Auditor Urges Halt to Former Director's Final Payment
Nebraska's state auditor asks the Public Employees Retirement Board to stop a third paycheck to the former retirement system director and recover earlier payments.
Updated on Nov. 9, 2026 in Retirement Planning
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Nebraska State Auditor Mike Foley has urged the Public Employees Retirement Board to stop a third scheduled payment to the former executive director of the Nebraska Public Employees Retirement System. The former director, who left the job on September 21, has already received two checks of $7,884.81 each.
Why it matters
The auditor argues that state statutes do not permit paying state employees who are not performing work, raising questions about oversight of payments to departing officials. The dispute highlights how the board handles separation terms for senior state retirement-agency leaders.
The auditor's office has identified three scheduled payments totaling $27,878.31 in salary, leave and employer-paid benefits, with two checks of $7,884.81 already issued on October 14 and October 28. The board has not announced whether it will stop the remaining $7,884.81-range payment or recover the amounts already paid.
The players
Mike Foley
Mike Foley is the Nebraska State Auditor, the state official responsible for auditing state agencies and their expenditures.
Public Employees Retirement Board
The Public Employees Retirement Board is the Nebraska governing body overseeing the Nebraska Public Employees Retirement System and its administration.
The details
The former director left the job on September 21 and returned his work equipment, but has not performed work for the agency since. The auditor's office says it has asked the board to stop the final payment and recover the money already paid, while noting it lacks enforcement authority to block the payment itself.
Timeline
September 21: Former director left the agency job.
October 14: First $7,884.81 check issued to the former director.
October 28: Second $7,884.81 check issued to the former director.
Tuesday, November 10, 2026: Scheduled third payment to the former director.
Market Dynamics
The auditor's objection rests on Nebraska state statutes that, in the auditor's reading, do not permit paying state employees who are not working. The dispute therefore tests how those statutes apply to separation payments made to a former director of a state retirement system.
For Nebraska public employees and retirees, the outcome affects how the state retirement system handles separation payments and whether funds are recovered from departing officials. Oversight decisions made by the board can influence confidence in how retirement-system resources are managed.
The takeaway
Oversight of separation payments at public retirement systems depends on clear statutory authority and board follow-through. Retirement savers in any state may want to understand how their public pension administrators handle exits and payments.
What happens next
The Public Employees Retirement Board is expected to decide whether to stop the scheduled Tuesday, November 10, 2026 payment to the former director.
Further reading
Explore more on Retirement Planning to see how state retirement systems are administered and overseen.
Source note: This article includes information reported by KETV.
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