State Codes and Statutes

Statutes > Nebraska > Chapter79 > 79-9_113

79-9,113. Employees retirementsystem; federal Social Security Act; state retirement plan; how affected;required contributions; payment; membership service annuity; computations.(1)(a) If, at any future time,a majority of the eligible members of the retirement system votes to be includedunder an agreement providing old age and survivors insurance under the SocialSecurity Act of the United States, the contributions to be made by the memberand the school district for membership service, from and after the effectivedate of the agreement with respect to services performed subsequent to December31, 1954, shall each be reduced from five to three percent but not less thanthree percent of the member's salary per annum, and the credits for membershipservice under this system, as provided in section 79-999, shall thereafterbe reduced from one and one-half percent to nine-tenths of one percent andnot less than nine-tenths of one percent of salary or wage earned by the memberduring each fiscal year, and from one and sixty-five hundredths percent toone percent and not less than one percent of salary or wage earned by themember during each fiscal year and from two percent to one and two-tenthspercent of salary or wage earned by the member during each fiscal year, andfrom two and four-tenths percent to one and forty-four hundredths percentof salary or wage earned by the member during each fiscal year, except thatafter September 1, 1963, and prior to September 1, 1969, all employees ofthe school district shall contribute an amount equal to the membership contributionwhich shall be two and three-fourths percent of salary covered by old ageand survivors insurance, and five percent above that amount. Commencing September1, 1969, all employees of the school district shall contribute an amount equalto the membership contribution which shall be two and three-fourths percentof the first seven thousand eight hundred dollars of salary or wages earnedeach fiscal year and five percent of salary or wages earned above that amountin the same fiscal year. Commencing September 1, 1976, all employees of theschool district shall contribute an amount equal to the membership contributionwhich shall be two and nine-tenths percent of the first seven thousand eighthundred dollars of salary or wages earned each fiscal year and five and twenty-fivehundredths percent of salary or wages earned above that amount in the samefiscal year. Commencing on September 1, 1982, all employees of the schooldistrict shall contribute an amount equal to the membership contribution whichshall be four and nine-tenths percent of the compensation earned in each fiscalyear. Commencing September 1, 1989, all employees of the school district shallcontribute an amount equal to the membership contribution which shall be fiveand eight-tenths percent of the compensation earned in each fiscal year. CommencingSeptember 1, 1995, all employees of the school district shall contribute anamount equal to the membership contribution which shall be six and three-tenthspercent of the compensation earned in each fiscal year. Commencing September1, 2007, all employees of the school district shall contribute an amount equalto the membership contribution which shall be seven and three-tenths percentof the compensation paid in each fiscal year. Commencing September 1, 2009, all employees of the schooldistrict shall contribute an amount equal to the membership contribution whichshall be eight and three-tenths percent of the compensation paid in each fiscalyear.(b) The contributions by theschool district in any fiscal year beginning on or after September 1, 1999,shall be the greater of (i) one hundred percent ofthe contributions by the employees for such fiscal year or (ii) suchamount as may be necessary to maintain the solvency of the system, as determinedannually by the board upon recommendation of the actuary and the trustees.(c) The contributions by theschool district in any fiscal year beginning on or after September 1, 2007,shall be the greater of (i) one hundred and one percent of the contributionsby the employees for such fiscal year or (ii) such amount as may be necessaryto maintain the solvency of the system, as determined annually by the boardupon recommendation of the actuary and the trustees.(d) The employee's contributionshall be made in the form of a monthly deduction from compensation as providedin subsection (2) of this section. Every employee who is a member of the systemshall be deemed to consent and agree to such deductions and shall receiptin full for compensation, and payment to such employee of compensation lesssuch deduction shall constitute a full and complete discharge of all claimsand demands whatsoever for services rendered by such employee during the periodcovered by such payment except as to benefits provided under the Class V SchoolEmployees Retirement Act.