title-303•Neb. Admin. Code tit. 303 — Public Employees Retirement Systems
Neb. Admin. Code tit. 303 — Public Employees Retirement Systems
title-303Neb. Admin. Code tit. 303Regulation
Chapter 1 Public Employees Retirement Board Management
Neb. Admin. Code tit. 303, ch. 1 Public Employees Retirement Board Management {#sec-303-nac-1 omnilex-key=us-ne-regs-official--title-303--303 NAC 1}
001 Scope of the Rule
This rule provides for the general management of the Public Employees Retirement Board in its day-to-day operations.
002 Board Meetings
002.01 The Nebraska Public Employees Retirement Board shall hold a regular meeting each January and at such other times as may be requested by the Chairperson, Vice-Chairperson, or three Board members.
002.02 Except when it is necessary to hold an emergency meeting without reasonable advance public notice, notice of the time and place of Board meetings shall be given by publication in the Lincoln Journal-Star, the Omaha World-Herald newspapers, and the agency’s website at least five days in advance of each meeting. The Board secretary shall maintain a list of the news media requesting notification of meetings and shall make reasonable efforts to provide advance notification to them of the time and place of each meeting, including emergency meetings, and the subjects to be discussed at that meeting.
002.03 Every meeting of the Public Employees Retirement Board shall be open to the public and shall be conducted in accordance with the open meetings provisions set forth in NEB. REV. STAT. §§ 84-1408 through 84-1414, et seq.
002.04 A quorum of the Board shall be required for the Board to hold a meeting and to conduct Board business. Attendance at any meeting by five members of the Board shall constitute a quorum.
002.05 A member may receive an excused absence from regular Board meetings upon the affirmative vote of a majority of the voting members of the Board present. In the event a Board member has more than three consecutive unexcused absences from regular Board meetings, the Chairperson shall notify the Governor of such absences and request the Governor remove the member from the Board for cause pursuant to 84-1501.
002.06 All motions before the Board shall require the affirmative vote of a majority of voting members present at the meeting of the Board to pass. All votes shall be taken by roll call.
003 Officers
003.01 The Board shall elect a Chairperson, a Vice-Chairperson, and a Secretary at the Board’s January meeting. Any duty imposed upon the Chairperson by these rules and regulations may be performed by the Vice-Chairperson in the absence of the Chairperson. In the absence of both the Chairperson and the Vice-Chairperson, the Secretary shall have the authority to call the meeting to order and conduct an election for a Chairperson Pro Tem.
003.02 The Board Chairperson and Secretary shall be responsible for preparing the agenda for each meeting, publishing notice of the meeting, and preparing the minutes of the meeting. A preliminary agenda for all regular Board meetings shall be distributed to the Board at least seven days in advance of the meeting. The final agenda for each regular meeting shall be available for distribution not less than 24 hours before the meeting.
004 Subcommittees
004.01 The following shall be standing subcommittees of the Board:
004.01(a) Regulation and Policy Review Committee;
004.01(b) Legislative Committee;
004.01(c) Budget and Personnel Committee;
004.01(d) Education Committee; and
004.01(e) Audit Committee.
004.02 The Chairperson may organize additional ad hoc subcommittees as necessary.
004.03 Subcommittees shall be composed of not more than three Board members. The Chairperson shall appoint Board members to the various subcommittees and shall appoint a chairperson of each subcommittee. Subcommittees shall only serve as working subcommittees and may not take formal action on behalf of the Board. All subcommittee proposals, findings and recommendations must come before the Board for formal action to be binding upon the Board.
005 Board Administrative Policies
005.01 The Board shall appoint a Director to administer the Retirement Systems under the direction of the Board. The Board shall conduct a performance evaluation of the Director at least annually.
005.02 Except as expressly provided by statute or regulation, the Board may delegate to the Director responsibility for all day to day operations and decisions. All actions and decisions of the Director shall be subject to review by the Board upon the filing of an appeal by any person aggrieved by any action or decision of the Director.
005.03 The Board shall review and approve or disapprove all applications for disability retirement, emergency withdrawals from the deferred compensation plan, annual budget requests, monthly expense disbursements and retirement benefit payments, administrative service contracts, actuarial service provider contracts, compliance audit contracts, and proposed rules and regulations. The Board shall be provided with copies of all actuarial reports, and all financial and compliance audit reports.
006 Board Travel Policy
006.01 Except for routine travel to and from Board meetings, Board members and the Director shall submit travel requests to the Board for consideration in advance of such travel. The request shall state a business related reason for that travel and an estimate of the cost involved.
006.02 Travel by any Board member or the Director shall be approved upon an affirmative vote of a majority of voting members of the Board present. Any Board member who attends a conference paid for in whole or in part by Retirement System funds shall present a report to the Board following the member’s return.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 79-905 and 84-1503.
History
- Effective 2012-01-09
Chapter 2 Remittances
Neb. Admin. Code tit. 303, ch. 2 Remittances {#sec-303-nac-2 omnilex-key=us-ne-regs-official--title-303--303 NAC 2}
001 Scope of the Rule
This rule provides the method by which employers shall remit employee and employer contributions for the Retirement System for Nebraska Counties, the Judges Retirement System, the School Employees Retirement System, the State Patrol Retirement System, the State Employees Retirement System, and the Deferred Compensation Plan.
002 School, Judges and State Patrol Remittances for Employee and Employer Contributions .
002.01 Remittances for School, Judges, and State Patrol employee and employer contributions must be submitted to NPERS no later than ten (10) calendar days following the end of the month for which the remittances are due.
002.02 Remittances must be made to NPERS on a draft, money order, check, electronic transmittal, or other method approved by the Retirement Board.
002.03 Each employer shall submit a report listing individual salaries, contributions and hours worked to NPERS on forms approved by the Agency. The report must be submitted to NPERS no later than ten (10) calendar days following the end of the month for which the remittances are due.
003 State and County Remittances for Employee and Employer Contributions .
003.01 Remittances for State and County employee and employer contributions must be submitted to NPERS or NPERS’ recordkeeper no later than ten (10) calendar days following the date the employee is paid.
003.02 Remittances must be made to NPERS or NPERS’ recordkeeper on a draft, money order, check, electronic transmittal, or a method approved by the Retirement Board. County employers shall submit either with their remittance or submit prior to their remittance, the report described in 003.03 of this rule.
003.03 Each employer shall submit a report listing individual salaries, contributions and hours worked to NPERS on forms approved by the Retirement Board. The report must be submitted to NPERS no later than ten (10) calendar days following the date the employee is paid.
003.04 County employers shall submit to NPERS a report detailing pay period beginning and ending dates for the upcoming year, and payroll payment dates for the upcoming year, no later than December 31st of each current year.
004 Assessment of County Late Fees
004.01 As provided in Neb. Rev. Stat. § 23-2308, the Retirement Board may charge a county employer an administrative processing fee of twenty-five dollars ($25) if the reports of necessary information or payments made pursuant to this rule are received later than the date on which the Board requires that such information or money should be received.
004.02 As provided in Neb. Rev. Stat. § 23-2308, the Retirement Board may charge a county employer a late fee of thirty-eight thousandths of one percent (0.038%) of the amount required to be submitted for each day such amount has not been received or in an amount equal to the amount of any costs incurred by the member due to the late receipt of contributions, whichever is greater. The late fee may be used to make a member's account whole for any costs that may have been incurred by the member due to the late receipt of contributions.
005 Final Pay Report
A final pay report must be submitted by a plan Employer only when requested by NPERS. This request will designate a due date for submission of the report.
006 Non-Contributing Member Report
A non-contributing member report must be submitted by a plan Employer within twenty (20) days of an interruption in retirement contributions or termination by the member.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 23-2305, 23-2305.01, 24-704, 24-704.01, 79-904, 79-904.01, 79-905, 81-2019, 81-2019.01, 84-1305, 84-1305.02, and 84-1503.
History
- Effective 2012-11-07
Chapter 3 Materiality Amounts for Transactions
Neb. Admin. Code tit. 303, ch. 3 Materiality Amounts for Transactions {#sec-303-nac-3 omnilex-key=us-ne-regs-official--title-303--303 NAC 3}
001 Scope of the Rule
The objective of this rule is to establish materiality amounts or tolerance levels for various accounting and processing procedures within the Nebraska Public Employees Retirement Systems (‘Agency’). Materiality amounts addressed in this rule will not affect the reliability of the Agency’s financial statements due to the overall size of the plans administered by the Agency. An auditors’ consideration of materiality is a matter of professional judgment and is influenced by their perception of the needs of a reasonable person who will rely on the Agency’s financial statements. Materiality judgments are made in light of surrounding circumstances and necessarily involve both quantitative and qualitative considerations. An error or omission is considered material or significant if it changes a reader’s interpretation of the financial statements.
002 Purpose
002.01 The following risks or inefficiencies could occur if a materiality policy is not established: (1) the cost plan members incur for staff time, data processing, materials, postage, etc. in processing transactions that may be more than the value of the transaction itself; (2) data processing cannot be timely or efficient if tolerance levels are not available for some editing and processing functions; and, (3) the Agency could be subject to public criticism if such transactions amounts proposed to be reversed or refunded are immaterial
002.02 The Public Employees Retirement Board has a fiduciary obligation to the plan members to spend members’ funds wisely and efficiently. The need for materiality amounts within the Agency is apparent due to tolerance levels set within the Agency’s computer system for various edits, parameters, etc.
003 Materiality Amounts for Agency Transactions
003.01 Employer Reporting. No receivable or payable will be created if remittances from school employers for monthly contributions are within +/- $10.00 per report of the required amount. Schools will not be billed if the past due interest amount calculated on a monthly late remittance is less than $10.00.
003.02 Purchase of Service. Payments from members or rollover payments for purchase of service or refunded service will be receipted as payment for contract completion if the payment is within +/-$10 per report of the amount due.
003.03 Recalculation of a Final Benefit.
003.03(a) For Defined Benefit plans: the monthly retiree benefit payments that require recalculation will not be adjusted if the change in the monthly benefit amount is within+/- $10.00 per report of the original calculated final benefit.
003.03(b) For State and County plans: The monthly defined contribution and cash balance retiree benefit payments that require recalculation will not be adjusted if the change in the monthly benefit amount is within +/- $10.00 of the original calculated final benefit.
003.04 Make-up Contributions Agreements.
003.04(a) For Defined Benefit plans: In the case of a contribution error, if the calculation of the missed contribution for the employee and employer in total is $30 or less, no make-up will be required.
003.04(b) For State and County plans: If the calculation of a missed contribution of employer and employee in total is $10 or less, no make-up will be required.
003.05 Refund Buy-Back Purchase. If the variance between the calculated refund amount (the amount before the applicable rate of interest is added on) and the member’s actual refund distribution is within 0.5%, then the calculated amount will be accepted as valid.
003.06 Ineligible contributions. If the combined total calculation of ineligible contributions for an employee and employer are less than $50 during a specific time period that is no more than two years in length, then no refund will be made.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 84-1503(i).
History
- Effective 2012-11-12
Chapter 4 Refund and Termination Benefit Procedures
Neb. Admin. Code tit. 303, ch. 4 Refund and Termination Benefit Procedures {#sec-303-nac-4 omnilex-key=us-ne-regs-official--title-303--303 NAC 4}
001 Scope of the Rule
This rule governs the procedures for paying refunds and termination benefits in the Retirement System for Nebraska Counties (County plan), the Judges Retirement System (Judges plan), the School Employees Retirement System (School plan), the State Patrol Retirement System (Patrol plan), and the State Employees Retirement System (State plan).
002 Definitions
002.01 The definitions provided in Nebraska statutory law for each plan shall apply to the provisions herein as they relate to that plan. In addition to those definitions, the following definitions shall apply:
002.02 [RESERVED];
002.03 [RESERVED];
002.04 [RESERVED];
002.05 Refund or Termination Benefit means the benefit distributed, whether all or part of a member’s retirement account in whatever form it may be lawfully made, when that distribution occurs prior to the date on which the member achieves the earliest date whereby the member qualifies for a retirement benefit.
002.06 Termination Date means the date on which the member experiences a bona fide separation from service of employment with the member's employer, the date of which separation is determined by the employer; provided, however, with respect to members of the School Plan, (1) the date of such separation from service shall be determined by the end of the member’s contractual agreement or, if there is no contract or only partial fulfillment of a contract, by the employer, and (2) the termination date for a member who is compensated for a full contractual period shall not be deemed to occur until the end date of the contract.
003 School Plan
003.01 No refund or termination benefit shall be made until the employer has provided to NPERS proof that the member’s termination date has occurred.
003.02 A member may file an application for a refund or termination benefit not more than one hundred twenty (120) days prior to the member’s termination date.
003.03 Distribution Amount
003.03(a) Except as provided in subsection (b) of this section, a refund or termination benefit shall consist of the member’s entire employee account balance.
003.03(b) A refund to the sole beneficiary of the member who is the surviving spouse of the member as described in Neb. Rev. Stat. § 79-956(2)(a) and (3)(a) shall also include an amount equal to 101% of the member’s account balance.
003.04 Timing of Distribution
003.04(a) Distribution of a refund to a member shall not occur before the later of (1) four (4) calendar months after the member’s termination date and (2) twenty (20) business days after NPERS receives a completed and valid application for a refund.
003.04(b) Distribution of a refund to the beneficiary of a deceased member shall not occur earlier than twenty (20) days after the member’s death.
003.05 If the member returns to employment with an employer participating in the School Plan within 180 calendar days of the member’s termination date, the member shall be required to repay the entire amount of the refund or termination benefit received. Payment shall be made as soon after returning to work as is practicable and within two (2) years of returning to employment. If the Director determines repayment within two (2) years will create a hardship for the member, then such repayment shall be completed within four (4) years of returning to employment.
004 Judges and Patrol Plans
004.01 No refund or termination benefit shall be made until the employer has provided to NPERS proof that the member has terminated employment.
004.02 A member may file an application for a refund or termination benefit not more than ninety (90) days prior to the member’s termination date.
004.03 A refund or termination benefit shall consist of the member’s entire employee account balance.
004.04 Timing of Distribution
004.04(a) Distribution of a refund to a member shall not occur before the later to occur of (1) sixty (60) calendar days after the member’s termination date, and (2) twenty (20) business days after NPERS receives a completed and valid application for a refund.
004.04(b) Distribution of a refund to the beneficiary of a deceased member shall not occur sooner than twenty (20) days after the member’s death.
004.04(c) Subsection 004.04 does not apply to the deferred retirement option plan (DROP) provided in Neb. Rev. Stat. § 81-2041.
004.05 If the member returns to employment with an employer participating in the plan from which the member has taken a refund or termination benefit within 120 calendar days of the termination date, then the member shall repay the entire amount of the refund or termination benefit received. Payment shall be made as soon after returning to work as is practicable and within two (2) years of returning to employment. If the Director determines repayment within two (2) years will create a hardship for the member, then such repayment shall be completed within four (4) years of returning to employment.
005 County and State Plans
005.01 No refund or termination benefit shall be made until the employer has provided NPERS proof that the member has terminated employment.
005.02 A member may file an application for a refund or termination benefit not more than ninety (90) days prior to the member’s termination date.
005.03 Timing of Distribution
005.03(a) Distribution of a refund to a member shall not occur earlier than forty-five (45) calendar days after the member’s termination date.
005.03(b) Distribution of a refund to the beneficiary of a deceased member shall not occur earlier than twenty (20) days after the member’s death and shall not occur before the date of final account value.
005.04 Distribution Amount
005.04(a) Distribution of a refund or termination benefit to a cash balance member or a beneficiary of a cash balance member shall comprise the entire account balance the member is entitled to as determined on the date of final account value.
005.04(b) Distribution of a refund or termination benefit to a defined contribution member or the beneficiary of a defined contribution member may include all or a portion of the member’s account balance.
005.05 If a member returns to employment and is subject to participation in the plan from which the member has taken a refund or termination benefit within 120 days of the date of termination, then the member shall repay the entire gross amount of the refund or termination benefit received. Payment shall be made as soon after returning to work as is practicable and within two (2) years of returning to employment. If the Director determines repayment within two (2) years will create a hardship for the member, then such repayment shall be completed within four (4) years of returning to employment.
006 Required Distributions
In each of the plans identified in section 001 above, the distribution requirements enacted pursuant to the Required Minimum Distribution provisions of 26 United States Code 401(a)(9), federal regulations promulgated under that statute, and Title 303 Nebraska Administrative Code Chapter 24 rules shall apply, unless provisions of the plan impose more restrictive distribution requirements.
007 Distributions to U.S. Citizens Living Abroad
Members who are United States citizens living abroad or green card holders living abroad are unable to reject income tax withholding from their refund or termination benefit distributions.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 23-2305.01, 23-2323.02, 24-704.01, 24-710.05, 79-904.01, 79-933.01, 81-2019.01, 81-2031.03, 84-1305.02, 84-1312, and 84-1503.
History
- Effective 2013-12-07
Chapter 5 Evidence to Determine Age and Status
Neb. Admin. Code tit. 303, ch. 5 Evidence to Determine Age and Status {#sec-303-nac-5 omnilex-key=us-ne-regs-official--title-303--303 NAC 5}
001 Scope of the Rule
001.01 This rule governs the types of proof acceptable to determine age, death, marital relationships, and parental relationships for members and beneficiaries in the retirement systems under the administration of the Nebraska Public Employees Retirement Systems (NPERS). The systems to which this rule applies include: the Retirement System for Nebraska Counties, the Judges Retirement System, the School Employees Retirement System, the State Patrol Retirement System, the State Employees Retirement System, and the Deferred Compensation Plan.
001.02 If, under the respective retirement systems, proof of age, proof of death, proof of marital status or proof of parental relationship is required in order to properly distribute benefits to a member or the beneficiary of a member, this rule shall govern the types of proof necessary to establish such factual determinations.
002 Proof of Age
002.01 Preferred Evidence of Age:
002.01(a) A birth certificate recorded before age 5;
002.01(b) A religious record of birth or baptism recorded before age 5;
002.01(c) Notification of registration of birth made before age 5; or
002.01(d) A delayed birth certificate.
002.02 Other evidence of age: if an individual cannot obtain preferred evidence of age, he or she may submit other convincing evidence of age. The other evidence may be one or more of the following records:
002.02(a) Hospital birth record or certificate.
002.02(b) Physician’s or midwife’s birth records.
002.02(c) Bible or other family record.
002.02(d) Naturalization record.
002.02(e) Military record.
002.02(f) Immigration record.
002.02(g) Passport.
002.02(h) Selective service registration record.
002.02(i) Employer‘s record.
002.02(j) Marriage record.
002.02(k) A certified death certificate.
002.02(l) A beneficiary form.
002.02(m) A statement signed by the individual giving the reason why he or she cannot obtain other convincing evidence of age and the sworn statements of two other persons who have personal knowledge of the age of the individual.
003 Proof of Death
003.01 Preferred Evidence of Death
003.01(a) A copy of or extract from the public record of death, or verdict of the coroner's jury of the state or community where the death occurred; or a certificate or statement of death issued by a local registrar or public health official;
003.01(b) A signed statement of the funeral director, attending physician, or official of an institution where death occurred;
003.01(c) A copy of, or extract from, an official report or finding of death made by an agency or department of the United States or any state; or
003.01(d) If death occurred outside the United States, an official report of death by a United States Consul or other authorized employee of the United States Department of State, or a certified copy of the public record of death in a foreign country.
003.02 Other Evidence of Death
If the preferred evidence of death cannot be obtained, the individual who must furnish evidence of death will be asked to explain the reason thereof and to submit other convincing evidence, such as sworn statements of at least two persons who have personal knowledge of the death. These persons must be able to swear to the date, time, place, and cause of death.
