The most recent actuarial study prompted the Public Employees Retirement Board (PERB) to make changes to the Cash Balance Tier 1 and Tier 2 annuity rates. These changes will go into effect on , and the rate will decrease incrementally each month until . At that time, the annuity rate for both Tiers will be 6.75%.
The State Employees' Retirement plan began as a Defined Contribution plan in 1964. The Cash Balance benefit was added by passage of LB687 on . As of , members who begin participation in the State Retirement Plan participate in Cash Balance.
Employer and Employee contributions are invested into multiple fund options. Current rates of return for these funds can be viewed online by clicking View Historical Investment Returns or by accessing the Online Account (see below). Rates of return are typically updated and posted roughly 30 days after the close of each quarter.
Cash Balance participants receive an "interest credit rate" based on the Federal Mid-term rate plus 1.5% and are guaranteed a minimum annual rate of return of 5%. Current rates of return can be viewed online by clicking View Current Cash Balance Interest Credit Rates
New
Member Information Packet (PDF, 764 KB)
This packet gives
new members a brief overview regarding the retirement benefits
offered to State employees. It also contains links to the forms that
should be provided to all new members.
Required
Minimum Distribution Packet (PDF, 264 KB)
This packet
provides information and warnings regarding Required Minimum
Distributions (RMDs).
Retirement plan participants may monitor and make changes to their account using the Online Account Access (opens in new window) and their username and password.
For instructions on creating an online account, click Online Account Login Instructions (PDF, 183 KB) .
If you missed a seminar, a recorded webinar is available to watch anytime. This webinar covers the retirement plan. Additional videos cover Social Security, Medicare, and estate planning fundamentals, providing a convenient seminar-at-home experience.
If the plan member is under age 50 and still working:
If the plan member:
Then they will be eligible to:
Alternate payees are not subject to the 10 percent federal tax penalty for premature distributions that is assessed to plan members who cease work before age 55 and withdraw their funds before age 59 1/2.
If an 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. Alternate payees may wish to consider receiving their award, as described above, upon meeting eligibility requirements.