23-2308.01 Cash balance benefit; election; effect; administrative services agreements; authorized. - Nebraska Statutes

23-2308.01. Cash balancebenefit; election; effect; administrative services agreements; authorized.(1) It is the intent of the Legislature that, in order toimprove the competitiveness of the retirement plan for county employees, acash balance benefit shall be added to the County Employees Retirement Acton and after January 1, 2003. Each member who is employed and participatingin the retirement system prior to January 1, 2003, may either elect to continueparticipation in the defined contribution benefit as provided in the act priorto January 1, 2003, or elect to participate in the cash balance benefit asset forth in this section. The member shall make the election prior to January1, 2003, or on or after November 1, 2007, but before January 1, 2008. If noelection is made prior to January 1, 2003, or on or after November 1, 2007,but before January 1, 2008, the member shall be treated as though he or sheelected to continue participating in the defined contribution benefit as providedin the act prior to January 1, 2003. Members who elect to participate in thecash balance benefit on or after November 1, 2007, but before January 1, 2008,shall commence participation in the cash balance benefit on January 1, 2008.Any member who made the election prior to January 1, 2003, does not have toreelect the cash balance benefit on or after November 1, 2007, but beforeJanuary 1, 2008. A member employed and participating in the retirement systemprior to January 1, 2003, who terminates employment on or after January 1,2003, and returns to employment prior to having a five-year break in serviceshall participate in the cash balance benefit as set forth in this section.(2) For a member employed and participating in the retirementsystem beginning on and after January 1, 2003, or a member employed and participatingin the retirement system on January 1, 2003, who, prior to January 1, 2003,or on or after November 1, 2007, but before January 1, 2008, elects to converthis or her employee and employer accounts to the cash balance benefit:(a) The employee cash balance account shall, at any time,be equal to the following:(i) The initial employee account balance, if any, transferredfrom the defined contribution plan account described in section 23-2309; plus(ii) Employee contribution credits deposited in accordancewith section 23-2307; plus(iii) Interest credits credited in accordance with subdivision(19) of section 23-2301; plus(iv) Dividend amounts credited in accordance with subdivision(4)(c) of section 23-2317; and(b) The employer cash balance account shall, at any time,be equal to the following:(i) The initial employer account balance, if any, transferredfrom the defined contribution plan account described in section 23-2310; plus(ii) Employer contribution credits deposited in accordancewith section 23-2308; plus(iii) Interest credits credited in accordance with subdivision(19) of section 23-2301; plus(iv) Dividend amounts credited in accordance with subdivision(4)(c) of section 23-2317.(3) In order to carry out the provisions of this section,the board may enter into administrative services agreements for accountingor record-keeping services. No agreement shall be entered into unless theboard determines that it will result in administrative economy and will bein the best interests of the counties and their participating employees. Theboard may develop a schedule for the allocation of the administrative servicesagreements costs for accounting or record-keeping services and may assessthe costs so that each member pays a reasonable fee as determined by the board. SourceLaws 2002, LB 687, § 6; Laws 2003, LB 451, § 4; Laws 2005, LB 364, § 2; Laws 2006, LB 366, § 5; Laws 2006, LB 1019, § 3; Laws 2007, LB328, § 1; Laws 2009, LB188, § 2; Laws 2010, LB950, § 2.Operative Date: July 1, 2010