Bills to exempt retirement pay for police and firefighters draw support from troopers, chiefs

Senator John Kavanaugh introduced LB 930, which would exempt up to $100,000 in annual retirement benefits from state income tax for law enforcement officers and firefighters who have served at least 20 years and reached age 60. Kavanaugh said the deduction mirrors prior targeted retirement provisions and called it a tool for recruitment and retention.

Lucas Bolton, a criminal investigator with the Nebraska State Patrol testifying for the State Troopers Association, said LB 930 is a practical retention incentive. Bolton told the committee troopers routinely earn overtime and face difficult working conditions and said he knew troopers who planned to leave Nebraska because of tax policy. He urged two changes: lower the qualifying age from 60 to 50 — noting some troopers are eligible for retirement at 50 — and extend the benefit to surviving spouses.

“Troopers are asked to work nights, weekends, holidays, and often in adverse conditions,” Bolton said, arguing the bill helps Nebraska keep trained officers and preserves community volunteer and civic contributions retirees make.

Gary Young, representing the Police Officers Association and the Police Chiefs Association of Nebraska, argued the bill would especially help officers from smaller agencies that lack defined‑benefit pensions and often must find post‑retirement work to meet living costs. Young said the exemption would ease transitions and reduce incentives to remain on the job longer than is healthy for officers.

Kavanaugh closed by thanking witnesses and saying he would consider suggested amendments. The committee received written support and opposition letters and closed the LB 930 hearing without taking a vote.