(e) After September 1, 1963,and prior to September 1, 1969, all employees shall be credited with a membershipservice annuity which shall be nine-tenths of one percent of salary or wagecovered by old age and survivors insurance and one and one-half percent ofsalary or wages above that amount, except that those employees who retireon or after August 31, 1969, shall be credited with a membership service annuitywhich shall be one percent of salary or wages covered by old age and survivorsinsurance and one and sixty-five hundredths percent of salary or wages abovethat amount for service performed after September 1, 1963, and prior to September1, 1969. Commencing September 1, 1969, all employees shall be credited witha membership service annuity which shall be one percent of the first seventhousand eight hundred dollars of salary or wages earned by the employee duringeach fiscal year and one and sixty-five hundredths percent of salary or wagesearned above that amount in the same fiscal year, except that all employeesretiring on or after August 31, 1976, shall be credited with a membershipservice annuity which shall be one and forty-four hundredths percent of thefirst seven thousand eight hundred dollars of salary or wages earned by theemployee during such fiscal year and two and four-tenths percent of salaryor wages earned above that amount in the same fiscal year and the retirementannuities of employees who have not retired prior to September 1, 1963, andwho elected under the provisions of section 79-988 as such section existedimmediately prior to February 20, 1982, not to become members of the systemshall not be less than they would have been had they remained under any preexistingsystem to date of retirement.(f) Members of this systemhaving the service qualifications of members of the School Retirement Systemof the State of Nebraska, as provided by section 79-926, shall receive thestate service annuity provided by sections 79-933 to 79-935 and 79-951.(2) The school district shall pick up the employee contributionsrequired by this section for all compensation paid on or after January 1,1985, and the contributions so picked up shall be treated as employer contributionsin determining federal tax treatment under the Internal Revenue Code, exceptthat the school district shall continue to withhold federal income taxes basedupon these contributions until the Internal Revenue Service or the federalcourts rule that, pursuant to section 414(h) of the Internal Revenue Code,these contributions shall not be included as gross income of the employeeuntil such time as they are distributed or made available. The school districtshall pay these employee contributions from the same source of funds whichis used in paying earnings to the employee. The school district shall pickup these contributions by a salary deduction either through a reduction inthe cash salary of the employee or a combination of a reduction in salaryand offset against a future salary increase. Beginning September 1, 1995,the school district shall also pick up any contributions required by sections 79-990, 79-991, and 79-992 which are made under an irrevocable payroll deductionauthorization between the member and the school district, and the contributionsso picked up shall be treated as employer contributions in determining federaltax treatment under the Internal Revenue Code, except that the school districtshall continue to withhold federal and state income taxes based upon thesecontributions until the Internal Revenue Service rules that, pursuant to section414(h) of the Internal Revenue Code, these contributions shall not be includedas gross income of the employee until such time as they are distributed fromthe system. Employee contributions picked up shall be treated for all purposesof the Class V School Employees Retirement Act in the same manner and to theextent as employee contributions made prior to the date picked up. SourceLaws 1951, c. 274, § 25, p. 923; Laws 1953, c. 308, § 4, p. 1029; Laws 1955, c. 321, § 3, p. 993; Laws 1963, c. 490, § 5, p. 1567; Laws 1969, c. 724, § 2, p. 2755; Laws 1972, LB 1116, § 3; Laws 1976, LB 994, § 3; Laws 1982, LB 131, § 12; Laws 1983, LB 488, § 1; Laws 1984, LB 218, § 3; Laws 1989, LB 237, § 7; Laws 1995, LB 505, § 8; Laws 1995, LB 574, § 77; R.S.Supp.,1995, § 79-1056; Laws 1996, LB 900, § 648; Laws 1997, LB 623, § 33; Laws 1998, LB 497, § 26; Laws 1998, LB 1191, § 63; Laws 2000, LB 155, § 5; Laws 2007, LB596, § 3; Laws 2009, LB187, § 3. Cross ReferencesFor provisions of federal Social Security Act, see Chapter 68, article 6.

