Wyoming Retirement Act.

WORKING DRAFT
2012
STATE OF
WYOMING
12LSO-0006

HOUSE BILL
NO.
HB0091

Wyoming
R
etirement
A
ct.

Sponsored by:
Representative(s) Pedersen, Buchanan, Edmonds, Gay, Kroeker, Teeters and Wallis and Senator(s) Coe, Jennings, Peterson and Von Flatern

A BILL

for

AN ACT relating to the Wyoming retirement system; closing current plan to new enrollees
as specified
; establishing a
defined contribution plan

for
i
ndividuals hired after a specified date; providing for
mandatory and
optional participation in the
defined contribution plan
; specifying contributions; providing definitions; providing for administration; specifying severability;
providing appropriation
s
and for repayment
as specified; requiring review and report;

making conforming amendments; and providing for

effective date
s
.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.
W.S. 9
‑
3
‑
801
through 9
‑
3
‑
8
10 are created to read:

9
‑
3
‑
801
.

Defined contribution
retirement plan created.

This article
shall be known as the Wyoming retirement system
defined contribution plan
.

9
‑
3
‑
80
2
.

Definitions.

(a)

As used in
this article
:

(i)

"Administrative account" means the account established
pursuant to W.S. 9
‑
3
‑
807
to
receive fees and expend funds to administer the defined contribution plan;

(
i
i)

"Board" means
the retirement board created by W.S. 9
‑
3
‑
40
4
;

(i
i
i)

"Defined benefit plan" means
the
retirement plan
established pursuant to W.S. 9
‑
3
‑
401 through 9
‑
3
‑
432
. The use of the term "defined benefit plan" is intended solely to distinguish
the
public employee retirement plan established
pursuant to W.S. 9
‑
3
‑
401 through 9
‑
3
‑
432
from the defined contribution plan
established by this article
and shall not be construed to
affect the limitations of
that
defined benefit plan
,

or any
other retirement plan administered by the retirement system
,

as
specified in W.S. 9
‑
3
‑
428 or any other provision of Wyoming law
;

(i
v
)

"Defined contribution plan" means the retirement plan established under this article;

(
v
)

"
Defined contribution plan m
ember" means
an individual meeting the definition of
W.S. 9
‑
3
‑
402(a)(vii)
who by operation of law or by election under W.S. 9
‑
3
‑
804 is a participant in the defined contribution plan;

(v
i
)

"Defined contribution plan member's account" or "individual account" means the account
or subaccounts
created for each member under the defined contribution plan which includes
the member's contributions,
the member's contributions paid by an employer under W.S. 9
‑
3
‑
80
6
, employer contributions
and any amounts transferred to the member's defined contribution plan account from a member's defined benefit plan account previously maintained under W.S. 9
‑
3
‑
401 through 9
‑
3
‑
432, plus earnings credited to the account;

(
v
i
i
)

"Eligible retirement plan" means as defined by W.S. 9
‑
3
‑
402(a)(xxvii);

(
v
ii
i
)

"Employer" or "participating employer" means
as defined by W.S. 9
‑
3
‑
402(a)(vi);

(
i
x
)

"Firefighter member" means those individuals who are
defined benefit plan

members under W.S. 9
‑
3
‑
402(a)(xxv);

(
x)

"Law enforcement member" means those individuals who are
defined benefit plan

members as law enforcement officers under W.S. 9
‑
3
‑
402(a)(xviii);

(
x
i
)

"
Plan document" means the document that contains the provisions and procedures of
the
defined contribution plan

in conformity with
this article

and the
I
nternal
R
evenue
C
ode
;

(
x
i
i
)

"Retirement system" means
the retirement system created by W.S. 9
‑
3
‑
403
;

(
xii
i
)

"Rollover contribution" means as defined by W.S. 9
‑
3
‑
402(a)(xxviii);

(
x
i
v
)

"Salary" means the cash remuneration paid to a
defined contribution plan
member in a calendar year. "Salary" taken into account for a member shall not exceed the amount specified under section 401(a)(17) of the United States Internal Revenue Code;

(x
v
)

"Service credit"
means the credit earned by a
defined contribution plan
member under
either the defined benefit plan or the defined contribution plan
.
The years or months of s
ervice credit
shall be calculated on the same basis
for both the defined benefit and defined contributions plans
under rules adopted by the board under W.S. 9
‑
3
‑
417;

(
x
v
i
)

"
Termination of service
" means the termination of a
defined contribution plan

member's working career for a salary as an employee
of a participating employer
.