004 Proof of Valid Marriage
004.01 Preferred Evidence of Marriage
004.01(a) A copy of the public record of the marriage, certified by the custodian of the record or by an NPERS employee;
004.01(b) A copy of a religious record of the marriage certified by the custodian of the record or by an NPERS employee; or
004.01(c) The original certificate of marriage.
004.02 Other evidence of a marriage. If preferred evidence of a marriage cannot be obtained, the applicant must state the reason therefore on forms prescribed by NPERS, and submit:
004.02(a) A sworn statement of the clergy or official who performed the marriage ceremony; or
004.02(b) Other convincing evidence, such as the sworn statements or at least two persons who have direct knowledge of the marriage, preferably eyewitnesses to the marriage ceremony.
005 Proof that Marriage Has Ended
005.01 Preferred evidence
005.01(a) A certified copy of the decree of divorce or annulment; or
005.01(b) Evidence of the death (see subsection 003 of this section) of a party to the marriage.
005.02 Other evidence that a marriage has ended. If the preferred evidence that a marriage has ended cannot be obtained, the member or beneficiary must explain the reason therefore and submit other convincing evidence that the marriage has ended.
006 Proof of Parental Relationship
006.01 Evidence of a natural parent-child relationships
006.01(a) Preferred evidence. If a member or beneficiary is the natural parent or child of a member, preferred evidence of the relationship is a copy of the member's or child's public or religious birth record made before the child was five (5) years of age.
006.01(b) Other evidence. When the preferred evidence of a parent-child relationship cannot be obtained, NPERS may ask the applicant for evidence of one of the following:
006.01(b)(i) Evidence of the member's marriage or of the marriage of the member's parents, if needed to remove any reasonable doubt of the relationship;
006.01(b)(ii) Evidence that the person claiming to be a child of the presumed parent would be able to inherit under intestate succession laws of the state where the death occurred (or in which the presumed parent had a permanent home); or
006.01(b)(iii) A signed statement from the presumed parent that the person in question is his or her natural child
006.01(b)(iv) A copy of a court order showing that the person in question has been declared to be the child of the presumed parent, or a copy of a court order requiring the presumed parent in question to contribute to the support of the person in question because such person is his or her child,
006.01(b)(v). Or other such supporting evidence as may be required in order to establish the parent/child relationship.
006.02 Evidence of a stepparent/stepchild relationship: NPERS may require evidence by means of the measures as specified in 005.01 or 005.02 of this rule to show a child's relationship (natural or adoptive) with the spouse of the presumed stepparent and that a valid marriage existed between the presumed stepparent and the spouse.
006.03 Evidence of a parent-child relationship by legal adoption:
006.03(a) Preferred evidence of legal adoption includes:
006.03(a)(i) A copy of the decree or order of adoption, certified by the custodian of the record;
006.03(a)(ii) A photocopy of the decree or order of adoption; or
006.03(a)(iii) Evidence that the spouse of a decedent adopted the children of the decedent after the decedent's death, as specified in the above two subsections.
006.03(b) Other evidence of legal adoption: In the event that the record of adoption is sealed by court order or by law, NPERS will accept as proof of adoption an official notice received by the adopting parents at the time of adoption that the adoption has been completed or a birth certificate issued as a result of the adoption proceeding.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 23-2305, 24-704, 79-904, 81-2019, 84-1305, and 84-1503.
History
- Effective 2012-11-12
Chapter 9 Missing or Unresponsive Participants and Beneficiaries
Neb. Admin. Code tit. 303, ch. 9 Missing or Unresponsive Participants and Beneficiaries {#sec-303-nac-9 omnilex-key=us-ne-regs-official--title-303--303 NAC 9}
001 Scope of the Rule
001.01 This rule and regulation governs the procedures for locating missing participants and beneficiaries, the timing of such search methods, and the distribution of unclaimed benefits to missing or unresponsive participants in the Retirement System for Nebraska Counties (County plan), the Judges Retirement System (Judges plan), the School Employees Retirement System (School plan), the State Patrol Retirement System (Patrol plan), and the State Employees Retirement System (State plan).
001.02 Qualified plans under the Internal Revenue Code (IRC) § 401(a) have a duty to make reasonable efforts to locate missing participants when a minimum distribution is required to be paid in IRC § 401(a)(9). In addition under its fiduciary duty outlined in Neb. Rev. Stat. § 84-1503.02, the Public Employees Retirement Board has a duty to make reasonable efforts to locate missing participants and implement rules and regulations for administering benefits for missing or unresponsive participants and beneficiaries.
002 Definitions
002.01 “Director” means the director of NPERS, which is identified in Neb. Rev. Stat. § 84-1503.03.
002.02 “Employer” means: (a) the State of Nebraska for the Judges Plan, the State Patrol Plan, and the State Plan; (b) an employer covered by the School Employees Retirement Act for the School Plan; and, (c) a county employer covered by the County Employees Retirement Act for the County Plan.
002.03 ‘‘Missing participants’’ are participants who NPERS or a covered employer cannot contact because they have moved and left no forwarding address.
002.04 “NPERS” means the Nebraska Public Employees Retirement Systems, which is the agency for the administration of the retirement systems and under the direction of the Public Employees Retirement Board, identified in Neb. Rev. Stat. § 84-1503(1)(a).
002.05 “Participant” means a member, a beneficiary, or an alternate payee participating in a retirement system identified in Neb. Rev. Stat. § 84-1503(1)(a) or the deferred compensation plan identified in § 84-1504.
002.06 ‘‘Unresponsive participants’’ means participants who do not respond to NPERS’s notices, communications, or other disclosures.
003 Methods for Locating Missing or Unresponsive Participants
003.01 Prior to NPERS making a determination that a participant is missing, NPERS will have used routine methods of delivering notice to participants, such as first-class mail or electronic notification.
003.02 If the methods identified in subsection 003.01 fail to obtain the information necessary for a distribution or NPERS has reason to believe that a participant has failed to inform the agency of a change in address, then the participant will be considered missing and NPERS may undertake one or more of the following steps and procedures to locate a missing participant:
(a) certified mail;
(b) checking related plan records;
(c) checking with the designated plan beneficiary;
(d) using a letter forwarding service;
(e) Internet search tools;
(f) commercial locator services;
(g) credit reporting agencies; and,
(h) other reasonable search methods as determined by the Director.
003.03 NPERS is not obligated to take each of the steps listed in subsection 003.02 if one or more of the search methods are unsuccessful in locating a missing participant.
003.04 An unresponsive participant will be considered missing by NPERS if there is no knowledge on the part of NPERS that the participant is intentionally choosing to disregard the attempted notices or other disclosures sent by NPERS to the participant’s last known residential or email addresses. NPERS staff may verify the intentions of the participant by attempting to contact the participant by phone call.
004 Cost of Search Methods
004.01 The costs of using the search services described in 003.02 may be administratively charged to the missing participant’s account. Such costs, if assessed, shall include reasonable charges associated with the search methods utilized.
004.02 The Director will consider the size of a missing participant’s account balance in relation to the costs of the search method utilized when deciding whether the use of such services are appropriate. If the cost of a search method utilized is (a) less than $200 and (b) less than 10% of a missing participant’s account balance, then such cost may be considered by the Director as a reasonable expense in locating the missing participant.
004.03 Some search methods described in 003.02 involve a nominal expense and because there is a significant potential for effectiveness in locating the missing participant, NPERS will utilize such search methods, regardless of the size of the missing participant’s account balance, or reasonableness limits described in subsection 004.02.
005 Timing of Search Methods
005.01 Once a participant has been determined to be missing after routine methods of delivering notice have been undertaken in subsection 003.01, NPERS will within ninety (90) days after making such determination begin a formal search process, and implement the search methods in subsection 003.02.
005.02 The formal search process will consist of NPERS staff undertaking the search methods in subsection 003.02 based upon the likelihood of success for each method utilized. NPERS will determine the order and frequency in which each method is used. This determination will take into consideration the known information regarding the each missing participant, including but not limited to the following:
(a) last known address or residence;
(b) date of last known correspondence from the participant;
(c) information about relatives and beneficiaries;
(d) employment information;
(e) court records; and,
(f) any other information known to NPERS or transmitted by an employer to NPERS.
005.03 At least once every twelve (12) months, NPERS should undertake one or more of the methods listed in subsection 003.02 during a formal search process.
005.04 The formal search process will continue until property held by NPERS for the benefit of the participant is presumed abandoned in accordance with subsection 007.01.
006 Uncashed Checks or Returned Electronic Fund Transfers
006.01 Upon the return of an uncashed check or returned electronic fund transfer (EFT), NPERS shall perform due diligence in determining why the check or EFT was returned or uncashed. NPERS will make a reasonable attempt to reconcile the issue causing the check or EFT to be returned or uncashed.
006.02 If it is determined by NPERS that the attempted recipient of the check or EFT is missing, then NPERS shall undertake the search methods described in section 003 in order to locate the participant and effectuate the payment.
007 Distributing Unclaimed Benefits
007.01 Pursuant to Neb. Rev. Stat. § 69-1307.03, all distributions held in a retirement plan administered by NPERS, which has not been paid or distributed for more than thirty (30) days after the earliest of the following: (a) the actual date of distribution or attempted distribution; (b) the date contracted for distribution in the plan; or (c) the date specified in the internal revenue law of the United States by which distribution must begin in order to avoid a tax penalty, is presumed abandoned unless the participant within the five (5) years preceding any such date has made additional contributions or transfers of funds to plan, was paid or received a distribution, communicated concerning the retirement account, or otherwise indicated an interest as evidenced by a memorandum or other record on file with NPERS.
007.02 Pursuant to Neb. Rev. Stat. § 69-1310, NPERS shall report to the State Treasurer property presumed abandoned as indentified in subsection 007.01. The report shall be filed before November 1st of each year as of June 30th next preceding, The property must accompany the report unless excused by the State Treasurer for good cause. The report shall be verified by NPERS and shall include:
(a) the name, if known, and last-known address, if any, of each missing participant from NPERS’ records to be the owner of any property presumed abandoned;
(b) the identifying number, if any, or description of the property and the amount appearing from the records to be owed to the participant, except that items of less than twenty-five ($25) dollars may be reported in the aggregate;
(c) The date when the property became payable, demandable, or returnable, and the date of the last transaction with the participant with respect to the property; and,
(d) Other information which the State Treasurer may prescribe by rule.
007.03 If NPERS knows the whereabouts of a previously determined missing participant, NPERS shall, before filing the annual report in subsection 007.02, communicate with the participant and take necessary steps to prevent abandonment from being presumed. NPERS shall exercise due diligence to ascertain the whereabouts of the missing participant.
007.04 NPERS shall pay or deliver to the State Treasurer all abandoned property specified in the report described in subsection 007.02, except that, if the participant establishes his right to receive the abandoned property to the satisfaction of NPERS within the time specified in Neb. Rev. Stat. § 69-1311, or if it appears that for some other reason the presumption of abandonment is erroneous, then NPERS need not pay or deliver the property, which will no longer be presumed abandoned, to the State Treasurer, but in lieu thereof NPERS shall file a verified written explanation of the proof of claim or of the error in the presumption of abandonment.
007.05 Once the abandoned property has been paid or delivered by NPERS to the State Treasurer, NPERS will no longer be responsible for returning the participant’s abandoned property to the participant.
ENABLING LEGISLATION:
NEB. REV. STAT. § 84-1503.
History
- Effective 2012-12-08
Chapter 10 Modification of School Creditable Service
Neb. Admin. Code tit. 303, ch. 10 Modification of School Creditable Service {#sec-303-nac-10 omnilex-key=us-ne-regs-official--title-303--303 NAC 10}
001 Scope of the Rule
This rule covers provisions of the School Employees Retirement Act in Neb. Rev. Stat. § 79-907, requiring the Nebraska Public Employees Retirement Systems (‘NPERS’) under the direction of the Public Employees Retirement Board (‘Board’), to set rules and regulations for a member to make a request for a modification or correction of the creditable service reported on their statement of information, and sent by first class mail at least every two years to each member in the School Employees Retirement System.
002 Creditable Service Statement and Request for Modification
002.01 Every two years, the retirement board shall send to each contributing member of the school employees retirement system by first-class mail, a statement of creditable service, reported salary, and other such information as is determined by the Director of NPERS to be necessary in calculating the member's retirement benefit.
002.02 If the member requests a modification or correction of his or her statement, the member shall make such request on forms created by NPERS. The member may provide additional documentation to the Director supporting such modification or correction and provide clear and convincing evidence that the statement is in error.
003 Determination for Modification
003.01 The Director shall, within sixty (60) days after receipt of the request and documentation supporting the modification or correction, determine whether the member has proven by clear and convincing evidence that the statement shall be modified or corrected, and notify the member of his or her decision.
003.02 The Director shall consider the documentation sent by the member and the records maintained by NPERS. If the Director determines that the member has provided clear and convincing evidence, the Director shall modify or correct the statement. If the Director determines that the member has not provided clear and convincing evidence, the Director shall deny the modification or correction.
004 Failure to Make Timely Request
004.01 If the member does not make a request in subsection 002.02 and provide documentation within ninety (90) days following the mailing of the letter described in subsection 002.01, the member shall be deemed to have waived his or her request for a modification or correction provided in Neb. Rev. Stat. § 79-907(1)(b).
004.02 The Board has an ongoing fiduciary duty to modify or correct a member's statement if the Board discovers an error in the information it has on record. A modification or correction shall be made within sixty (60) days after the error is brought to the attention of the Director or the Board.
005 Appealing Director’s Determination
If the member wishes to appeal the Director’s determination to the Board, the member shall have thirty (30) days from the date of the Director’s determination to appeal the matter to the Board, pursuant to Neb. Rev. Stat. § 79-950 and Title 303, Chapter 12 of the Nebraska Administrative Code. Appeals from the Board’s decision shall be made pursuant to the Administrative Procedures Act.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 79-907 and 84-1503.
History
- Effective 2012-11-25
Chapter 11 Service Credit
Neb. Admin. Code tit. 303, ch. 11 Service Credit {#sec-303-nac-11 omnilex-key=us-ne-regs-official--title-303--303 NAC 11}
001 Scope of the Rule
This rule shall govern how service credit determinations are made for members of the Judges Retirement System, School Employees Retirement System, and the State Patrol Retirement System who provide compensated services in any fiscal year.
002 School Employees Service Credit Determination
002.01 Prior to July 1, 1986, at least one hundred twenty (120) full time days of service in a fiscal year shall be the equivalent of one year of service credit. Incremental service credit of one-half year of service credit is earned if a member worked at least one hundred twenty (120) days on a one-half time basis or sixty (60) days on a full time basis. Incremental service credit of less than one year can be earned based upon the number of compensated full time days worked during the period between one-half year to one full year of service, and the member shall be credited with one one-hundred twentieths of a year’s service credit for each full time day worked during such period provided the member worked on or after February 13, 1986. If the member did not work on or after February 13, 1986, then the member will not receive any incremental service credit of less than one-half year of service under this subsection.
002.02 Commencing July 1, 1986, and through June 30, 2002, one thousand thirty-two (1,032) hours in one fiscal year shall be the equivalent of one year of service credit. For each fiscal year during which the member provides fewer than one thousand (1,032) hours of compensated service, the member shall be credited with one one-thousand thirty-seconds of a year’s service credit for each hour worked. One-half year of service credit is earned if a member worked 516 hours. If a member worked more than 516 hours but less than 1,032 hours, the service credit received is the exact proportion worked. In order to receive any credit at all, a member must have worked a minimum of 516 hours.
002.03 Commencing July 1, 2002, one thousand (1,000) hours or more of compensated service in one fiscal year shall be the equivalent of one year of service credit. For each fiscal year during which the member provides fewer than one thousand (1,000) hours of compensated service, the member shall be credited with one one-thousandth of a year’s service credit for each hour worked.
002.04 In no case shall more than one year of service be credited during a fiscal year.
003 Judges and State Patrol Employees Service Credit Determination
003.01 Each member shall receive one year of service credit on the anniversary of the member’s participation date.
003.02 If a member terminates employment on a date other than on the anniversary of the member’s participation date, a partial year service credit equal to the number of completed months of service after the immediately previous anniversary of the member’s participation date divided by 12 shall be granted.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 24-704, 24-704.04, 79-904, 79-907, 79-924, 79-926, 79-927, 79-928, 79-933.03, 79-933.04, 79-933.07, 81-2019, 81-2034, and 84-1503.
History
- Effective 2012-04-28
Chapter 12 Appeal of Board Actions and Decisions
Neb. Admin. Code tit. 303, ch. 12 Appeal of Board Actions and Decisions {#sec-303-nac-12 omnilex-key=us-ne-regs-official--title-303--303 NAC 12}
001 Scope of the Rule :
Pursuant to Neb. Rev. Stat. §§ 23-2305.01, 24-704.01, 79-904.01, 79-950, 81-2019.01, 84-1305.02, 84-1503, and the Administrative Procedures Act, these rules apply to the initiation and procedure regarding contested cases heard before the Public Employees Retirement Board.
002 Definitions . For purposes of this rule, the following definitions apply.
002.01 Agency means the Nebraska Public Employees Retirement Systems Agency.
002.02 Contested case means the proceeding in which the legal rights, duties or privileges of specific parties are required by law or constitutional right to be determined after an agency hearing.
002.03 Board means the Public Employees Retirement Board.
002.04 Director means the Director of the Nebraska Public Employees Retirement Systems Agency.
002.05 Ex Parte Communications means an oral or written communication which is not on the record in a contested case with respect to which reasonable notice to all parties was not given. Ex parte communications shall not include:
002.05(a) Communications which do not pertain to the merits of a contested case;
002.05(b) Communications required for the disposition of ex parte matters as authorized by law;
002.05(c) Communications in a ratemaking or rulemaking proceeding; and
002.05(d) Communications to which all parties have given consent.
002.06 Hearing Officer means the person or persons conducting a contested case, or contested case as designated by the Director, or a member of the Board, if the Board is present at a hearing.
002.07 Party means the person by or against whom a contested case is brought or a person allowed to intervene in a contested case.
002.08 Formal Hearing means a hearing in which the agency is bound by the rules of evidence applicable in district court.
003 Pleadings :
003.01 All pleadings shall be made on white, letter-sized (8½ x 11) paper and shall be legibly typewritten, photostatically reproduced, printed, or handwritten. If handwritten, pleadings shall be submitted on forms provided by the Agency, and shall be written in blue or black ink.
003.02 All pleadings shall be filed with the Agency at its official office. Filings may be accomplished by personal delivery or U.S. mail and may only be received during regular office hours of the Agency. Upon good cause shown, the Director may allow pleadings to be submitted by telefacsimile (fax).
003.03 Pleadings in a contested case shall include a petition and answer, and may include a reply, notice, motion, stipulation, objection or order or other formal written document filed in a proceeding before the Agency and/or a Hearing Officer.
003.04 All pleadings shall meet the requirements of these rules to be made a part of the record of a contested case.
003.05 All pleadings subsequent to the initial petition shall be served by the party filing such pleading upon all attorneys of record or representatives of record and upon all unrepresented parties. Service shall be made personally or by first-class or certified mail. Written proof of such service shall be filed with the Agency.
004 Initiation of the Contested Case :
004.01 Any initiation of a contested case shall not be perfected until a member or other aggrieved party has secured a written document signed by the Chairperson of the Board or the Director regarding the matter in question, which document shall constitute a decision or action of the Board from which a contested case appeal is allowed under statute.
004.01(a) It shall be the duty of the Director or Chairperson of the Board to decide the matter and issue such documents for purposes of perfecting an appeal and contested case.
