Sen. Anderson says LB 85 would align chief investment officer removal rules with other state directors

Sen. Bob Anderson introduced LB 85, saying the bill removes a unique "for cause" removal protection for the state's chief investment officer and aligns that role with other director-level positions that serve at the governor's pleasure. Anderson told the Nebraska Retirement Systems Committee that harmonizing the removal standard would increase transparency and let a new administration set policy direction.

The bill would make the chief investment officer (CIO) subject to the same appointment and removal framework that applies to other state directors, matching the Nebraska Investment Council's existing constitutional framework for council members, which are appointed by the governor and confirmed by the legislature. Anderson said the change is administrative and intended to improve accountability.

Gail Werner Robertson, a longtime voting member and former chair of the Nebraska Investment Council who testified in a neutral capacity, urged caution. She told the committee the council manages tens of billions of dollars in state assets (she stated approximately $45.5 billion in total assets, roughly $35 billion of which are retirement assets) and cited strong recent returns and long-term performance. Robertson said the council conducts national searches and 360-degree reviews when hiring state investment officers and that longevity and continuity in the office are important to achieve top-tier performance.

"I'm fearful if this change is made to make the SIO subject to immediate termination by the governor for any reason, we'll have a difficult time recruiting talent to our small state," Robertson said, adding that previous SIOs have stayed for long tenures and that stability has benefited investment results.

Committee members asked Robertson about the search and hiring process; she described recruiting with national search firms, targeted outreach to experienced candidates with certifications such as the CFA, and the council's efforts to mentor new officers. Robertson said the council includes five voting members appointed by the governor (with legislative approval) plus two nonvoting ex officio members, and that volunteer council members bring deep expertise.

Sen. Anderson closed the LB 85 hearing by restating that the bill is administrative and aims to harmonize policy across positions. The committee recorded no proponent written testimony and limited opposition/neutral filings for the LB 85 hearing. No formal committee action or vote occurred on LB 85 during the hearing.