9
‑
3
‑
803
.

Wyoming retirement system
defined contribution plan
; establishment;
accounts established;
members;
purpose.

(a)

The Wyoming retirement system
defined contribution plan
is established to provide retirement benefits to eligible employees of participating employers
, and the employees
'
designated beneficiaries
.
The board shall adopt
rules and policies
to implement the defined contribution plan under section
s
401(
a
)
and 414(d)
of the Internal Revenue Code

as provided in this article. The board
shall
adopt a plan document
as
it considers appropriate or necessary to administer the plan. The board may request from the Internal Revenue Service any rulings or determination letters that the board considers necessary or appropriate in order to implement or administer the plan.

(b)

The
retirement system
shall establish an account for each member
within the defined contribution plan
. The member's individual account may consist of subaccounts, one (1) holding the member's contributions and earnings on those contributions and one (1) holding employer contributions and earnings on those contributions. The board may combine the subaccounts into a single account for each member if the board determines a single account is administratively appropriate and permissible under applicable federal law.

(c)

D
efined contribution
plan members shall include:

(i)

Individuals
who meet the definition of W.S. 9
‑
3
‑
402(a)(vii)
, and b
ecome an employee for whom contributions are made for service performed on or after September 1, 201
3
and:

(A)

W
ere
not previously a contributing member to the defined benefit plan; or

(B)

W
ere
previously a contributing member to the defined benefit plan who withdrew
their
accumulated contributions and did not redeposit those contributions before September 1, 201
3
. A member who was deployed to active military or other emergency service of the United States and who was previously employed by a participating employer prior to September 1, 201
3
and withdrew his accumulated contributions to the defined benefit plan, shall not be deemed to be a member meeting the provisions of this subparagraph, if the withdrawal was in accordance with provisions of the Uniformed Services Employment and Reemployment Rights Act, 38 U.S.C. 4301 et seq., and board rules adopted to meet the requirements of that act
; or

(C)

W
ere
previously a contributing member who left service w
ith less than four (4) years service credit, without withdrawing his accumulated contributions, and returned to service on or after September 1, 201
3
.

(ii)

Defined benefit plan
firefighter and law enforcement members who elect to become
defined contribution plan
members as provided by W.S. 9
‑
3
‑
804
;

(i
ii
)

Other
defined benefit plan
members who elect to become
defined contribution plan
members as provided by W.S.

9
‑
3
‑
80
4.

9
‑
3
‑
80
4
.

Election of
defined benefit plan
members to become
defined contribution plan
members; conditions; requirements.

(
a
)

T
he retirement
board
shall provide an opportunity for each
individual
who is a
defined benefit plan

member on
September 1, 2013
, to elect in writing to terminate membership in the
defined benefit plan
and elect to become a member in
the
defined contribution plan
. An election under this subsection is irrevocable. The retirement system
shall accept written elections under this subsection from members during the period beginning on
September 1
, 201
3
and ending on June 30, 201
4
.
Members making e
lections from
September
1, 2013 through June 30, 2014 shall be
enrolled in the defined contribution plan
effective with the payroll for August
,
2014.
A member who does not make a written election or who does not file the election during the period specified in this subsection
shall
continue to be a
defined benefit plan

member
.
A member who makes and files a written election under this subsection elects to do all of the following:

(
i
)

Cease to be a member of
defined benefit plan
effective at midnight immediately preceding the date
of
enrollment in
the

defined contribution plan
;

(
ii
)

Waive all of his rights to any retirement, disability or other benefit under the
defined benefit plan
effective at midnight immediately preceding the date of enrollment in the
defined contribution plan
.