004.01(b) The document shall be personally served on the member or aggrieved party, or shall be sent by certified mail, return receipt requested, to the member or aggrieved party.
004.02 Any person who disputes an action or a benefit or payment adjustment of the Board or deems himself or herself to have been aggrieved by an action or decision of the board may appeal the action or decision and request a hearing by filing a Petition with the Board not later than thirty (30) days after such official action or decision has been taken by the Board. The thirty (30) days shall commence on the date of service of the document.
004.03 The Agency shall serve a copy of the petition on each respondent listed in the petition personally or by first-class or certified mail. Written proof of such service shall be filed with the agency.
004.04 The petition shall include the following:
004.04(a) A heading specifying the name of the agency, the nature of the pleading, the name and address of the petitioner and the petitioner’s retirement number.
004.04(b) A separate identification and quotation of each of the decisions or actions of the Board complained of, and the exceptions and contentions of the petitioner thereon. A copy of each document that constitutes a decision or action of the Board complained of shall be attached to the petition.
004.04(c) A brief recitation of the facts out of which the petitioner’s petition arises and any substantial conflict in the evidence as to any fact involved.
004.04(d) A concise statement of the action the Board is being requested to take.
004.04(e) A statement as to whether the aggrieved party requests a formal or an informal hearing on the matter.
004.04(f) The petition shall be signed by the petitioner and the petitioner’s attorney, if the petitioner is represented by counsel.
004.05 Notwithstanding the procedures set forth in these regulations for contested cases, an evidentiary hearing is not required;
004.05(a) If there are no issues of material fact;
004.05(b) If an application for any form of benefit cannot be granted because it contains information showing on its face that the applicant does not meet statutory requirements for a benefit;
004.05(c) If an application for benefits is denied, or an approval revoked solely for failure to submit a complete information or other submission that is required as a condition for approval or continuing approval of a benefit;
004.05(d) If a petition for an appeal is received after the time for filing the appeal has expired so that a decision has become final.
005 Setting the Matter for Hearing :
005.01 Not later than thirty (30) days after the Director has received the petition, the Director shall appoint a Hearing Officer to conduct a prehearing conference and a hearing and to submit to the Board a recommended decision. If the Director determines that the matter is one of significance and that it is a matter on which Board guidance is needed, the Director may alternatively appoint a Board member as hearing officer and the hearing shall be conducted before the Board.
005.02 The Hearing Officer shall not be:
005.02(a) A person who has served as investigator, prosecutor, or advocate in the contested case or its prehearing stage, nor may the hearing officer be advised or assisted by such a person;
005.02(b) A person who is subject to the authority, direction, or discretion of a person described in subsection 005.02(a).
005.02(c) If all parties consent, a person as described in subsections 005.02(a) or 005.02(b) may assist the hearing officer in the preparation of orders in the contested case.
005.02(d) A person who has participated in a determination of probable cause or other equivalent preliminary determination in a contested case may serve as hearing officer or assist or advise a hearing officer in the same proceeding.
005.02(e) A person may serve as hearing officer at successive stages of the same contested case.
005.03 Prehearing Procedures
005.03(a) Answer.
005.03(a)(i) The Agency shall file an answer to the issues of fact and law raised in the petition within forty-five (45) days after the receipt of the petition.
005.03(a)(ii) The Agency shall serve the answer on all parties and the Hearing Officer personally or by first-class or certified mail.
005.03(b) Prehearing conferences and orders. A hearing officer designated to conduct a hearing may determine, pursuant to these rules, whether a prehearing conference will be conducted. After such a prehearing or if a prehearing conference is not held, the hearing officer shall issue a prehearing order, based on the pleadings, to regulate the conduct of the proceedings.
005.03(c) If a prehearing conference is conducted:
005.03(c)(i) The hearing officer shall promptly notify the agency of the determination that a prehearing conference will be conducted. The agency may assign another hearing officer for the prehearing conference, and;
005.03(c)(ii) The hearing officer for the prehearing conference shall set the time and place of the conference and give reasonable written notice to all parties and to all persons who have filed written petitions to intervene in the matter. The agency shall give notice to other persons entitled to notice.
005.03(c)(iii) The notice referred to in subsection 005.03(c)(ii) shall include the following:
005.03(c)(iii)(A) The names and mailing addresses of all parties and other persons to whom notice is being given by the hearing officer;
005.03(c)(iii)(B) The name, official title, mailing address, and telephone number of every counsel or employee who has been designated to appear for the agency;
005.03(c)(iii)(C) The official file or retirement number, the name of the proceeding, and a general description of the subject matter;
005.03(c)(iii)(D) A statement of the time, place, and nature of the prehearing conference;
005.03(c)(iii)(E) A statement of the legal authority and jurisdiction under which the prehearing conference and the hearing are to be held;
005.03(c)(iii)(F) The name, official title, mailing address, and telephone number of the hearing officer for the prehearing conference;
005.03(c)(iii)(G) A statement that a party who fails to attend or participate in a prehearing conference, hearing, or other stage of a contested case or who fails to make a good faith effort to comply with a prehearing order may be held in default under the Administrative Procedures Act; and
005.03(c)(iii)(H) Any other matters that the hearing officer considers desirable.
005.03(d) The hearing officer shall conduct a prehearing conference, as may be appropriate, to deal with such matters as exploration of settlement possibilities, preparation of stipulations, clarification of issues, rulings on identity and limitation of the number of witnesses, objections to proffers of evidence, determination of the extent to which direct evidence, rebuttal evidence or cross-examination will be presented in written form and the extent to which telephone, televisions, or other electronic means will be used as a substitute for proceedings in person, or of presentation of evidence and cross-examination, rulings regarding issuance of subpoenas, discovery orders, and protective orders, and such other matters as will promote the orderly and prompts conduct of the hearing. The hearing officer shall issue a prehearing order incorporating the matters determined at the prehearing conference.
005.03(e) The hearing officer may conduct all or part of the prehearing conference by telephone, television, or other electronic means if each participant in the conference has an opportunity to participate in, to hear, and, if technically feasible, to see the entire proceedings while it is taking place.
005.04 Discovery in Contested Cases
005.04(a) The hearing officer or a designee, at the request of any party or upon the hearing officer’s own motion, may issue subpoenas, discovery orders, and protective orders in accordance with the rules of civil procedure, except as may otherwise be prescribed by law. Subpoenas and orders issued under this subsection may be enforced by the district court.
005.04(b) Any prehearing motion to compel discovery, motion to quash, motion for protective order or other discovery-related motion shall:
005.04(b)(i) Quote the interrogatory, request, question, or subpoena at issue, or be accompanied by a copy of the interrogatory, request, subpoena or excerpt of a deposition.
005.04(b)(ii) State the reasons supporting the motion;
005.04(b)(iii) Be accompanied by a statement setting forth the steps or efforts made by the moving party or his or her counsel to resolve by agreement the issues raised and a statement that agreement has not been achieved; and
005.04(b)(iv) Be filed with the agency. The moving party shall serve copies of all such motions to all parties to the contested case.
005.04(c) Other than as it is provided in subsection 005.04(b), discovery materials may be provided to the agency at the discretion of the hearing officer.
005.05 Continuances: The hearing officer may, in his or her discretion, grant extensions of time or continuances of hearings upon the hearing officer’s own motion or at the timely request of any party for good cause shown. A party shall file a written motion for continuance that states in detail the reasons why a continuance is necessary and serve a copy of the motion on all other parties.
005.05(a) Good cause: Good cause for an extension of time or continuance may include, but is not limited to the following:
005.05(a)(i) Illness of the Party, legal counsel or witness;
005.05(a)(ii) A change in legal representation; or
005.05(a)(iii) Continuing good-faith settlement negotiations.
005.06 Informal Disposition: Unless otherwise precluded by law, informal disposition may be made of any contested case by stipulation, agreed settlement, consent order, or default by any party.
006 Conducting Hearing in a contested case .
006.01 Determination of hearing formality: The hearing officer shall consult the parties and thereafter determine whether disposition shall be by a formal hearing, or whether informal disposition of the matter is appropriate. If the hearing officer determines that a formal disposition is required the parties request it, or one or more of the parties request it, this section shall govern the hearing.
006.02 Order: If required pursuant to 006.01, the hearing shall be conducted in the following order:
006.02(a) The hearing is called to order by the hearing officer. Any preliminary motions, stipulations, or agreed orders are entertained.
006.02(b) Each party may be permitted to make an opening statement. Opening statements take place in the same order as the presentation of evidence.
006.02(c) Presentation of evidence.
006.02(c)(i) Evidence will be received in the following order:
006.02(c)(i)(A) Evidence is presented by the petitioner;
006.02(c)(i)(B) Evidence is presented by the Agency or respondent;
006.02(c)(i)(C) Rebuttal evidence is presented by the petitioner; and
006.02(c)(i)(D) Surrebuttal evidence is presented by the Agency or respondent.
006.02(c)(ii) With regard to each witness who testifies, the following examination may be conducted;
006.02(c)(ii)(A) Direct examination by the party who calls the witness;
006.02(c)(ii)(B) Cross-examination by the opposing party;
006.02(c)(ii)(C) Redirect examination by the party who called the witness; and
006.02(c)(ii)(D) Recross-examination by the opposing party.
006.02(d) After the evidence is presented, each party may have opportunity to make a closing argument. Closing arguments shall be made in the same order as the presentation of evidence. The hearing officer may request that the parties submit briefs in lieu of closing arguments.
006.03 Evidence
006.03(a) In contested cases, the hearing officer may admit and give to evidence which possesses probative value commonly accepted by reasonably prudent persons in the conduct of their affairs and may exclude incompetent, irrelevant, immaterial and unduly repetitious evidence.
006.03(b) Any party to a hearing conducted pursuant to this section, from which a decision may be appealed to the courts of this state, may request that the agency and hearing be bound by the rules of evidence applicable in district court by delivering to the agency at least three days prior to the holding of the hearing a written request therefore. If the request is made, the hearing officer shall grant it as a matter of right, and the hearing officer shall conduct the hearing under the rules of evidence applicable in district court. Such request shall include the requesting party’s agreement to be liable for the payment of costs incurred thereby and upon any appeal or review thereof, including the cost of court reporting services which the requesting party shall procure for the hearing.
006.03(c) Documentary evidence may be received in the form of copies or excerpts or incorporated by reference.
006.03(d) All evidence including records and documents in the possession of the agency of which it desires to avail itself shall be offered and made a part of the record in the case. No factual information or evidence other than the record shall be considered in the determination of the case.
006.03(e) A hearing officer or designee may administer oaths and issue subpoenas in accordance with the rules of civil procedure except as may otherwise be prescribed by law. Subpoenas and orders issued under this subsection may be enforced by the district court.
006.03(f) The agency shall give effect to the rules of privilege recognized by law.
006.03(g) An agency may take official notice of cognizable facts and in addition may take official notice of general, technical, or scientific facts within its specialized knowledge and the rules and regulations adopted and promulgated by such agency.
006.03(g)(i) Parties shall be notified either before or during the hearing or by references in preliminary reports, or otherwise, of the materials so noticed by the agency.
006.03(g)(ii) Parties shall be afforded an opportunity to contest facts so noticed.
006.03(g)(iii) The record shall contain a written record of everything officially noticed.
006.03(h) An agency may utilize its experience, technical competence and specialized knowledge in the evaluation of the evidence presented to it.
006.04 Conducting the hearing by electronic means. The hearing officer may conduct all or a part of the hearing by telephone, television, or other electronic means if each participant in the hearing has an opportunity to participate in, to hear, and if technically feasible, to see the entire proceeding while it is taking place.
006.05 Official Record.
006.05(a) The agency shall prepare an official record, which shall include testimony and exhibits, in each contested case, but it shall not be necessary to transcribe the record of the proceedings unless requested for purpose of rehearing, reference to the Board, or appeal pursuant to the Administrative Appeals Act. If these events occur, the transcript and record shall be furnished by the agency upon request and tender of the cost of preparation.
006.05(b) An agency shall maintain an official record of each contested case under the Administrative Procedure Act for at least four (4) years following the date of the final order.
006.05(c) The agency record shall consist only of the following:
006.05(c)(i) Notices of all proceedings;
006.05(c)(ii) Any pleadings, motions, requests, preliminary or intermediate rulings and orders, and similar correspondence to or from the agency pertaining to the contested case;
006.05(c)(iii) The record of the hearing before the agency, including all exhibits and evidence introduced during such hearing, a statement of matters officially noticed by the agency during the proceeding, and all proffers of proof and objections and rulings thereon; and
006.05(c)(iv) The final order, as adopted by the Board.
006.05(d) As provided in 53 NAC 4, Section 002.03, the hearing officer or the director or employee who is or reasonably may be expected to be involved in the decision-making process of the contested case who receives or who makes or knowingly causes to be made an ex parte communication as set for in that subsection shall make the appropriate filings which shall be included in the official record of the contested case.
006.05(e) Except to the extent that the Administrative Procedure Act or another statute provides otherwise, the agency record shall constitute the exclusive basis for agency action in contested cases under the act and for judicial review thereof.
006.06 Costs. All costs of a formal hearing shall be paid by the party or parties against whom a final decision is rendered.
007 Decision and Order in a Contested Case
007.01 Requirement for a Finding of Fact and Conclusions of Law. Every decision and order and order adverse to a party to the proceedings rendered by the Board on recommendation of the Hearing Officer shall be in writing or stated in the record and shall be accompanied by a “findings of fact and conclusions of law,” prepared by the Hearing Officer.
007.02 The decision and order shall include:
007.02 (a) The name of the agency and the name of the proceeding;
007.02 (b) The time and place of the hearing;
007.02 (c) The names of all parties or their attorneys who entered an appearance at the hearing;
007.02 (d) A “findings of fact” consisting of a concise statement of the conclusions on each contested issue of fact;
007.02 (e) The “conclusions of law” consisting of the application of the controlling law to the facts found, and the legal results arising there from; and
007.02 (f) The “order” consisting of the action taken by the agency as a result of the facts found and the legal conclusions arising there from.
007.03 Notification of Parties. Parties to the proceeding shall be notified of the decision and order in person or by mail. A copy of the decision and order and accompanying findings and conclusions shall be delivered or mailed upon request to each party or his or her attorney of record.
008 Appeals
008.01 Right of Appeal. Any person aggrieved by a final decision of the Board in a contested case is entitled to judicial review under the Administrative Procedure Act or to resort to such other means of review as may be provided by law.
008.02 Manner of Appeal. Parties desiring to appeal a Board decision shall file a petition for review in the district court of Lancaster County within thirty (30) days after the service of the final decision by the Board. The thirty-day (30) period for appeal commences to run from the date of mailing of the notice of order and decision to the parties or their attorneys of record. Service of the petition for review and summons must be made in accordance with Nebraska law.
008.03 Statutes Governing Appeal. Unless otherwise provided by statute, the procedures of Neb. Rev. Stat. § 84-917 govern the procedure for taking an appeal of a Board decision.
009 Prohibition against ex parte communications .
009.01 Prohibition when applicable. The prohibitions found in this section shall apply beginning at the time notice for hearing is given. An agency may designate an earlier time, but such earlier time shall be required to be set forth in the agency’s rules of procedure.
009.02 Prohibitions; to whom applicable.
009.02(a) Parties and public. No party in a contested case or other person outside the agency having an interest in the contested case shall make or knowingly cause to be made an ex parte communication to the hearing officer or to the Director or employee who is or may be reasonably expected to be involved in the decision-making process of the contested case.
009.02(b) Persons in decision-making roles. No hearing officer or the director or employee who is or may be reasonably be expected to be involved in the decision-making process of the contested case shall make or knowingly cause to be made an ex parte communication to any party in a contested case or other person outside the agency having an interest in the contested case.
009.02(c) Investigators. No agency head or employee engaged in the investigation or enforcement of a contested case shall make or knowingly cause to be made an ex parte communication to a hearing officer or agency head or employee who is or may reasonably be expected to be involved in the decision-making process of the contested case.
009.03 Disclosure of contacts. The hearing officer or agency head or employee who is or may be reasonably expected to be involved in the decision-making process of the contested case who receives or who makes or knowingly causes to be made an ex parte communication set forth in subsections 009.01 to 009.03 shall file in the record of the contested case:
009.03(a) All such written communications;
009.03(b) Memoranda stating the substance of all such oral communications; and
009.03(c) All written responses and memoranda stating the substance of all oral responses to all the ex parte communications.
009.03(d) The filing shall be made within two (2) working days of the receipt or making of the ex parte communication. Notice of the filing, with an opportunity to respond, shall be given to all parties of record.
009.03(e) Filing and notice of filing provided under subsection 009.03(d) shall be considered on the record and reasonable notice for purposes of the definition of ex parte communications.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 79-905, 84-909, and 84-1503.
History
- Effective 2012-01-09
Chapter 13 Compensation for Retirement Contributions and Benefits
Neb. Admin. Code tit. 303, ch. 13 Compensation for Retirement Contributions and Benefits {#sec-303-nac-13 omnilex-key=us-ne-regs-official--title-303--303 NAC 13}
001 Scope of the Rule
This rule will apply to the definition of employee compensation subject to retirement contribution for members of the Retirement System for Nebraska Counties (County Plan), the Judges Retirement System (Judges Plan), the School Employees Retirement System (School Plan), the State Patrol Retirement System (Patrol Plan), and the State Employees Retirement System (State Plan). In addition this rule will apply to the definition of compensation in the calculation of benefits in the Judges Plan, School Plan and Patrol Plan.
002 General Definitions
002.01 The definitions provided in Nebraska statutory law for each plan shall apply to the provisions herein as they relate to that plan. In addition to those definitions, the following definitions shall apply:
002.02 Converted into cash payments means, with respect to benefits such as unused leave or employer-paid insurance premiums, an arrangement whereby a member has individually arranged with his or her employer to receive an equivalent amount of cash, in lieu of receipt of the actual benefit.
002.03 Flat salary means a fixed dollar amount provided for in a member’s contract of employment that is paid by the employer to the member with respect to each pay period, which such member may voluntarily choose to receive in cash, apply to insurance premiums, or apply to a plan offered by employer the under the Internal Revenue Code to defer or exclude certain amounts from income, or allocate based on a combination of the foregoing.
002.04 Internal revenue code means the federal internal revenue code of 1986, as further defined pursuant to Neb. Rev. Stat. § 49-801.01.
003 Compensation with respect to the School Plan
003.01 Compensation means gross wages or salaries payable to the member for personal services performed during the plan year and includes (i) overtime pay, (ii) member retirement contributions, (iii) retroactive salary payments paid pursuant to court order, arbitration, or litigation and grievance settlements, (iv) amounts voluntarily contributed at the member’s direction to plans under sections 125, 403(b), and 457 of the Internal Revenue Code or any other section of the code which defers or excludes such amounts from income, (v) flat salary amounts and (vii) other similar amounts, contributions or payments as determined by NPERS based on relevant facts and circumstances.
003.02 Compensation does not include (i) fraudulently obtained amounts as determined by NPERS, (ii) amounts for unused sick leave or unused vacation leave converted to cash payments, whether received directly by the member or mandatorily deposited at the employer’s direction into to plans under sections 125, 403(b), and 457 of the Internal Revenue Code or any other section of the code which defers or excludes such amounts from income, (iii) insurance premiums converted into cash payments, whether received directly by the member or mandatorily deposited at the employer’s direction into to plans under sections 125, 403(b), and 457 of the Internal Revenue Code or any other section of the code which defers or excludes such amounts from income, (iv) reimbursement for expenses incurred by the member, (v) fringe benefits, (vi) per diems paid as expenses, (vii) bonuses for services not actually rendered, including, but not limited to, early retirement inducements, cash awards, and severance pay, (viii) beginning on September 4, 2005, employer contributions made for the purposes of separation payments made at retirement and early retirement inducements as provided for in the School Employees Retirement Act and (ix) other similar amounts, contributions or payments as determined by NPERS based on relevant facts and circumstances.
