LINCOLN — Public school teachers statewide say they are alarmed at a legislative proposal led by Nebraska Gov. Jim Pillen to change how much the state annually puts into its school retirement plan.

Legislative Bill 645, introduced by State Sen. Beau Ballard of Lincoln at Pillen’s request, would create stepped-down contribution levels from the state to the school retirement plan, depending on the actuarial funding level of the pension plan. The state currently gives 2% of the payroll for school employees statewide each year — about $50 million.

Ballard’s bill would maintain that funding level if the plan drops below 92% funded. It is currently 99.9% funded and growing, funded at about $16.3 billion as of July of last year. The goal is to divert the contribution amount to other education-related investments, including school finance reform.

If the pension plan is fully funded, the state would not contribute to the plan unless it drops below 100%, which would adjust depending on the level of funding.

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