(
b
)

Subject to W.S. 9
‑
3
‑
415(g) and (h), i
f an individual who was a member under the
defined benefit plan

prior to

September
1, 201
3
,
is reemployed and by virtue of
that
re
employment is again eligible for membership in
the
defined benefit plan
, the individual shall elect in writing to remain a member of
the
defined benefit plan
or to terminate membership in
the
defined benefit plan
and become a
defined contribution plan

member. An election made under this subsection is irrevocable. The retirement
board
shall accept written elections under this subsection during the period beginning on the date of the individual's reemployment and ending upon the expiration of sixty (60) days after the date of that reemployment. A
n individual
who makes and files a written election to remain a member of
the
defined benefit plan
retains all rights and is subject to all conditions as a member of
the
defined benefit plan
under W.S. 9
‑
3
‑
401 through 9
‑
3
‑
43
2
. A
n individual
eligible to make an election under this subsection who does not file an election during the period specified in this subsection continues to be a
defined benefit plan

member.
An individual making an election under this subsection shall be subject to the provisions of paragraphs (a)(i)

and
(ii)
of this section
and shall be enrolled in the defined contribution plan on the
latter of August 1, 2014 or the
first day of the payroll period next following the filing of the election
.
An individual meeting the provisions of W.S. 9
‑
3
‑
803(c)(i) shall be a defined contribution plan
member by operation of law and is not entitled to make an election under this subsection.

(
c
)

After consultation with the retirement
board and the board
's
legal and other professional consultants
, the director shall determine the method by which an individual shall make a written election under this section.

9
‑
3
‑
80
5.

Defined contribution plan
membership; transfer of
defined benefit plan
members to
defined contribution plan
; transfer of funds
.

F
or those
defined benefit plan

members
who
elect to terminate membership in
the
defined benefit plan

pursuant to

W.S. 9
‑
3
‑
80
4
,
the retirement
board

shall direct the state treasurer to transfer a lump sum amount
equal to the amount in the member's account, as defined by W.S. 9
‑
3
‑
402(a)(i)
,
from the retirement account established by W.S. 9
‑
3
‑
407 to
the
defined contribution plan

member's individual
account
on the first day of the payroll period
in which he is
enroll
ed
in the
defined contribution plan
.

9
‑
3
‑
80
6
.

Members' contributions; payroll deductions; employer contributions; interest imposed upon delinquent contributions; recovery.

(a)

Every
defined contribution plan
member
shall pay into his individual account the contribution required of
defined benefit plan
members under W.S. 9
‑
3
‑
412(a). To the extent an employer pays a
defined benefit plan
member's contribution as provided by W.S. 9
‑
3
‑
412, the employer shall make the same contribution on behalf of the
defined contribution plan
member in accordance with the provisions of W.S. 9
‑
3
‑
412.

(
b
)

Except as provided by W.S. 9
‑
2
‑
1022(a)(xi)(F)(III) or (IV), 9
‑
3
‑
431 and 9
‑
3
‑
432,
for
defined contribution plan
members
each employer
shall on a monthly basis, pay into
the
member's individual a
ccount a contribution equal to
the
percentage of salary
contribution required of employers under W.S. 9
‑
3
‑
413

for
defined benefit plan

members. Employer contributions for any month, together with the members' contributions for that month, if any, shall be transferred to the board not later than the twelfth day of the following month. These contributions shall be credited to the
member's individual
account in a
manner as directed by the board. Any employer failing to transfer contributions under this section in sufficient time for the board to receive the contributions by the twenty-fifth day of the month due shall be assessed interest at the rate of eight percent (8%) per annum. Interest imposed under this section shall be payable not later than the twelfth day of the next succeeding month. If the contributions and any interest imposed under this section are not transferred to the board when due, they may be recovered, together with court costs, in an action brought for that purpose in the first judicial district court in Laramie County, Wyoming.

(
c
)

For state employee
defined contribution plan
members, the legislature may separately appropriate funds to
pay
any part of the employee
defined contribution plan
contribution
not paid by the employer on the employee's behalf
in any fiscal period.
For other
defined contribution plan
members, each employer may
pay
any part of the employee
defined contribution plan
contribution
not required by subsection (b) of this section to be paid by the employer,
in the employer's sole discretion.

9
‑
3
‑
80
7.

Investment of
defined contribution plan

funds
; servicing fees; holding of funds; limited liability of state and political subdivision
s
.

