[NCASG] Question on retirement plan options

[Cooper, Laura L]

The State of Nebraska does not offer multiple retirement options. Nebraska provides a single, mandatory Cash Balance pension plan for all full-time employees. Participation for permanent part-time employees is optional.

  *   Members contribute 4.8% of salary pre-tax and the state matches contributions at 156%.
  *   Members are "vested" after a total of three years of plan participation (36 full months of contributions).
  *   Member accounts receive an "interest credit rate" (rate of return) based on the federal mid-term rate plus 1.5% and are guaranteed a minimum annual rate of return of 5%.
  *   Members have multiple payment options of their account at retirement.

History: "The State Employees' Retirement plan began as a Defined Contribution plan in 1964. The Cash Balance benefit was added by passage of LB687 on April 18, 2002. As of January 1, 2003, members who begin participation in the State Retirement Plan participate in Cash Balance." Website: https://protect-us.mimecast.com/s/_kajCERpXxf6zy8AHNskXa?domain=npers.ne.gov

In addition, state employees may also participate in a voluntary Deferred Compensation Plan (DCP) with adjustable contributions and investment options.

Laura L. Cooper, C.L.S.S.Y.B
Research Analyst II | Employee Relations

Nebraska Department of Administrative Services
1526 K Street, Suite 120, Lincoln, NE 68508
OFFICE 402-471-4460
CELL 402-219-1999
laura.l.cooper at nebraska.gov<mailto:laura.l.cooper at nebraska.gov>
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From: Hart, Lynn L. <lyhart at nd.gov>
Sent: Tuesday, May 31, 2022 1:43 PM
To: dhr_ncasg_survey_list at admws.idaho.gov
Cc: Breuer, Stacey <sbreuer at nd.gov>
Subject: [NCASG] Question on retirement plan options

Do your state employees have an opportunity to choose among alternative retirement plans?

Here in North Dakota, our main retirement plan is a defined benefit (pension) plan.  The state also offers a defined contribution retirement plan.  Currently only non-classified employees and appointed and elected officials are eligible for the defined contribution plan, but there was an earlier period (October 2013 to July 2017) when the plan was available to all regular state employees.   New, eligible employees can make an irrevocable choice within the first six months of employment to opt out of the defined benefit plan and participate in the defined contribution plan.

Does your state offer any similar option?

To keep the question simple, I am ignoring the fact we have separate retirement plans for judges and law enforcement.

I would appreciate any information you can provide.

Thanks,

Lynn Hart, SPHR, SHRM-SCP, CCP, CEBS
Total Rewards Manager

701.328.4739     *     lyhart at nd.gov<mailto:lyhart at nd.gov>     *     https://protect-us.mimecast.com/s/S179CL9z1JCYgqDoijQQZI?domain=omb.nd.gov<https://protect-us.mimecast.com/s/UHe-CM8AK1U6LPyoH1QrS-?domain=gcc02.safelinks.protection.outlook.com>

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