Change applicability of the employee contribution rate under the School Employees Retirement Act

Nebraska's LB 1166 changes how school employees' retirement contributions are calculated under the School Employees Retirement Act. Instead of a fixed 9.78% contribution rate, it establishes variable rates based on the retirement fund's "funded ratio" (how well-funded the system is): 9.75% if under 96% funded, 8.75% at 96-98%, 8% at 98-100%, and 7.25% if 100% or more funded. These rates apply starting July 1, 2025, with adjustments calculated annually using the previous year's actuarial report. The bill directly affects all public school employees in Nebraska through their payroll deductions for retirement benefits.