(
a
)

The
defined contribution plan
shall be administered by the board.
The board shall approve programs for investment of monies within the members
'
accounts.
No investment p
rogram
shall be approved unless the p
rogram
offered by a provider is subject to rules and regulations of applicable federal and state regulatory agencies. The board may
approve investment of
defined contribution plan
contributions in investment options offered pursuant to W.S. 9
‑
3
‑
501 through 9
‑
3
‑
508 or other investment options approved by the board.
I
ndividual
member
accounts shall be maintained for the
defined contribution plan
members, with investment of those accounts directed by the member owner of the account in any investment approved by the board.
The board may promulgate rules allowing for commingling of a
defined contribution plan
member's individual account and any account of the member maintained pursuant to W.S. 9
‑
3
‑
501 through 9
‑
3
‑
508 so long as the qualified plan status of the
defined contribution plan
is maintained
.
Each
defined contribution plan
member shall direct the investment of his accumulated
employer and employee contributions and earnings to one (1) or more investment choices within available categories of investment
approved by the board
.

(b)

An
administrative
account is established to be used by the board
to provide for
administrative expenses of
the defined contribution plan.
Funds in the
administrative
account shall be held separately from all other funds and monies held by the state and shall be expended only as provided by
this article
.
The administrative account
shall be
funded
by
fees charged by the board to approved investment programs or by fees assessed by the board to
the
defined contribution plan members
,
former defined contribution plan members
and
defined contribution plan
beneficiaries who have not closed their accounts in a manner determined by the
board
.
T
he board may establish the fees at amounts necessary to maintain the account balance in accordance with
subsection (
d
) of this section
.

The board shall account for all deposits into and all authorized payments from the
administrative
account.

(c)

All
contributions made to
member's individual accounts in the
defined contribution plan
and all earnings thereon shall be held in trust or pursuant to custodial
accounts or contracts meeting the requirements of
26 U
.
S
.
C
.
4
01
(
a
)
and 414(d)
and for the exclusive benefit of
defined contribution plan
members
and their beneficiaries
, including administrative fees as provided in this section
.

Notwithstanding the provisions of this subsection, the financial liability of the state, county, city, town or other political subdivision is limited to the
contributions required as employers under this article
.

(
d
)

Expenditures from the
administrative
account shall be for the following:

(i)

Servicing of accounts established for
defined contribution plan
members
;

(ii)

Necessary accounting, legal and other professional services;

(i
ii
)

R
eimbursement to
board
members and employees of the
retirement system
for time actually devoted to the administration of and responsibilities imposed under

this article
; and

(
i
v)

Other necessary administrative costs incurred in administering the
defined contribution plan
.

(
e
)

The account balance shall be an amount sufficient to meet the annual administrative expenses of the

defined contribution plan
.
The board shall conduct negotiations with
investment program
s to establish servicing fees imposed at an amount necessary to pay expenses from the
administrative
account while providing the maximum investment earnings and benefits to
defined contribution plan
members
.

(
f
)

The board shall provide for an independent audit of the
administrative
account on an annual basis. A summary of the audit and its findings shall be included as part of the annual report by the board as required by law.

9
‑
3
‑
80
8.

Vesting of contributions; w
ithdrawal of individual member account
fund
s.

(
a
)

A
defined contribution plan
member
is immediately
one hundred percent (
100%
)
vested in
the member's
contributions
to

his
individual
account. Upon completion of four (4) years service credit a
defined contribution
plan
member is one hundred percent (100%) vested in
employer contributions
to the member's
individual
account.

Nonvested employer contributions shall be forfeited and deposited to the administrative account upon termination of service.

(b)

A
defined contribution plan
member who was a
member of
the
defined benefit plan
shall be credited with the years of service accrued under
the

defined benefit plan
on the effective date of
enrollment in
the
defined contribution plan
for the purpose of meeting the vesting requirements
under this section.

(c)

A
defined contribution plan
member
may
designate

one (
1
)
or more individuals as
a
beneficiary by filing written notice of
designation
with the
retirement
s
ystem.

U
pon the death of a
defined contribution plan
member the vested
accumulated balance of that
member shall be
long to the
designated
beneficiary, if any, of that
member
. If a valid
designation
of refund beneficiary is not on file with the
retirement system
, the
system
, in a lump sum distribution, shall distribute the accumulated balance to the legal representative, if any, of the deceased
member,
or if there
is no legal representative, to the deceased
member
's estate.

