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State Teacher Plans for Nebraska

Many teachers do not have access to low-cost choices in their 403(b) plans. Of the 38 district 403(b) plans that we have graded so far in Nebraska, 0 districts have an A rating, 0 districts have a B rating, 20 districts have a C rating, 12 districts have a D rating, and 6 districts have an F rating.

If you are a teacher in Nebraska, here are the state teacher plan options that are available to you.

Nebraska NPERS

Most states still offer a traditional formula-based pension. Under this type of arrangement an educator would receive a percentage of their final year's salary until death that is based on some combination of years worked, age, and salary. Some states have made pension plans less generous to new hires, and some states have replaced traditional pensions with 401(k)-type plans.

More information about the Nebraska NPERS plan is available directly from the pension website, and Karl Fisch's book on the Nebraska pension is available here. Pension plan information for other states is also available for reference through this state pension search tool. This data is shared with us by Karl Fisch, and it is current as of January 1, 2025.

Applicable to All Teachers

Social Security

Nebraska teachers also pay into Social Security

Administrative Fee for Supplemental Plans

None

New Teachers Hired On or After 1/1/2024

Defined Benefit

Employee: 9.78%; Employer: 9.88%; State: 2%

Multiplier

2%

Average Salary

Highest five 12-month periods

Normal Retirement

Rule of 85 if age 60+ (age plus years of service is greater than or equal to 85)
Age 65 with 5 years of service

Cost-of-Living Adjustment (COLA)

CPI with 2.5% cap

Veteran Teachers Hired Prior to 1/1/2001

There are 2 additional benefit tiers between the new teacher and veteran teacher tiers compared here. The exact transition dates between these tiers are not relevant to this comparison.

Defined Benefit

Employee: 9.78%; Employer: 9.88%; State: 2%

Multiplier

2%

Average Salary

Highest three 12-month periods

Normal Retirement

Rule of 85 if age 55+ (age plus years of service is greater than or equal to 85)
Age 65 with 5 years of service

Cost-of-Living Adjustment (COLA)

CPI with 2.5% cap

Nebraska 457(b)

Every state operates a 457(b) plan that serves governmental workers like police, fire, and state government officials. These plans are generally excellent, and in many cases they are superior to the 403(b) offerings available in school district plans. Most states allow educators to participate in these plans; unfortunately, about a dozen do not.

Find out more about how we rate state 457(b) plans and view plans in other states.

Green State of Nebraska Deferred Compensation Plan

Nebraska teachers are eligible to contribute to this plan.

Fees

0.10% admin fee, $24 a year account fee, and a low index fee

Record Keeper

Ameritas

Target Date Fund

BlackRock

NOTE: $1.25 billion of assets under management. All index funds. This is the Thrift Savings Plan of state-run 457(b) plans meaning it is very good. Nebraska educators deserve access to this plan.