This bill amends section 16-1005 of the Reissue Revised Statutes of Nebraska to update the contribution rates for police officers employed by cities of the first class. The new legal language specifies that, prior to October 1, 2025, police officers will contribute 7% of their salary to the retirement system. Beginning October 1, 2025, this contribution rate will increase to 9%. The bill also clarifies that these contributions will be deducted from the officers' salaries and credited to their employee accounts on a monthly basis, with regular interest applied.

Additionally, the bill eliminates obsolete provisions related to previous contribution rates that were in effect until 2015. It maintains that each city of the first class will pick up the required contributions, treating them as employer contributions for federal tax purposes, while ensuring that police officers cannot opt to receive their contributions directly instead of having them paid to the retirement system. The original section 16-1005 is repealed as part of this legislative update.

Statutes affected:
Introduced: 16-1005