Most owners of IRA's and participants in employer sponsored retirement plans are aware that after they reach age 70 1/2, they are required to take at least minimum distributions. Those who have engaged in financial or estate planning are also aware that the IRS regulations regarding required minimum distributions (RMDs) can be both complex and rigid. In January, 2001, the IRS released proposed regulations which simplify these rules for most people. As a result, owners of these types of accounts will want to review the impact these rules may have on their financial and estate plans.

Uniform Lifetime Distribution Period

Just as before, the amount of the required minimum distributions depends upon account balances and distribution periods based on life expectancy. The difference between the old and new rules is in how the distribution period is figured. Under the prior rules, the figure depended on numerous factors such as the method of calculation chosen by the taxpayer, the age of the designated beneficiary, the date when the beneficiary was designated or changed, and whether the designated beneficiary was a spouse or non-spouse of the account owner or plan participant. In most cases, the new rules permit the required minimum distribution during the owner's or participant's lifetime to be calculated without regard to the beneficiary's age or his or her identity (spouse or non-spouse). The uniform distribution periods for all individuals of the same age are illustrated by the following table:

The table is based on the joint life expectancies of the account owner and a surviving beneficiary who is ten years younger. For most people, basing the table on a ten year age difference will result in lower required minimum distributions. One exception to utilizing the uniform table is if the sole beneficiary is the spouse of the account owner or plan participant and the spouse is more than ten years younger than the owner or participant. In such case, the distribution period may be measured by the joint life and last survivor life expectancy of the individual and his or her spouse.

By adopting these uniform lifetime distribution periods, the IRS has made it much easier for individuals to determine their required minimum distribution for each year. They simply find the distribution period for their age on the table and then divide their account balance as of the end of the prior year by that number. To simplify matters even more, at least for the owners of IRAs, the custodians, trustees and issuers of IRAs will be required to determine RMD amounts and report them to the IRA owners and to the IRS.

Designated Beneficiary

The IRS has also made the rules concerning designated beneficiaries more flexible. Under the prior rules, an account's designated beneficiary had to be determined prior to the account owner's or participant's required beginning date so that the RMD could be calculated. The required beginning date is the later of (i) April 1 of the year following the participant reaching the age of 70 1/2 or (ii) the date of the participant's retirement. After that date, even if the beneficiary designation was changed because of the death of the beneficiary or due to estate-planning considerations, the original RMD calculation stayed in place for the remainder of the account owner's life. Because under the new rules the RMD is re-calculated annually based on the uniform table, it generally does not matter who has been designated as the beneficiary at the required beginning date.

The new rules provide that the designated beneficiary is determined as of the end of the year following the year of the account owner's or participant's death. This means that beneficiaries who are cashed out or who disclaim the benefit during the period between the account owner's death and the end of the year following the year of the account owner's death are disregarded in determining the account owner's designated beneficiary for purposes of calculating required minimum distributions.

This change allows for some post-death estate planning through the use of disclaimers. A beneficiary who does not need the money can disclaim all or part of the benefit and, thereby, allow it to pass on to children or grandchildren. If done properly, the disclaiming party will pay no gift or income taxes on the disclaimed money and the RMD would be based on the life of the child or grandchild who received the property as a result of the disclaimer. In some cases, this can save income and/or estate taxes.

The disclaimer strategy just described is possible, in part, because the rules concerning post death required distributions have also been changed. Under the old rules, post death maximum payout periods depended on whether the account owner died before or after the required beginning date. The new rules provide that the distribution period is generally the remaining life expectancy of the designated beneficiary. If there is no designated beneficiary and the owner dies after he or she began receiving the RMDs, the account balance is paid out over the remaining life expectancy of the owner. If there is no designated beneficiary and the owner dies before the required beginning date, the account balance generally must be distributed within five years of the account owner's death.

Spousal Rollovers and Trusts

As under the prior rules, a spouse-beneficiary may elect to treat his or her entire interest as beneficiary in the decedent's IRA as his or her own IRA. This is possible only if the spouse is the sole beneficiary of the IRA and has an unlimited right to withdraw amounts from the IRA. The spouse's option to treat the IRA as his or her own is not allowed if a trust is the beneficiary, even if the spouse is the sole beneficiary of the trust. When a trust is identified as the beneficiary of an IRA or employer-sponsored retirement plan, the underlying beneficiary of the trust is treated as the designated beneficiary for RMD purposes. If there is more than one beneficiary of the trust, the RMDs are based upon the age of the oldest trust beneficiary.

