Police officer; termination of employment; benefits; how treated; vesting schedule.
Neb. Rev. Stat. § 16-1013
in effect16-1013. Police officer; termination of employment; benefits; how treated; vesting schedule.
(1) If a police officer quits or is discharged before such police officer's normal or early retirement date, such police officer may request and receive as a lump-sum payment an amount equal to the retirement value of such police officer's employee account as determined at the valuation date preceding such police officer's termination of employment. Such police officer, if vested, shall also receive a deferred pension benefit in an amount purchased or provided by the retirement value at the date of retirement. The retirement value at such retirement date shall consist of the accumulated value of the police officer's employee account, as reduced by any lump-sum distributions received prior to retirement, together with a vested percentage of the accumulated value of such police officer's employer account at such police officer's date of retirement.
(2) Until July 1, 2012, the vesting schedule shall be as follows:
(a) If the terminated police officer has been a member of the retirement system for less than four years, such vesting shall be zero percent;
(b) If the terminated police officer has been a member of the paid department of the city for at least four years, such vesting percentage shall be forty percent. Such vesting percentage shall be fifty percent after five years, sixty percent after six years, seventy percent after seven years, eighty percent after eight years, ninety percent after nine years, and one hundred percent after ten years; and
(c) All police officers shall be one hundred percent vested upon attainment of age sixty while employed by the city as a police officer.
(3) Beginning July 1, 2012, the vesting schedule shall be as follows:
(a) If the terminated police officer has been a member of the retirement system for less than two years, such vesting shall be zero percent;
(b) If the terminated police officer has been a member of the paid department of the city for at least two years, such vesting percentage shall be forty percent. Such vesting percentage shall be sixty percent after four years, eighty percent after five years, and one hundred percent after seven years; and
(c) All police officers shall be one hundred percent vested upon attainment of age sixty while employed by the city as a police officer.
(4)(a)(i) The deferred pension benefit shall be payable on the first day of the month that immediately follows the police officer's sixtieth birthday.
(ii) At the option of the terminated police officer, such pension benefit may be paid as of the first day of the month that follows such police officer's fifty-fifth birthday. Such election may be made by the police officer any time prior to the payment of the pension benefits.
(b) The deferred pension benefit shall be paid in the form of the benefit options specified in subsection (1) of section 16-1007 as elected by the police officer.
(c) If the police officer's vested retirement value at the date of such police officer's termination of employment is less than three thousand five hundred dollars, the city may elect to pay such police officer such vested retirement value in the form of a single lump-sum payment.
(5) A police officer may elect upon such police officer's termination of employment to receive such police officer's vested retirement value in the form of a single lump-sum payment.
(6) Upon any lump-sum payment of a terminated police officer's retirement value under this section, such police officer shall not be entitled to any deferred pension benefit and the city and the retirement system shall have no further obligation to pay such police officer or such police officer's beneficiaries any benefits under the Cities of the First Class Police Officers Retirement Act.
(7) If the terminated police officer is not credited with one hundred percent of such police officer's employer account, the nonvested portion of the account shall be forfeited and first used to meet the expense charges incurred by the city in connection with administering the retirement system and the remainder shall then be used to reduce the city contribution that would otherwise be required to fund pension benefits.
Laws 1983, LB 237, § 13; Laws 1992, LB 672, § 16; Laws 2012, LB1082, § 11; Laws 2026, LB822, § 13. Effective Date: July 18, 2026
Source: Nebraska Legislature (nebraskalegislature.gov)URL: https://nebraskalegislature.gov/laws/statutes.php?statute=16-1013Fetched: 10/20/2026