Nationality Act, 8
U.S.C. 1101 et seq., as such act existed on January 1, 2009, and is lawfully present in the United States. The employing member county and the employee shall maintain at least one of the following documents which shall be
unexpired, if applicable to the particular document, to demonstrate United States citizenship or lawful presence in the United States as of the employee's date of hire and produce any such document so maintained upon request of the retirement board or the Nebraska Public Employees Retirement Systems:
(a) A state-issued driver's license;
(b) A state-issued identification card;
(c) A certified copy of a birth certificate or delayed birth certificate issued in any state, territory, or possession of the United States;
(d) A Consular Report of Birth Abroad issued by the United States Department of State;
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(e) A United States passport;
(f) A foreign passport with a United States visa;
(g) A United States Certificate of Naturalization;
(h) A United States Certificate of Citizenship;
(i) A tribal certificate of Native American blood or similar document;
(j) A United States Citizenship and Immigration Services Employment Authorization Document, Form I-766;
(k) A United States Citizenship and Immigration Services Permanent Resident Card, Form I-551; or
(l) Any other document issued by the United States Department of Homeland Security or the United States Citizenship and Immigration Services granting employment authorization in the United States and approved by the retirement board.
(4)(a) The board may determine that a governmental entity currently participating in the retirement system no longer qualifies, in whole or in part, under section 414(d) of the Internal Revenue Code as a participating employer in a governmental plan.
(b)(i) To aid governmental entities in their business decisionmaking process, any governmental entity currently participating in the retirement system contemplating a business transaction that may result in such entity no
longer qualifying, in whole or in part, under section 414(d) of the Internal Revenue Code may notify the board in writing as soon as reasonably practicable,
but no later than one hundred eighty days before the transaction is to occur.
(ii) The board when timely notified shall, as soon as is reasonably practicable, obtain from its contracted actuary the cost of any actuarial study necessary to determine the potential funding obligation. The board shall notify the entity of such cost.
(iii) If such entity pays the board's contracted actuary pursuant to
subdivision (4)(c)(vi) of this section for any actuarial study necessary to
determine the potential funding obligation, the board shall, as soon as
reasonably practicable following its receipt of the actuarial study, (A)
determine whether the entity's contemplated business transaction will cause the entity to no longer qualify under section 414(d) of the Internal Revenue Code,
(B) determine whether the contemplated business transaction constitutes a plan termination by the entity, (C) determine the potential funding obligation, (D)
determine the administrative costs that will be incurred by the board or the Nebraska Public Employees Retirement Systems in connection with the entity's removal from the retirement system, and (E) notify the entity of such determinations.
(iv) Failure to timely notify the board pursuant to subdivision (4)(b)(i)
of this section may result in the entity being treated as though the board made
a decision pursuant to subdivision (4)(a) of this section.
(c) If the board makes a determination pursuant to subdivision (4)(a) of this section, or if the entity engages in the contemplated business transaction reviewed under subdivision (4)(b) of this section that results in the entity no
longer qualifying under section 414(d) of the Internal Revenue Code:
(i) The board shall notify the entity that it no longer qualifies under section 414(d) of the Internal Revenue Code within ten business days after the determination;
(ii) The affected plan members shall be immediately considered fully vested;
(iii) The affected plan members shall become inactive within ninety days after the board's determination;
(iv) The entity shall pay to the County Employees Retirement Fund an
amount equal to any funding obligation;
(v) The entity shall pay to the County Employees Cash Balance Retirement Expense Fund an amount equal to any administrative costs incurred by the board or the Nebraska Public Employees Retirement Systems in connection with the entity's removal from the retirement system; and
(vi) The entity shall pay directly to the board's contracted actuary an
amount equal to the cost of any actuarial study necessary to aid the board in
determining the amount of such funding obligation, if not previously paid.
(d) For purposes of this subsection:
(i) Business transaction means a merger; consolidation; sale of assets,
equipment, or facilities; termination of a division, department, section, or subgroup of the entity; or any other business transaction that results in
termination of some or all of the entity's workforce; and
(ii) Funding obligation means the financial liability of the retirement system to provide benefits for the affected plan members incurred by the retirement system due to the entity's business transaction calculated using the methodology and assumptions recommended by the board's contracted actuary and approved by the board. The methodology and assumptions used must be structured in a way that ensures the entity is financially liable for all the costs of the entity's business transaction, and the retirement system is not financially liable for any of the cost of the entity's business transaction.
(e) The board may adopt and promulgate rules and regulations to carry out this subsection including, but not limited to, the methods of notifying the board of pending business transactions, the acceptable methods of payment, and the timing of such payment.
(5) Within the first one hundred eighty days of employment, a full-time employee may apply to the board for vesting credit for years of participation in another Nebraska governmental plan, as defined by section 414(d) of the Internal Revenue Code. During the years of participation in the other Nebraska
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governmental plan, the employee must have been a full-time employee, as defined in the Nebraska governmental plan in which the credit was earned. The board may adopt and promulgate rules and regulations governing the assessment and granting of vesting credit.
(6) Any employee who qualifies for membership in the retirement system pursuant to this section may not be disqualified from membership in the retirement system solely because such employee also maintains separate employment which qualifies the employee for membership in another public retirement system, nor may membership in this retirement system disqualify such an employee from membership in another public retirement system solely by
reason of separate employment which qualifies such employee for membership in
this retirement system.
(7) A full-time or part-time employee of a city, village, or township who becomes a county employee pursuant to a merger of services shall receive vesting credit for his or her years of participation in a Nebraska governmental plan, as defined by section 414(d) of the Internal Revenue Code, of the city,
village, or township.
(8) A full-time or part-time employee of a city, village, fire protection district, or township who becomes a municipal county employee shall receive credit for his or her years of employment with the city, village, fire protection district, or township for purposes of the vesting provisions of this section.
(9) A full-time or part-time employee of the state who becomes a county employee pursuant to transfer of assessment function to a county shall not be
deemed to have experienced a termination of employment and shall receive vesting credit for his or her years of participation in the State Employees Retirement System of the State of Nebraska.
(10) Counties shall ensure that employees authorized to participate in the retirement system pursuant to this section shall enroll and make required contributions to the retirement system immediately upon becoming an employee.
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