Effective Date

The new rules are proposed to be effective for post-2001 distributions. However, IRA owners may elect to use the new rules for 2001 distributions. Participants in qualified retirement plans may use the new rules for 2001 only if the plan sponsor elects to adopt a model plan amendment that allows the new treatment. Account owners and participants in amended plans should calculate the RMD using the new rules to determine whether tax savings in 2001 are possible.

ESTATE PLANNING IMPLICATIONS OF THE ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001

On June 7, 2001, President Bush signed into law the Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA"). EGTRRA represents the Government's largest tax relief measure in more than twenty years. Included among its myriad provisions are cuts in the marginal income tax rates for individuals, major changes to the federal estate, gift and generation?skipping transfer tax laws, significant pension reform, education-related tax breaks, "marriage penalty" relief, and an increase in the child tax credit. Some of the provisions of EGTRRA are retroactive or take effect in the near future, while others are implemented gradually over a ten-year period.

EGTRRA could significantly impact your estate plans. Among its many provisions is the complete elimination of the federal estate and generation-skipping transfer taxes effective in the year 2010. It also contains some interim relief provisions which begin to go into effect as early as January 1, 2002. EGTRRA repeals the federal estate and generation-skipping transfer taxes for only one year. The repeal "sunsets" at midnight on December 31, 2010, and the existing federal estate, gift and generation-skipping transfer tax laws are reinstated on January 1, 2011. In light of the "sunset" provisions of EGTRRA and the many complexities contained within EGTRRA, we anticipate additional changes within the next few years. Nevertheless, we felt it was important to inform you of the changes contained within EGTRRA.

1. Decrease in Gift and Estate Tax Rates and Increase in Estate Tax Exemption.

1. Tax Rates and Exemptions Under Prior Law.

Gift tax is imposed on lifetime transfers and estate tax is imposed on transfers at death. Currently, the gift tax and estate tax are unified so that a single, graduated rate schedule applies to cumulative taxable transfers made by a taxpayer during his or her lifetime and at death. The unified estate and gift tax rates begin at 18% and reach 55% on cumulative taxable transfers over $3 million.

A unified credit is currently available with respect to taxable transfers by gift and at death. The unified credit amount currently exempts from tax transfers totaling $675,000. The law existing prior to adoption of EGTRRA provided for a gradual increase in the amount of assets exempted by the unified credit to $1 million by 2006.

2. Tax Rates and Exemptions Under EGTRRA.

The following changes are scheduled to be made to the maximum rates and exemption amounts under the federal estate and gift tax laws during the next ten years:

Year	Changes
2002	The 5% surtax for taxable transfers in excess of $10 million is repealed. The estate and gift tax rates in excess of 50% are repealed. The exemption amount for both estate and gift tax purposes is increased to $1 million
2003	The estate and gift tax rates in excess of 49% are repealed.
2004	The estate and gift tax rates in excess of 48% are repealed. The exemption amount for estate tax purposes is increased to $1.5 million. However, the exemption amount for gift tax purposes remains at $1 million. The family owned business deduction, which provides a deduction to owners of qualifying family?owned businesses, is repealed.
2005	The estate and gift tax rates in excess of 47% are repealed.
2006	The estate and gift tax rates in excess of 46% are repealed. The exemption amount for estate tax purposes is increased to $2 million.
2007	The estate and gift tax rates in excess of 45% are repealed.
2008	No change.
2009	The exemption amount for estate tax purposes is increased to $3.5 million.
2010	The estate tax is repealed.
2011	The estate tax is reinstated. The exemption amount for both estate and gift tax purposes goes back to $1 million. The top estate and gift tax rates under prior law (as summarized above) are reinstated.

The following chart summarizes the effect of these changes on the estate tax exemption amounts and the top estate tax rates:

Year of Death	Estate Tax Exemption Amount	Highest Estate Tax Rate
2001	$675,000	55%
2002	$1,000,000	50%
2003	$1,000,000	49%
2004	$1,500,000	48%

2005	$1,500,000	47%
2006	$2,000,000	46%
2007	$2,000,000	45%
2008	$2,000,000	45%
2009	$3,500,000	45%
2010	NOT APPLICABLE	NO FEDERAL ESTATE TAX
2011 and thereafter	$1,000,000	55%

2. Increase in Generation-Skipping Transfer Tax ("GST") Exemption.

1. GST Exemption Under Prior Law.

The GST is designed to tax certain transfers of property to persons who are two or more generations below that of the person transferring the property. Such persons are referred to as "skip" persons. The GST applies to direct transfers as well as transfers to a trust where distributions are made from the trust to a "skip" person (called a "taxable distribution") or where upon termination of the trust, distributions will be made to one or more "skip" persons (called a "taxable termination").

