State Public Pensions in Nebraska

State Public Pensions in Nebraska: key facts

Systems

Defined benefit: Nebraska School Employees (Neb. Rev. Stat. 79-901 to 79-977.03), Judges (24-701 to 24-714), State Patrol (81-2014 to 81-2041), and Omaha School Employees (79-978 to 79-9,124). Cash balance / defined contribution: State Employees (84-1301 to 84-1333) and County Employees (23-2301 to 23-2334). Plus the voluntary Deferred Compensation Plan (84-1504 to 84-1514).

Retiree death

Whatever remains under the payment option elected at retirement. A Life Only annuity ends with no refund or death benefit. A Modified Cash Refund annuity pays any purchase-price balance to the beneficiary or estate. A Period Certain and Continuous annuity (5, 10, or 15 years) pays the remaining guaranteed payments. A 50%, 75%, or 100% Joint and Survivor annuity continues that share to the surviving spouse for life; a Non-Spousal Joint and Survivor annuity continues 50%. A Designated Period annuity (5, 10, 15, or 20 years) pays the remainder of the period.

School plan: 12-month spousal election

If a Nebraska School plan member dies before retiring leaving a spouse designated as the sole primary beneficiary, the spouse must apply to NPERS within 12 months of the date of death to elect either a 100% joint and survivor annuity for life or a refund of contributions plus interest plus an additional 101% of that amount. Miss the 12 months and the spouse receives only the member's contributions plus interest.

Pre-retirement death

Payable to the beneficiary on the member's most recent beneficiary form. If no designated beneficiary survives, the spouse married to the member on the date of death is the sole primary beneficiary. If neither survives, the benefit is issued to the member's estate. NPERS does not observe per stirpes distribution to a deceased beneficiary's own heirs, and a beneficiary form generally takes priority over a beneficiary named in a will or trust.

Reporting the death

The employer or the beneficiaries should notify NPERS immediately. Proof of death must be provided before any death benefit is distributed; NPERS then sends the necessary forms to the listed beneficiaries. Beneficiaries must keep a current address on file with NPERS.

Unclaimed benefits

If no legal representative or beneficiary applies, a deceased School plan member's accumulated contributions are turned over under the Uniform Disposition of Unclaimed Property Act. NPERS gives the same warning for death benefits whose beneficiary lets the address go stale or misses a required minimum distribution — search nebraskalostcash.nebraska.gov if a benefit was never collected.

Member services

800-245-5712 or 402-471-2053, 8 a.m. to 5 p.m. Monday through Friday; NPERS, P.O. Box 94816, Lincoln, NE 68509; member account at npers.ne.gov.

Governing law: Neb. Rev. Stat. 79-901 to 79-977.03 (School); 79-978 to 79-9,124 (Omaha School); 24-701 to 24-714 (Judges); 81-2014 to 81-2041 (State Patrol); 84-1301 to 84-1333 (State); 23-2301 to 23-2334 (County)

Steps to take when someone dies

1. Identify which NPERS plan the deceased belonged to (State, County, Nebraska School, Omaha School, Judges, or State Patrol) and whether the member had already started benefits.
2. Notify NPERS immediately — through the employer if the member was still working — and provide proof of death so payments stop and the death-benefit file opens.
3. Confirm the beneficiary designation on file and ask NPERS what is payable: the remainder under the retiree's payment option, or the pre-retirement death benefit.
4. For a Nebraska School plan surviving spouse, file the election with NPERS within 12 months of the date of death — the 100% joint and survivor annuity and the 101% refund enhancement are both lost after that.
5. If no beneficiary and no spouse survive, expect the benefit to be paid to the estate, and open or reference the estate accordingly.

Frequently asked questions