Nebraska Retirement Systems Committee
March 28, 2025
Committee Chair: Sen. Beau Ballard | Bills Heard: 2 | Full Transcript (PDF)
LB689: Amend provisions governing retired teachers returning to substitute teach during the 180-day separation period
Introduced by: Sen. Dan Lonowski | Testimony: 2 proponents, 3 opponents, 0 neutral | Read bill text (PDF)
Senator Lonowski requests interim study instead of advancing bill addressing teacher substitute shortages. Lonowski introduced LB689 to allow retired teachers more flexibility in returning as substitutes during the 180-day post-retirement separation period, but withdrew his request for committee support and instead asked for an interim study to resolve IRS compliance concerns.
Why it matters: Nebraska schools face critical substitute teacher shortages, particularly in rural areas. Retired teachers represent a pool of qualified educators, but current law limits them to 8 days per calendar month during the 180-day separation period—a restriction that can prevent schools from retaining a qualified substitute for consecutive periods needed to cover extended absences like maternity leave.
What they're saying: - Proponents: "Recent retirees provide highly qualified potential substitutes" and the 8-day monthly limit is arbitrary, preventing schools from using qualified teachers for consecutive periods. The 40-day semester cap under AM734 maintains bona fide separation requirements while providing flexibility. - Opponents: Removing the bright-line 8-day standard creates legal risk for NPERS and requires costly private letter rulings from the IRS. The 8-day provision was carefully crafted in 2021 with stakeholder buy-in and has been fully digested by members and employers; changing it again creates confusion and administrative burden.
By the numbers: Two proponents testified (Omaha Public Schools and legal counsel); three opponents testified (NPERS, NPERS director, and education associations coalition). No neutral testimony was offered.
What's next: No vote was taken. Senator Lonowski requested the committee table LB689 and conduct an interim study to appropriately amend statutes while safeguarding the school employee retirement plan from IRS audit risk.
Committee sentiment: Supportive: Sen. Danielle Conrad, Sen. Margo Juarez Skeptical: Sen. Tony Sorrentino, Sen. Rob Clements
Sentiment estimated from questions and comments — not stated positions.
LB713: Eliminate the definition of 'prior service' under the School Employees Retirement Act
Introduced by: Sen. Beau Ballard | Testimony: 0 proponents, 1 opponents, 0 neutral | Read bill text (PDF)
Placeholder bill on retirement plan definitions receives no testimony. Senator Ballard introduced LB713 as a placeholder measure that would eliminate the definition of 'prior service' under the School Employees Retirement Act, with no substantive discussion or testimony offered.
Why it matters: Placeholder bills are technical vehicles held in reserve for potential future amendments to retirement plans. This bill's status suggests the committee may be preparing for possible changes to PERB-administered plans but has not yet determined what those changes should be.
What they're saying: Senator Ballard stated the bill is "just intended to be a placeholder bill in the event of any changes to retirement plans administrated by the PERB Board or Nebraska Retirement Systems."
What's next: No vote was taken. The committee received no proponent, opponent, or neutral testimony. Senator Ballard waived closing remarks.
Session Notes
The Nebraska Retirement Systems Committee met on March 28, 2025, with Committee Chair Sen. Beau Ballard presiding. Committee members present included Sen. Margo Juarez, Sen. Tony Sorrentino, Sen. Danielle Conrad, and Sen. Rob Clements. Committee legal counsel Trevor Fitzgerald and committee clerk Connie Thomas were also present. The committee heard two bills: LB689 and LB713. Senator Lonowski requested the hearing for LB689 be scheduled late in the day per his request. The committee used a 3-minute light system for testimony (green light to begin, yellow light at 1-minute warning, red light to finish). Testifiers were required to provide green sheets to be listed on the committee statement if testifying in a particular position, or yellow sheets if wishing to record a position without testifying. All letters for the record were required to be submitted via online comment portal by 8 a.m. the day of 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.