84-1321.01 Termination of employment; account forfeited; when; State Employer Retirement Expense Fund; created; investment. - Nebraska Statutes

84-1321.01. Terminationof employment; account forfeited; when; State Employer Retirement ExpenseFund; created; investment.(1) For a member whohas terminated employment and is not vested, the balance of the member's employeraccount or employer cash balance account shall be forfeited. The forfeitedaccount shall be credited to the State Employees Retirement Fund and shallfirst be used to meet the expense charges incurred by the retirement boardin connection with administering the retirement system, which charges shallbe credited to the State Employees Defined Contribution Retirement ExpenseFund, if the member participated in the defined contribution option, or tothe State Employees Cash Balance Retirement Expense Fund, if the member participatedin the cash balance option, and the remainder, if any, shall then be usedto reduce the state contribution which would otherwise be required to fundfuture service retirement benefits or to restore employer accounts or employercash balance accounts. No forfeited amounts shall be applied to increase thebenefits any member would otherwise receive under the State Employees RetirementAct.(2) If a member ceases to be an employee due to the terminationof his or her employment by the state and a grievance or other appeal of thetermination is filed, transactions involving forfeiture of his or her employeraccount or employer cash balance account shall be suspended pending the finaloutcome of the grievance or other appeal.(3) The State Employer Retirement Expense Fund is created.The fund shall be administered by the Public Employees Retirement Board. Thefund shall be established and maintained separate from any funds held in trustfor the benefit of members under the retirement system. The fund shall be used to meet expenses of the State EmployeesRetirement System of the State of Nebraska whether such expenses are incurredin administering the member's employer account or in administering the member'semployer cash balance account when the funds available in the State EmployeesDefined Contribution Retirement Expense Fund or State Employees Cash BalanceRetirement Expense Fund make such use reasonably necessary.(4) The director of the NebraskaPublic Employees Retirement Systems shall certify to the Accounting Administratorof the Department of Administrative Services when accumulated employer accountforfeiture funds are available to reduce the state contribution which wouldotherwise be required to fund future service retirement benefits or to restoreemployer accounts or employer cash balance accounts referred to in subsection(1) of this section. Following such certification, the Accounting Administratorshall transfer the amount reduced from the state contribution from the ImprestPayroll Distributive Fund to the State Employer Retirement Expense Fund. Expensesincurred as a result of the state depositing amounts into the State EmployerRetirement Expense Fund shall be deducted prior to any additional expensesbeing allocated. Any remaining amount shall be allocated in accordance with subsection (3) of this section. Anymoney in the fund available for investment shall be invested by the stateinvestment officer pursuant to the Nebraska Capital Expansion Act and theNebraska State Funds Investment Act. SourceLaws 1997, LB 624, § 40; Laws 2000, LB 1200, § 8; Laws 2002, LB 687, § 29; Laws 2003, LB 451, § 32; Laws 2005, LB 364, § 19; Laws 2007, LB328, § 10; Laws 2010, LB950, § 26.Operative Date: July 1, 2010 Cross ReferencesNebraska Capital Expansion Act, see section 72-1269.Nebraska State Funds Investment Act, see section 72-1260.