003.03 For purposes of determining a member’s final average compensation in connection with calculation of such member’s retirement benefit Compensation shall be adjusted as provided in Title 303 NAC, Chapter 14.
004 Compensation with respect to the Judges Plan
Compensation means the statutory salary of a judge or the salary being received by such judge pursuant to law. Compensation does not include compensation for unused sick leave or unused vacation leave converted to cash payments, insurance premiums converted into cash payments, reimbursement for expenses incurred, fringe benefits, per diems, or bonuses for services not actually rendered, including, but not limited to, early retirement inducements, cash awards, and severance pay, except for retroactive salary payments paid pursuant to court order, arbitration, or litigation and grievance settlements. Compensation includes overtime pay, member retirement contributions, and amounts contributed by the member to plans under sections 125 and 457 of the Internal Revenue Code as defined in section 49-801.01 or any other section of the code which defers or excludes such amounts from income
005 Compensation with respect to the Patrol Plan
Compensation means gross wages or salaries payable to the member for personal services performed during the plan year. Compensation does not include insurance premiums converted into cash payments, reimbursement for expenses incurred, fringe benefits, per diems, or bonuses for services not actually rendered, including, but not limited to, early retirement inducements, cash awards, and severance pay, except for retroactive salary payments paid pursuant to court order, arbitration, or litigation and grievance settlements. For any officer employed after January 4, 1979, compensation does not include compensation for unused sick leave or unused vacation leave converted to cash payments. Compensation includes overtime pay, member retirement contributions, and amounts contributed by the member to plans under sections 125 and 457 of the Internal Revenue Code as defined in section 49-801.01 or any other section of the code which defers or excludes such amounts from income.
006 Compensation with respect to the County Plan and the State Plan
006.01 Compensation means gross wages or salaries payable to the member for personal services performed during the plan year and includes (i) overtime pay, (ii) member retirement contributions, (iii) retroactive salary payments paid pursuant to court order, arbitration, or litigation and grievance settlements, and (iv) amounts contributed by the member to plans under sections 125, 403(b), and 457 of the Internal Revenue Code as defined in section 49-801.01 or any other section of the code which defers or excludes such amounts from income.
006.02 Compensation does not include (i) fraudulently obtained amounts as determined by the retirement board, (ii) amounts for unused sick leave or unused vacation leave converted to cash payments, (iii) insurance premiums converted into cash payments, (iv) reimbursement for expenses incurred, (v) fringe benefits, (vi) per diems paid as expenses, (vii) bonuses for services not actually rendered, including, but not limited to, early retirement inducements, cash awards, and severance pay, or (viii) beginning on September 4, 2005, employer contributions made for the purposes of separation payments made at retirement and early retirement inducements as provided for in section 79-514.
007 Internal Revenue Code Limitations
Compensation in excess of the limitations set forth in section 401(a)(17) of the Internal Revenue Code as defined in section 49-801.01 shall be disregarded. For an employee who was a member of the County Plan, the Judges Plan, the School Plan, the Patrol Plan or the State Plan before the first plan year beginning after December 31, 1995, the limitation on compensation shall not be less than the amount which was allowed to be taken into account under the retirement system as in effect on July 1, 1993.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 23-2305, 24-704, 79-904, 81-2019, 84-1305, and 84-1503.
History
- Effective 2013-12-07
Chapter 14 Capping of Retirement Compensation
Neb. Admin. Code tit. 303, ch. 14 Capping of Retirement Compensation {#sec-303-nac-14 omnilex-key=us-ne-regs-official--title-303--303 NAC 14}
001 Scope of the Rule
This rule governs the procedures for applying compensation limits contained in the School Employees Retirement System (School Plan) and Nebraska State Patrol Retirement System (Patrol Plan), and calculating the retirement annuity for the School Plan and Patrol Plan with respect to members who are eligible to receive a retirement benefit.
002 Definitions
002.01 For School Plan members, all terms used in this chapter which are defined in the School Employees Retirement Act, as clarified by the Rules and Regulations promulgated by the PERB, shall be so defined for purposes of this chapter unless the context otherwise clearly requires.
002.02 For Patrol Plan members, all terms used in this chapter which are defined in the Nebraska State Patrol Retirement Act, as clarified by the Rules and Regulations promulgated by the PERB, shall be so defined for purposes of this chapter unless the context otherwise clearly requires.
002.03 “Adjusted Compensation” means an amount equal to the member’s compensation for a plan year during the capping period as modified, if at all, pursuant to the applicable statutory capping provisions and/or 303 NAC § 14-003.02.
002.04 “Base Year” means the plan year immediately preceding the capping period.
002.05 “Board” or “PERB” shall mean the Nebraska Public Employees Retirement Board.
003 Conventions for Calculation of Final Average Compensation or Final Average Monthly Compensation
003.01 DETERMINATION OF 12-MONTH PERIODS.
003.01(a) The calculation of a School Plan member’s final average compensation shall commence by dividing the entirety of the member’s service with all public schools into a succession of 12 month periods, with the last such period ending the month during which the member’s final compensation date occurs.
003.01(b) The calculation of a Patrol Plan member’s final average monthly compensation shall commence by dividing the entirety of the member’s service with the Nebraska State Patrol into a succession of 12 month periods, with the last such period ending the month during which the member’s compensation is paid.
003.01(c) For example, and illustrative purposes only, if a member’s final compensation date occurs during August of a given year, the member’s service shall be divided into a series of the 12-month periods, each of which shall begin with the month of September and end with the month of August.
003.02 ADJUSTMENT OF COMPENSATION RECEIVED DURING THE CAPPING PERIOD. Solely for purposes of calculating a member’s final average compensation or final average monthly compensation, as applicable, the compensation received by a member during the capping period shall be limited by excluding the portion, if any, of such member’s compensation for a plan year that exceeds the member’s compensation for the preceding plan year, as adjusted below, by more than eight percent. The capping period begins with the first year following the base year and ends with the most recent year. Such limitation of compensation during the capping period shall be calculated as follows:
003.02(a) Compensation for the first year of the capping period shall be equal to the lesser of:
003.02(a)(i) the member’s compensation for such year; or
003.02(a)(ii) an amount equal to the member’s compensation for the base year multiplied by 108%.
003.02(a)(iii) This amount is referred to as the member’s adjusted compensation for the first year of the capping period.
003.02(b) Compensation for the second year of the capping period shall be equal to the lesser of:
003.02(b)(i) the member’s compensation for such year; or
003.02(b)(ii) an amount equal to 108% of the lesser of:
003.02(b)(ii)(A) the member’s compensation for the first year of the capping period; or
003.02(b)(ii)(B) the member’s adjusted compensation for the first year of the capping period.
003.02(b)(iii) This amount is referred to as the member’s adjusted compensation for the second year of the capping period.
003.02(c) Compensation for the third year of the capping period shall be equal to the lesser of:
003.02(c)(i) the member’s compensation for such year; or
003.02(c)(ii) an amount equal to 108% of the lesser of:
003.02(c)(ii)(A) the member’s compensation for the second year of the capping period; or
003.02(c)(ii)(B) the member’s adjusted compensation for the second year of the capping period.
003.02(c)(iii) This amount is referred to as the member’s adjusted compensation for the third year of the capping period.
003.02(d) Compensation for the fourth year of the capping period shall be equal to the lesser of:
003.02(d)(i) the member’s compensation for such year; or
003.02(d)(ii) an amount equal to 108% of the lesser of:
003.02(d)(ii)(A) the member’s compensation for the third year of the capping period; or
003.02(d)(ii)(B) the member’s adjusted compensation for the third year of the capping period.
003.02(d)(iii) This amount is referred to as the member’s adjusted compensation for the fourth year of the capping period.
003.02(e) Compensation for the fifth year of the capping period shall be equal to the lesser of:
003.02(e)(i) the member’s compensation for such year; or
003.02(e)(ii) an amount equal to 108% of the lesser of:
003.02(e)(ii)(A) the member’s compensation for the fourth year of the capping period; or
003.02(e)(ii)(B) the member’s adjusted compensation for the fourth year of the capping period.
003.02(b)(iii) This amount is referred to as the member’s adjusted compensation for the fifth year of the capping period.
003.03 COMPUTATION OF FINAL AVERAGE COMPENSATION OR FINAL AVERAGE MONTHLY COMPENSATION. After determining the twelve-month (12-month) periods pursuant to 303 NAC § 14-003.01 and adjusting compensation for the capping period pursuant to 303 NAC § 14-003.02, final average compensation or final average monthly compensation, as applicable, shall be computed as follows:
003.03(a) School Plan Members
003.03(a)(i) For an individual who became a School Plan member before July 1, 2013, and who has thirty-six months of compensation or more, NPERS shall compare all of the 12-month periods during the member’s service to determine the three 12-month periods during which the member’s compensation (including any adjustments pursuant to 303 NAC § 14-003.02) was the greatest. The total amount of such compensation for such three 12-month periods shall be divided by thirty-six. The result of such calculation shall be the member’s final average compensation.
003.03(a)(ii) For an individual who became a School Plan member before July 1, 2013, and who has less than thirty-six months of compensation, the sum of the member’s total compensation in all months of creditable service as a school employee shall be divided by the member’s total number of months of creditable service. The result of such calculation shall be the member’s final average compensation.
003.03(a)(iii) For an individual who became a School Plan member on or after July 1, 2013, and who has sixty months of compensation or more, NPERS shall compare all of the 12-month periods during the member’s service to determine the five 12-month periods during which the member’s compensation (including any adjustments pursuant to 303 NAC § 14-003.02) was the greatest. The total amount of such compensation for such five 12-month periods shall be divided by sixty. The result of such calculation shall be the member’s final average compensation.
003.03(a)(iv) For an individual who became a School Plan member after July 1, 2013, and who has less than sixty months of compensation, the sum of the member’s total compensation in all months of creditable service as a school employee shall be divided by the number of the member’s total months of creditable service. The result of such calculation shall be the member’s final average compensation.
003.03(b) Patrol Plan members
003.03(b)(i) For an individual who became a Patrol Plan member on or after July 1, 2016, and who has sixty months of compensation or more, NPERS shall compare all of the 12-month periods during the member’s service to determine the five 12-month periods during which the member’s compensation (including any adjustments pursuant to 303 NAC § 14-003.02) was the greatest. The total amount of such compensation for such five 12-month periods shall be divided by sixty. The result of such calculation shall be the member’s final average monthly compensation.
003.03(b)(ii) For an individual who became a Patrol Plan member on or after July 1, 2016, and who has less than sixty months of compensation, the sum of the member’s total compensation in all months of creditable service as a member of the Nebraska State Patrol shall be divided by the member’s total number of months of creditable service. The result of such calculation shall be the member’s final average monthly compensation.
004 Consistency of Reporting; Annualization, Proration, and Reallocation of Compensation
004.01 A member’s retirement benefit is not to be enhanced or reduced solely as a result of (a) inconsistent timing in the payment or reporting of compensation by the member’s employer or (b) an irregular work schedule. Therefore, to ensure consistent treatment of members of the same plan, NPERS shall, when the facts and circumstances dictate:
004.01(a) plot a member’s monthly compensation in a consistent manner to account for inconsistent or untimely reporting or payment of compensation by the member’s employer; and/or
004.01(b) annualize, prorate, or reallocate a member’s reported compensation.
004.02 Circumstances that may warrant proration, annualization, or reallocation of a member’s compensation include, but are not limited to:
004.02(a) The member’s termination date is prior to the end of a pay period;
004.02(b) The member’s termination date is prior to the contract end date;
004.02(c) There are gaps in the member’s creditable service, especially during the capping period;
004.02(d) The member’s retirement date does not coincide with the end of a plan year;
004.02(e) The member receives simultaneous payments of compensation for full-time employment from more than one employer covered by the plan;
004.02(f) Successive employers report payment of compensation to the member on incompatible schedules; or
004.02(g) Other facts and circumstances that artificially distort the calculation of either the member’s compensation during the capping period or the member’s final average compensation or final average monthly compensation, as applicable.
004.03 NPERS shall obtain from the member’s employer all information necessary to clarify and contextualize the compensation reported by the employer.
004.04 In the event that a member’s reported compensation is subject to proration, annualization, or reallocation, NPERS shall include a detailed analysis and explanatory spreadsheet in the member’s file reflecting the member’s actual retirement calculation.
005 Covered Compensation
005.01 Under no circumstances shall an individual who became a School Plan member before July 1, 2013, receive a retirement benefit based upon a final average compensation that includes compensation encompassing more than thirty-six (36) months of creditable service.
005.02 Under no circumstances shall an individual who became a School Plan member on or after July 1, 2013, receive a retirement benefit based upon a final average compensation that includes compensation encompassing more than sixty (60) months of creditable service.
005.03 Under no circumstances shall an individual who became a Patrol Plan member on or after July 1, 2016, receive a retirement benefit based upon a final average monthly compensation that includes compensation encompassing more than sixty (60) months of creditable service.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 79-902, 79-904, 79-934, 81-2019, 81-2026, and 84-1503.
History
- Effective 2017-06-05
Chapter 15 Purchase of Service Credit
Neb. Admin. Code tit. 303, ch. 15 Purchase of Service Credit {#sec-303-nac-15 omnilex-key=us-ne-regs-official--title-303--303 NAC 15}
001 Scope of the Rule
The provisions of this regulation apply to members of the Nebraska Public Employees Retirement Systems which are the Judges, State Patrol and School Employees Retirement Systems and the State and County Employees Retirement Systems.
002 General Provisions
002.01 The Nebraska Public Employees Retirement Systems (‘NPERS’), is the agency under the direction of the Public Employees Retirement Board, referred to as the Retirement Board, which is responsible for administering the various purchase of service provisions in the statutes governing the Nebraska Public Employees Retirement Systems.
002.02 For purposes of determining eligibility for purchase of service, a member, school employee, state patrol officer or judge shall mean a person working for a covered employer and contributing to their respective retirement systems.
002.03 Covered employer for purposes of this regulation shall mean any Nebraska public school, Classes I to IV and VI; participating county; or participating state agency.
002.04 Except with respect to the School Employees Retirement Plan, for interest based purchases, the interest rate used to determine the one-time cost of purchasing service shall be the annual rate of regular interest accrued on member accounts as determined annually for each retirement system by the Retirement Board. If the member is required to pay the actuarial cost as determined by the actuarial assumptions of each plan, the actuarial determination shall apply. If payments are made on the installment method then an additional finance charge will be assessed as defined.
002.05 For the School Employees Retirement Plan, actuarial cost shall mean the full cost of purchasing service allowed by law as determined by the actuary under contract with the Retirement Board. The full cost of purchasing service shall be calculated based on the increase in the actuarial accrued liability resulting from the purchase of service assuming the member is actively employed until age sixty-five (65). The actuarial assumptions used when determining the actuarial cost shall be those adopted by the Retirement Board as recommended by the actuary.
002.06 [RESERVED]
002.07 A member wanting to make a purchase of service must give notice of his or her intent to purchase service including method of payment on forms prescribed by NPERS.
002.08 Receiving Payments For Refunded Service.
002.08(a)(i) A former member of the School Retirement System who once again becomes a contributing member of the School Retirement System as a result of reemployment prior to April 17, 2014, must complete repayment of a refund pursuant to Section 003 hereof prior to the earlier of such member’s termination of employment or April 17, 2020.
002.08(a)(ii) A former member of the School Retirement System who once again becomes a contributing member of the School Retirement System as a result of reemployment on or after April 17, 2014, must complete repayment of a refund pursuant to Section 003 hereof prior to the earlier of such member’s termination of employment or the fifth anniversary of such member’s date of reemployment.
002.08(b) For the Judges Plan and Patrol Plan, all payments must be received by NPERS within five years of the date a member elects to repay his or her refund on forms prescribed by NPERS or prior to termination, whichever is sooner.
002.09 For purposes of this regulation, employment shall mean an employee’s first date of compensated service provided to a covered employer. Reemployment shall mean being rehired and once again becoming a contributing member of the School Retirement System after having previously terminated employment with a covered employer.
002.10 In order to purchase service credit, the member must file a detailed application to purchase service on a form prescribed by NPERS, before payments will be accepted. To allow sufficient processing time the application must be received by NPERS at least sixty (60) days before the member experiences a termination of employment. NPERS may waive this requirement in its sole discretion under appropriate circumstances based on the volume of pending inquiries and applications, availability of agency resources, staffing levels and competing agency priorities.
002.11 In no case shall service credit be granted until all payments for the purchase of that service have been completed, except as specifically provided under Title 303.
002.12 Code shall mean the Internal Revenue Code, as amended.
002.13 Code section 415 defined contribution limits shall apply to all after-tax payments made for purchases of service except for payments to repay original, mandatory contributions withdrawn for service years.
003 Repayment of Refund (School Plan Members Only)
003.01 General Provisions.
003.01(a) Except as otherwise provided in this Section 003, all general provisions in Section 002 and methods of purchasing service as defined in Section 007 in this regulation will apply to the restoration of relinquished creditable service by repayment of a refund.
003.01(b) From and after April 17, 2014, the cost of repaying a refund with respect to a member of the School Retirement System will be an amount equal to the member contributions for the years of relinquished creditable service being repurchased, plus interest in an amount equal to the actuarial assumed rate of return on such amount to the date of repayment. A member must be a contributing member after reemployment in order to repay a refund.
003.01(c) Refunded service must be purchased from oldest fiscal year to newest fiscal year and the member must purchase the exact amount of creditable service earned in each fiscal year. Fiscal years where creditable service was not earned will not be included in the repayment of a refund.
003.01(d) Before the repayment of a refund will be processed by NPERS, the member's service must be verified.
003.02 Initiating a Refund Inquiry.
003.02(a) From and after reemployment, a contributing member may initiate a request for the repayment of a refund by making a verbal or written inquiry to NPERS (a “refund inquiry”). NPERS will respond to refund inquiries in the order received, provided that priority may be given to refund inquiries from members who are within one year of retirement. NPERS’ response times with respect to refund inquiries will depend on the volume of inquiries, availability of agency resources, staffing levels and competing agency priorities.
003.02(b) In response to a refund inquiry, NPERS will calculate an estimated cost for the amount of relinquished creditable service the member proposes to restore by repayment of a refund (a “cost estimate”). NPERS will deliver the cost estimate to the member via first class mail or other reliable means. In addition to the cost estimate, NPERS’ response to the refund inquiry will also include an application for purchase of refunded service, method of payment form, rollover form and/or such other documentation as may be necessary.
003.03 Filing and Processing of an Application Purchase of Refunded Service.
003.03(a)(i) If the member wishes to proceed with the repayment of a refund after receiving a cost estimate, the member must deliver a valid and complete application for purchase of refunded service to NPERS prior to the applicable date set forth in Section 002.08 hereof. If the member responds to the cost estimate by delivering to NPERS something other than a valid and complete application, NPERS will inform the member in writing of the deficiency in the application.
003.03(a)(ii) For purposes of this Chapter 15, “valid and complete application” means the delivery by a member to NPERS of a completed application for purchase of refunded service, completed method of payment form and (if required) a completed rollover form, including all signatures and any attachments necessary for NPERS to complete the processing of such application.
003.03(b) NPERS will process valid and complete applications for purchase of refunded service in the order received, provided that priority may be given to applications from members who are within one year of retirement. NPERS’ response times with respect to valid and complete applications for purchase of refunded service will vary, depending on the volume of applications, availability of agency resources, staffing levels and competing agency priorities. It is the member’s responsibility to deliver a valid and completed application to NPERS within a sufficient time to permit processing of the application and completion of payment by before expiration of timeframes set forth in Section 002.08 hereof.
