Nebraska Investment Council

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The Nebraska Investment Council determines the investments for the State Employees Retirement System of the State of Nebraska and the Retirement System for Nebraska Counties.

  Cash Balance Benefit Option

Since January 2003, the accounts for all new employees who participate in the State and County Retirement System Plans are automatically invested in the Cash Balance Benefit option. Members who participate in the Cash Balance Benefit option do not make their own investment choices. The assets are held in a trust fund which is managed by the Nebraska Investment Council. Cash Balance Benefit participants are guaranteed an annual interest credit rate which is defined in statute as the greater of 5% or the federal mid-term rate plus 1.5%. The interest credit rate is adjusted each calendar quarter.

Asset Allocation

	U.S. Equities	42.5%
	Private Equities	5.0%
	Global Equities	5.0%
	International Equities	12.5%
	Fixed Income	30.0%
	Real Estate	5.0%
		100.0%

  Defined Contribution Option

Prior to 2002, employees in the State and Country Retirement System Plans were only offered the Defined Contribution option. In December 2002 participants were given the option to remain in the Defined Contribution option or transfer to the Cash Balance Benefit option implemented in January 2003. LB328, passed in 2007, allowed Defined Contribution members another opportunity to transfer to the Cash Balance Benefit option.

Members who remain in the Defined Contribution option make their own investment choices based on the funds offered. Contributions to these accounts come from both the employee and the employer. With the passage of LB 366, State employees are required to contribute 4.8% of their salary (beginning January 2007). The State matches the employee contribution at the rate of 156%. County employees are required to contribute 4.5% of their salary. The county matches the employee contribution at the rate of 150%. The account balance for both state and county employees consists of accumulated contributions plus investment gains or losses.

Investment Choices

U.S. Equities	Fixed Income
S&P 500 Stock Index Fund	Bond Market Index Fund
Large Growth Stock Fund	Money Market Fund
Large Value Stock Fund	Stable Value Fund
Small Company Stock Fund	Premixed Funds
International Equities	Conservative Fund
International Stock Index Fund	Moderate Fund
	Aggressive Fund
	Investor Select Fund
	Age-Based Fund