Nebraska Retirement Plan Takes $2 Billion Hit

The plan for 70,000 teachers, troopers, and judges has taken a $2 billion hit in the stock market.

According to the Lincoln Journal Star, in a year-end report, the Nebraska Investment Council says the plan lost 27.8 percent.

The portfolio offers defined retirement benefits, a specific monthly amount, generally based on salary and years of service.

The state guarantees the monthly benefit, which means state tax dollars will likely be used to make up the losses.

Gov. Dave Heineman's budget calls for a dip into the state's cash reserve, which is expected to hold a record $593 million at the end of this fiscal year.

He proposes using $40 million each of the next two years and holding $200 million for contingencies, most of that because of the possibility that the falling stock market will deflate the state's pension plan.

WOWT NBC Omaha 3501 Farnam Street Omaha, NE 68131 (402) 346-6666
Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 39842837 -
Gray Television, Inc.