003.03(c) After determining that the member has submitted a valid and complete application for purchase of refunded service, including all necessary signatures, NPERS will calculate and send to the member, via first class mail, a written report of the actual cost for the relinquished creditable service to be restored by the member (an “actual cost report.”).
003.04 Payment For Restoration Of Relinquished Creditable Service
003.04(a) A member’s payment for the restoration of relinquished creditable service may be made via a lump sum direct payment to NPERS, installment payments, irrevocable payroll deduction authorization, cash rollover or trustee-to-trustee transfer.
003.04(b)(i) If repayment of a refund is to be made via lump sum direct payment, rollover or trustee-to-trustee transfer, full payment must be received by NPERS on or before the payment date set forth in the related actual cost report, which date shall be no later than the applicable date set forth in Section 002.08(a) hereof. Failure by the member to make full payment by the required date will result in recalculation of the amount due or termination of the member’s application for purchase of refunded service. Subject to Section 002.08(a) hereof, NPERS may, in its sole discretion, permit a grace period beyond the payment date set forth in the actual cost report, under appropriate circumstances based on the volume of pending inquiries and applications, availability of agency resources, staffing levels and competing agency priorities.
003.04(b)(ii) If the repayment of a refund is to be made via consecutive installment payments or irrevocable payroll deduction authorization, such payments must be made in compliance with the schedule set forth in the actual cost report and all required payments must be received by NPERS on or before the earlier of the applicable date set forth in Section 002.08(a) hereof. Failure by the member to make each payment in compliance with the schedule set forth in the actual cost report will result in termination of the member’s application for purchase of refunded service. Subject to Section 002.08(a) hereof, NPERS may, in its sole discretion, permit a grace period with respect to such payment schedule under appropriate circumstances based on the volume of pending inquiries and applications, availability of agency resources, staffing levels and competing agency priorities.
003.05 One Time Election
Each member of the School Employees Retirement System shall be permitted to submit only one application for purchase of refunded service on or after April 17, 2014.
004 Out-of-State Service (School Plan Members Only)
004.01 For purposes of this regulation, out-of-state service shall mean creditable service rendered in public schools in another state or schools in this state covered by the school retirement system established pursuant to Neb. Rev. Stat. § 79-979 and subject to the limitations established by law.
004.02 All general provisions in Section 002 and methods of purchasing service as defined in Section 007 of this regulation will apply to the purchase of out-of-state service.
004.03 Service for the out-of-state service must be verified on forms prescribed by NPERS before the actual cost of purchase can be determined.
004.04 The cost of purchasing out-of-state service is the actuarial cost of the service incurred by the School Employees Retirement System for allowing such additional service credit to the employee.
004.05 A member's out-of-state service credit may not exceed the amount of service credit the member actually accrues as a school employee in the State of Nebraska. When a member who has purchased out-of-state service credit ceases employment and applies for monthly retirement benefits, the years of service credit attributable to in-state service with a covered employer shall be compared with the years of out-of-state service credit that were purchased. If the years of out-of-state service by the member exceed the years of the member's in-state service, the excess years of out-of-state service will be eliminated in determining the member's benefits under the School Employees Retirement Plan. The member, if under contract or employed by a covered employer on or after July 19, 1996, shall receive a refund of the cost of the out-of-state service that had been purchased by the member but which is eliminated under this regulation. No interest shall be paid on the refund.
004.06 Fractional years of out-of-state service for a member of the Nebraska School Retirement System may be purchased.
004.07 When determining the code section 415 benefit limits at the time a member commences benefit payments, the high three consecutive years of section 415 compensation must be compensation from the covered employer. This means the out-of-state compensation cannot be used to determine the limit.
005 Leave of Absence (School Plan Members Only)
005.01 All general provisions in Section 002 and methods of purchasing service as defined in Section 007 of this regulation will apply to the purchase of service for a leave of absence, as defined by law.
005.02 Verification of the leave, as approved by the school employer, must be received by NPERS before the actual cost of purchase can be determined. If the cost of purchasing service credit is based upon interest, then the member’s compensation immediately prior to the leave must be verified by the school employer.
005.03(a) The cost of purchasing service credit for a leave of absence is computed actuarially unless subsection 005.03(b) of this section applies.
005.03(b) A member who was hired or rehired prior to July 19, 1996, who has not changed employers since that date and who has elected to pay for the leave of absence within three (3) years of returning from the leave and indicating such on forms prescribed by NPERS, shall pay the cost of purchasing service credit for a leave of absence, which includes member and school district contributions that would have been made during the period of leave had the member been actively working in a public school, based on the compensation received immediately prior to the leave, plus the regular interest on contributions that would have accrued.
006 Repayment of Refund (Judges and State Patrol Members Only)
006.01 All general provisions in Section 002 and methods of purchasing service as defined in Section 007 in this regulation will apply to repayment of a refund.
006.02 The cost of repaying a refund includes member contributions for service years being purchased and regular interest that would have been accrued on those contributions. The member must be a contributing member upon reemployment in order to repay a refund.
007 Payment Methods
007.01 Installment Method
007.01(a) Members electing to purchase optional service credit with the installment method may choose tax deferred payroll deduction or direct after-tax installment payments. Payments made are subject to IRS code section 415 annual limits. If the contributions qualify as a repayment of original mandatory contributions as described under section 002 of this regulation the section 415 limits do not apply.
007.01(b) Before direct after-tax installment payments can be accepted for purchase of service each year during the installment period, the member must substantiate his or her current compensation in such manner as may be required by NPERS. If a member’s direct after-tax installment payments exceed the applicable code section 415 limit, the excess shall be refunded to the employee and the service credit adjusted accordingly.
007.01(c) Direct after tax installment payments made to NPERS by the member must be by cashier’s check, bank draft or money order. Personal checks will not be accepted except for de minimus amounts in order to meet a purchase cost.
007.01(d) A member may elect to purchase service through payroll deduction pursuant to an irrevocable payroll deduction agreement with the member’s employer that authorizes the employer to deduct the payment from the employee’s compensation. One copy of the agreement must be on file with the employer and one copy with NPERS before payments may begin. In the event a member elects to purchase service by payroll deduction, the covered employer shall be responsible for making timely remittances of the member’s contributions for his or her service purchases.
007.01(e) Notwithstanding anything to the contrary in this Chapter 15, NPERS will accept payments made via payroll deduction after the member’s last working day, through and including the member’s final paycheck, if the members employment contract calls for part of the member’s compensation to be paid in arrears after the member’s last working day.
007.01(f) In the event a member’s irrevocable purchase agreement becomes inoperative due to the employee’s death, disability, or other termination of employment before full payment for the employee’s service purchase has been completed, no further contributions for the purchase of creditable service shall be accepted and the employee’s retirement benefit under the applicable retirement system shall be computed with service credit equal to the amount of service credit acquired in proportion to the amount of the installment payments paid by the member under the irrevocable purchase agreement.
007.01(g) In the case of the School Employees Retirement System, termination of employment for the employee does not include ceasing work at one school district and then providing successive contributory service at another school district that participates in the School Employees Retirement System. If the employee transfers to another school district administered by the Retirement Board, then the employee shall continue, without interruption, direct after tax monthly installment payments or monthly payroll deductions, whichever was specified in the member’s irrevocable purchase agreement. In the case of payroll deductions, upon notification by the member, NPERS will contact the successor employer in order to make arrangements to continue, without interruption, monthly payroll deductions specified in the originating irrevocable purchase agreement.
007.01(h) The finance interest rate used for the direct after tax installment payments and tax deferred payroll deductions shall be the actuarial interest rate assumption based on the expected long-term rate of return for each plan, recommended by the state’s actuary and adopted by the Retirement Board.
007.01(i) A late fee may be charged when direct payments are not received by the payment deadline. The fee will be based on the finance interest rate as defined by this section.
007.02 Rollovers
007.02(a) Consistent with the Internal Revenue Code, NPERS will accept rollovers in payment for lump-sum purchases of service credit, provided the money is an eligible rollover distribution received from one of the following:
007.02(a)(i) A code section 401(a) or 401(k) tax qualified plan.
007.02(a)(ii) A code section 403(a) or (b) tax sheltered annuity account.
007.02(a)(iii) A code section 408(a) individual retirement account (IRA) or a code section 408(b) individual retirement annuity.
007.02(a)(iv) A code section 457(b) deferred compensation plan.
007.02(b) A rollover or transfers from a qualifying tax-deferred account will not be accepted by NPERS without the member certifying that the originating rollover/transfer account has maintained its proper tax qualification conditions under the applicable sections of the Internal Revenue Code.
007.02(c) A direct rollover payment for purchase of service may be made by check from the transferring institution to the Nebraska Public Employees Retirement Systems, or a check delivered to the member but negotiable only by the Nebraska Public Employees Retirement System will be accepted as a direct rollover.
007.02(d) The amount of the rollover payment accepted by NPERS will be based on the cost of the service purchased and determined only by NPERS. Funds in excess of the actual purchase cost will not be accepted.
007.02(e) All other federal tax laws governing eligible rollover distributions shall apply.
007.03 Lump Sum Payments
007.03(a) A lump sum payment is a one-time, direct payment by the member for the purchase of eligible service credit.
007.03(b) In all cases, except for eligible rollover distributions, the payment shall be on an after-tax basis and subject to the code section 415 defined contribution annual limits. If the contributions qualify as a repayment of original after-tax, mandatory contributions as described under section 002 of this regulation the code section 415 limits do not apply.
007.03(c) Before a lump sum after-tax payment can be accepted as a purchase of service, the member must substantiate their current compensation in such a manner as may be required by NPERS. If a member’s lump sum after-tax payment ultimately exceeds the applicable code section 415 limit, the excess shall be refunded to the employee and the service credit adjusted accordingly.
007.03(d) If a member elects to purchase service by lump sum after-tax payments and such purchase exceeds the annual code section 415 limits, the member may be permitted to make payments in immediate succeeding periods to complete the member's purchase of service. Members who are unable to make a lump sum payment due to the limitations of code section 415 may be required by NPERS to use the installment method to complete the payments.
007.03(e) Payments will only be accepted via cashier's check, bank draft or money order. Personal checks will not be accepted as payment except for de minimus amounts in order to meet a purchase cost.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 23-2305, 23-2323.01, 23-2323.02, 23-2323.03, 24-704, 24-710.05, 24-710.06, 79-904, 79-924, 79-926, 79-927, 79-933.01, 79-933.02, 79-933.03, 79-933.04, 79-933.07, 81-2019, 81-2031.03, 81-2031.04, 84-1305, 84-1312, 84-1313, 84-1325, and 84-1503.
History
- Effective 2014-12-13
Chapter 16 Military Service Credit and Reemployment
Neb. Admin. Code tit. 303, ch. 16 Military Service Credit and Reemployment {#sec-303-nac-16 omnilex-key=us-ne-regs-official--title-303--303 NAC 16}
001 Scope of the Rule
This rule governs the procedures for granting service credit and contributions upon reemployment following military service, as contained in Neb. Rev. Stat. § 23-2323.01 in the County Employees Retirement Act (County plan), § 24-710.04 in the Judges Retirement Act (Judges plan), § 79-926 in the School Employees Retirement Act (School plan), § 81-2034 in the State Patrol Retirement Act (State Patrol plan), and § 84-1325 in the State Employees Retirement Act (State plan). This rule implements the provisions of the Uniformed Services Employment and Reemployment Rights Act, 38 U.S.C. §§ 4301 et seq., for the retirement plans administered by the Public Employees Retirement Board under Neb. Rev. Stat. § 84-1503(1)(a).
002 Definitions
002.01 Agency means the Nebraska Public Employees Retirement Systems referenced in Neb. Rev. Stat. § 84-1503(1)(a).
002.02 Board means the Public Employees Retirement Board created by Neb. Rev. Stat. § 84-1501.
002.03 Employer means: (a) the State of Nebraska for the Judges Plan, the State Patrol Plan, and the State Plan; (b) an employer covered by the School Employees Retirement Act for the School Plan; and, (c) a county employer covered by the County Employees Retirement Act for the County Plan.
002.04 Qualified military service is uniformed service as a member of the Army, Navy, Air Force, Marines, Coast Guard, Reserves, Army and Air National Guard, the commissioned corps of the Public Health Service, service with the National Disaster Medical System, and any other persons designated by the President in time of war or national emergency. Qualified military service under USERRA requires an honorable discharge.
002.05 USERRA means the Uniformed Services Employment and Reemployment Rights Act, 38 U.S.C. §§ 4301 et seq.
003 Notification Requirement and Election of Military Service Credit for all Plans
003.01 Current service while employed by an employer of a retirement plan administered by the Board in Neb. Rev. Stat. § 84-1503(1)(a) shall not be deemed to be interrupted by qualified military service, when properly authorized by the Board.
003.02 At the time a military leave commences, the employer and/or the member shall notify the Agency of the leave and the expected length of the leave on forms prescribed by the Agency. The employer may require a member to indicate in advance and notify the Agency if the member intends to request military service credit at the time of his or her return to work.
003.03 A request to obtain military service credit may be made by the member on forms prescribed by the Agency within one (1) year following the date of reemployment with an employer. An application form prescribed by the Agency must be filed and verification of the beginning and ending dates of a member's military leave, as well as the applicable compensation amount and honorable discharge, must be received by the Agency before payments by the member and/or employer will be received.
003.04 Verification of the member’s honorable discharge and beginning and ending dates of a the member's qualified military service will occur when the member provides the Agency with a copy of his or her DD Form 214 or other documentation showing the dates of entry into and discharge from active duty, and a copy of the member’s certificate of honorable discharge.
004 Military Service Credit for the County Employees Retirement Act
004.01 Any county employee who, while an employee, entered into and served in the armed forces of the United States and who within ninety (90) days after honorable discharge or honorable separation from active duty again became a county employee shall be credited, for the purposes of Neb. Rev. Stat. § 23-2315, with all the time actually served in the armed forces as if such person had been a county employee throughout such service in the armed forces.
004.02 A county employee who is reemployed by a covered county employer on or after December 12, 1994, pursuant to 38 U.S.C. §§ 4301 et seq., may pay to the retirement system an amount equal to the sum of all deductions that would have been made from the employee's compensation during such period of qualified military service. Payment shall be made within the period required in subsection 004.04.
004.03 To the extent that payment is made by the member in subsection 004.02:
(a) the county employee shall be treated as not having incurred a break in service by reason of his or her period of military service;
(b) the period of military service shall be credited for the purposes of determining the nonforfeitability of the member's accrued benefits and the accrual of benefits under the plan; and,
(c) the county employer shall allocate the amount of employer contributions to the member's employer account in the same manner and to the same extent the allocation occurs for other employees during the period of service.
004.04 Once a request to receive military service credit is made in subsection 003.03, a member has up to three times (3x) the period of service - not to exceed five (5) years - to make up his or her missed employee contributions. The amount of makeup contributions is subject to the limits that would have applied during the qualified military service period. The employee may designate the specific year or years their contributions cover.
004.05 When a member has commenced the purchase of military service credit, the former county employer will be invoiced by the Agency for the matching employer contribution amount. If the member chooses to use the payroll deduction method then the former county employer may match the member contribution month by month. There will be no interest or late fees charged to the member or the former county employer for the purchase of military service credit.
004.06 For purposes of member and county employer contributions, the member's compensation during the period of qualified military service shall be the rate the member would have received but for the military service or, if not reasonably determinable, then the average rate the member received during the twelve (12) month period immediately preceding his or her qualified military service.
004.07 The county employer shall pick up the member contributions made through irrevocable payroll deduction authorizations, and the contributions so picked up shall be treated as employer contributions in the same manner as contributions picked up under Neb. Rev. Stat. § 23-2307.
005 Military Service Credit for the Judges Retirement Act
005.01 Military service under the Judges Retirement Act means active service of:
(a) any judge of the Supreme Court or judge of the district court in any of the armed forces of the United States during a war or national emergency prior or subsequent to September 18, 1955, if such service commenced while such judge was holding the office of judge;
(b) any judge of the Nebraska Workmen's Compensation Court or the Nebraska Workers' Compensation Court in any of the armed forces of the United States during a war or national emergency prior or subsequent to September 20, 1957, if such service commenced while such judge was holding the office of judge;
(c) any judge of the municipal court in any of the armed forces of the United States during a war or national emergency prior or subsequent to October 23, 1967, and prior to July 1, 1985, if such service commenced while such judge was holding the office of judge;
(d) any judge of the county court or associate county judge in any of the armed forces of the United States during a war or national emergency prior or subsequent to January 4, 1973, if such service commenced while such judge was holding the office of judge;
(e) any clerk magistrate, who was an associate county judge and a member of the fund at the time of appointment as a clerk magistrate, in any of the armed forces of the United States during a war or national emergency on or after July 1, 1986, if such service commenced while such clerk magistrate was holding the office of clerk magistrate; and,
(f) any judge of the Court of Appeals in any of the armed forces of the United States during a war or national emergency on or after September 6, 1991, if such service commenced while such judge was holding the office of judge.
005.02 Military service on or after December 12, 1994; pursuant to 38 U.S.C. §§ 4301 et seq. Any judge who is reemployed by the State of Nebraska within ninety (90) days after honorable discharge or honorable separation from active duty shall be treated as not having incurred a break in service by reason of his or her period of qualified military service.
005.03 Such military service shall be credited for purposes of determining the nonforfeitability of the judge's accrued benefits and the accrual of benefits under the plan.
005.04 The state shall be liable for funding any obligation of the plan to provide benefits based upon such period of qualified military service.
005.05 Once an election to purchase military service is made in subsection 003.03, the Agency will request salary verification from the state employer. The salary verification will verify what the member would have earned had the member worked for the employer during the period of military service. Upon receipt of the salary verification by NPERS, the state employer will be invoiced for the amount required to fund the obligation benefit of the plan equal to the employee and employer retirement contributions on the salary attributable during the period(s) of military service plus interest equal to the actuarial assumed rate of return. Payment shall be made by the state employer to NPERS within thirty (30) days of the invoice’s receipt.
005.06 The Board shall have the power to determine when a national emergency exists or has existed for the purpose of applying subsection 005.01.
006 Military Service Credit for the School Employees Retirement Act
006.01 Military Service prior to December 12, 1994. Any person who, after having served or signing a contract to serve as a school employee, entered into and served or enters into and serves in the armed forces of the United States during a declared emergency or was drafted under a federal mandatory draft law into the armed forces of the United States during a time of peace, and who, within three (3) calendar years after honorable discharge or honorable separation from active duty or within one (1) year from the date of completion of training provided in the federal Servicemen's Readjustment Act of 1944 or the federal Veterans' Readjustment Assistance Act of 1952, became or becomes a school employee shall be credited, in determining benefits due such member from the retirement system, for a maximum of five (5) years of the time actually served in the armed forces as if such person had been a school employee throughout such time. Costs associated with the service credit received under this subsection and Neb. Rev. Stat. § 79-926(1) shall be covered by the School Plan.
006.02 Military service on or after December 12, 1994; pursuant to 38 U.S.C. §§ 4301 et seq. Any school employee who is reemployed by a covered school employer within ninety (90) days after honorable discharge or honorable separation from active duty shall be treated as not having incurred a break in service by reason of his or her period of qualified military service. This ninety (90) day period shall be extended if the school employee returns to employment at the beginning of the school year following the school employee’s honorable discharge or honorable separation from active duty.
006.03 Such qualified military service shall be credited for purposes of determining the nonforfeitability of the member's accrued benefits and the accrual of benefits under the plan.
006.04 The former school employer shall be liable for funding any obligation of the plan to provide benefits based upon such period of military service.
