[{"_1":2,"_88":-5,"_89":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6086207,"mediaKeyId","2898223-e11c610700e2eb1f17e1668db74f2f7d","parentId",2898223,"title","NPERS reports $23 billion in assets, 175,000 members; OSERS remains under 60% funded","audioSeconds",666,"startMs",4478000,"endMs",5144000,"viewUrl","/Search/View?dp=1&key=2898223-e11c610700e2eb1f17e1668db74f2f7d&start=4478&end=5144","thumbnailUrl","https://assets.pipeline.soar.com/2898223-e11c610700e2eb1f17e1668db74f2f7d/thumbnail_4478000.jpg","articleUrl","/articles/6086207/Nebraska/NPERS-reports-23-billion-in-assets-175000-members-OSERS-remains-under-60-funded","mediaUrl","https://secure.pipeline.soar.com/6086207-73df543632b8e5fd642469314efccc78/orig.mp4?Expires=1771179397&Signature=eYpAyCWFtoTLU5Mmqoa4IRmeR6yhVSsZuY1joksUn3DgRvhAnmAHXGaGkTT7q9d-bxBvM6Y5sv73ZBnWSk5444Q0kAZ4vy8JY1F9hShyIu3oC8TdToeJkem2J7knuJBMmQHY3c0lGup3aZMrwb~HSYyhkM2mqiq0zAkov2C1UyonJOCPiGsmS1bvvf5W84gj4PnpBWBJV-UAs8x65eXQ-dfhGC-BZkHWgGTVIhJOBXDddBub8g6VVai~BeAeJkqBaTmFeJs3yIWiWkzbX9PnseHaroYyKq-XonlqPh0qvvbb-YrB~EH-8V8yZ2MuF6Ohxj2IXlS8ccr1eFAoeabOWw__&Key-Pair-Id=KUT5TJCACFTXG","author","Nebraska Legislature","date","2025-04-03T00:00:00Z","article","Tyler Cummings, interim director of the Nebraska Public Employees Retirement System, presented NPERS' 2024 annual report to the Legislature's Retirement Systems Committee and outlined membership, asset and benefit‑payment totals and recent administrative milestones.

Cummings told the committee that NPERS serves about 175,000 plan members and that the Nebraska Investment Council manages roughly $23 billion in plan assets. He said the system paid more than $1.3 billion in retirement distributions in 2024 and that the average monthly benefit payment is about $2,300. Cummings said 88% of retirement distributions go to Nebraska residents.

Cummings also highlighted administrative work completed in 2024: NPERS answered more than 45,000 phone calls, handled roughly 2,000 in‑office visits, implemented multi‑factor authentication for member and employer portals, conducted 55 employer audits, and processed about 2,000 new retirements (excluding the recently transferred Omaha School Employees' Retirement System, OSERS).

OSERS and funding status: Cummings recapped that NPERS began administering the Omaha School Employees' Retirement System on Sept. 1 under prior legislation and said OSERS is the only plan in the NPERS portfolio below 80% funded; he reported it is “just slightly below 60%.” When asked about the outlook for OSERS, Cummings said the Omaha Public Schools have been contributing their actuarially required contributions and additional payments, and he estimated improving OSERS' funding will take time: “It’s gonna take time…a 30 to 40 year horizon,” he said.

Geographic and local impact data: Cummings pointed the committee to county‑level breakdowns in the annual report that show monthly benefit payments by county and plan, including totals showing roughly $92 million paid in annuity payments each month to all plan members, and about $81 million per month paid to Nebraska residents across plans.

Legislative and operational context: Cummings noted the annual report is required by statute to be presented to the committee by April 10. He also summarized plan structure (seven plans administered, including defined benefit, cash balance and defined contribution plans) and reminded the committee NPERS employs about 60 full‑time staff to administer benefits and services.

