81-2017 Retirement system; contributions; payment; funding of system. - Nebraska Statutes

81-2017. Retirement system;contributions; payment; funding of system.(1)Commencing July 1, 2005, anduntil July 1, 2009, each officer while in the service of the NebraskaState Patrol shall pay or have paid on his or her behalf a sum equal to thirteenpercent of his or her monthly compensation. CommencingJuly 1, 2009, and until July 1, 2010, each officer while in the service ofthe Nebraska State Patrol shall pay or have paid on his or her behalf a sumequal to fifteen percent of his or her monthly compensation. Commencing July1, 2010, each officer while in the service of the Nebraska State Patrol shallpay or have paid on his or her behalf a sum equal to sixteen percent of hisor her monthly compensation. Such amounts shall be deducted monthlyby the Director of Administrative Services who shall draw a warrant monthlyin the amount of the total deductions from the compensation of members ofthe Nebraska State Patrol in accordance with subsection (4) of this section,and the State Treasurer shall credit the amount of such warrant to the StatePatrol Retirement Fund. The director shall cause a detailed report of allmonthly deductions to be made each month to the board.(2) In addition, commencing July 1, 2005, and until July 1, 2010, there shall be assessedagainst the appropriation of the Nebraska State Patrol a sum equal to theamount of fifteen percent of each officer's monthly compensation which shallbe credited to the State Patrol Retirement Fund. Commencing July 1, 2010, there shall be assessed againstthe appropriation of the Nebraska State Patrol a sum equal to the amount ofsixteen percent of each officer's monthly compensation which shall be creditedto the State Patrol Retirement Fund.(3) For the fiscal year beginning on July 1, 2002, and eachfiscal year thereafter, the actuary for the board shall perform an actuarialvaluation of the system using the entry age actuarial cost method. Under thismethod, the actuarially required funding rate is equal to the normal costrate, plus the contribution rate necessary to amortize the unfunded actuarialaccrued liability on a level payment basis. The normal cost under this methodshall be determined for each individual member on a level percentage of salarybasis. The normal cost amount is then summed for all members. Beginning July1, 2006, any existing unfunded liabilities shall be reinitialized and amortizedover a thirty-year period, and during each subsequent actuarial valuation,changes in the funded actuarial accrued liability due to changes in benefits,actuarial assumptions, the asset valuation method, or actuarial gains or lossesshall be measured and amortized over a thirty-year period beginning on thevaluation date of such change. If the unfunded actuarial accrued liabilityunder the entry age actuarial cost method is zero or less than zero on anactuarial valuation date, then all prior unfunded actuarial accrued liabilitiesshall be considered fully funded and the unfunded actuarial accrued liabilityshall be reinitialized and amortized over a thirty-year period as of the actuarialvaluation date. If the actuarially required contribution rate exceeds therate of all contributions required pursuant to the Nebraska State Patrol RetirementAct, there shall be a supplemental appropriation sufficient to pay for thedifferences between the actuarially required contribution rate and the rateof all contributions required pursuant to the Nebraska State Patrol RetirementAct. Such valuation shall be on the basis of actuarial assumptions recommendedby the actuary, approved by the board, and kept on file with the board.(4) The state shall pick up the member contributions requiredby this section for all compensation paid on or after January 1, 1985, andthe contributions so picked up shall be treated as employer contributionsin determining federal tax treatment under the Internal Revenue Code as definedin section 49-801.01, except that the state shall continue to withhold federalincome taxes based upon these contributions until the Internal Revenue Serviceor the federal courts rule that, pursuant to section 414(h) of the code, thesecontributions shall not be included as gross income of the member until suchtime as they are distributed or made available. The state shall pay thesemember contributions from the same source of funds which is used in payingearnings to the member. The state shall pick up these contributions by a compensationdeduction through a reduction in the cash compensation of the member. Membercontributions picked up shall be treated for all purposes of the NebraskaState Patrol Retirement Act in the same manner and to the extent as membercontributions made prior to the date picked up. SourceLaws 1947, c. 211, § 4, p. 688; Laws 1959, c. 286, § 6, p. 1085; Laws 1965, c. 387, § 1, p. 1243; Laws 1971, LB 987, § 10; Laws 1975, LB 235, § 1; R.S.1943, (1978), § 60-444; Laws 1981, LB 462, § 5; Laws 1984, LB 218, § 4; Laws 1989, LB 506, § 14; Laws 1991, LB 549, § 49; Laws 1994, LB 833, § 36; Laws 1994, LB 1287, § 1; Laws 1995, LB 369, § 6; Laws 1995, LB 574, § 81; Laws 2001, LB 408, § 21; Laws 2002, LB 407, § 50; Laws 2004, LB 514, § 1; Laws 2005, LB 503, § 12; Laws 2006, LB 1019, § 12; Laws 2007, LB324, § 4; Laws 2009, LB188, § 7.