006.05 Once an election to purchase military service is made in subsection 003.03, the Agency will request salary verification from the pre-military service employer. The salary verification will verify what the member would have earned had the member worked for the employer during the period of military service. Upon receipt of the salary verification by NPERS, the pre-military school employer will be invoiced for the amount required to fund the obligation benefit of the plan equal to the employee and employer retirement contributions on the salary attributable during the period(s) of military service plus interest equal to the actuarial assumed rate of return. Payment shall be made by the pre-military service school employer to NPERS within thirty (30) days of the invoice’s receipt.
007 Military Service Credit for the State Patrol Retirement Act
007.01 Military Service prior to December 12, 1994. Any member of the Nebraska State Patrol who, while a member of the Nebraska State Patrol, entered into and served or shall enter into and serve in the armed forces of the United States during a declared emergency, and who, within six (6) months after honorable discharge or honorable separation from active duty, returned or returns to the service of the state and again becomes a member of the Nebraska State Patrol shall be credited, in determining benefits due such member from the State Patrol Retirement Fund, for all the time actually served in the armed forces as if such person had been in the service of the Nebraska State Patrol throughout such declared emergency service in the armed forces.
007.02 Military service on or after December 12, 1994; pursuant to 38 U.S.C. §§ 4301 et seq. Any member of the Nebraska State Patrol who is reemployed by the State of Nebraska within ninety (90) days after honorable discharge or honorable separation from active duty shall be treated as not having incurred a break in service by reason of his or her period of military service.
007.03 Such military service shall be credited for purposes of determining the nonforfeitability of the member's accrued benefits and the accrual of benefits under the plan.
007.04 The state shall be liable for funding any obligation of the plan to provide benefits based upon such period of military service.
007.05 Once an election to purchase military service is made in subsection 003.03, the Agency will request salary verification from the state employer. The salary verification will verify what the member would have earned had the member worked for the employer during the period of military service. Upon receipt of the salary verification by NPERS, the state employer will be invoiced for the amount required to fund the obligation benefit of the plan equal to the employee and employer retirement contributions on the salary attributable during the period(s) of military service plus interest equal to the actuarial assumed rate of return. Payment shall be made by the state employer to NPERS within thirty (30) days of the invoice’s receipt.
008 Military Service Credit for the State Employees Retirement Act
008.01 Any state employee who, while an employee, entered into and served in the armed forces of the United States and who within ninety (90) days after honorable discharge or honorable separation from active duty again became a state employee shall be credited, for the purposes of Neb. Rev. Stat. § 84-1317, with all the time actually served in the armed forces as if such person had been a state employee throughout such service in the armed forces.
008.02 A state employee who is reemployed by the State of Nebraska on or after December 12, 1994, pursuant to 38 U.S.C. §§ 4301 et seq., may pay to the retirement system an amount equal to the sum of all deductions that would have been made from the employee's compensation during such period of military service. Payment shall be made within the period required in subsection 008.04.
008.03 To the extent that payment is made by the member in subsection 008.02:
(a) the state employee shall be treated as not having incurred a break in service by reason of his or her period of military service;
(b) the period of military service shall be credited for the purposes of determining the nonforfeitability of the member's accrued benefits and the accrual of benefits under the plan; and,
(c) the state shall allocate the amount of employer contributions to the member's employer account in the same manner and to the same extent the allocation occurs for other employees during the period of service.
008.04 Once a request to receive military service is made in subsection 003.03, a member has up to three times (3x) the period of service - not to exceed five (5) years - to make up their missed employee contributions. The amount of makeup contributions is subject to the limits that would have applied during the military service period. The employee may designate the specific year or years their contributions cover.
008.05 When a member has commenced a request of military service credit, the state will be invoiced by the Agency for the matching employer contribution amount. If the member chooses to use the payroll deduction method then the state may match the member contribution month by month. There will be no interest or late fees charged to the member or the state for the purchase of military service credit.
008.06 For purposes of member and employer contributions, the member's compensation during the period of military service shall be the rate the member would have received but for the military service or, if not reasonably determinable, then the average rate the member received during the twelve (12) month period immediately preceding his or her military service.
008.07 The state shall pick up the member contributions made through irrevocable payroll deduction authorizations, and the contributions so picked up shall be treated as employer contributions in the same manner as contributions picked up under Neb. Rev. Stat. § 84-1308.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 23-2323.01(2), 24-710.04, 79-926(3), 81-2034(2), 84-1325(2), and 84-1503(2)(g).
History
- Effective 2012-11-12
Chapter 17 Administration of Internal Revenue Service Code Section 415 and Maximum Compensation Limits
Neb. Admin. Code tit. 303, ch. 17 Administration of Internal Revenue Service Code Section 415 and Maximum Compensation Limits {#sec-303-nac-17 omnilex-key=us-ne-regs-official--title-303--303 NAC 17}
001 Scope of the Rule
This rule governs the procedures for specifying Internal Revenue Service Code Section 415 and maximum compensation limits in the Retirement System for Nebraska Counties (County plan), the Judges Retirement System (Judges plan), the School Employees Retirement System (School plan), the State Patrol Retirement System (Patrol plan), and the State Employees Retirement System (State plan).
002 Definitions .
002.01 Code means the Internal Revenue Code, as amended.
002.02 Defined Contribution Plan means the defined contribution plan component of the Retirement Plan for Nebraska Counties and the State Employees Retirement Plan.
002.03 Defined Benefit Plan means the Judges Retirement Plan, the Nebraska State Patrol Retirement Plan, the School Employees Retirement Plan, and the cash balance plan component of the Retirement Plan for Nebraska Counties and the State Employees Retirement Plan of the State of Nebraska.
003 Defined Contribution Plan 415 Limitations .
003.01 Maximum annual contribution: The annual contribution that may be contributed or allocated to a member's account under a defined contribution plan for any limitation year beginning on or after December 31, 2010 shall not exceed the lesser of:
003.01(a) $49,000, as adjusted for increases in the cost-of-living under section 415(d) of the Code, or
003.01(b) 100 percent of the member's compensation, within the meaning of section 415(c)(3) of the Code, for the limitation year.
003.02 Maximum compensation amount for employees hired on or after January 1, 1996:
The annual compensation of each member hired on or after January 1, 1996 taken into account in determining allocations for any plan year beginning after December 31, 2010, shall not exceed $245,000, as adjusted for cost-of-living increases in accordance with section 401(a)(17)(B) of the Code. Annual compensation means compensation during the plan year or such other consecutive twelve (12) month period over which compensation is otherwise determined under the plan (the determination period). The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year.
003.03 Maximum compensation amount for employees hired on or before December 31, 1995:
The annual compensation of each member hired on or before December 31, 1995 taken into account in determining allocations for any plan year beginning after December 31, 2001 shall not exceed the amount which was allowed to be taken into account under the retirement plans as in effect on July 1, 1993, shall not exceed $360,000, as adjusted for cost-of-living increases in accordance with section 401(a)(17)(B) of the Code. Annual compensation means compensation during the plan year or such other consecutive twelve (12) month period over which compensation is otherwise determined under the plan (the determination period). The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year.
004 Defined Benefit Plan 415 Limitations :
004.01 Maximum permissible benefit: the annual benefit payable under a defined benefit plan in any limitation year shall not exceed the defined benefit dollar limitation applicable at the annuity starting date. The "defined benefit dollar limitation" is $195,000, as adjusted, effective January 1st of each year, under section 415(d) of the Code in such manner as the United States Secretary of the Treasury shall prescribe, and payable in the form of a straight life annuity without regard to the benefit attributable to the after-tax employee contributions (except pursuant to section 415(n) of the Code) and to rollover contributions, and subject to the applicable adjustments in 004.02. The defined benefit dollar limitation as adjusted under section 415(d) of the Code will apply to limitation years ending with or within the calendar year for which the adjustment applies. If the benefit under the defined benefit plan is other than a straight life or qualified joint and survivor annuity, the benefit shall be adjusted to an actuarially equivalent straight life annuity as provided in 004.01(a) or 004.02(b) below before applying the limitations of this 004.
004.01(a) For a benefit paid in a form to which section 417(e) of the Code does not apply (monthly benefit), the actuarially equivalent straight life annuity benefit is the greater of:
(1) the annual amount of the straight life annuity, if any, payable under the defined benefit plan commencing at the same annuity starting date as the form of benefit that is payable to the member computed using the interest rate assumption and mortality table specified in the following sections as applicable to the defined benefit plan: §§ 24-701, 79-902, 81-2014; or
(2) the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit that is payable to the member, computed using a five percent (5%) interest assumption (or the applicable statutory interest assumption) and the applicable mortality table described in Treasury Regulation section 1.417(e)-1(d)(2) that is effective for that annuity starting date.
004.01(b) For a benefit paid in a form to which section 417(e)(3) of the Code applies (lump sum), the actuarially equivalent straight life annuity benefit is the greater of:
(1) the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit that is payable to the member, computed using the interest rate assumption and mortality table specified in the following sections as applicable to the defined benefit plan: §§ 24-701, 79-902, 81-2014;
(2) the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit that is payable to the member, computed using a 5.5 percent (5.5%) interest rate assumption (or the applicable statutory interest assumption) and the applicable mortality table described in Treasury Regulation section 1.417(e)-1(d)(2) that is effective for that annuity starting date; or
(3) the annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit that is payable to the member computed using the applicable interest rate for the distribution under Treasury Regulation section 1.417(e)-1(d)(3) (using the rate in effect in effect for the first day of the plan year with a one-year stabilization period) and the applicable mortality table that is effective for that annuity starting date under Treasury Regulation section 1.417(e)-1(d)(2), divided by 1.05.
004.02 Adjustments to defined benefit dollar limitation: The “defined benefit dollar limitation“ to be used in determining the “maximum permissible benefit" under the defined benefit plans shall be adjusted where required, as provided in 004.02(a) and, if applicable, in 004.02(b) or 004.02(c) below).
004.02(a) Adjustments for less than ten (10) years of participation. If the member has fewer than ten (10) years of participation in a defined benefit plan, the defined benefit dollar limitation shall be multiplied by a fraction, (i) the numerator of which is the number of years (or part thereof, but not less than one) of participation in the plan and (ii) the denominator of which is ten (10). The foregoing reduction required by this 004.02(a) shall not be applicable to pre-retirement disability benefits or pre-retirement death benefits provided by the defined benefit plan.
004.02(b) Adjustments for benefits commencing prior to age sixty-two (62). If the benefit of a member begins prior to age 62, the defined benefit dollar limitation applicable to the member at such earlier age is an annual benefit payable in the form of a straight life annuity beginning at the earlier age that is the actuarial equivalent of the defined benefit dollar limitation applicable to the member at age 62 (adjusted under 004.02(a) above, if required). The defined benefit dollar limitation applicable at an age prior to age 62 is determined as the lesser of (i) the actuarial equivalent (at such age) of the defined benefit dollar limitation (as adjusted under 004.02(a), if required) computed using the interest rate and mortality table (or other tabular factor) specified in the following sections of as applicable to the defined benefit plans: §§ 24-701, 79-902, 81-2014, and (ii) the actuarial equivalent (at such age) of the defined benefit dollar limitation (as adjusted under 004.02(a), if required) computed using a five percent (5%) interest rate and the applicable mortality table as defined in Treasury Regulation section 1.417(e)-1(d)(2) that is effective for the annuity starting date. Any decrease in the defined benefit dollar limitation determined in accordance with 004.02(b) shall not reflect a mortality decrement if benefits are not forfeited upon the death of the member. If any benefits are forfeited upon death, the full mortality decrement is taken into account.
004.02(c) Adjustments for benefits commencing after age sixty-five (65). If the benefit of a member begins after the member attains age 65, the defined benefit dollar limitation applicable to the member at the later age is the annual benefit payable in the form of a straight life annuity beginning at the later age that is actuarially equivalent to the defined benefit dollar limitation applicable to the member at age 65 (adjusted under 004.02(a) above, if required). The actuarial equivalent of the defined benefit dollar limitation applicable at an age after age 65 is determined as (i) the lesser of the actuarial equivalent (at such age) of the defined benefit dollar limitation (as adjusted under 004.02(a), if required) computed using the interest rate and mortality table (or other tabular factor) specified in the following sections as applicable to the defined benefit plans: §§ 24-701, 79-902, 81-2014 and (ii) the actuarial equivalent (at such age) of the defined benefit dollar limitation computed using a five percent (5%) interest rate assumption and the applicable mortality table as defined in Treasury Regulation section 1.417(e)-1(d)(2) that is effective for the annuity starting date. For these purposes, mortality between age 65 and the age at which benefits commence shall be ignored.
004.03 Benefit Increases: Benefit increases resulting from the increase in the limitations of section 415(b) of the Code shall be provided to all current and former members (with benefits limited by section 415(b)) who have an accrued benefit under the defined benefit plans immediately prior to the effective date of this section (other than an accrued benefit resulting from a benefit increase solely as a result of the increases in limitations under section 415(b)).
004.04 Minimum benefit: Notwithstanding anything in this section to the contrary, the benefit otherwise accrued or payable to a member by a defined benefit plan will be deemed to not exceed the “maximum permissible benefit” if:
004.04(a) the benefit payable for a limitation year under any form of benefit with respect to the member under all defined benefit plans does not exceed $10,000 multiplied by the a fraction (i) the numerator of which is the number of years (or part thereof, but not less than one) of service with the employer and (ii) the denominator of which is ten (10); and
004.04(b) the employer has not at any time maintained a defined contribution plan in which the member participated (not considering mandatory employee contributions under a defined benefit plan, individual medical accounts under section 401(h) of the Code or postretirement medical benefits under section 419A(d)(1) of the Code as a separate defined contribution plan).
004.05 Increase in Compensation Limit for Members hired on or after July 1, 1996:
004.05(a) Increase in limit. The annual compensation of each member hired on or after July 1, 1996 taken into account in determining benefit accruals in any plan year beginning after December 31, 2010 shall not exceed $245,000. Annual compensation means compensation during the plan year or such other consecutive twelve (12) month period over which compensation is otherwise determined under the plan (the determination period). For purposes of determining benefit accruals in a plan year beginning after December 31, 2010, compensation for any prior determination period shall be limited as provided by the employer in the adoption agreement.
004.05(b) Cost-of-living adjustment. The $245,000 limit on annual compensation in paragraph 004.04(a) shall be adjusted for cost-of-living increases in accordance with section 401(a)(17)(B) of the Code. The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year.
004.06 Increase in Compensation Limit for Members hired on or before June 30, 1996:
004.06(a) The annual compensation of each member hired on or before June 30, 1996 taken into account in determining benefit accruals in any plan year beginning after December 31, 2001, shall not exceed the amount which was allowed to be taken into account under the retirement plans as in effect on July 1, 1993, shall not exceed $360,000. Annual compensation means compensation during the plan year or such other consecutive twelve (12) month period over which compensation is otherwise determined under the plan (the determination period). For purposes of determining benefit accruals in a plan year beginning after December 31, 2001, compensation for any prior determination period shall be limited as provided by the employer in the adoption agreement.
004.06(b) Cost-of-living adjustment; The limit set forth in paragraph (a) on annual compensation shall be adjusted for cost-of-living increases in accordance with section 401(a)(17)(B) of the Code. The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year.
004.07 Compensation Limit for Prior Determination Periods: In determining benefit accruals in plan years beginning after December 31, 2010, the annual compensation limit in paragraph (a) of Section 004.04, Increase in Compensation Limit, for determination periods beginning before January 1, 2011, shall be $245,000.
ENABLING LEGISLATION:
NEB. REV. STAT. § 84-1503.
History
- Effective 2012-04-28
Chapter 18 Benefit and Contribution Adjustments
Neb. Admin. Code tit. 303, ch. 18 Benefit and Contribution Adjustments {#sec-303-nac-18 omnilex-key=us-ne-regs-official--title-303--303 NAC 18}
001 Scope of the Rule
The provisions of this regulation apply to the School Employees Retirement System, the State Employees Retirement System, the Retirement System for Nebraska Counties, the Judges Retirement System, and the State Patrol Retirement System. This rule and regulation sets forth procedures by which the Nebraska Public Employees Retirement System shall adjust member benefits and employee and employer contributions as necessary to comply with Nebraska state and federal laws governing public employee retirement plans.
002 Definitions
002.01 Board means the Public Employees Retirement Board established pursuant to Neb. Rev. Stat. § 84-1501.
002.02 NPERS means the Nebraska Public Employees Retirement Systems; the agency that administers the retirement laws under the direction of the Board.
002.03 Benefit means the post-retirement income to be received by a member of a retirement system.
002.04 Employee Contribution means the dollar amount required to be picked up from an active member’s compensation for deposit into a retirement system to fund member benefits.
002.05 Employer means the public entity required to contribute to the State Employees Retirement System, the Retirement System for Nebraska Counties, the Judges Retirement System, the School Employees Retirement System, or the State Patrol Retirement System on behalf of its employees who are members in such retirement system.
002.06 Employer Contribution means the dollar amount required to be deposited into a retirement system by an employer to fund member benefits.
002.07 Excess Contribution means an employee contribution or employer contribution, or both, that is (a) greater than the statutorily mandated deduction from compensation, (b) greater than the statutorily mandated matching contribution required of an employer, (c) submitted on behalf of an employee that is ineligible to participate in the retirement system, or (d) improperly calculated on wages or salary representing compensation for unused sick leave or unused vacation leave converted to cash payments, insurance premiums converted into cash payments, reimbursement for expenses incurred, fringe benefits, bonuses for services not actually rendered, including, but not limited to, early retirement inducements, cash awards, and severance pay, except for retroactive salary payments paid pursuant to court order, arbitration, or litigation and grievance settlements, or as otherwise defined by state law.
002.08 Insufficient Contribution means an employee contribution or employer contribution, or both, which is (a) less than the statutorily mandated deduction from compensation, (b) less than the statutorily mandated matching contribution required of an employer, (c) not timely remitted, (d) not remitted due to administrative errors on the part of the employer, (e) not remitted due to the failure of the employer to enroll the employee in the retirement system when such employee was required to be enrolled, or (f) due to a retroactive salary payment paid pursuant to court order, arbitration, or litigation and grievance settlements.
002.09 Member means an individual who has an account in one of the retirement systems.
002.09(a) Active Member means an individual who is currently employed by an employer and making employee contributions into a retirement system.
002.09(b) Inactive Member means an individual who has made employee contributions to a retirement system as an active member and has subsequently separated from service with an employer.
002.10 Retirement System means the State Employees Retirement System, the Retirement System for Nebraska Counties, the Judges Retirement System, the School Employees Retirement System, or the State Patrol Retirement System, as appropriate under the circumstances.
003 Excess Contributions
003.01 If NPERS determines that a retirement system has received an excess employee contribution, then NPERS shall return the excess employee contribution to the employer, and the employer shall return the excess employee contribution to the employee. Adjustments due to excess employee contributions shall be made within one year of the date the excess contribution was received by NPERS. If more than one year has passed since the date the contribution was received, the excess contribution shall not be adjusted.
003.02 If NPERS determines that a retirement system has received an excess employer contribution, then NPERS shall either provide a refund or credit the excess employer contribution against future employer contributions. Adjustments due to excess employer contributions shall be made within one year of the date the excess contribution was received by NPERS. If more than one year has passed since the date the contribution was received, the excess contribution shall not be adjusted. Notwithstanding the foregoing, NPERS will only provide a refund or credit to the extent allowed under the Internal Revenue Code and any related guidance thereunder, including, but not limited to, a mistake of fact as permitted under Revenue Ruling 91-4 or other applicable Internal Revenue Service guidance.
