Government
2:22 pm
Mon May 13, 2013

Gov. Heineman vetoes teacher retirement system legislation

LINCOLN, Neb. (AP) — Nebraska Gov. Dave Heineman has vetoed a teacher retirement bill, arguing that a proposed increase in the state's contribution is unsustainable.

Heineman said Monday that he supports a short-term fix within the bill, but he called on lawmakers to conduct a six-month study of Nebraska's public-employee retirement system.

The bill seeks to address projected shortfalls in the retirement plans for public school employees, state patrol employees and judges. The teacher contribution rate would remain the same at nearly 10 percent, while the state's contribution would grow from 1 percent to 2 percent.

Heineman says the increase would cost the state an additional $20 million per year. He also questioned assumptions that the retirement fund will see an 8 percent annual return on investments.

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The bill is LB553

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