State Codes and Statutes

Statutes > Nebraska > Chapter79 > 79-9_113

79-9,113. Employees retirementsystem; federal Social Security Act; state retirement plan; how affected;required contributions; payment; membership service annuity; computations.(1)(a) If, at any future time,a majority of the eligible members of the retirement system votes to be includedunder an agreement providing old age and survivors insurance under the SocialSecurity Act of the United States, the contributions to be made by the memberand the school district for membership service, from and after the effectivedate of the agreement with respect to services performed subsequent to December31, 1954, shall each be reduced from five to three percent but not less thanthree percent of the member's salary per annum, and the credits for membershipservice under this system, as provided in section 79-999, shall thereafterbe reduced from one and one-half percent to nine-tenths of one percent andnot less than nine-tenths of one percent of salary or wage earned by the memberduring each fiscal year, and from one and sixty-five hundredths percent toone percent and not less than one percent of salary or wage earned by themember during each fiscal year and from two percent to one and two-tenthspercent of salary or wage earned by the member during each fiscal year, andfrom two and four-tenths percent to one and forty-four hundredths percentof salary or wage earned by the member during each fiscal year, except thatafter September 1, 1963, and prior to September 1, 1969, all employees ofthe school district shall contribute an amount equal to the membership contributionwhich shall be two and three-fourths percent of salary covered by old ageand survivors insurance, and five percent above that amount. Commencing September1, 1969, all employees of the school district shall contribute an amount equalto the membership contribution which shall be two and three-fourths percentof the first seven thousand eight hundred dollars of salary or wages earnedeach fiscal year and five percent of salary or wages earned above that amountin the same fiscal year. Commencing September 1, 1976, all employees of theschool district shall contribute an amount equal to the membership contributionwhich shall be two and nine-tenths percent of the first seven thousand eighthundred dollars of salary or wages earned each fiscal year and five and twenty-fivehundredths percent of salary or wages earned above that amount in the samefiscal year. Commencing on September 1, 1982, all employees of the schooldistrict shall contribute an amount equal to the membership contribution whichshall be four and nine-tenths percent of the compensation earned in each fiscalyear. Commencing September 1, 1989, all employees of the school district shallcontribute an amount equal to the membership contribution which shall be fiveand eight-tenths percent of the compensation earned in each fiscal year. CommencingSeptember 1, 1995, all employees of the school district shall contribute anamount equal to the membership contribution which shall be six and three-tenthspercent of the compensation earned in each fiscal year. Commencing September1, 2007, all employees of the school district shall contribute an amount equalto the membership contribution which shall be seven and three-tenths percentof the compensation paid in each fiscal year. Commencing September 1, 2009, all employees of the schooldistrict shall contribute an amount equal to the membership contribution whichshall be eight and three-tenths percent of the compensation paid in each fiscalyear.(b) The contributions by theschool district in any fiscal year beginning on or after September 1, 1999,shall be the greater of (i) one hundred percent ofthe contributions by the employees for such fiscal year or (ii) suchamount as may be necessary to maintain the solvency of the system, as determinedannually by the board upon recommendation of the actuary and the trustees.(c) The contributions by theschool district in any fiscal year beginning on or after September 1, 2007,shall be the greater of (i) one hundred and one percent of the contributionsby the employees for such fiscal year or (ii) such amount as may be necessaryto maintain the solvency of the system, as determined annually by the boardupon recommendation of the actuary and the trustees.(d) The employee's contributionshall be made in the form of a monthly deduction from compensation as providedin subsection (2) of this section. Every employee who is a member of the systemshall be deemed to consent and agree to such deductions and shall receiptin full for compensation, and payment to such employee of compensation lesssuch deduction shall constitute a full and complete discharge of all claimsand demands whatsoever for services rendered by such employee during the periodcovered by such payment except as to benefits provided under the Class V SchoolEmployees Retirement Act.