003.03 Under the School Employees Retirement Act, contributions made on compensation in excess of the limitations imposed by Neb. Rev. Stat. § 79-902(35) shall not be refunded pursuant to Neb. Rev. Stat. § 79-904.01(3).
004 Insufficient Contributions
004.01 Active Members
004.01(a) Except as provided in subsection 004.03, if NPERS determines that a retirement system has received insufficient contributions from an employer of an active member, NPERS shall require the employer remit the additional required employee and employer contributions, and this amount may include interest.
004.01(b) Additional employee contributions required under subsection 004.01(a) shall be picked up by the employer and the contributions so picked up shall be treated as employer contributions in determining federal tax treatment under the Internal Revenue Code. The employer shall pay these employee contributions from the same source of funds which is used in paying earnings to the employee.
004.01 (c) Except as provided in subsection 004.03, any additional employer contribution shall be made in conjunction with the employee contribution. If a member in a defined benefit plan terminates employment prior to payment of the required employee contribution, then the employer shall complete payment of the employee and employer share of the required contribution.
004.02 Inactive Members. Except as provided in subsection 004.03, if NPERS determines that a retirement system has received insufficient contributions from an employer of an inactive member, then NPERS shall require the employer remit the additional required contributions, including interest, as necessary to make up the insufficient employee and employer contributions.
004.03 All insufficient contribution amounts required under this section shall be paid by the employer unless the Director determines it is either unreasonable or unfeasible for the employer to pay the insufficient employee or employer contributions.
004.04 All employee and employer contributions amounts required to be paid under this section shall be paid by the employer within sixty (60) days of NPERS providing notice to the employer that there is an insufficient employee or employer contribution remittance due.
005 Overpayment of Benefits
005.01 If NPERS determines that any member or beneficiary has received a retirement benefit that is in excess of the retirement benefit such member or beneficiary is entitled to receive under the governing statutory provisions, NPERS may offset future benefits as necessary to recoup the overpayment, with interest. In lieu of future offsets, the member or beneficiary shall repay the overpayment to NPERS, and such repayment may include interest charges. This section is subject to the materiality amounts listed in Title 303 NAC, Chapter 3.
005.02 Reductions in future benefit payments pursuant to this regulation shall not exceed twenty-five (25%) percent of the monthly retirement benefit received by the member or beneficiary unless the member or beneficiary agrees, in writing, to a greater offset.
005.03 Failure by a member or beneficiary to repay or offset an amount of overpayment and interest charges described in subsection 005.01, will result in NPERS referring the matter to the Nebraska Attorney General’s Office for collection or other enforcement action deemed appropriate by the Attorney General. If it is impractical for NPERS to initiate an offset because there are no additional future benefit payments scheduled, then NPERS will make at least three attempts during a 120 day period to contact the member or beneficiary in order to effectuate a repayment, prior to referring the matter to the Attorney General.
006 Underpayment of Benefits
If NPERS determines that any member or beneficiary has received a retirement benefit that is less than the retirement benefit such member or beneficiary is entitled to receive under the governing statutory provisions, NPERS shall within a reasonable period of time not to exceed sixty (60) days make payment equal to the deficit amount plus interest. This section is subject to the materiality amounts listed in Title 303 NAC, Chapter 3.
007 Interest
007.01 Interest shall be assessed and collected by NPERS from any employer who submits an insufficient contribution. Interest shall be calculated from the date the employee or employer contribution was due to be remitted to NPERS until the date such contribution is remitted.
007.02 The rate of interest to be assessed on insufficient contributions, repayment of excess benefits, or paid to the member on account of deficient benefit payments, shall be the rate of regular interest as defined or determined under the County Employees Retirement Act, the Judges Retirement Act, the School Employees Retirement Act, the Nebraska State Patrol Retirement Act, or the State Employees Retirement Act, as appropriate.
008 Notice of Adjustment
008.01 If NPERS makes any adjustment pursuant to these regulations, then NPERS shall mail notice of the proposed adjustment to the member, the employer, or any other person directly affected by such adjustment within thirty (30) days of the adjustment.
008.02 The notice required by this regulation shall be mailed to the last known address of the member, employer, or other affected person as reflected by the records of NPERS.
008.03 All notices of proposed adjustments shall advise the affected parties of their right to protest and appeal the proposed adjustment and the right to a formal hearing before the Board or its designated hearing officer.
009 Appeals
009.01 If a member, employer, or any other person affected by a proposed adjustment believes that such proposed adjustment is erroneous or improper, such member, employer, or other person may file a request for hearing. If the member, employer, or other affected person files a request for a hearing within thirty (30) days of the date notice of the proposed adjustment was mailed, NPERS shall suspend making the adjustment until after a hearing is held and a final decision is rendered by the Board. If no protest and request for hearing is received by NPERS within such thirty (30) day period, NPERS shall proceed to make the adjustment.
009.02 All hearings shall be held in accordance with the appeal procedures established by the Board under Title 303, Chapter 12 of the Nebraska Administrative Code, and the Administrative Procedure Act.
010 Statute of Limitations
Every claim and demand under these regulations and against NPERS or the Board shall be forever barred unless the action is brought within two years of the time at which the claim accrued.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 23-2305, 23-2305.01, 24-704, 24-704.01, 79-904, 79-904.01, 79-905, 81-2019, 81-2019.01, 84-1305, 84-1305.02, 84-1305.02, and 84-1503.
History
- Effective 2015-04-26
Chapter 19 Employer Audit Requirements
Neb. Admin. Code tit. 303, ch. 19 Employer Audit Requirements {#sec-303-nac-19 omnilex-key=us-ne-regs-official--title-303--303 NAC 19}
001 Scope of Rule
The provisions of this regulation apply to the public entities whose employees are eligible for membership in the Nebraska School Retirement System, the Nebraska State Employees Retirement System, the Retirement System for Nebraska Counties, the Nebraska Judges Retirement System, and the Nebraska State Patrol Retirement System. This regulation requires that compliance with certain statutory retirement plan provisions be reviewed during any regularly scheduled audit of the public entity, and that a copy of any audit report reflecting a finding of non-compliance be filed with the Nebraska Public Employees Retirement Systems. This regulation also requires employers to file annually a list of all employees employed the previous calendar year.
002 Definitions
002.01 Employee Contribution means the dollar amount statutorily required to be deducted from an employee’s compensation for deposit into a retirement system.
002.02 Employer means the public entity required to contribute to the Nebraska School Retirement System, the Nebraska State Employees Retirement System, the Retirement System for Nebraska Counties, the Nebraska Judges Retirement System, or the Nebraska State Patrol Retirement System on behalf of its employees who are covered by such retirement system.
002.03 Employer Contribution means the dollar amount required to be deposited into a retirement system by an employer to fund member benefits.
002.04 Excess Contribution means an employee contribution or employer contribution, or both, that is (a) greater than the statutorily mandated deduction from compensation, (b) greater than the statutorily mandated matching contribution required of an employer, (c) submitted on behalf of an employee that is ineligible to participate in the retirement system, or (d) improperly calculated on wages or salary representing compensation for unused sick leave or unused vacation leave converted to cash payments (School, Judges and Patrol Retirement Systems only), insurance premiums converted into cash payments, reimbursement for expenses incurred, fringe benefits, or bonuses for services not actually rendered, including, but not limited to, early retirement inducements, cash awards, and severance pay, except for retroactive salary payments paid pursuant to court order, arbitration, or litigation and grievance settlements.
002.05 Insufficient Contribution means an employee contribution or employer contribution, or both, which is (a) less than the statutorily mandated deduction from compensation, (b) less than the statutorily mandated matching contribution required of an employer, (c) not timely remitted, (d) not remitted due to administrative errors on the part of the employer, (e) not remitted due to the failure of the employer to enroll the employee in the retirement system when such employee was required to be enrolled, or (f) due because of a retroactive salary payment paid pursuant to court order, arbitration, or litigation and grievance settlements.
002.06 Retirement System means the Nebraska School Retirement System, the Nebraska State Employees Retirement System, the Retirement System for Nebraska Counties, the Nebraska Judges Retirement System, or the Nebraska State Patrol Retirement System, as appropriate under the circumstances.
003 Audit Requirements
003.01 During the course of any regularly scheduled, statutorily required audit of an employer, as defined in this regulation, the auditor shall check for compliance with the statutory retirement system membership and contribution provisions applicable to that employer. The employer’s internal control structure for determining retirement system membership and contribution compliance shall be considered significant internal control systems to be audited and covered by the report on internal controls.
003.02 The audit shall include an examination of the employer’s personnel records on current employees who are not enrolled as members in the retirement system to verify that such employees do not meet the requirements for mandatory membership. The audit shall also include an examination of the employer’s personnel records on current employees who are members in the retirement system to verify that such employees meet all applicable requirements for membership.
003.03 The audit shall include an examination of the employer’s payroll records to determine whether the employer has made any insufficient contributions or any excess contributions.
004 Audit Report
004.01 All compliance deviations relative to the applicable statutory retirement system provisions shall be included by the auditor in the audit report or a written letter to management.
004.02 The employer shall submit a copy of the letter to management or that portion of the audit report pertaining to retirement system issues to the Nebraska Public Employees Retirement Systems office within thirty (30) days of receipt of the letter or audit report by the employer.
005 Annual List of Employees
005.01 Except as provided in regulation 005.03, on or before January 31st of each year, each employer shall compile a list of all employees that were on the employer’s payroll during the prior calendar year. The list shall include each employee’s name, social security number, current address, annual salary, date of hire, whether such employee was employed on a full-time or part-time basis, and whether such employee was employed on a permanent or temporary basis. With respect to employees who are not currently members of the retirement system, the employer shall provide a brief explanation of why such employee is not required to be enrolled.
005.02 The list required by this regulation shall be filed with the Nebraska Public Employees Retirement Systems on or before February 15th of each year in such format as the Retirement Systems office shall establish. The Retirement Systems office may require the employer to submit the list on electronic media.
005.03 The provisions of regulations 005.01 and 005.02 shall not apply to an employer utilizing the Nebraska Employees Information System (NEIS), its successor system, or to an employer utilizing a computerized personnel database to which the Nebraska Public Employees Retirement Systems has access and the ability to monitor additions and deletions of employees.
ENABLING LEGISLATION:
NEB. REV. STAT. § 84-1503.
History
- Effective 2012-04-28
Chapter 20 Investment Allocations and Transfers
Neb. Admin. Code tit. 303, ch. 20 Investment Allocations and Transfers {#sec-303-nac-20 omnilex-key=us-ne-regs-official--title-303--303 NAC 20}
001 Scope of the Rule
The provisions of this rule apply to members of the Retirement System for Nebraska Counties and the State Employees Retirement System who participate in the defined contribution option, to members of the Deferred Compensation Plan, and to members of the State Patrol Retirement System who have elected to participate in the Deferred Retirement Option Plan (DROP).
002 Allocation and Transfer of Employee Contributions
002.01 Members of the Retirement System for Nebraska Counties and members of the State Employees Retirement System who participate in the defined contribution option, members of the Deferred Compensation Plan, and members of the State Patrol Retirement System who have elected to participate in DROP, may allocate their employee contributions and/or transfer any portion of their employee account funds to the various investment options available under the retirement systems in increments of one whole percent (1%) in any proportion, including full allocation and/or transfer to any one option, or in a specific dollar amount.
002.02 The percentage of employee contributions allocated and/or transferred to the various investment options may be changed by the member by a secure electronic communications if sufficient proof of the member’s identity is established through a personal identification number (PIN) or other industry-accepted means of verification, or by request on forms prescribed by the Nebraska Public Employees Retirement Systems. Change requests received on a business day will be processed within three (3) business days of receipt.
002.03 Funds invested in the stable value fund account shall be subject to restrictions on transfers depending upon the availability of liquid funds in such account. The Public Employees Retirement Board shall establish a percentage available for transfer each calendar quarter based upon information, advice and recommendations provided by the state investment officer. The percentage established by the Board shall be an amount which will permit the greatest amount of flexibility for all members of the retirement system whose contributions were invested in the stable return account to transfer funds out of the stable value fund account. Such percentage shall be limited as necessary to prevent members from incurring any surrender charges or other penalties for early termination of the guaranteed investment contracts into which such funds were invested.
002.04 Members shall not make direct transfers from the stable value fund account to the money market account or any comparable investment option established by the Board. Members wishing to move their funds between these accounts shall first pass them through one of the non-competing equity investment account options. The transferred funds must remain in a non-competing equity investment account for a minimum of three months.
003 Allocation and Transfer of Employer Contributions
003.01 Members of the Retirement System for Nebraska Counties and members of the State Employees Retirement System of the State of Nebraska who participate in the defined contribution option, may allocate their employer contributions and/or transfer any portion of their employer account funds among the investment options available under the retirement systems in increments of one whole percent (1%) in any proportion, including full allocation and/or transfer to any one option, or in a specific dollar amount.
003.02 The percentage of employer contributions allocated and/or transferred to the investment options may be changed by a secure electronic communication if sufficient proof of the member’s identity is established through a personal identification number (PIN) or other industry-accepted means of verification, or by request on forms prescribed by the Nebraska Public Employees Retirement Systems. Change requests received on a business day will be processed within three (3) business days of receipt.
004 Excessive Trading Restriction
004.01 Purpose. The excessive trading restriction found in this section limits the number of transfers permitted within a participant’s account. Excessive trading by one or many participants can have a detrimental effect on other participants. In order to protect plan sponsors and participants, as well as meet regulatory guidelines and Mutual Fund Partner requirements, this section addresses this potential problem.
004.02 Only transactions that create the potential for market timing and excessive trading abuses will be subject to monitoring or trading restriction. Accordingly, only participant-initiated Exchange Purchases and Exchange Redemptions are monitored. The monitoring and trading restriction includes, but is not limited to, purchases and redemptions made as a result of a non-systematic reallocation or rebalancing transaction. The restriction is not affected by regular allocations of contributions, loans, or withdrawals.
004.03 An Exchange Redemption executed within sixty (60) days of an Exchange Purchase will result in monitoring of the participant’s transactions for the Monitoring Period. A rolling sixty (60) day period begins immediately following a Round Trip (an Exchange Purchase followed by an Exchange Redemption).
004.04 A notice to the participant will be mailed after identifying an Exchange Purchase during the Monitoring Period. This notice will inform the participant that if the participant executes an Exchange Redemption during the remainder of the Monitoring Period, the participant will be subject to the trading restrictions.
004.05 Where a participant executes a Round Trip during the Monitoring Period, the participant will be prevented from initiating subsequent Exchange Purchases in that fund for a sixty (60) day period following the Exchange Redemption that violated this section.
004.06 All exchanges in other funds during the Purchase Restriction Period must be done via U.S. Mail. This provision excludes the use of phone, voice response, fax, web/internet, and hand-delivered means of executing trades.
004.07 The participant will be notified upon the imposition of the trading restrictions in this section.
004.08 Participant trading privileges will be restored automatically upon the expiration of the Purchase Restrictions Period.
004.09 NPERS’ Mutual Fund Partners may have excessive trading policies that are more restrictive than this Excessive Trading Restriction. In the event there is a violation of such Mutual Fund Partner policy, additional restrictions may apply, as directed by the Mutual Fund Partner.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 23-2309.01, 23-2310.05, 81-2041, 84-1310.01, 84-1311.03, and 84-1503.
History
- Effective 2012-11-12
Chapter 21 Qualified Domestic Relations Orders
Neb. Admin. Code tit. 303, ch. 21 Qualified Domestic Relations Orders {#sec-303-nac-21 omnilex-key=us-ne-regs-official--title-303--303 NAC 21}
001 Scope of the Rule
This regulation sets forth the procedures of the Nebraska Public Employees Retirement Systems (NPERS) for the administration of qualified domestic relations orders under the Spousal Pension Rights Act, Chapter 42, article 11, of the Nebraska Revised Statutes. All terms used in this regulation which are defined terms in the Spousal Pension Rights Act shall have the same meaning as provided in the Spousal Pension Rights Act.
002 Procedure to Determine Qualified Status
002.01 Upon receipt of a court certified or authenticated domestic relations order involving benefits under a statewide public retirement system, NPERS shall, within ten (10) business days, notify in writing the member and the alternate payee that NPERS has received the domestic relations order. If the order pertains to a member receiving benefits from the retirement system, NPERS shall suspend and segregate that portion of the member’s benefit payment which would be payable to the alternate payee under the order if it is determined to be a qualified domestic relations order.
002.02 NPERS shall review the domestic relations order to determine whether it meets all of the requirements to be deemed a qualified domestic relations order as set forth in the Spousal Pension Rights Act and this regulation. NPERS shall specifically determine that the order clearly specifies:
002.02(a) The name and last-known mailing address, if any, of the member;
002.02(b) The name and last-known mailing address, if any, of the alternate payee covered by the order;
002.02(c) The statewide public retirement system to which the order applies;
002.02(d) The number of payments or period to which such order applies; and
002.02(e) The amount or percentage of the member’s benefits to be paid by the statewide public retirement system to each alternate payee or the manner in which such amount or percentage is determined.
002.02(f) The social security number and date of birth of the member, as well as the social security number and date of birth of the alternate payee shall be provided in a separate document.
002.03 NPERS shall ascertain that the order does not require the retirement system to:
002.03(a) Provide any type or form of benefit, or any option, not otherwise provided under the plan;
002.03(b) Provide increased benefits determined on the basis of actuarial value;
002.03(c) Pay to an alternate payee benefits which are required to be paid to another alternate payee under another order previously determined to be a qualified domestic relations order;
002.03(d) Pay benefits to an alternate payee before the earliest retirement date of a member;
002.03(e) Provide a joint and survivor annuity to the alternate payee and the alternate payee’s subsequent spouse; or
002.03(f) Act contrary to the statutory provisions of the statewide public retirement system.
002.04 If NPERS determines that the domestic relations order does not meet all of the requirements set forth in the Spousal Pension Rights Act and these regulations, NPERS shall, within seven days of making such determination, notify the member and the alternate payee of the basis for such determination. If NPERS is notified in writing within thirty (30) days of the date NPERS makes the notification required under this subsection that the member or the alternate payee is seeking an amended order correcting the deficiencies noted, NPERS shall continue to suspend and segregate that portion of the member’s benefit payment which would be payable to the alternate payee under the order if it were to be determined to be a qualified domestic relations order.
002.05 In no event shall NPERS suspend and segregate benefits under sections 002.01 or 002.04 for a period longer than eighteen (18) months from the date the original order is filed with NPERS or the date payments to the alternate payee would commence under the order if qualified, whichever is later. If the order or an amended order is not qualified within the eighteen month period, NPERS shall pay the segregated funds, plus interest, to the member or other beneficiaries entitled thereto, and any order qualified after the eighteen month period will be applied prospectively only.
003 Distribution Procedures
003.01 If the Agency Director determines an order is a qualified domestic relations order, then as soon as is administratively possible, NPERS shall allocate and distribute retirement benefits to the member and the alternate payee according to the terms of the order. Payment of the benefit to the alternate payee shall commence either on the member’s retirement date or on the first day of the month immediately following the month in which the alternate payee notifies NPERS of the election to begin payment, but not before the member’s earliest retirement date.
003.02 If the order pertains to a defined contribution plan or a cash balance plan, NPERS shall segregate the alternate payee’s interest in the member’s benefit into a separate account pending distribution. Unless the domestic relations order provides otherwise, the amounts allocated to the alternate payee shall be deducted from each of the member’s employer and employee accounts in the same percentage as the total percentage awarded to the alternate payee under the order. If the member has a defined contribution plan, the alternate payee shall have the right to allocate the amounts in such account to the various investment options available to members of the plan and shall be subject to the same restrictions upon transfers between investment options as may be applicable to other members of the plan.