Every individual is provided a GST exemption which enables him or her to exempt from GST a certain amount of transfers made at any time during life or at death. Prior to changes enacted in 1997, the GST exemption amount was $1 million. Starting in 1999 (using 1997 as the base year), the GST exemption was indexed for inflation and rounded to the nearest $10,000. As of January 1, 2001, the GST exemption stood at $1,060,000.

The GST exemption may be irrevocably allocated by the transferor of property or his or her personal representative to property transferred at any time by such individual, whether the transfer is a direct skip that would be immediately subject to GST or a transfer in trust that may later give rise to a taxable termination or a taxable distribution.

2. GST Exemption Under EGTRRA.

Under EGTRRA, the $1 million GST exemption, as adjusted for inflation, will remain in place until 2004. Beginning in 2004, the GST exemption will be equal to the estate tax exemption. In 2010, the GST, like the estate tax, will be repealed. In 2011, the GST, like the estate tax, will be reinstated and the GST exemption will revert back to the amount it would be under the law existing prior to adoption of EGTRRA.

3. State Death Tax Credit Replaced With Deduction.

1. State Death Tax Credit Under Prior Law.

Currently, a credit is allowed against the federal estate tax for any estate, inheritance or other death taxes paid to any state. The maximum amount of credit allowable for state death taxes is determined under a graduated rate table, the top rate of which is 16%, based on the size of the decedent's adjusted taxable estate. Most states, including Nebraska, have a "pickup" estate tax which imposes a state death tax equal to the maximum federal credit allowed.

2. State Death Tax Credit Under EGTRRA.

From 2002 through 2004, the state death tax credit allowable under existing law is reduced as follows:

Year of Death	Credit Reduction
2002	25%
2003	50%
2004	75%

In 2005, the state death tax credit is repealed. In its place will be a federal estate tax deduction for death taxes paid to any state.

The states will be hardest hit by this change. The effect of this change is to remove from the states revenue which they would otherwise receive through the "pickup" tax. Consequently, we expect to see states revamping their death tax laws in an effort to recapture this lost revenue.

D. Institution of Carryover Basis of Property at Death

1. Basis Rules Under Prior Law.

Currently, capital assets passing at death get a "stepped-up" basis, which means that the basis of the property for income tax purposes is adjusted to the fair market value of the property on the date of the decedent's death. This "step up" in basis eliminates the recognition of income on any appreciation of the property that occurred prior to the decedent's death.

2. Basis Rules Under EGTRRA.

For decedent's dying after 2009 (after repeal of the estate and generation-skipping transfer taxes), the existing rule providing a "step-up" in basis for inherited property is repealed. A modified carryover basis regime will go into effect, which provides that recipients of property transferred at the decedent's death will receive a basis equal to the lesser of the adjusted basis of the decedent or the fair market value of the property on the date of the decedent's death. However, the personal representative of an estate will be permitted to adjust the basis of up to $1.3 million in assets transferred by a decedent. A further adjustment of the basis of up to $3 million in assets is permitted for property transferred to a surviving spouse.

E. Impact of EGTRRA on Existing Estate Plans.

There are many situations in which the above referenced changes could result in unintended consequences with respect to existing estate plans. Some examples are described below:

1. Unintentional Disinheritance of Spouse.

Many current wills and trusts prepared for married persons provide that at the first death, the estate tax exemption amount is to pass to the children of the decedent with the balance passing outright or in trust for the benefit of the surviving spouse. The current estate tax exemption amount is $675,000. As discussed above, the estate tax exemption amount increases to $1 million in 2002 and gradually increases to $3.5 million by 2009. As the estate tax exemption amount increases, so does the amount which passes outright to the children. In some instances, this may result in the children receiving substantially more and the surviving spouse receiving substantially less than the decedent had intended.