(
d
)

Upon termination of service, a
former
defined contribution plan
member
or
in the case of death of the member his
designated b
eneficiary
,
is e
ntitled
to receive distribution of
the member's vested
accumulated balance in
his
defined contribution plan
account. The former member, or in the case of death his beneficiary
,
m
ay elect
one (1)
or a combination of several of the following methods of distribution of the accumulated balance:

(
i
)

A lump sum distribution
;

(
ii
)

A lump sum direct rollover to another qualified plan, to the extent allowed by federal law
;

(
iii
)

Partial
distributions, as authorized by the
board;

(iv)

In-plan annuity or periodic payment options, as authorized by the board;

(v)

Other payment options, as authorized by the board;

(
v
i
)

No current distribution, in which case the accumulated balance shall remain in
the
defined contribution plan
until the former
defined contribution plan
member
or
designated
beneficiary elects a method or methods of distribution under
paragraphs
(
i
)
through
(
v
)
of this subsection
, to the extent allowed by federal law.

9
‑
3
‑
80
9.

Applicability of
defined benefit plan
provisions to
defined contribution plan
.

(a)

The following provisions of
the
defined benefit plan
shall be applicable to the
defined contribution plan
, subject to the limitations specified in this section:

(i)

W.S. 9
‑
3
‑
403 through 9
‑
3
‑
409
. For
defined contribution plan
members, t
he board may establish special pay plans to the extent authorized by W.S. 9
‑
3
‑
405(b)
and subject to the limitations
which would allow a
defined contribution plan
member the equivalent
in contributions
provided for
defined benefit plan
members under W.S. 9
‑
3
‑
405(b)
;

(ii)

W.S. 9
‑
3
‑
410(c). The board shall prepare an annual statement of the total number of
defined contribution plan
participants and the total value of individual accounts of
defined contribution plan
participants, together with such information compiled in a form which does not disclose
defined contribution plan
members' individual account holdings or values,
as
the board determines would inform the legislature as to whether
the
defined contribution plan
is accomplishing the goal of providing sufficient retirement funds for participants;

(iii)

W.S. 9
‑
3
‑
411;

(iv)

W.S. 9
‑
3
‑
414;

(v)

W.S. 9
‑
3
‑
417. The determination of service credits shall apply only to vesting provisions under the
defined contribution plan
;

(vi)

W.S. 9
‑
3
‑
426(a), (d) and (e). A
defined contribution plan
member
'
s account shall be subject to a qualified domestic relations order in accordance with W.S.
9
‑
3
‑
426 as implemented by board rules promulgated pursuant to this paragraph;

(vii)

W.S. 9
‑
3
‑
427. A
defined contribution plan
member is not prohibited from participating in the deferred compensation program under W.S. 9
‑
3
‑
501 through 9
‑
3
‑
508;

(viii)

W.S. 9
‑
3
‑
428(a) and (c). If the
defined contribution plan
is terminated each
defined contribution plan
member is entitled to receive the value of his
vested
account as of the date of termination
. If a distribution election is not made the retirement system may roll the account balance to a qualified retirement plan
;

(ix)

W.S. 9
‑
3
‑
429.

(b)

The employee and employer contributions made pursuant to the
defined contribution plan
shall not be commingled with any funds under the
defined benefit plan
.

(c)

No law enforcement member or firefighter member shall be a
defined contribution plan
member unless
t
he
member elects to participate in the
defined contribution plan
as provided in W.S. 9
‑
3
‑
80
4. To the extent the
provisions specified in subsection (a) of this section reference "law enforcement members" or "firefighter members," those provisions shall not be applied to the
defined contribution plan
and any law enforcement member or firefighter member electing to participate in the
defined contribution plan
shall be subject to the same conditions and terms of participation as all other members of the
defined contribution plan
.

9
‑
3
‑
8
10
.

Conditional effect; severability.

(a)

If the
retirement system
receives notification from the United States internal revenue service that any portion of
this article

will cause the
defined benefit plan

to be disqualified for tax purposes under the
I
nternal
R
evenue
C
ode,
or the
defined contribution plan
not to be qualified,
then the portion that will cause the disqualification
shall not be effective
.

(b)

The provisions of
this article
, shall be severable and if any provision
thereof
is declared to be unconstitutional or the applicability thereof to any person or circumstance is held invalid, the applicability
of the
remaining provisions
shall, with respect to all severable matters, not be affected thereby.

