2006 Nebraska Revised Statutes - § 79-958 — Employee; employer; required deposits and contributions.

Section 79-958
Employee; employer; required deposits and contributions.

(1) Prior to September 1, 2005, and after August 31, 2007, for the purpose of providing the funds to pay for formula annuities, every employee shall be required to deposit in the School Retirement Fund seven and twenty-five hundredths percent of compensation. Beginning on September 1, 2005, and ending August 31, 2006, for the purpose of providing the funds to pay for formula annuities, every employee shall be required to deposit in the School Retirement Fund seven and ninety-eight hundredths percent of compensation. Beginning on September 1, 2006, and ending August 31, 2007, for the purpose of providing the funds to pay for formula annuities, every employee shall be required to deposit in the School Retirement Fund seven and eighty-three hundredths percent of compensation. Such deposits shall be transmitted at the same time and in the same manner as required employer contributions.

(2) For the purpose of providing the funds to pay for formula annuities, every employer shall be required to deposit in the School Retirement Fund one hundred one percent of the required contributions of the school employees of each employer. Such deposits shall be transmitted to the retirement board at the same time and in the same manner as such required employee contributions.

(3) The employer shall pick up the member contributions required by this section for all compensation paid on or after January 1, 1986, and the contributions so picked up shall be treated as employer contributions in determining federal tax treatment under the Internal Revenue Code as defined in section 49-801.01, except that the employer shall continue to withhold federal income taxes based upon these contributions until the Internal Revenue Service or the federal courts rule that, pursuant to section 414(h) of the code, these contributions shall not be included as gross income of the member until such time as they are distributed or made available. The employer shall pay these member contributions from the same source of funds which is used in paying earnings to the member. The employer shall pick up these contributions by a compensation deduction through a reduction in the cash compensation of the member. Member contributions picked up shall be treated for all purposes of the School Employees Retirement Act in the same manner and to the same extent as member contributions made prior to the date picked up.

(4) The employer shall pick up the member contributions made through irrevocable payroll deduction authorizations pursuant to sections 79-921, 79-933.03 to 79-933.06, and 79-933.08, and the contributions so picked up shall be treated as employer contributions in the same manner as contributions picked up under subsection (3) of this section.

Source:

Laws 1945, c. 219, § 32, p. 649

R.S.Supp.,1947, § 79-2932

Laws 1949, c. 256, § 465, p. 851

Laws 1951, c. 291, § 6, p. 968

Laws 1959, c. 414, § 2, p. 1388

Laws 1967, c. 546, § 9, p. 1806

Laws 1971, LB 987, § 24

Laws 1984, LB 457, § 3

Laws 1985, LB 353, § 3

Laws 1986, LB 325, § 11

Laws 1988, LB 160, § 4

Laws 1988, LB 1170, § 6

Laws 1991, LB 549, § 39

Laws 1994, LB 833, § 33

Laws 1995, LB 574, § 80

Laws 1996, LB 700, § 10

R.S.Supp.,1995, § 79-1531

Laws 1996, LB 900, § 593

Laws 1997, LB 623, § 27

Laws 1998, LB 1191, § 57

Laws 2001, LB 408, § 17

Laws 2002, LB 407, § 35

Laws 2005, LB 503, § 10

~Revised Statutes Supplement, 2006