2. Loss of Control of Assets by Surviving Spouse.

Many current wills and trusts prepared for married persons provide that at the first spouse's death, assets in an amount equal to the estate tax exemption amount are to pass into a trust, which is sometimes referred to as a "family trust," "credit shelter trust" or "bypass trust." These assets will then remain in trust during the surviving spouse's lifetime and are typically administered for the benefit of the surviving spouse and possibly the decedent's children and grandchildren. With the increases anticipated in the estate tax exemption amount, this type of planning may no longer be necessary for persons whose combined estates are less than the exemption amount. Nevertheless, some persons may still find the trust beneficial but will want to modify the terms of the trust or alter how the trust will be funded.

3. Increased GST Exemption May Unintentionally Restrict Children's Access to Assets.

Many current wills and trusts are designed to take advantage of the GST exemption and segregate assets in an amount equal to the GST exemption into one or more trusts which are held for the benefit of, but are not controlled by, the children of the decedent. With the dramatic increases scheduled for the GST exemption beginning in 2004, some of these generation-skipping trusts may be over funded and thereby result in the children being deprived of control of more assets than the decedent had intended.

6. Recommendation: Have Your Estate Plan Reviewed.

The changes discussed above heighten the importance of maintaining regular contact with the professionals involved in planning your estate. If you have not already done so, we recommend that you have your estate planning professionals review your estate plan in light of the changes made by EGTRRA and discuss with you what, if any, changes may be warranted to your personal estate plan. Additionally, the changes incorporated by EGTRRA will require regular monitoring of your estate plan to make certain it remains consistent with your objectives. With the dramatic changes being made to the estate, gift, generation-skipping and income taxes, you can no longer afford to simply leave your estate plans "on the shelf."

If you are an existing client of Harding & Shultz, we strongly recommend you contact us to review your plan and discuss the implications of EGTRRA on your current estate plan. If you fail to do so, your estate plan may no longer accomplish the objectives which you sought to accomplish. If you are not an existing client of Harding & Shultz but would like a professional at Harding & Shultz to take a look at your estate plan, we welcome your call and look forward to having the opportunity to assist you.

Veterans Benefits

In the wake of the terrorist attacks on the World Trade Center and the Pentagon your employees who are members of the National Guard and Reserves may be called to military service. The Uniformed Services Employment and Reemployment Rights Act protects these employees' jobs and benefits during this time of service to our country. This chapter which is contained in the Nebraska Employment Laws and Regulations handbook describes the protections afforded these employees under this federal law.

Military leave

The purpose of the Uniformed Services Employment and Re-employment Rights Act (USSERA) is to encourage non-career service in the uniformed services by eliminating or minimizing the disadvantages to civilian careers and employment which can result from such service and to prohibit discrimination against such persons.

o Service in the uniformed services

The term "service in the uniformed services" means the performance of duty on a voluntary or involuntary basis in a uniformed service under competent authority, and includes active duty, active duty for training, initial active duty for training, inactive duty training, full-time National Guard duty, and a period for which a person is absent from a position of employment for the purpose of an examination to determine the fitness of the person to perform any such duty.

o Uniformed services

The term "uniformed services" means the Armed Forces, the Army National Guard and the Air National Guard when engaged in active duty for training, inactive duty training or full-time National Guard duty, the commissioned corps of the Public Health Service, and any other category of persons designated by the President in time of war or national emergency.

Discrimination prohibited

An employer may not discriminate in employment against or take any adverse employment action against any person because such person has:

- taken an action to enforce a protection afforded any person under USSERA

or

- testified or otherwise made a statement in or in connection with any proceeding under USSERA

or

- assisted or otherwise participated in an investigation under USSERA

or

- has exercised a right provided for in USSERA. The prohibition applies to any person regardless of whether that person has performed service in the uniformed services.

If a person's membership, application for membership, service, application for service or obligation for service in the uniformed services is a motivating factor in the employer's action, the employer is guilty of discrimination, unless the employer can prove that the action would have been taken in the absence of such membership, application for membership, service, application for service or obligation for service.

Rights of re-employment of inducted persons

Any person who is inducted into the armed forces of the United States for training and service, and who leaves a position (other than a temporary position), in order to perform such training and service, receives a certificate relating to the satisfactory completion of military service and makes application for re-employment within 90 days after such person is relieved from training and service or from hospitalization continuing after the discharge for a period of not more than one year has a right to re-employment.

