The proposed bill amends various sections of the Nebraska Revised Statutes concerning the School Employees Retirement Act and the Class V School Employees Retirement Act. It introduces a clarified definition of "termination of employment," now defined as a bona fide separation from service, and stipulates that members returning to work within one hundred twenty days will not be considered to have terminated their employment. The bill also reduces the time frame for certain employment restrictions from one hundred eighty days to one hundred twenty days for members returning to work for any employer participating in the retirement system. Additionally, it provides new definitions for employment statuses such as "substitute employee" and "temporary employee," detailing their implications on retirement benefits.

Moreover, the bill outlines the criteria for calculating final average compensation, which will now consider the highest five twelve-month periods of service for employees hired after July 1, 2013, instead of the previous three periods. It specifies that certain payments, including those under the Retirement Incentive Plan and Staff Development Assistance, will not be included in this calculation. The bill also establishes a process for members who have separated from service to confirm their eligibility for retirement benefits upon returning to work and includes provisions for the handling of refunds of contributions exceeding one thousand dollars, which will be paid in a direct rollover to an individual retirement plan starting September 1, 2024. Overall, the bill aims to enhance clarity and fairness in the retirement system for school employees in Nebraska.

Statutes affected:
Introduced: 79-902, 79-920, 79-930, 79-978, 79-992