§ 84-1504. Deferred compensation; treatment; participation; requirements.
AI-assisted research summary: The board may arrange deferred compensation, but employees can participate only if they are U.S. citizens or lawfully present, and the agency and employee must keep and show an approved ID when asked.
(1) The Public Employees Retirement Board, on behalf of the state, may contract with any individual to defer a portion of such individual's compensation or with the Legislative Council to defer any other amount that the Legislative Council agrees to credit to an individual's account pursuant to section 457 of the Internal Revenue Code. (2) The compensation to be deferred at the election of the individual and any other amount credited on behalf of such individual by the Legislative Council shall not exceed the total compensation to be received by the individual from the employer or exceed the limits established by the Internal Revenue Code for such a plan. (3) The deferred compensation program shall serve in addition to but not be a part of any existing retirement or pension system provided for state or county employees or any other benefit program. (4) Any compensation deferred at the election of the individual under such a deferred compensation plan shall continue to be included as regular compensation for the purpose of computing the retirement, pension, or social security contributions made or benefits earned by any employee. (5) Any sum so deferred shall: (a) Except as provided in subdivision (b) of this subsection, not be included in the computation of any federal or state taxes withheld on behalf of any such individual; and (b) Be included in the computation of any federal or state taxes withheld on behalf of any such individual if such sum was placed in a type of designated Roth account, under the Internal Revenue Code, where designated Roth contributions and deferrals are irrevocably designated as after-tax contributions. (6) The state, the board, the state investment officer, the agency, or the county shall not be responsible for any investment results entered into by the individual in the deferred compensation agreement. (7) Nothing in this section shall in any way limit, restrict, alter, amend, invalidate, or nullify any deferred compensation plan previously instituted by any instrumentality or agency of the State of Nebraska, and any such plan is hereby authorized and approved. (8) No employee of the state or any political subdivision of the state shall be authorized to participate in a deferred compensation plan unless the employee is a United States citizen or is lawfully present in the United States. The employing state agency or political subdivision of the State of Nebraska and the employee shall: (a) Maintain at least one approved identification document as defined in section 4-108; and (b) Produce any such approved identification document so maintained upon request of the Public Employees Retirement Board or the Nebraska Public Employees Retirement Systems. (9) For purposes of this section, individual means (a) any state employee, whether employed on a permanent or temporary basis, full-time or part-time, (b) a person under contract providing services to the state who is not employed by the University of Nebraska or any of the state colleges or community colleges and who has entered into a contract with the state to have compensation deferred prior to August 28, 1999, and (c) any county employee designated as a permanent part-time or full-time employee or elected official whose employer does not offer a deferred compensation plan and who has entered into an agreement pursuant to section 48-1401. History: Laws 1973, LB 428, § 1; R.S.Supp.,1974, § 84-1329.01; Laws 1975, LB 42, § 2; Laws 1987, LB 549, § 15; Laws 1994, LB 460, § 1; Laws 1996, LB 847, § 55; Laws 1997, LB 623, § 49; Laws 1997, LB 624, § 43; Laws 1998, LB 1191, § 79; Laws 1999, LB 703, § 27; Laws 2001, LB 75, § 2; Laws 2010, LB950, § 28; Laws 2024, LB198, § 22; Laws 2025, LB295, § 24; Laws 2026, LB820, § 49.