Nebraska Retirement Systems Committee
February 21, 2025
Committee Chair: Sen. Beau Ballard | Bills Heard: 3 | Full Transcript (PDF)
LB76: Increase surviving spouse benefit and cost-of-living adjustment for Nebraska State Patrol retirees
Introduced by: Sen. Eliot Bostar | Testimony: 5 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Nebraska advances bill to boost State Patrol retirement benefits amid staffing crisis. LB76 would increase surviving spouse benefits from 75% to 100% and raise the cost-of-living adjustment cap to 4% for all State Patrol retirees, addressing both family security and recruitment challenges.
Why it matters: The State Patrol faces a staffing crisis, with vacancies climbing from 54 in 2022 to 72 in 2024 out of 482 authorized positions. Law enforcement careers carry documented health risks—studies show officers face significantly higher rates of cardiovascular disease, cancer, and metabolic syndrome. Robust retirement benefits are critical for retention, especially as current COLA caps fail to keep pace with inflation.
What they're saying: - Proponents: "The job that we are asking them to do is, frankly, killing them," Sen. Bostar said, arguing that 100% survivor benefits are only fair given the risks. Widow Linda Spiegel testified about the shock of discovering her benefit was cut to 75% after her trooper husband died of cancer. Retired trooper Veronica Jones said she specifically chose the State Patrol over other agencies because of superior retirement benefits, proving benefits influence recruitment. - No opposition testimony was presented.
By the numbers: The bill would increase the plan's annual cost by approximately $4.2 million, dropping the funding level from 85% to 79.92%. In the past 30 years, inflation exceeded the current 1% COLA cap 83% of the time and exceeded 2.5% nearly half the time.
What's next: No vote was taken. The committee heard five proponents, no opponents, and received 12 written letters of support and 1 written opposition.
Committee sentiment: Supportive: Sen. Tony Sorrentino, Sen. Danielle Conrad Unclear: Sen. Rob Clements
Sentiment estimated from questions and comments — not stated positions.
LB433: Exempt deputy directors and attorneys from State Personnel System; allow rehiring of permanent employees without 120-day break
Introduced by: Sen. Tony Sorrentino | Testimony: 2 proponents, 1 opponents, 0 neutral | Read bill text (PDF)
State seeks to exempt attorneys and deputy directors from civil service protections to boost recruitment and flexibility. LB433 would remove deputy directors and attorneys from the State Personnel System, allowing agencies to set discretionary salaries and hire and fire more freely. The bill also eliminates a 120-day waiting period for rehiring permanent employees on a temporary basis.
Why it matters: State agencies struggle to compete for legal talent against counties and the private sector. DHHS testified it cannot retain experienced attorneys due to salary caps. Exempting attorneys from civil service rules would allow competitive compensation. However, the Nebraska State Bar Association warns the change could expose attorneys to retaliation for giving legally required advice that conflicts with agency leadership preferences.
What they're saying: - Proponents: "Attorneys are licensed professionals hired for their professional expertise," Bo Botelho of DHHS testified, noting state attorney pay lags Lancaster, Sarpy, and Douglas counties. Lee Will of DAS said the change would help state agencies "remain competitive in recruiting talented government leaders." - Opponents: Tim Hruza of the Nebraska State Bar Association expressed concerns about "potential retribution for giving advice that is both ethically required." He noted a 2019 compromise version limiting discretionary status to head legal counsel was acceptable, and suggested requesting an ethics advisory opinion instead.
By the numbers: The bill affects approximately 1% of Nebraska's 9,300 bar members. Many state entities already exempt attorneys from the State Personnel System, including the Governor's Office, Attorney General, courts, and state colleges.
What's next: No vote was taken. Sen. Sorrentino indicated there may be room for amendments and negotiations. Sen. Conrad requested fiscal data on outside legal contracts before proceeding.
Committee sentiment: Skeptical: Sen. Danielle Conrad
Sentiment estimated from questions and comments — not stated positions.
LB420: Technical correction to judges retirement plan funding mechanism
Introduced by: Sen. Trevor Fitzgerald, Committee Legal Counsel | Testimony: 1 proponents, 0 opponents, 1 neutral | Read bill text (PDF)
Committee advances technical fix to judges retirement funding after audit finding. LB420, as amended by AM198, corrects a 2021 statutory error that created duplicate appropriations requests and potential accounting errors in the Nebraska Judges Retirement Act.
Why it matters: An audit by the Auditor of Public Accounts identified that LB17 in 2021 changed the judges plan funding mechanism to require State Treasurer transfers—inconsistent with how other state retirement plans are funded. This created a recent double-entry error. The fix aligns the judges plan with standard state retirement funding practices and prevents future accounting confusion.
What they're saying: - Proponents: Tag Herbek of NPERS testified the amendment "fixes what is a technical funding path anomaly" created by outdated language. "Because the transfer is typically done by someone other than the State Treasurer with an appropriate journal entry, the current situation caused a double entry to recently be made." - Neutral: Eric Asboe of the judicial branch requested a clarifying amendment to explicitly state contributions come from the General Fund, reinstating 11 words. He said he had spoken to NPERS, the committee legal counsel, and the Fiscal Office and "encountered no opposition to this change."
By the numbers: No fiscal impact data was presented; this is a technical correction only.
What's next: No vote was taken. The committee heard one proponent and one neutral testifier. Asboe's proposed clarification appears to have support from relevant stakeholders. Similar technical corrections may be needed for other retirement plans in future sessions.
Session Notes
The committee met at noon on February 21, 2025. Committee Chair Ballard noted that the Judiciary Committee meets in the same room at 1:30 p.m., so the committee worked to maintain an efficient pace. The committee heard three bills in order: LB76, LB433, and LB420. For LB76, the committee received 12 written letters of support and 1 written opposition. For LB433 and LB420, no written comments were received. No votes were taken on any of the bills during the hearing.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.