- Knowledge Base Categories:
- School Accounting System
- Payroll
Training Tidbit: Nebraska Retirement Rate Change Reminder
Reminder, the rates for retirement are changing July 1, 2026, to be as follows:
Total Employee Contributions = 7.25%
Total Employer Contributions = 7.3225%
If your retirement deductions are set up in a Rate Table in the Deduction File, the rates can either be entered now (by entering the new rates on the right side of the Rate Table and specifying July 1, 2026, as the Rate Change Date) or after completing your last payroll for June (by editing the current rates on the left side of the Rate Table).
Important: You might currently have multiple retirement deductions defined; for example, one deduction with the designated object code (in the Expense Mask field) for the employer share of the regular retirement contributions, and a second deduction with the designated object code for the increased retirement contributions of object 237. Since the new employer rate is 7.3225%, the second retirement deduction using object 237 is not needed for this next year, so be sure to inactivate the second retirement deduction if applicable. To inactivate the second retirement deduction, after completing your last payroll for June, go into the Deduction File (accessed under the Maintenance menu in Payroll), bring up the applicable deduction, unselect the Active field, and then save the changes.
Example for Changing Rates if One Retirement Deduction Defined:
Old Employee Rate = 8.00% –> New Employee Rate = 7.25%
Old Employer Rate = 8.08% –> New Employer Rate = 7.3225%
Example for Changing Rates if Multiple Retirement Deductions Defined:
First Retirement Deduction:
Old Employee Rate = 7.28% –> New Employee Rate = 7.25%
Old Employer Rate = 7.3528% –> New Employer Rate = 7.3225%
Second Retirement Deduction for Increased Contributions with Object Code 237: *Inactivate, as not needed this next year*
Old Employee Rate = 0.72% –> New Employee Rate = 0%
Old Employer Rate = 0.7272% –> New Employer Rate = 0%