The proposed bill amends the Class V School Employees Retirement Act by redefining the "retirement date" and establishing new requirements for the monthly payments of retirement allowances. The new definition states that the "retirement date" is the first day of the month following either the receipt of a member's retirement application, provided they are eligible and have terminated employment, or the first day of the month following termination of employment if the application has been filed but not yet terminated. This change replaces the previous definition that relied on the board's determination. Additionally, the bill modifies the timing of cost-of-living adjustments and harmonizes various provisions within the retirement system to enhance efficiency and transparency in the calculation and disbursement of retirement benefits.

Moreover, the bill clarifies that the transfer of management related to retirement benefits for Class V school district employees does not include the transfer of funding obligations or financial liabilities to state entities. It specifies that monthly retirement allowance payments will commence on the first day of a calendar month, including all accrued amounts since the effective date of the annuity award, and outlines conditions for the last payment. The bill also introduces a medical cost-of-living adjustment for annuitants with at least ten years of membership, detailing the frequency and calculation methods for these adjustments. To accommodate these changes, certain sections of the existing law will be repealed, streamlining the legislative framework governing retirement benefits for public school employees in Nebraska.

Statutes affected:
Introduced: 79-978, 79-978.01