Do you pay in?
The NPERS sources do not say outright whether NPERS School Plan members pay into Social Security. Nebraska law makes Social Security supplementary to state retirement systems and treats all school district employees in the School Employees Retirement System as one referendum group for Section 218 coverage. The Retirement Systems Committee's 2022 report says Nebraska's 1954 Modification #18 extended coverage to positions under a retirement system (except police and fire) and singles out State Patrol members as not paying into Social Security; it does not list the school plan as uncovered. Neb. Rev. Stat. §68-601(2), §68-621(1)(d); Retirement Systems Committee 2022 report pp. 35-36 (Social Security Coverage); pp. 5, 6, 8 (State Patrol members do not pay into social security)
No NPERS source says outright that NPERS School Plan members pay into Social Security. State law and a legislative report point that way but don't say so directly.
What we do: We say the sources point to coverage and label it.
What would settle it: Nebraska's Section 218 agreement summary (State Social Security Administrator or SSA), or an NPERS statement.Your pension isn't Social Security
The handbook warns that the NPERS School Plan benefit is not like Social Security: it does not grow if you delay past age 65 or the Rule of 85, so a late application loses months. School Handbook p. 37, Retirement: Application Process When your benefit becomes unreduced is on early retirement and the Rule of 85; the calculator shows your date.
Nebraska tax
Beginning with tax year 2024, the entire Social Security benefit included in federal AGI can be excluded from Nebraska income, with no federal AGI threshold. Nebraska Revenue 2024 tax booklet, Line 28 Social Security Income; Nebraska Revenue 2025 tax booklet p. 26, Line 31 Social Security Income Taxes on your pension
NPERS's retirement planning seminars cover Social Security and Medicare; see retiree health insurance for what they include.
From the sources
- Check with NPERSThe NPERS handbook doesn't say whether NPERS School Plan members pay into Social Security. Nebraska law and a 2022 legislative report point to coverage: the report names State Patrol, not school employees, as not paying in. Check with NPERS.Neb. Rev. Stat. §68-601(2), §68-621(1)(d); Retirement Systems Committee 2022 report pp. 5, 35-36
- Your pension isn't like Social Security: it doesn't grow if you wait past 65 or the Rule of 85, so apply on time.School Handbook p. 37
Questions
Do Nebraska school employees pay into Social Security?
NPERS's handbook doesn't say. Nebraska law and a 2022 legislative report point to yes. Check your pay stub for Social Security tax, or ask NPERS or your district.
Does Nebraska tax Social Security?
Not since tax year 2024: all of it can be left out of Nebraska income.
Is my pension like Social Security?
No. It doesn't grow if you wait past 65 or the Rule of 85, so apply on time.
Source: Nebraska School Employees Retirement System Handbook, Revised 07/2026, p. 37. Also: Retirement Systems Committee 2022 report pp. 5, 6, 8, 35-36; Nebraska Revenue 2024 tax booklet; Nebraska Revenue 2025 tax booklet p. 26; Neb. Rev. Stat. §§ 68-601, 68-621. Last reviewed .