8% salary cap
When NPERS figures your average, raises above 8% a year in the five plan years before you retire don't count.
School Handbook p. 29, 8% Salary CapMore on this →Bona fide termination
A genuine end to all employment with NPERS School Plan employers, with no prearranged return. You need one before you can take a refund or retirement benefit.
School Handbook p. 6; Neb. Rev. Stat. §79-902(45)More on this →COLA (cost-of-living adjustment)
The yearly July 1 increase after you've been retired a full fiscal year, based on the CPI-W and capped at 2.5% (Tier One) or 1.0% (Tiers Two to Four).
School Handbook p. 45, Cost-of-Living AdjustmentMore on this →Creditable service
Hours worked plus paid leave, holidays and service you have bought. It does not include vesting credit or refunded service you haven't repaid.
School Handbook p. 21Early retirement reduction
A permanent cut of 3% for each year you are under 65 when you retire with a reduced benefit from age 60.
School Handbook p. 34, Early Retirement at Age 60More on this →Effective date
The first day of the month your monthly benefit starts.
School Handbook p. 35More on this →FAMC (final average monthly compensation)
The average monthly pay over your highest three (Tier One) or five (Tiers Two to Four) 12-month periods.
School Handbook p. 2More on this →Normal form
Option 3(a), a life annuity with 60 monthly payments guaranteed. The benefit formula gives this amount; the other options are adjusted from it.
Neb. Rev. Stat. §79-934(7)(a); School Handbook p. 43More on this →NPERS
Nebraska Public Employees Retirement Systems, the state agency that runs the NPERS School Plan and several other Nebraska plans for the Public Employees Retirement Board.
School Handbook p. iiPeriod Certain and Continuous
A lifetime benefit with a guaranteed number of payments (60, 120 or 180). Any left when you die go to your beneficiaries.
School Handbook p. 41More on this →Plan year
July 1 to June 30. Service credit is counted by plan year.
School Handbook p. 21, Accrual RateRefund
A payout of your own contributions plus interest after you leave. It never includes employer money and it erases your service credit.
School Handbook p. 20, RefundMore on this →Rule of 85
Age (years plus months) plus creditable service of 85 or more, at age 55 or older (60 in Tier Four), for an unreduced benefit.
School Handbook pp. 32-33More on this →Separation period
The time after you leave when you can't do any work for a NPERS School Plan employer. It is 120 days if you leave or apply on or after May 1, 2026.
School Handbook pp. 4, 7-8More on this →Tier
The set of rules you're under, fixed by the date you joined the NPERS School Plan. There are four, from Tier One (joined before July 1, 2013) to Tier Four (joined July 1, 2018 or later).
School Handbook p. 1, Benefit TiersMore on this →Vesting credit
Credit for years in another Nebraska governmental plan that counts toward vesting but not toward your benefit.
School Handbook p. 16More on this →Source: Nebraska School Employees Retirement System Handbook, Revised 07/2026, pp. ii, 1, 2, 4, 6, 7-8, 8, 16, 20, 21, 29, 32-33, 34, 35, 41, 43, 45. Also: Neb. Rev. Stat. §§ 79-902, 79-934. Last reviewed .