Nebraska Gov. Pete Ricketts vetoed a bill that would transfer the administrative duties of the $1.4 billion Omaha School Employees' Retirement System to a state board.
In a veto letter Tuesday, Mr. Ricketts, a Republican, said the legislation "is poor public policy and continues the slippery slope of the state taxpayer bailout to the OPS pension plan."
The bill would permit the state's Public Employees Retirement Board, Lincoln, to take over day-to-day operations of OSERS from Omaha Public Schools beginning in 2024. The investment responsibilities for OSERS were transferred in 2016 to the Nebraska Investment Council, Lincoln, which oversees $34 billion.
But the bill isn't dead just yet. Upon final passage May 20, it garnered 38 votes in the state Senate. To override a gubernatorial veto in Nebraska requires 30 Senate votes.
Sen. Mark Kolterman, who introduced the bill in January, said in a May 7 column on his website that the state will not assume "any financial responsibility or liability for the nearly $1 billion of OSERS' unfunded liability" if the bill were to pass.
In 2020, a study Mr. Kolterman initiated determined that transferring the management of OSERS to the state board would result in an annual management cost savings of about $250,000, according to Mr. Kolterman.