Restoration to position

If the position in question was a State (or political subdivision) or a private employer, the person must be restored to their position if he or she is still qualified to perform the duties of the position or able to become requalified with reasonable efforts by the employer. In such event, the person must be restored by the employer (or the employer's successor) to the same position or to a position of like seniority, status and pay. If the person is not qualified to perform the duties of the position or able to become requalified by reason of disability sustained during such service, but qualified to perform the duties of any other position of the employer, the person must be offered employment. If the person requests, the person must be employed in such other position for which the person is qualified which will provide the person like seniority, status and pay, or the nearest approximation thereof.

Requisites

In order to be entitled to re-employment rights and benefits, the person:

- must give the employer advanced written or verbal notice of the service

- the cumulative length of the absence and of all previous absences from a position of employment with that employer by reason of service in the uniformed services may not exceed five years

and

- the person must submit an application for re-employment. However, no notice is required if the giving of such notice is precluded by military necessity, or the giving of such notice is otherwise impossible or unreasonable.

A protected person, upon the completion of a period of service, must notify the employer of the intent to return to a position of employment as follows:

- For service of less than 31 days and persons absent for a period of any length for the purpose of an examination to determine fitness to perform service: the individual must report to the employer not later than the beginning of the first full regularly scheduled work period on the first full calendar day following the completion of the period of service and the expiration of eight hours after a period allowing for the safe transportation of the person from the place of that service to the person's residence, or as soon as possible after the expiration of the eight-hour period, if reporting within the period referred to is impossible or unreasonable through no fault of the person.

- For service for more than 30 days but less than 181 days: the individual must submit an application for re-employment with the employer not later than 14 days after the completion of the period of service or if submitting such application within that period is impossible through no fault of the person, the next first full calendar day when submission of such application becomes possible.

- For an individual whose period of service was more than 180 days: must submit an application for re-employment with the employer not later than 90 days after the completion of the period of service.

- For a person who is hospitalized for an illness or injury occurring in the performance of service: at the end of the period that is necessary for the person to recover from such illness or injury, must report to the employer depending upon the length of service, as described above. Such period of recovery may not exceed two years, unless required to accommodate the circumstances beyond such person's control which makes reporting within the period specified impossible or unreasonable.

A person who fails to report or apply for re-employment within the appropriate period does not automatically forfeit the entitlement to re-employment, but is subject to the conduct rules, established policies and general practices of the employer pertaining to explanations and discipline with respect to absence from scheduled work.

An employer is entitled to documentation along with the application establishing that:

- the person's application is timely

-the person has not exceeded the service limitations

and

- the person's entitlement to the benefits have not been terminated.

However, re-employment may not be denied for failure to provide documentation if the failure occurs because the documentation does not exist or is not really available. If documentation later becomes available that establishes that such person does not meet one or more of the requirements, the employer may terminate the employment of the person and any rights or benefits given to him or her. Further, an employer who re-employs a person absent from a position for more than 90 days may require the person to provide the employer with the documentation before treating him or her as not having incurred a break in service for pension benefit purposes.

Period of service

In calculating the "period of service," the calculation shall not include any service:

- that is required, beyond five years, to complete an initial period of obligated service

or

- during which such person was unable to obtain orders releasing such person from a period of service before the expiration of the five-year period and such inability was through no fault of such person

or

- for additional training requirements determined and certified in writing by the Secretary of Labor necessary for professional development, or for completion of skilled training or retraining

or

- performed by a member of the uniformed service who is ordered to or retained on active duty or called into federal service as a member of the National Guard.

Exemptions

An employer is not required to re-employ a person if the employer's circumstances have so changed as to make such re-employment impossible or unreasonable or if such employment would impose an undue hardship on the employer. "Undue hardship" means actions requiring significant difficulty or expense, when considered in light of:

- the nature and cost of the action needed

- the overall financial resources of the facility; the number of persons employed at such facility; the effect on expenses and resources; or the impact otherwise of such action upon the operation of the facility

- the overall financial resources of the employer; the overall size of the business of an employer with respect to the number of its employees; the number, type and location of its facilities

and

- the type of operation or operations of the employer, including the composition, structure and functions of the workforce of such employer, the geographic separateness, administrative or fiscal relationship of the facility or facilities in question to the employer.