The committee asked follow‑up questions about OSERS' investments and whether NPERS and the Nebraska Investment Council plan to align OSERS' investment strategy with other defined‑benefit plans; Cummings said NIC staff are working to remove poor‑performing investments from OSERS and align allocations with other defined‑benefit plans, and he deferred detailed investment strategy questions to the NIC.","mediaType","Video","parentTitle","Nebraska Retirement Systems Committee - Room 1524 4/3/2025","oneSentenceSummary","Tyler Cummings, interim director of the Nebraska Public Employees Retirement System, told the Retirement Systems Committee NPERS serves about 175,000 members, that the system had roughly $23 billion in assets under management and paid more than $1.3 billion in retirement distributions in 2024.","taxTitle","2025 Legislature NE, Nebraska","taxId",77675,"location","Nebraska","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6086212,"Actuaries recommend lowering long‑term return assumption to 6.75% and phasing it in over four years",4376,96000,4472000,"/Search/View?dp=1&key=2898223-e11c610700e2eb1f17e1668db74f2f7d&start=96&end=4472","https://assets.pipeline.soar.com/2898223-e11c610700e2eb1f17e1668db74f2f7d/thumbnail_96000.jpg","/articles/6086212/Nebraska/Actuaries-recommend-lowering-longterm-return-assumption-to-675-and-phasing-it-in-over-four-years","https://secure.pipeline.soar.com/6086212-c5805f62230d0dfea02c90e8b3a080bd/orig.mp4?Expires=1771179397&Signature=mZNHy7HWLw8NxndugVtIMkKa~fBxkbJk3sgkT5RBuk30pqqOh5ZsZykGkJJqmb94jaVJBIYoFOKKvMAlaotmOYv0ftUIl92~2PhXsjqWvzuBR0PUBWz5X9sSpBMso6qKbDN8FsX0bAF2cAWs5eKLeBBQ5fadDzcLu8LFL8PrOwqXxKzscfrMZniLR8dngp2jLfOjI-l~199~YA~DT3fRqYkOzsdGKd9dZ9J~LCwsxUgkuETP2fx~fTnAd7IEHNu6eIyQPvXQhfrGSeXbK4YNotWoQeT~jB4w2Vp~j3r4JMjoRDT2T79~pULBmdMAxZ~fcETgFvjJGJbGzUFivVkxDA__&Key-Pair-Id=KUT5TJCACFTXG","Actuaries for the Nebraska Public Employees Retirement Systems presented the system's experience study to the Legislature's Retirement Systems Committee and recommended lowering NPERS' long‑term investment return assumption to 6.75%, to be phased in over four years.

The recommendation, delivered by Brent Bannister of Cap Knott MacDonald, comes as the actuaries reviewed economic and demographic assumptions that underlie NPERS' actuarial valuations. Bannister told the committee, “Assumptions do not affect what a plan costs; they may affect what the contributions are in a given year.” He said the recommended 6.75% long‑term return reflects the system's current asset allocation and a 2.35% inflation assumption the actuaries proposed keeping unchanged.

Why it matters: the assumed investment return is a primary driver of actuarial contribution rates. Lowering the assumed return means the actuarial rate generally rises, which can reduce the contribution margin between what statutes or employers currently require and what actuaries recommend as necessary to fund benefits over time.

Key recommendations and numbers from the presentation:
- Long‑term investment return: recommended 6.75% (the actuaries recommended phasing this change in over four years to lessen year‑to‑year budgetary impact). Bannister: “Our suggestion was, let’s move it down to 6.75%.” The Public Employees Retirement Board (PERB) had decided to phase the change in over four years, the actuaries said.
- Inflation: retain at 2.35%.
- Real return assumption implied by asset mix: actuaries estimated a real return of roughly 4.4% given NPERS’ asset allocation and recommended the lower assumed nominal return to match that mix.
- Cash‑balance crediting rate: retain at 6% for state and county cash‑balance plans (the rate is based on a federal midterm rate with a margin, not below 5%).
- General wage inflation: increase modestly from 2.85% to 2.95% to reflect near‑term wage pressures and a tighter labor market.
- Individual salary‑increase patterns: small adjustments to the salary‑scale assumptions, including modest increases for years 3+ of service in certain groups (state patrol, school groups), rather than major structural changes.
- Annuity election (cash‑balance plans): actuaries recommended moving the state plan's annuity‑election assumption from 50% to 55% (county to remain near 50%) based on account‑weighted experience.

Demographic assumptions: Pat Beckham, also of Cap Knott MacDonald, said the actuaries made only minor adjustments to demographic assumptions overall, and specifically recommended no change to mortality assumptions because the mortality experience during the study period — which included COVID years — did not warrant a different long‑term mortality table. Beckham said, “We are not recommending a change to mortality.”

Committee discussion and context: senators asked about COVID's lingering effects, the role of artificial intelligence and tariffs on future productivity, and why NPERS' assumed return differs modestly from other systems. The actuaries explained that the Nebraska portfolio is slightly more conservative than some peers — roughly 30% in fixed income — and that asset allocation is the primary driver of expected returns. On the topic of unfunded liabilities, the actuaries said Nebraska's funds are generally well funded compared with national medians, and noted the state's funding policy aims to amortize unfunded liabilities over 25 years.

Next steps: the actuaries said the phase‑in will be reflected in upcoming valuations; the first step of the phase‑in (6.95% in their example) will appear in the 2025 valuation and future valuations will incorporate subsequent steps. They emphasized annual valuations will continue to track experience and adjust contributions as warranted.

The committee did not take a formal vote during the hearing; the presentation was an informational session on actuaries' findings and the PERB's decision to phase the new assumption.","Actuaries for the Nebraska Public Employees Retirement Systems presented the system's experience study to the Legislature's Retirement Systems Committee and recommended lowering NPERS' long‑term investment return assumption to 6.75%, to be phased in over four years.","actionData","errors"]

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NPERS reports $23 billion in assets, 175,000 members; OSERS remains under 60% funded

Actuaries recommend lowering long‑term return assumption to 6.75% and phasing it in over four years