(e) After September 1, 1963,and prior to September 1, 1969, all employees shall be credited with a membershipservice annuity which shall be nine-tenths of one percent of salary or wagecovered by old age and survivors insurance and one and one-half percent ofsalary or wages above that amount, except that those employees who retireon or after August 31, 1969, shall be credited with a membership service annuitywhich shall be one percent of salary or wages covered by old age and survivorsinsurance and one and sixty-five hundredths percent of salary or wages abovethat amount for service performed after September 1, 1963, and prior to September1, 1969. Commencing September 1, 1969, all employees shall be credited witha membership service annuity which shall be one percent of the first seventhousand eight hundred dollars of salary or wages earned by the employee duringeach fiscal year and one and sixty-five hundredths percent of salary or wagesearned above that amount in the same fiscal year, except that all employeesretiring on or after August 31, 1976, shall be credited with a membershipservice annuity which shall be one and forty-four hundredths percent of thefirst seven thousand eight hundred dollars of salary or wages earned by theemployee during such fiscal year and two and four-tenths percent of salaryor wages earned above that amount in the same fiscal year and the retirementannuities of employees who have not retired prior to September 1, 1963, andwho elected under the provisions of section 79-988 as such section existedimmediately prior to February 20, 1982, not to become members of the systemshall not be less than they would have been had they remained under any preexistingsystem to date of retirement.(f) Members of this systemhaving the service qualifications of members of the School Retirement Systemof the State of Nebraska, as provided by section 79-926, shall receive thestate service annuity provided by sections 79-933 to 79-935 and 79-951.(2) The school district shall pick up the employee contributionsrequired by this section for all compensation paid on or after January 1,1985, and the contributions so picked up shall be treated as employer contributionsin determining federal tax treatment under the Internal Revenue Code, exceptthat the school district shall continue to withhold federal income taxes basedupon these contributions until the Internal Revenue Service or the federalcourts rule that, pursuant to section 414(h) of the Internal Revenue Code,these contributions shall not be included as gross income of the employeeuntil such time as they are distributed or made available. The school districtshall pay these employee contributions from the same source of funds whichis used in paying earnings to the employee. The school district shall pickup these contributions by a salary deduction either through a reduction inthe cash salary of the employee or a combination of a reduction in salaryand offset against a future salary increase. Beginning September 1, 1995,the school district shall also pick up any contributions required by sections 79-990, 79-991, and 79-992 which are made under an irrevocable payroll deductionauthorization between the member and the school district, and the contributionsso picked up shall be treated as employer contributions in determining federaltax treatment under the Internal Revenue Code, except that the school districtshall continue to withhold federal and state income taxes based upon thesecontributions until the Internal Revenue Service rules that, pursuant to section414(h) of the Internal Revenue Code, these contributions shall not be includedas gross income of the employee until such time as they are distributed fromthe system. Employee contributions picked up shall be treated for all purposesof the Class V School Employees Retirement Act in the same manner and to theextent as employee contributions made prior to the date picked up. SourceLaws 1951, c. 274, § 25, p. 923; Laws 1953, c. 308, § 4, p. 1029; Laws 1955, c. 321, § 3, p. 993; Laws 1963, c. 490, § 5, p. 1567; Laws 1969, c. 724, § 2, p. 2755; Laws 1972, LB 1116, § 3; Laws 1976, LB 994, § 3; Laws 1982, LB 131, § 12; Laws 1983, LB 488, § 1; Laws 1984, LB 218, § 3; Laws 1989, LB 237, § 7; Laws 1995, LB 505, § 8; Laws 1995, LB 574, § 77; R.S.Supp.,1995, § 79-1056; Laws 1996, LB 900, § 648; Laws 1997, LB 623, § 33; Laws 1998, LB 497, § 26; Laws 1998, LB 1191, § 63; Laws 2000, LB 155, § 5; Laws 2007, LB596, § 3; Laws 2009, LB187, § 3. Cross ReferencesFor provisions of federal Social Security Act, see Chapter 68, article 6.

