(1) Each member employed and participating in the retirement system prior to January 1, 2003, who has elected not to participate in the cash balance benefit, shall be allowed to allocate all contributions to the member's employer account to various investment options. Such investment options shall be the same as the investment options of the employee account as provided in subsection (1) of section 23-2309.01. If a member fails to select an option or combination of options, all of the member's funds in the employer account shall be placed in the investment option described in subdivision (1)(a)(v) of section 23-2309.01. Each member shall be given a detailed current description of each investment option prior to making or revising the member's allocation.
(2) Each member of the retirement system may allocate contributions to the member's employer account to the investment options in percentage increments as set by the board in any proportion, including full allocation to any one option. A member under subdivision (1)(a) of section 23-2321 or the member's beneficiary may transfer any portion of the member's funds among the options. The board may adopt and promulgate rules and regulations for changes of a member's allocation of contributions to the member's accounts after the member's most recent allocation and for transfers from one investment account to another.
(3) The board shall develop a schedule for the allocation of administrative costs of maintaining the various investment options and shall assess the costs so that each member pays a reasonable fee as determined by the board.
(4) In order to carry out this section, the board may enter into administrative services agreements for accounting or record-keeping services. No agreement shall be entered into unless the board determines that it will result in administrative economy and will be in the best interests of the state and participating employees.
(5) The state, the board, the state investment officer, the members of the Nebraska Investment Council, or the county shall not be liable for any investment results resulting from the member's exercise of control over the assets in the employer account.