LB221                                                                      LB221
2023                                                                        2023
                                LEGISLATURE OF NEBRASKA
                          ONE HUNDRED EIGHTH LEGISLATURE
                                    FIRST SESSION
                       LEGISLATIVE BILL 221
        Introduced by Ibach, 44.
        Read first time January 10, 2023
        Committee: Nebraska Retirement Systems
 1      A BILL FOR AN ACT relating to retirement; to amend section 16-1021,
  2         Reissue Revised Statutes of Nebraska; to redefine a term relating to
 3          all firefighters of a city of the first class; and to repeal the
 4          original section.
 5      Be it enacted by the people of the State of Nebraska,
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LB221                                                                                    LB221
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 1            Section 1. Section 16-1021, Reissue Revised Statutes of Nebraska, is
 2      amended to read:
 3            16-1021 For the purposes of sections 16-1020 to 16-1042, unless the
 4      context otherwise requires:
 5            (1) Actuarial equivalent means equality in value of the aggregate
 6      amount of benefit expected to be received under different forms or at
 7      different times determined as of a given date as adopted by the city or
 8      the retirement committee for use by the retirement system. Actuarial
 9      equivalencies shall be specified in the funding medium established for
10      the retirement system,   except that if   benefits under the retirement
11      system are obtained through the purchase of an annuity contract, the
12      actuarial equivalency of any such form of benefit shall be the amount of
13      pension benefit which can be purchased or otherwise provided by such
14      contract. All actuarial and mortality assumptions adopted by the city or
15      retirement committee shall be on a sex-neutral basis;
16            (2) Annuity contract means the contract or contracts issued by one
17      or more life insurance companies or designated trusts and purchased by
18      the retirement system in order to provide any of the benefits described
19      in such sections. Annuity conversion rates contained in any such contract
20      shall be specified on a sex-neutral basis;
21            (3)   Beneficiary means the person or   persons designated by   a
22      firefighter, pursuant to a written instrument filed with the retirement
23      committee before the firefighter's death, to receive death benefits which
24      may be payable under the retirement system;
25            (4) Funding agent means any bank, trust company, life insurance
26      company, thrift institution, credit union, or investment management firm
27      selected by the retirement committee, subject to the approval of the
28      city, to hold or invest the funds of the retirement system;
29            (5) Regular interest means the rate of interest earned each calendar
30      year commencing January 1, 1984, equal to the rate of net earnings
31      realized for the calendar year from investments of the retirement fund.
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LB221                                                                                                             LB221
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 1      Net earnings means the amount by which income or gain realized from
  2     investments of the retirement fund exceeds the amount of any realized
  3     losses from such investments during the calendar year. The retirement
  4     committee shall annually report the amount of regular interest earned for
  5     such year;
 6             (6) Regular pay means the salary of a firefighter at the date such
 7      firefighter elects to retire or terminate employment with the city;
  8            (7)    Retirement committee means the retirement committee created
  9     pursuant to section 16-1034;
10             (8) Retirement system means a retirement system established pursuant
11      to sections 16-1020 to 16-1042;
 12            (9)     Retirement value means the accumulated value of     the
 13     firefighter's employee account and employer account. The retirement value
 14     at any time shall consist of    the sum of     the contributions made or
 15     transferred to such accounts by the firefighter and by the city on the
 16     firefighter's behalf and the regular interest credited to the accounts
 17     through such date, reduced by any realized losses which were not taken
 18     into account in determining regular interest in any year, and as further
 19     adjusted each year to     reflect the accounts'           pro rata share of     the
 20     appreciation or depreciation of the assets of the retirement system as
21      determined by    the retirement committee at     their fair market values,
 22     including any account under subsection         (2)    of section       16-1036.       Such
 23     valuation shall be undertaken at least annually as of December 31 of each
24      year and at     such other times as    may be    directed by     the retirement
25      committee. The value of each account shall be reduced each year by the
26      appropriate share of    the investment costs as     provided in   section
27      16-1036.01. The retirement value shall be further reduced by the amount
28      of all distributions made to or on the behalf of the firefighter from the
29      retirement system;
 30            (10) Salary means all amounts paid to a participating firefighter by
31      the employing city for personal services the base rate of pay, excluding
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LB221                                                                                       LB221
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  1     overtime, callback pay, clothing allowances, and other such benefits as
  2     reported on the participant's federal income tax withholding statement,
 3      including the firefighters'    contributions picked up   by the city as
 4      provided in subsection (2) of section 16-1024 and any salary reduction
  5     contributions which are excludable from income for federal income tax
  6     purposes pursuant to section 125 or 457 of the Internal Revenue Code;
 7          (11) Sex-neutral basis means the benefit calculation provided to the
 8      city of the first class by a licensed domestic or foreign insurance or
 9      annuity company with a product available for purchase in Nebraska that
10      utilizes a blended, non-gender-specific rate for actuarial assumptions,
 11     mortality assumptions, and annuity conversion rates for a particular
12      participant, except that if a blended, non-gender-specific rate is not
13      available for purchase in Nebraska, the benefit calculation shall be
14      performed using the arithmetic mean of   the male-specific actuarial
15      assumptions, mortality assumptions, or annuity conversion rates and the
16      female-specific actuarial assumptions, mortality assumptions, or annuity
17      conversion rates, as applicable, for a particular participant, and the
18      arithmetic mean shall be determined by adding the male-specific actuarial
19      assumptions, mortality assumptions, or annuity conversion rates to the
20      female-specific actuarial assumptions, mortality assumptions, or annuity
21      conversion rates applicable to a particular participant and dividing the
22      sum by two; and
23          (12) Straight life annuity means an ordinary annuity payable for the
 24     life of the primary annuitant only, and terminating at his or her death
 25     without refund or death benefit of any kind.
26          Sec.    2.      Original section    16-1021,    Reissue Revised Statutes of
27      Nebraska, is repealed.
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Statutes affected: Introduced: 16-1021