Section 2.

9
‑
3
‑
203(a)(xiii), 9
‑
3
‑
218(a)(ii)
(intro)
,
9
‑
3
‑
402(a)(intro) and by creating new paragraphs (
xxix) and (xxx), 9
‑
3
‑
405(a)(i)(B), (ii) by creating a new subparagraph (E) and (v), 9
‑
3
‑
406(a), 9
‑
3
‑
407(b), 9
‑
3
‑
409(a), 9
‑
3
‑
415(e), (g)(i), (h) and (j), 9
‑
3
‑
417(a), 9
‑
3
‑
421(a), 9
‑
3
‑
426(a)(intro), 21
‑
19
‑
102(a) and by creating a new subsection (e) and 21
‑
19
‑
103(a)(intro)
are amended to read:

9
‑
3
‑
203.

Definitions.

(a)

As used in this act:

(xiii)

"Retiree" means an individual who has terminated his working career as an employee of an employing entity participating in the group insurance plan and who is eligible to receive a retirement benefit under the Wyoming retirement system
, o
r f
or a member
of the
defined contribution plan
in that system
the member
has met the age and service requirements for retirement benefits
under
the

defined benefit plan
of that system and
has
terminated service as a
defined contribution plan
member
;

9
‑
3
‑
218.

Retiree membership in plan.

(a)

A retiree is eligible for coverage under the group insurance plan at premium rates established by the department, provided:

(ii)

The retiree has had medical coverage in effect under the group insurance plan for at least one (1) year immediately prior to the date of retirement and is eligible to receive a retirement benefit under the Wyoming retirement system
or meets the definition of retiree under W.S. 9
‑
3
‑
203(a)(xiii)
; and either:

9
‑
3
‑
402.

Definitions.

(a)

As used in
this a
rticle

W.S. 9
‑
3
‑
401 through 9
‑
3
‑
432
:

(xxix)

"Defined benefit plan" means the retirement plan established pursuant to W.S. 9
‑
3
‑
401 through 9
‑
3
‑
432. The use of the term "defined benefit
plan" is intended solely to distinguish the public employee retirement plan established pursuant to W.S. 9
‑
3
‑
401 through 9
‑
3
‑
432 from the defined contribution plan established by article 8 of chapter 3 of this title and shall not be construed to affect the limitations of that defined benefit plan, or any other retirement plan administered by the retirement system, as specified in W.S. 9
‑
3
‑
428 or any other provision of Wyoming law;

(xxx)

"
Defined contribution plan
"
means the retirement plan established by
article 8 of chapter 3 of this title
.

9
‑
3
‑
405.

Retirement board duties and powers.

(a)

In addition to any other duties prescribed by law, the board shall:

(i)

File with the legislative service office:

(B)

An annual audit report by an independent audit firm showing the financial status of the retirement system. The report required by this paragraph shall be submitted as part of the annual report required by
W.S. 9
‑
2
‑
1014
. The report shall account for the
defined contribution plan
separately from any other plan administered by the board
;

(ii)

At the request of any city, town or county not covered by the state retirement system, negotiate terms and conditions through which the city, town or county and its employees could become members of the state retirement system in accordance with the following terms and conditions:

(E)

Participation by
general member
employees of a city, town or county, first employed after
August 31, 2013,
shall be
in
accordance with the provisions of
the
defined contribution plan
under article 8 of chapter 3 of this title
.

(v)

Serve as investment trustee of the funds of the system
.

The board's duties for individual account funds under the
defined contribution plan
shall be limited to the provisions of article 8 of chapter 3 of this title
;

9
‑
3
‑
406.

Retirement board; employment and compensation of director, consulting actuary and
assistants; director designated secretary; compensation of members; quorum; seal.

(a)

The board shall employ a director and a consulting actuary and other professional and clerical assistants necessary for the administration of the retirement system
, including the
defined contribution plan
,
and the Wyoming deferred compensation program established under W.S. 9
‑
3
‑
501 through 9
‑
3
‑
508. The compensation of employees shall be fixed by the board, subject to confirmation and approval by the personnel division and together with all other necessary expenses of the board shall be paid by vouchers drawn on the state treasurer of Wyoming. The director shall also serve, without additional compensation, as secretary of the board. The board shall have the authority to obtain the financial and criminal background history of an employee or employment applicant of the Wyoming retirement system in accordance with W.S. 7
‑
19
‑
106 and 7
‑
19
‑
201.