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State Codes and Statutes

Statutes > Nebraska > Chapter79 > 79-9_113

79-9,113. Employees retirementsystem; federal Social Security Act; state retirement plan; how affected;required contributions; payment; membership service annuity; computations.(1)(a) If, at any future time,a majority of the eligible members of the retirement system votes to be includedunder an agreement providing old age and survivors insurance under the SocialSecurity Act of the United States, the contributions to be made by the memberand the school district for membership service, from and after the effectivedate of the agreement with respect to services performed subsequent to December31, 1954, shall each be reduced from five to three percent but not less thanthree percent of the member's salary per annum, and the credits for membershipservice under this system, as provided in section 79-999, shall thereafterbe reduced from one and one-half percent to nine-tenths of one percent andnot less than nine-tenths of one percent of salary or wage earned by the memberduring each fiscal year, and from one and sixty-five hundredths percent toone percent and not less than one percent of salary or wage earned by themember during each fiscal year and from two percent to one and two-tenthspercent of salary or wage earned by the member during each fiscal year, andfrom two and four-tenths percent to one and forty-four hundredths percentof salary or wage earned by the member during each fiscal year, except thatafter September 1, 1963, and prior to September 1, 1969, all employees ofthe school district shall contribute an amount equal to the membership contributionwhich shall be two and three-fourths percent of salary covered by old ageand survivors insurance, and five percent above that amount. Commencing September1, 1969, all employees of the school district shall contribute an amount equalto the membership contribution which shall be two and three-fourths percentof the first seven thousand eight hundred dollars of salary or wages earnedeach fiscal year and five percent of salary or wages earned above that amountin the same fiscal year. Commencing September 1, 1976, all employees of theschool district shall contribute an amount equal to the membership contributionwhich shall be two and nine-tenths percent of the first seven thousand eighthundred dollars of salary or wages earned each fiscal year and five and twenty-fivehundredths percent of salary or wages earned above that amount in the samefiscal year. Commencing on September 1, 1982, all employees of the schooldistrict shall contribute an amount equal to the membership contribution whichshall be four and nine-tenths percent of the compensation earned in each fiscalyear. Commencing September 1, 1989, all employees of the school district shallcontribute an amount equal to the membership contribution which shall be fiveand eight-tenths percent of the compensation earned in each fiscal year. CommencingSeptember 1, 1995, all employees of the school district shall contribute anamount equal to the membership contribution which shall be six and three-tenthspercent of the compensation earned in each fiscal year. Commencing September1, 2007, all employees of the school district shall contribute an amount equalto the membership contribution which shall be seven and three-tenths percentof the compensation paid in each fiscal year. Commencing September 1, 2009, all employees of the schooldistrict shall contribute an amount equal to the membership contribution whichshall be eight and three-tenths percent of the compensation paid in each fiscalyear.(b) The contributions by theschool district in any fiscal year beginning on or after September 1, 1999,shall be the greater of (i) one hundred percent ofthe contributions by the employees for such fiscal year or (ii) suchamount as may be necessary to maintain the solvency of the system, as determinedannually by the board upon recommendation of the actuary and the trustees.(c) The contributions by theschool district in any fiscal year beginning on or after September 1, 2007,shall be the greater of (i) one hundred and one percent of the contributionsby the employees for such fiscal year or (ii) such amount as may be necessaryto maintain the solvency of the system, as determined annually by the boardupon recommendation of the actuary and the trustees.(d) The employee's contributionshall be made in the form of a monthly deduction from compensation as providedin subsection (2) of this section. Every employee who is a member of the systemshall be deemed to consent and agree to such deductions and shall receiptin full for compensation, and payment to such employee of compensation lesssuch deduction shall constitute a full and complete discharge of all claimsand demands whatsoever for services rendered by such employee during the periodcovered by such payment except as to benefits provided under the Class V SchoolEmployees Retirement Act.