003.03 If the order pertains to a defined benefit plan, NPERS shall indicate in the member’s account file the existence of the qualified domestic relations order. Upon the triggering of a distribution under the plan to the alternate payee or the member, NPERS shall compute the alternate payee’s interest in the member’s accrued benefit under the order and shall reduce the member’s benefit accordingly.
003.04 If the order does not specify the form of benefit to be taken by the alternate payee, the alternate payee may select any form of benefit available to the member except a joint and survivor annuity covering the alternate payee and the alternate payee’s subsequent spouse
003.05 If the alternate payee dies prior to receiving any payment of his or her interest in the member’s benefit under a qualified domestic relations order, such interest reverts to the member. If the alternate payee dies after commencement of payments of his or her interest, then the alternate payee’s beneficiary is entitled to the balance of the alternate payee’s interest under the payment option provided by the order or selected by the alternate payee, except a joint and survivor annuity option with the alternate payee and the alternate payee’s subsequent spouse. For purposes of this section, payment of the alternate payee’s interest in the member’s benefit shall be deemed to have commenced on the earlier of the member’s retirement date or on the first day of the month immediately following the month in which the alternate payee notifies NPERS of the election to begin payment, but not before the member’s earliest retirement date.
004 Pre-approved QDRO Language
004.01 A member or an alternate payee, or their legal representatives, may submit a proposed domestic relations order to NPERS for review and tentative qualification prior to the order being submitted to the court having jurisdiction over the domestic relations matter.
004.02 NPERS shall develop and provide, upon request, model domestic relations order language that meets all of the requirements of the Spousal Pension Rights Act.
004.03 Failure to use the model language provided pursuant to this regulation shall not be a basis for determining that the domestic relations order is not a qualified domestic relations order.
005 Administrative Hold on Account
005.01 NPERS may place an administrative hold on a member’s account prohibiting such member from withdrawing the account balance upon receiving written or emailed notice from a person claiming an interest in the member’s account advising NPERS that proceedings to obtain a domestic relations order have been initiated and requesting an administrative hold on the account to protect their interest in the account.
005.02 NPERS shall within ten (10) business days acknowledge receipt of the request for an administrative hold and shall notify the member and the person claiming an interest in the member’s account of the action NPERS will be taking in response thereto.
005.03 NPERS shall release an administrative hold placed on the member’s account if:
005.03(a) The member is awarded his or her entire benefit by the court and provides NPERS with a certified copy of the court’s order;
005.03(b) The claim is released by a notarized written statement signed by the person claiming an interest in the member’s account or by his or her legal representative;
005.03(c) NPERS receives a domestic relations order for qualification and the member’s account is segregated accordingly; or,
005.03D(d) The person claiming an interest in the member’s account does not provide a domestic relations order to be qualified within a reasonable period of time, not to exceed six (6) months, after requesting the administrative hold. Before releasing an administrative hold pursuant to this subsection, NPERS shall notify the person claiming an interest in the member’s account, or his or her legal representative, of the intention to release the hold. NPERS shall provide the person claiming an interest in the member’s account thirty (30) days within which to file a written objection to such action. For good cause shown, NPERS may extend the administrative hold for an additional period of time.
006 Notices
006.01 Any notice required by this regulation shall be sent by first class mail, postage prepaid, to the last-known mailing addresses of the member and the alternate payee.
006.02 The member and the alternate payee may designate alternative representatives for receipt of copies of notices. Such designation of a representative must be in writing and received by NPERS before such designation shall become effective.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 42-1101 and 84-1503.
History
- Effective 2012-04-28
Chapter 22 Eligibility and Vesting Credit
Neb. Admin. Code tit. 303, ch. 22 Eligibility and Vesting Credit {#sec-303-nac-22 omnilex-key=us-ne-regs-official--title-303--303 NAC 22}
001 Scope of the Rule
This regulation governs the application process for eligibility and vesting credit under the County Employees Retirement Act, the School Employees Retirement Act, the State Patrol Retirement Act, and the State Employees Retirement Act.
002 Application Period and Qualifying Employment
002.01 State and County Employees - Within the first 180 days of employment, a full-time employee may apply to the board for vesting credit for years of participation in another Nebraska governmental plan, as defined by section 414(d) of the Internal Revenue Code. During the years of participation in the other Nebraska governmental plan, the employee must have been a full-time employee.
002.02 School Employees - Within the first 180 days of employment, a school employee may apply to the board for eligibility and vesting credit for years of participation in another Nebraska governmental plan, as defined by section 414(d) of the Internal Revenue Code. During the years of participation in the other Nebraska governmental plan, the employee must have been a full-time or part-time employee as defined in the Nebraska governmental plan in which the credit was earned. Eligibility and vesting credit for part-time service shall be granted on a proportional basis, reflecting the percentage of regularly scheduled hours worked by the member under such other Nebraska governmental plan.
002.03 State Patrol Members - Within the first 180 days of employment, a member may apply to the board for eligibility and vesting credit for years of participation in another Nebraska governmental plan, as defined by section 414(d) of the Internal Revenue Code.
003 Filing Requirements
003.01 For purposes of computing the 180 day application periods specified in sections 002.01, 002.02, and 002.03, employment is deemed to commence on the first day that an eligible employee/member is required to commence performing services for the employer. Accepting an offer of employment or signing a contract of employment shall not constitute employment for purposes of computing the application period. Employment for State Patrol members shall be deemed to occur on the date such members become sworn officers. For purposes of this regulation, 180 days shall mean 180 calendar days.
003.02 Application for eligibility and vesting credit shall be made on forms prescribed by the Nebraska Public Employees Retirement Systems (NPERS). NPERS shall provide application forms to the State, County, and Public School employers that are subject to the County Employees Retirement Act, the School Employees Retirement Act, the State Patrol Retirement Act, and the State Employees Retirement Act to distribute to all new employees. The employer shall provide each new employee an application form at the time of the employee’s initial employment, the receipt of which shall be acknowledged in writing by the employee.
003.03 In order to receive credit, the application must be properly completed, signed by the applicant and timely filed with NPERS. The application shall be considered filed on time based on the date stamp the application is received by NPERS and shall be the date used to determine whether the application was timely filed.
003.04 Upon receipt of a properly completed and timely filed application, NPERS shall contact the applicant’s former employer or retirement plan administrator to verify the applicant’s previous governmental plan participation and to ascertain the applicant’s eligibility to receive credit. NPERS shall notify the applicant if the applicant qualifies for eligibility and vesting credit.
004 Limitations
A person who has retired and returns to employment with an employer covered by the same retirement system shall not receive credit for any years of service which were included in computing such person’s prior retirement benefit.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 23-2305, 23-2306, 79-904, 79-917, 81-2016, 81-2019, 84-1305, 84-1307, and 84-1503.
History
- Effective 2013-12-07
Chapter 23 Computation of Final Average Compensation for State Patrol and Judges Plans
Neb. Admin. Code tit. 303, ch. 23 Computation of Final Average Compensation for State Patrol and Judges Plans {#sec-303-nac-23 omnilex-key=us-ne-regs-official--title-303--303 NAC 23}
001 Scope of the Rule
This regulation governs the computation of Final Average Compensation for purposes of determining retirement benefits under the Judges Retirement System and the State Patrol Retirement System. The computation of Final Average Compensation for purposes of determining retirement benefits under the School Employees Retirement System is governed by 303 NAC, chapter 14. All terms used in this regulation that are defined terms in the retirement act establishing each system herein shall have the same meaning as provided in the related act.
002 Covered Compensation
Under no circumstances shall a member receive a retirement benefit based upon Final Average Compensation that includes compensation encompassing more than thirty-six (36) months of creditable service.
003 Employer Reports
Retirement contribution remittance reports filed with the Nebraska Public Employees Retirement Systems by employers shall clearly identify the period services were rendered by the member for which the reported compensation applies.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 24-704, 79-904, 81-2019, and 84-1503.
History
- Effective 2013-12-07
Chapter 24 Benefit Options and Distribution Rules
Neb. Admin. Code tit. 303, ch. 24 Benefit Options and Distribution Rules {#sec-303-nac-24 omnilex-key=us-ne-regs-official--title-303--303 NAC 24}
001 Scope of the Rule
This regulation sets forth the retirement benefit options available to members of the Nebraska State Employees Retirement System, the Retirement System for Nebraska Counties, the Nebraska School Retirement System, and the Nebraska Judges Retirement System. This regulation also sets forth rules to ensure compliance with Internal Revenue Code section 401(a)(9) regarding required distributions.
002 Definitions
002.01 Life Only Annuity means a monthly benefit payable for the lifetime of the member. The benefit ceases upon death of the member.
002.02 Payments for a Certain and Continuous Annuity means a monthly benefit payable for the life of the member. A period of time is designated by the member for five (5), ten (10), or fifteen (15) years in duration. If the member dies prior to the end of the designated time period then a monthly benefit will continue to the member’s beneficiary until the completion of the designated period.
002.03 Payments for a Designated Period Annuity means a monthly benefit payable for a period of time designated by the member. The period of time designated can be either five (5), ten (10), fifteen (15), or twenty (20) years in duration. Payments cease at the end of the designated period. If the member dies prior to receiving all payments due, payment will continue to the member’s designated beneficiary until all payments in the designated period have been made.
002.04 Joint and Survivor Annuity means a monthly benefit payable for the lifetime of the member. At the member’s death, the benefit continues to the surviving spouse at a specified rate of 50%, 75%, or 100% until the death of the surviving spouse. The percentage is selected by the member at retirement. If the spouse predeceases the member, the benefit ceases when the member dies.
002.05 Judges Joint and Survivor Annuity means a benefit payable monthly for the lifetime of the member. At the death of the member, the benefit continues to the surviving spouse at a specified rate of 50%, 66 2/3%, or 100%. The percentage is selected by the member at retirement. If the spouse predeceases the member, the benefit ceases when the member dies.
002.06 Judges Joint and Last Survivor Annuity shall mean a benefit payable monthly for the lifetime of the member and the member’s spouse. In the event of the death of either person, the benefit continues to the survivor at a specified rate of 50%, 66 2/3%, or 100%. The percentage is selected by the member at retirement.
002.07 Modified Cash Refund Annuity means a benefit payable monthly for the lifetime of the member. In the event the member dies before receiving payments equal to the member’s account balance at the time of retirement, the difference is paid in a lump sum to the member’s beneficiary.
002.08 Lump Sum means a refund of the member’s account balance in lieu of an annuity.
002.09 Systematic Withdrawal means periodic payments in an amount selected by the member. Payments cease when the member’s account balance reaches zero.
002.10 Account Balance means all employee contributions plus earnings or interest accrued on such account less any applicable losses and fees. In the State Employees Retirement System and the Retirement System for Nebraska Counties, account balance for members who are vested in the retirement system shall also include all employer contributions and accrued earnings or interest, less any applicable losses and fees.
002.11 Non-spousal Joint and Survivor Annuity means a monthly benefit payable for the lifetime of the member. At the member’s death, the benefit continues to the non-spouse beneficiary at a rate of 50% until the death of the non-spouse beneficiary. If the non-spouse beneficiary predeceases the member, the benefit ceases when the member dies.
002.12 Retirement date means the first day of the month following the later of (a) the date a member terminates employment, (b) the date a member's request for retirement is received on a retirement application provided by the retirement system, or (c) the month in which the member is first eligible for benefits.
003 State and County Retirement Systems
003.01 Members of the Nebraska State Employees Retirement System and members of the Retirement System for Nebraska Counties who participate in the defined contribution option may elect to receive a retirement benefit under the following options:
003.01(a) Life Only Annuity;
003.01(b) Modified Cash Refund Annuity;
003.01(c) Period Certain and Continuous Annuity (5, 10, and 15 years);
003.01(d) Joint and Survivor Annuity (50%, 75% and 100%);
003.01(e) Non-spousal Joint and Survivor Annuity (50%);
003.01(f) Designated Period Annuity (5, 10, 15, and 20 years);
003.01(g) Lump Sum;
003.01(h) Systematic Withdrawal;
003.01(i) Rollover; or,
003.01(j) A defined contribution member may settle their account balance by selecting any combination of the following distribution options: lump sum, rollover, systematic withdrawal and/or annuity option.
003.02 Members of the Nebraska State Employees Retirement System and members of the Retirement System for Nebraska Counties who participate in the cash balance option may elect to receive a retirement benefit under the following options:
003.02(a) Life Only Annuity;
003.02(b) Modified Cash Refund Annuity;
003.02(c) Period Certain and Continuous Annuity (5, 10, and 15 years);
003.02(d) Joint and Survivor Annuity (50%, 75% and 100%);
003.02(e) Non-spousal Joint and Survivor Annuity (50%);
003.02(f) Designated Period Annuity (5, 10, 15, and 20 years);
003.02(g) Lump Sum;
003.02(h) Rollover; or,
003.02(i) A cash balance member may settle their account balance by selecting any combination of the following distribution options: lump sum, rollover and/or annuity option. All distribution choices must be made at the same time.
004 School Retirement System
004.01 Members of the Nebraska School Retirement System may elect to receive a monthly retirement benefit under one of the following options:
004.01(a) Life Only Annuity;
004.01(b) Modified Cash Refund Annuity;
004.01(c) Period Certain and Continuous Annuity (5, 10, and 15 years);
004.01(d) Joint and Survivor Annuity (50%, 75% and 100%);
004.01(e) Non-spousal Joint and Survivor Annuity (50%).
004.02 A member of the School Retirement System may elect a lump sum refund of the member’s account balance in lieu of a monthly retirement benefit. A refund cancels all service credit earned by the member and the member forfeits the right to receive a monthly retirement benefit. The lump sum refund does not include contributions made by the member’s employer.
005 Judges Retirement System
005.01 Members of the Nebraska Judges Retirement System may elect to receive a retirement benefit under one of the following options:
005.01(a) Modified Cash Refund Annuity;
005.01(b) Life Only Annuity;
005.01(c) Period Certain and Continuous Annuity (5, 10, and 15 years);
005.01(d) Judges Joint and Survivor Annuity (50%, 66 2/3% and 100%); or
005.01(e) Judges Joint and Last Survivor Annuity (50%, 66 2/3% and 100%).
005.02 A member of the Judges Retirement System who terminates service as a judge prior to age sixty-five may elect to receive a lump sum refund. A refund cancels all service credit earned by the member and the member forfeits the right to receive a monthly retirement benefit. Termination of service at or subsequent to age sixty-five shall be considered normal retirement and an annuity option must be selected.
006 Minimum Distribution Rules
To the extent that provisions of the State Employees Retirement Act, the County Employees Retirement Act, the School Employees Retirement Act, the Nebraska State Patrol Retirement Act, and the Judges Retirement Act (the Plans) do not impose more restrictive distribution requirements, and with respect to distributions under the Plans made in calendar years beginning on or after January 1, 2002, the Plans will apply the minimum distribution requirements of section 401(a)(9) of the Internal Revenue Code in accordance with the regulations promulgated under that section.
007 Ability to Make Retirement Option Changes
007.01 Members of the Judges and School Employees Retirement Systems may change their retirement option selection any time prior to the effective date of the member’s retirement.
007.02 Members of the County and State Employees Retirement Systems may change their retirement option selection any time prior to the effective date of the member’s retirement.
008 Death of a Member or Beneficiary
008.01 If a member makes an eligible application for benefit payment but dies prior to their retirement date, then the member will be treated as having not made application for benefit payment. NPERS will handle the resulting benefit payment distribution as a death benefit pursuant to Nebraska statutory law associated with the member’s retirement plan. A member’s death before the member’s retirement date will be treated as a pre-retirement death, and NPERS will distribute benefits accordingly under plan provisions.
008.02 If a beneficiary receiving a death benefit dies within a guarantee period and there are still payments remaining to be paid to the beneficiary, then a discounted lump sum shall be paid to the beneficiary’s estate instead of continuing the stream of remaining annuity payments to the deceased beneficiary.
ENABLING LEGISLATION:
NEB. REV. STAT. §§23-2305, 23-2323.02, 24-704, 24-710, 24-710.05, 79-904, 79-933.01, 81-2019, 81-2031.03, 84-1305, 84-1312, and 84-1503.
History
- Effective 2012-11-12
Chapter 25 Transfer of Municpal Employee to Retirement System for Nebraska Counties
Neb. Admin. Code tit. 303, ch. 25 Transfer of Municpal Employee to Retirement System for Nebraska Counties {#sec-303-nac-25 omnilex-key=us-ne-regs-official--title-303--303 NAC 25}
001 Scope of Rule
The provisions of this rule shall apply to a fulltime or part-time employee of a city, village, fire protection district, or township, who either becomes a county employee pursuant to a merger of services or becomes a municipal county employee, and as a result of such change transfers funds from the employee’s existing retirement plan to the Retirement Plan for Nebraska Counties.
002 Transfer Due to a Merger of Services
002.01 A fulltime or part-time employee of a city, village, or township who becomes a county employee pursuant to a merger of services, may transfer to the retirement system an amount equal to the sum of all deductions for retirement that were made from the employee's compensation, plus earnings, during such period of employment with the city, village, or township.
002.02 Payment shall be made within five (5) years after the merger or prior to retirement, whichever comes first, and may be made through a direct transfer or rollover.
003 Transfer from Other Governmental Plan
003.01 A fulltime or part-time employee of a city, village, fire protection district, or township who becomes a municipal county employee shall transfer all of his or her funds in the retirement system of the city, village, fire protection district, or township by paying to the Retirement System for Nebraska Counties from funds held by the retirement system of the city, village, fire protection district, or township an amount equal to one of the following:
003.01(a) If the retirement system of the city, village, fire protection district, or township maintains a defined benefit plan, an amount not to exceed the initial benefit transfer value as provided in Neb. Rev. Stat. § 13-2401, leaving no funds attributable to the transferred employee within the retirement system of the city, village, fire protection district, or township; or
003.01(b) If the retirement system of the city, village, fire protection district, or township maintains a defined contribution plan or cash balance plan, an amount not to exceed the employee and employer accounts of the transferring employee plus earnings during the period of employment with the city, village, fire protection district, or township. The employee shall receive vesting credit for his or her years of service in a governmental plan, as defined in section 414(d) of the Internal Revenue Code, maintained by the city, village, fire protection district, or township.
003.02 Payment shall be made within five (5) years after employment begins with the receiving entity or prior to retirement, whichever comes first, and may be made through a direct transfer or rollover.
004 Required Documentation
004.01 Upon becoming a member of the Retirement System for Nebraska Counties, the employee shall provide documentation and information on forms prescribed by the Retirement Board, which will include, in part, the following:
004.01(a) the sum of all deductions for retirement that were made from the employee's compensation, plus earnings, during such period of employment;
004.01(b) the amount of the initial benefit transfer value; and
004.01(c) the amount of the employee and employer accounts of the transferring employee plus earnings.
004.02 The member shall obtain from the employee’s former employer (city, village, fire protection district, or township) evidence in the form of official documents or records to substantiate all information provided by the employee in section 004.01 of this rule.
004.03 The Retirement Board may require further reasonable information or documentation, as necessary, prior to permitting a transfer by the employee of retirement funds (attributed to the city, village, fire protection district, or township retirement plans), to the Retirement System for Nebraska Counties.
005 Acceptance of Rollover Contributions
005.01 Cash transferred as a rollover contribution to the Retirement System for Nebraska Counties shall be deposited as a contribution to the member’s account.
005.02 The Retirement System for Nebraska Counties may accept direct rollover distributions made from a qualified trust pursuant to section 401(a)(31) of the Internal Revenue Code.
ENABLING LEGISLATION:
NEB. REV. STAT. §§ 23-2305, 23-2306.02, 23-2306.03 and 23-2323.03.
History
- Effective 2012-04-28
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