9
‑
3
‑
407.

Retirement board; control and management of account containing assets of retirement system; payments from account.

(b)

The board has the control and management of the retirement account which shall contain all the assets of the retirement system
. Individual account funds under the defined contribution plan shall be controlled and managed by the member owner as provided in article 8 of chapter 3 of this title
.

9
‑
3
‑
409.

Retirement board; rules and regulations; powers and privileges required to perform functions; requiring employers to furnish information and keep records.

(a)

The retirement board shall adopt rules and regulations for the administration of the retirement system and the control and disbursement of its assets,
including

the
defined contribution plan
,

the administration of the Wyoming deferred compensation program established under W.S. 9
‑
3
‑
501 through 9
‑
3
‑
508 and shall have the powers and privileges required in the performance of its functions under this article and W.S. 9
‑
3
‑
501 through 9
‑
3
‑
508.

9
‑
3
‑
415.

When retirement permitted; service credit.

(e)

Any person who is participating in a lawfully established retirement plan of any Wyoming community college or the University of Wyoming as authorized by W.S. 21
‑
19
‑
102 and elects coverage under
this article
shall have his Wyoming service under both the community college or University of Wyoming retirement plan and under
this article

c
ounted to meet the eligibility requirements for retirement as specified in this section.

Such participants who elect coverage under the
defined contribution plan
shall have their Wyoming service under both the community college or University of Wyoming retirement plan counted to meet the requirements entitling the participant to employer contributions under the
defined contribution plan
as provided in W.S. 9
‑
3
‑
80
8
(a)
.

(g)

Subject to subsection (h) of this section and in accordance with rule and regulation of the board protecting the actuarial integrity of the system and its status as a federally qualified plan, any retired member rehired after a break in service of not less than thirty (30) days by a participating employer to fill a vacant full-time position of a regular contributing employee in any capacity including, but not limited to, as a contract employee or as an employee of a third party contractor under an agreement
with a participating employer, shall notify the board in writing of his election to:

(i)

Discontinue retirement benefits and be reinstated as a contributing
defined benefit plan

member
or a
defined contribution plan
member
. The member shall only be permitted to be reinstated as a defined benefit
plan
member if he retired as a defined benefit
plan
member
; or

(h)

If a retired member is rehired by a participating employer to fill a vacant full-time position of a regular contributing employee in any capacity including, but not limited to, as a contract employee or as an employee of a third party contractor under an agreement with a participating employer, and the retiree is rehired following a break in service of not less than thirty (30) days, the employer shall pay into the account an amount equal to both the members' and employer's contributions required by law under the Wyoming retirement system based upon the retiree's salary. Service by the retiree under this subsection shall not increase retirement benefits under the Wyoming retirement system.
A rehired member subject to this subsection may not elect to be a
defined contribution plan
member.

(j)

If any retired member or employer violates subsection (h) of this section, the board shall immediately cancel the retiree's retirement benefit and shall reinstate that member as a contributing
defined benefit plan

member.

9
‑
3
‑
417.

Determination of eligibility for retirement; board to determine equivalent of years of service; credit for military service.

(a)

The board shall determine the total years of service creditable to each member for the purpose of determining eligibility for retirement under
this article

and for vesting purposes under the
defined contribution plan
,

including law enforcement officers for retirement under W.S. 9
‑
3
‑
432. It may require members to file detailed statements of all service as a covered member and to give other necessary information as a condition to the receipt of benefits under this article.

9
‑
3
‑
421.

Death benefits; monthly benefit option; refund of excess employee contributions plus interest; medical insurance premiums.

(a)

If a member dies before retirement under the
system
, excluding the
defined
contribution
plan
, the member's account plus an additional amount equal to the member's account shall be paid to the member's designated beneficiaries, or in the absence of designated beneficiaries to his estate. If the member is vested, instead of a lump sum payment, a beneficiary may elect to receive the actuarial equivalent of the lump sum of any benefit for life which is available to a retired member as provided in this article. A beneficiary, who is the surviving spouse of the deceased member and who elects to receive the actuarial equivalent of the lump sum, as a life benefit may, within eighteen (18) months of the death of the member, elect to receive the lump sum death benefit otherwise provided in this subsection plus interest accumulated on that amount less any payments received by the surviving spouse.

