State Codes and Statutes

Statutes > Nebraska > Chapter79 > 79-958

79-958. Employee; employer;required deposits and contributions.(1) Beginningon September 1, 2006, and ending August 31, 2007, for the purpose of providingthe funds to pay for formula annuities, every employee shall be required todeposit in the School Retirement Fund seven and eighty-three hundredths percentof compensation. Beginning on September 1, 2007, and ending August 31, 2009, for the purposeof providing the funds to pay for formula annuities, every employee shallbe required to deposit in the School Retirement Fund seven and twenty-eighthundredths percent of compensation. Beginningon September 1, 2009, and ending August 31, 2014, for the purpose of providingthe funds to pay for formula annuities, every employee shall be required todeposit in the School Retirement Fund eight and twenty-eight hundredths percentof compensation. Beginning on September 1, 2014, for the purpose of providingthe funds to pay for formula annuities, every employee shall be required todeposit in the School Retirement Fund seven and twenty-eight hundredths percentof compensation. Such deposits shall be transmitted at the sametime and in the same manner as required employer contributions.(2) For the purpose of providing the funds to pay for formulaannuities, every employer shall be required to deposit in the School RetirementFund one hundred one percent of the required contributions of the school employeesof each employer. Such deposits shall be transmitted to the retirement boardat the same time and in the same manner as such required employee contributions.(3) The employer shall pick up the member contributions requiredby this section for all compensation paid on or after January 1, 1986, andthe contributions so picked up shall be treated as employer contributionsin determining federal tax treatment under the Internal Revenue Code as definedin section 49-801.01, except that the employer shall continue to withholdfederal income taxes based upon these contributions until the Internal RevenueService or the federal courts rule that, pursuant to section 414(h) of thecode, these contributions shall not be included as gross income of the memberuntil such time as they are distributed or made available. The employer shallpay these member contributions from the same source of funds which is usedin paying earnings to the member. The employer shall pick up these contributionsby a compensation deduction through a reduction in the cash compensation ofthe member. Member contributions picked up shall be treated for all purposesof the School Employees Retirement Act in the same manner and to the sameextent as member contributions made prior to the date picked up.(4) The employer shall pick up the member contributions madethrough irrevocable payroll deduction authorizations pursuant to sections 79-921, 79-933.03 to 79-933.06, and 79-933.08, and the contributions so pickedup shall be treated as employer contributions in the same manner as contributionspicked up under subsection (3) of this section. SourceLaws 1945, c. 219, § 32, p. 649; R.S.Supp.,1947, § 79-2932; Laws 1949, c. 256, § 465, p. 851; Laws 1951, c. 291, § 6, p. 968; Laws 1959, c. 414, § 2, p. 1388; Laws 1967, c. 546, § 9, p. 1806; Laws 1971, LB 987, § 24; Laws 1984, LB 457, § 3; Laws 1985, LB 353, § 3; Laws 1986, LB 325, § 11; Laws 1988, LB 160, § 4; Laws 1988, LB 1170, § 6; Laws 1991, LB 549, § 39; Laws 1994, LB 833, § 33; Laws 1995, LB 574, § 80; Laws 1996, LB 700, § 10; R.S.Supp.,1995, § 79-1531; Laws 1996, LB 900, § 593; Laws 1997, LB 623, § 27; Laws 1998, LB 1191, § 57; Laws 2001, LB 408, § 17; Laws 2002, LB 407, § 35; Laws 2005, LB 503, § 10; Laws 2007, LB596, § 2; Laws 2009, LB187, § 1.