84-1321 Employees; termination of employment; benefits; when; how computed; vesting; deferment of benefits. - Nebraska Statutes

84-1321. Employees;termination of employment; benefits; when; how computed; vesting; defermentof benefits.(1) Except as provided in section 42-1107, upon termination of employment before becoming eligible for retirementunder section 84-1317, a member may, upon application to the board, receive:(a) If not vested, a termination benefit equal to the amountin his or her employee account or member cash balance account as of the dateof final account value payable in a lump sum or an annuity with the lump-sumor first annuity payment made at any time after termination but no later thanApril 1 of the year following the year in which the member attains the ageof seventy and one-half years,except that for members participating in the defined contribution benefit,no distribution is required to be made for the plan year commencing January1, 2009, through December 31, 2009; or(b) If vested, a termination benefit equal to (i) the amountof his or her member cash balance account as of the date of final accountvalue payable in a lump sum or an annuity with the lump-sum or first annuitypayment made at any time after termination but no later than April 1 of theyear following the year in which the member attains the age of seventy andone-half years or (ii)(A) the amount in his or her employee account as ofthe date of final account value payable in a lump sum or an annuity with thelump-sum or first annuity payment made at any time after termination but nolater than April 1 of the year following the year in which the member attainsthe age of seventy and one-half years plus (B) the amount of his or her employeraccount as of the date of final account value payable in a lump sum or anannuity with the lump-sum or first annuity payment made at any time aftertermination but no later than April 1 of the year following the year in whichthe member attains the age of seventy and one-half years. For purposes of subdivision (1)(b) of this section, formembers participating in the defined contribution benefit, no distributionis required to be made for the plan year commencing January 1, 2009, throughDecember 31, 2009.The member cash balance account or employer and employeeaccounts of a terminating member shall be retained by the board, and the terminationbenefit shall be deferred until a valid application for benefits has beenreceived.(2) At the option of the terminating member, any lump sumof the vested portion of the employer account or member cash balance accountor any annuity provided under subsection (1) of this section shall commenceas of the first of the month at any time after such member has terminatedhis or her employment with the state or may be deferred, except that no benefitshall be deferred later than April 1 of the year following the year in whichthe employee has both attained at least seventy and one-half years of ageand has terminated his or her employment with the state, except that for members participating in the defined contributionbenefit, no distribution is required to be made for the plan year commencingJanuary 1, 2009, through December 31, 2009. Such election by theterminating member shall be made at any time prior to the commencement ofthe lump-sum or annuity payments.(3) Members of the retirement system shall be vested aftera total of three years of participation in the system as a member pursuantto section 84-1307, including vesting credit. If an employee retires pursuantto section 84-1317, such an employee shall be fully vested in the retirementsystem. SourceLaws 1963, c. 532, § 21, p. 1675; Laws 1973, LB 498, § 6; Laws 1975, LB 56, § 3; Laws 1983, LB 604, § 26; Laws 1983, LB 219, § 3; Laws 1984, LB 751, § 9; Laws 1986, LB 325, § 20; Laws 1986, LB 311, § 35; Laws 1987, LB 308, § 3; Laws 1987, LB 60, § 5; Laws 1991, LB 549, § 71; Laws 1993, LB 417, § 7; Laws 1994, LB 1306, § 9; Laws 1996, LB 1076, § 40; Laws 1996, LB 1273, § 32; Laws 1997, LB 624, § 39; Laws 2002, LB 687, § 28; Laws 2003, LB 451, § 31; Laws 2006, LB 366, § 11; Laws 2009, LB188, § 15.