Committee hears testimony on amendment to restore ‘rule of 85’ for post‑2018 school hires; actuarial study, staffing concerns raised

Senator Beau Ballard, chair of the Nebraska Retirement Systems Committee, opened a lunchtime hearing on AM 10-23 to LB 645, an amendment that would restore earlier retirement eligibility under the so‑called “rule of 85” for school employees hired on or after July 1, 2018, and which also includes provisions that alter future state contribution triggers to the school retirement fund.

The amendment would allow employees hired on or after July 1, 2018, to qualify for an unreduced retirement benefit at age 55 when their age plus service totals 85 — effectively walking back the change adopted in 2018 (LB 415) that required those hires to reach age 60 for unreduced benefits. The amendment also contains a stepped mechanism for reducing the state contribution to the school retirement fund; the committee transcript describes reductions in fiscal years that were discussed during the hearing but the exact numeric schedule as read aloud in committee was not fully specified in the record.

The Nebraska State Education Association testified in favor. Tim Royers,…