Nebraska board to launch retirement transition sessions for public employees starting September 2024

Legislature Bill 295, introduced by the Nebraska State Legislature on April 15, 2025, aims to enhance the retirement transition process for public employees in Nebraska. The bill mandates the establishment of informational sessions designed to assist members of various retirement systems as they prepare for retirement.

The primary purpose of the bill is to provide comprehensive guidance on the multifaceted changes that retirees may encounter, including adjustments in physical and mental health, housing, family dynamics, leisure activities, and retirement income. These sessions will be accessible to any member who meets the vesting requirements of their respective retirement system.

Key provisions of the bill include detailed information on federal and state income tax implications related to retirement benefits, Social Security benefits, and various government and private sector programs aimed at supporting elderly individuals. The sessions are set to begin on September 1, 2024, and will also extend to school employees who are part of the Class V School Employees Retirement Act.

To facilitate these sessions, the bill requires collaboration between the board overseeing the retirement systems and several state agencies, including the Department of Health and Human Services and the Department of Administrative Services. This partnership is intended to enhance the quality and relevance of the information provided.

Additionally, the bill stipulates that employers participating in the Nebraska Counties Retirement System and the State Employees Retirement System must grant their employees paid leave to attend these sessions, allowing for up to three days or twenty-four hours of participation. This provision aims to ensure that employees can fully engage in the transition process without financial burden.

The introduction of LB295 has sparked discussions among lawmakers and stakeholders regarding its potential impact on public employees' preparedness for retirement. Supporters argue that the bill addresses a critical gap in retirement planning resources, while some opponents express concerns about the financial implications for employers and the feasibility of implementing the required sessions.

As the bill progresses through the legislative process, its implications for Nebraska's public workforce and the overall retirement landscape will be closely monitored. If passed, LB295 could significantly improve the transition experience for retiring public employees, ultimately contributing to their well-being in retirement.