Senators adopt amendment to change judges' retirement contributions and advance bill

Senators adopted a committee amendment to LB1101 that would eliminate the state's contribution to the judges' retirement plan, reduce judges' employee contribution rates and restore earlier cost-of-living adjustment limits, then advanced the bill to E & R initial.

Senator John Ballard, sponsor of LB1101, told colleagues the committee amendment (AM2263) "would eliminate the state's contribution altogether" and described actuarial work showing the plan would remain well-funded under the changes. Ballard said the amendment also reduces the standard judge contribution rate from 10% to 9% and provides a 5% rate for judges with 20 or more years of service, and increases the maximum COLA for judges who joined the plan after July 1, 2015.

Ballard noted the amendment retains a statutory safety valve: "Should the plan drop below 100% funded in 2 years in a row, the plan's actuaries will review the plan and make recommendations to the legislature whether to reinstate the contributions," language he said keeps protections in place while producing general-fund savings.

Multiple senators spoke during floor discussion about the bill in the context of broader budget pressures. Senator Andrew Doran used his time to outline a list of possible appropriations adjustments and revenue options for the Appropriations Committee to consider, saying the body still faces a substantial deficit. "We were at a $125,000,000 deficit coming to the floor," Doran said, listing potential program and fund adjustments he plans to raise in appropriations.

Senator Hallstrom urged the body to be mindful of procedure after votes taken the prior day, stressing the importance of good-faith agreements in late-stage negotiations. Speaker Arch also urged lawmakers to provide leadership and work toward a budget solution as time in the session grows short.

The clerk called the question on adoption of AM2263. The clerk recorded 37 ayes and no nays and announced adoption of the committee amendment. The clerk then called the question on advancement of LB1101; the clerk recorded 37 ayes and no nays and LB1101 was advanced to E & R initial.

Next steps: LB1101, as amended, will proceed through the legislative process on select file where further debate and any additional amendments may be offered.