AGO 97026.

• Court: Nebraska

Nebraska Attorney General Opinions 1997. AGO 97026. DATE: April 29, 1997SUBJECT: Constitutionality of Legislative Bill 532 Providing for Adjusted Supplemental Retirement Benefits REQUESTED BY: Senators LaVon Crosby and Elaine Stuhr Nebraska State LegislatureWRITTEN BY: Don Stenberg, Attorney General Fredrick F. Neid, Assistant Attorney General You have requested that the Attorney General address two issues relating to the constitutionality of Legislative Bill 532. The provisions of LB 532, for the most part, establish a supplemental retirement benefit for certain retired members of the School Retirement System and the Retirement System for Class V School Districts based on years of creditable service. It is FIRST inquired: [D]oes LB 532 as written violate Article III, Section 18 of the Nebraska Constitution, i.e. whether it violates the prohibition against special legislation. In summary, the provisions of LB 532 establish minimum levels of retirement benefits for retired members of the school retirement systems having twenty or more years of creditable service at the effective date of the legislative act. Section 2 of the Bill establishes a two hundred fifty dollar minimum for retirees with twenty years of service. The minimum benefit level is increased in fifty dollar increments for each year of additional service beyond twenty years to twenty-five years or more of creditable service. A retiree having twenty-five or more years of service would receive a minimal retirement benefit of five hundred dollars. Neb. Const. art. III, § 18 provides in pertinent part: The Legislature shall not pass local or special laws in any of the following cases, that is to say: . . . . Granting to any corporation, association, or individual any special or exclusive privileges, immunity, or franchise whatever. . . . In all other cases where a general law can be made applicable, no special law shall be enacted. A legislative act constitutes special legislation under art. III, § 18 if it (1) creates an arbitrary and unreasonable method of classification or (2) creates a permanently closed class. See, City of Ralston v. Balka, 247 Neb. 773, 530 N.W.2d 594 (1995); Henry v.Rockey, 246 Neb. 398, 518 N.W.2d 658 (1994). Thus, the first inquiry focuses on whether the provisions of the legislative act in question create an arbitrary and unreasonable method of classification. In viewing...