84-1310.01 Defined contribution benefit; employee account; investment options; procedures; administration. - Nebraska Statutes

84-1310.01. Definedcontribution benefit; employee account; investment options; procedures; administration.(1) Each member employed and participating in the retirementsystem prior to January 1, 2003, who has elected not to participate in thecash balance benefit, shall be allowed to allocate all contributions to hisor her employee account to various investment options. Such investment optionsshall include, but not be limited to, the following:(a) An investor select account which shall be invested underthe direction of the state investment officer with an asset allocation andinvestment strategy substantially similar to the investment allocations madeby the state investment officer for the defined benefit plans under the retirementsystems described in subdivision (1)(a) of section 84-1503. Investments shallmost likely include domestic and international equities, fixed income investments,and real estate, as well as potentially additional asset classes;(b) A stable return account which shall be invested by orunder the direction of the state investment officer in one or more guaranteedinvestment contracts;(c) An equities account which shall be invested by or underthe direction of the state investment officer in equities;(d) A balanced account which shall be invested by or underthe direction of the state investment officer in equities and fixed incomeinstruments;(e) An index fund account which shall be invested by or underthe direction of the state investment officer in a portfolio of common stocksdesigned to closely duplicate the total return of the Standard and Poor's500 Index;(f) A fixed income account which shall be invested by orunder the direction of the state investment officer in fixed income instruments;(g) A money market account which shall be invested by orunder the direction of the state investment officer in short-term fixed incomesecurities; and(h) Beginning on July 1, 2006, an age-based account whichshall be invested under the direction of the state investment officer withan asset allocation and investment strategy that changes based upon the ageof the member. The board shall develop an account mechanism that changes theinvestments as the employee nears retirement age. The asset allocation andasset classes utilized in the investments shall move from aggressive, to moderate,and then to conservative as retirement age approaches.If a member fails to select an option or combination of options,all of his or her funds shall be placed in the option described in subdivision(b) of this subsection. Each member shall be given a detailed current descriptionof each investment option prior to making or revising his or her allocation.(2) Members of the retirement system may allocate their contributionsto the investment options in percentage increments as set by the board inany proportion, including full allocation to any one option. A member undersubdivision (1) of section 84-1323 or his or her beneficiary may transferany portion of his or her funds among the options, except for restrictionson transfers to or from the stable return account pursuant to rule or regulation.The board shall adopt and promulgate rules and regulations for changes ofa member's allocation of contributions to his or her accounts after his orher most recent allocation and for transfers from one investment account toanother.(3) The board shall develop a schedule for the allocationof administrative costs of maintaining the various investment options andshall assess the costs so that each member pays a reasonable fee as determinedby the board.(4) 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 state and its participating employees.(5) The state, the board, the state investment officer, themembers of the Nebraska Investment Council, or the agency shall not be liablefor any investment results resulting from the member's exercise of controlover the assets in the employee account. SourceLaws 1984, LB 751, § 11; Laws 1991, LB 549, § 66; Laws 1994, LB 833, § 47; Laws 1996, LB 847, § 44; Laws 1999, LB 703, § 22; Laws 2000, LB 1200, § 5; Laws 2001, LB 408, § 26; Laws 2002, LB 407, § 56; Laws 2002, LB 687, § 23; Laws 2005, LB 503, § 16; Laws 2008, LB1147, § 14; Laws 2010, LB950, § 23.Operative Date: July 1, 2010