(e) After September 1, 1963,and prior to September 1, 1969, all employees shall be credited with a membershipservice annuity which shall be nine-tenths of one percent of salary or wagecovered by old age and survivors insurance and one and one-half percent ofsalary or wages above that amount, except that those employees who retireon or after August 31, 1969, shall be credited with a membership service annuitywhich shall be one percent of salary or wages covered by old age and survivorsinsurance and one and sixty-five hundredths percent of salary or wages abovethat amount for service performed after September 1, 1963, and prior to September1, 1969. Commencing September 1, 1969, all employees shall be credited witha membership service annuity which shall be one percent of the first seventhousand eight hundred dollars of salary or wages earned by the employee duringeach fiscal year and one and sixty-five hundredths percent of salary or wagesearned above that amount in the same fiscal year, except that all employeesretiring on or after August 31, 1976, shall be credited with a membershipservice annuity which shall be one and forty-four hundredths percent of thefirst seven thousand eight hundred dollars of salary or wages earned by theemployee during such fiscal year and two and four-tenths percent of salaryor wages earned above that amount in the same fiscal year and the retirementannuities of employees who have not retired prior to September 1, 1963, andwho elected under the provisions of section 79-988 as such section existedimmediately prior to February 20, 1982, not to become members of the systemshall not be less than they would have been had they remained under any preexistingsystem to date of retirement.(f) Members of this systemhaving the service qualifications of members of the School Retirement Systemof the State of Nebraska, as provided by section 79-926, shall receive thestate service annuity provided by sections 79-933 to 79-935 and 79-951.(2) The school district shall pick up the employee contributionsrequired by this section for all compensation paid on or after January 1,1985, and the contributions so picked up shall be treated as employer contributionsin determining federal tax treatment under the Internal Revenue Code, exceptthat the school district shall continue to withhold federal income taxes basedupon these contributions until the Internal Revenue Service or the federalcourts rule that, pursuant to section 414(h) of the Internal Revenue Code,these contributions shall not be included as gross income of the employeeuntil such time as they are distributed or made available. The school districtshall pay these employee contributions from the same source of funds whichis used in paying earnings to the employee. The school district shall pickup these contributions by a salary deduction either through a reduction inthe cash salary of the employee or a combination of a reduction in salaryand offset against a future salary increase. Beginning September 1, 1995,the school district shall also pick up any contributions required by sections 79-990, 79-991, and 79-992 which are made under an irrevocable payroll deductionauthorization between the member and the school district, and the contributionsso picked up shall be treated as employer contributions in determining federaltax treatment under the Internal Revenue Code, except that the school districtshall continue to withhold federal and state income taxes based upon thesecontributions until the Internal Revenue Service rules that, pursuant to section414(h) of the Internal Revenue Code, these contributions shall not be includedas gross income of the employee until such time as they are distributed fromthe system. Employee contributions picked up shall be treated for all purposesof the Class V School Employees Retirement Act in the same manner and to theextent as employee contributions made prior to the date picked up. SourceLaws 1951, c. 274, § 25, p. 923; Laws 1953, c. 308, § 4, p. 1029; Laws 1955, c. 321, § 3, p. 993; Laws 1963, c. 490, § 5, p. 1567; Laws 1969, c. 724, § 2, p. 2755; Laws 1972, LB 1116, § 3; Laws 1976, LB 994, § 3; Laws 1982, LB 131, § 12; Laws 1983, LB 488, § 1; Laws 1984, LB 218, § 3; Laws 1989, LB 237, § 7; Laws 1995, LB 505, § 8; Laws 1995, LB 574, § 77; R.S.Supp.,1995, § 79-1056; Laws 1996, LB 900, § 648; Laws 1997, LB 623, § 33; Laws 1998, LB 497, § 26; Laws 1998, LB 1191, § 63; Laws 2000, LB 155, § 5; Laws 2007, LB596, § 3; Laws 2009, LB187, § 3. Cross ReferencesFor provisions of federal Social Security Act, see Chapter 68, article 6.

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