Additionally, an employer is not required to re-employ a person under this chapter if the employment from which the person leaves to serve is for a brief, non-recurrent period, and there is no reasonable expectation that such employment will continue indefinitely or for a significant period.

Benefits protected

The term "benefit" means any advantage, profit, privilege, gain, status, account or interest (other than wages or salary for work performed) that accrues by reason of an employment contract or agreement or an employer policy, plan or practice, and includes rights and benefits under a pension plan, health plan, employee stock ownership plan, insurance coverage and awards, bonuses, severance pay, supplemental unemployment benefits, vacations and the opportunity to select work hours or location of employment. Any person who is restored to or employed in a position pursuant to USSERA shall be considered as having been on furlough or leave of absence during the period of training or service in the armed forces.The person must be restored or re-employed without loss of seniority, shall be entitled to participate in insurance or other benefits offered by the employer pursuant to established rules and practices relating to employees on leave of absence which were in effect at the time the person was inducted into the armed forces.

For employer-offered health insurance, an exclusion or waiting period may not be imposed in connection with coverage of a health or physical condition of a person entitled to participate in the insurance if:

- the condition arose before or during the person's period of training or service in the armed forces

- an exclusion or waiting period would not have been imposed for the condition during a period of coverage resulting from participation by such person in the insurance

and

- the condition of such person has not been determined to be service-connected.

The person on leave may be required to pay the employee the cost of any funded benefit continued to the extent other employees on a leave of absence are so required.

Any coverage under health plans must provide that the person may elect to continue the coverage. The maximum period of coverage of the person and the person's dependents under such an election shall be the lesser of:

- the 18 month period beginning on the date on which the person's absence begins

or

- the day after the date on which the person fails to apply for or return to a position of employment.

Similar to COBRA, an employee who elects to continue coverage may be required to pay not more than 102% of the full premium under the plan associated with such coverage for the employer's other employees, except that in the case for a person serving less than 31 days, that person may not be required to pay more than the employee's share, if any, for the coverage.

A person going on military leave may use any vacation, annual or similar leave, with pay, accrued by the person before the commencement of such service. No employer may require any such person to use vacation, annual or similar leave, during the period of service.

A person who is re-employed is entitled to the seniority and other rights and benefits determined by seniority that the person had on the date of the commencement of service, plus the additional seniority and rights and benefits that such person would have attained if the person had remained employed.

If an employee who is going on military leave provides written notice of the intent not to return to a position of employment, the person is not entitled to the reemployment rights. However, the person must knowingly provide a clear written notice of the intent, and the employer must provide notice of the specific rights and benefits which will be lost.

A person who is re-employed by an employer may not be discharged except for cause:

- within one vear after the date of such re-employment if the period of service was more than 180 days

or

- within 180 days after the date of re-employment if the person's period of service was more than 30 days but less than 181 days.

Character of service

A person's entitlement to the benefits of USSERA terminates upon the occurrence of any of the following events:

- a separation of such person from uniformed service with a dishonorable or bad conduct discharge

and

- a separation of such person from uniformed service other than for honorable conditions, as characterized pursuant to regulations prescribed by the Secretary of Labor.

Enforcement

A person who claims that he/she was denied employment or re-employment rights or benefits may file a complaint with the Secretary of Labor, who will investigate the complaint. If the Secretary determines that the action occurred, the Secretary will attempt to resolve the complaint by making reasonable efforts to ensure that the person or entity named complies with the provisions of USSERA. If that step fails, the Secretary will notify the person submitting the complaint of:

- the results of the investigation

and

- the entitlement to proceed against the employer.

A person who receives from the Secretary such a notification may request that the Secretary refer the complaint to the Attorney General. If the Attorney General is reasonably satisfied that the person on whose behalf the complaint is referred is entitled to the rights or benefits sought, the Attorney General may appear on behalf of the complaining person and commence an action for appropriate relief in an appropriate United States District Court.

A person may commence an action for relief with respect to a complaint if that person:

- has not chosen to apply to the Secretary for assistance o has not requested that the Secretary refer the complaint to the Attorney General

- has been refused representation by the Attorney General.

Available damages include:

- equitable

- back pay and lost benefits

- liquidated damages if the conduct was willful

- attorneys fees and costs.

There is no statute of limitations under USSERA.

Preference for veterans

Nebraska public employers must give preference to veterans who are eligible for the public employment positions they are seeking. This preference requirement only applies to public employers that are not utilizing a merit system.