Committee reviews LB820 to consolidate NPERS rules, clear transfer language and allow future Roth option
January 23, 2026 | 2026 Legislature NE, Nebraska
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Trevor Fitzgerald, committee legal counsel, introduced LB820 to the Nebraska Retirement Systems Committee as a cleanup bill coordinated with the Nebraska Public Employees Retirement Systems (NPERS). Fitzgerald said the bill makes five principal changes to statutes governing state, county and school retirement plans and statutes governing the Public Employees Retirement Board (PERB) and the Nebraska Investment Council (NIC).
Fitzgerald told the committee LB820 would consolidate the list of approved identification documents into a single statute so that updates would apply consistently across plans. The bill would also change the NPERS director title to NPERS executive director at the agency’s request.
Fitzgerald said the bill clarifies how state contributions to the school retirement fund and the Omaha School Employees Retirement System (OSERS) are characterized, so contributions are treated as contributions rather than administrative transfers — a change prompted by prior audit findings that produced duplicate appropriations requests.
Section 43 (page 93) would add tax-treatment language to permit Roth-designated accounts under the state employees deferred compensation program if the necessary systems are available. "Recent changes at the federal level provide that certain highly compensated employees cannot make certain types of contributions to deferred compensation plans unless those contributions are made as Roth contributions," Fitzgerald said. He added the statute would permit appropriate tax treatment should NPERS make the Roth option available.
Tag Herbeck, agency legal counsel for the Public Employees Retirement Board and NPERS, testified in support and said the Roth option would be available to any member who chooses to participate in the deferred compensation plan when the system is implemented. Herbeck also supported the director-title change as aligning with industry standards. Herbeck referenced 26 U.S.C. 457(b) in explaining the deferred compensation statutory framework.
The committee recorded one letter in opposition to LB820; no formal vote or final committee action was taken at the hearing.
Fitzgerald told the committee LB820 would consolidate the list of approved identification documents into a single statute so that updates would apply consistently across plans. The bill would also change the NPERS director title to NPERS executive director at the agency’s request.
Fitzgerald said the bill clarifies how state contributions to the school retirement fund and the Omaha School Employees Retirement System (OSERS) are characterized, so contributions are treated as contributions rather than administrative transfers — a change prompted by prior audit findings that produced duplicate appropriations requests.
Section 43 (page 93) would add tax-treatment language to permit Roth-designated accounts under the state employees deferred compensation program if the necessary systems are available. "Recent changes at the federal level provide that certain highly compensated employees cannot make certain types of contributions to deferred compensation plans unless those contributions are made as Roth contributions," Fitzgerald said. He added the statute would permit appropriate tax treatment should NPERS make the Roth option available.
Tag Herbeck, agency legal counsel for the Public Employees Retirement Board and NPERS, testified in support and said the Roth option would be available to any member who chooses to participate in the deferred compensation plan when the system is implemented. Herbeck also supported the director-title change as aligning with industry standards. Herbeck referenced 26 U.S.C. 457(b) in explaining the deferred compensation statutory framework.
The committee recorded one letter in opposition to LB820; no formal vote or final committee action was taken at the hearing.
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