9
‑
3
‑
426.

Benefits, allowances and contents of account exempt from taxation and not subject to execution or attachment; assignment limited; qualified domestic relations order; system assets.

(a)

The benefits and allowances and the cash and securities in the account created by this article
including the
defined contribution plan
created by article 8 of chapter 3 of this title
:

21
‑
19
‑
102.

Authorization of supplemental retirement plan; conditions for participation.

(a)

Except as provided in subsections (b), (c)
,

and

(d)

and (e)
of this section, the governing body of any lawfully established community college or of the University of Wyoming may establish and administer a retirement plan for the benefit of certain employees of its institution by the use of a portion of the employer and employee contributions required under the provisions of the Wyoming Retirement Act.

(e)

Any employee of an institution initially employed
by an institution
after
August
3
1
, 2013
shall
elect to participate in either the retirement plan offered by the employing institution or the Wyoming retirement system

defined contribution plan
under the provisions of
article 8 of chapter 3 of this title
.
Employees initially employed by an institution after
August 31
, 2013 who are members of the
retirement system
defined benefit plan
may elect to continue as
defined benefit plan
members or may elect to become members of the
defined contribution plan
as provided
by W.S. 9
‑
3
‑
804
.

21
‑
19
‑
103.

Contributions generally.

(a)

Except as provided under W.S. 21
‑
19
‑
102(d), the terms and conditions of the
provisions of
the
defined benefit plan
or
defined contribution plan
of
the

Wyoming Retirement Act
as applicable

shall remain effective as to all employees of the institution

except that any required employer and employee contributions thereunder which are based upon an employee's annual salary rate in excess of six thousand six hundred dollars ($6,600.00) may be paid for the benefit of the employee in accordance with the institution's retirement plan. The payments of employer and employee contributions shall be in lieu of a portion of payments to the Wyoming retirement account, and the full amount of payments is subject to management and disposition in accordance with contractual rights and obligations of the institution's retirement plan. Any retirement plan shall provide that:

Section 3.

There is appropriated from the general fund to the administrative account established by W.S. 9
‑
3
‑
807 five hundred thousand dollars ($500,000.00). This appropriation shall be repaid without interest, to the general fund in ten (10) equal payments made on June 30 of each year, commencing on June 30, 2015 from fees deposited to the administrative account. The board shall consider this repayment obligation in establishing fees under the defined contribution plan established by this act.

Section 4.

(a)

The retirement system shall undertake a comprehensive review to fully evaluate the funding, administrative impact and other financial implications of this act. The review shall include a comprehensive actuarial study of the expected required contributions to maintain the current defined benefit plan as amended by this act including an analysis of expected replacement ratios and conversion issues. The retirement system shall provide its estimate of administrative costs for investment and risk-sharing education, as well as other administrative costs of operating the defined benefit and defined contribution systems. The estimate shall consider and
project anticipated fees to be assessed as authorized under this act to offset those costs. The retirement system shall report to the joint appropriations
interim
committee the results of the review by October 1, 2012. The report shall include recommended legislation to facilitate implementation of the defined contribution plan established in this act, but shall not recommend legislation to eliminate a defined contribution plan or to restrict defined benefit plan members from participating in the defined contribution plan.

(
b
)

There is appropriated one hundred thousand dollars ($100,000.00) from the general fund to the retirement system for purposes of this section. This appropriation shall be for the period beginning with the effective date of this
section
and ending June 30, 2013.

Notwithstanding any other provision of law, this appropriation shall not be transferred or expended for any other purpose and any unexpended, unobligated funds remaining from this appropriation shall revert as provided by law on June 30, 2013. This appropriation shall not be included in the retirement system's 2013-2014 standard biennial budget request.

Section
5
.

(a)

Section
s 3 and
4 of this act
are
effective
immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.
The funds to be deposited to the administrative account pursuant to section 3 may be expended by the retirement system as necessary to implement the provisions of this act which are to be effective September 1, 2013.

(b)

Except as provided in subsection (a) of this section t
his act is effective
September
1, 201
3
.

(END)

1
HB0091