Fireman pension plan A.

WORKING DRAFT
2013
STATE OF
WYOMING
13LSO-0147

HOUSE BILL
NO.

HB0045

Fireman pension plan A.

Sponsored by:
Representative(s) Madden and Senator(s) Meier

A BILL

for

AN ACT relating to a firemen's pension program; modifying increases in benefits after retirement as specified;
making
legislative findings; specifying applicability; and providing for an effective date.

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

Section 1.
W.S. 15
‑
5
‑
204(g) is amended to read:

15
‑
5
‑
204.

Pensions; amounts; qualifications; when paid; disability benefits; disqualifications; examinations; disallowance; actions; adjustment.

(g)

Any pension benefit, survivor benefit or disability benefit received by an eligible individual under this article, and the fireman for whom the benefit is
generated has been retired for a period of not less than one (1) year,
shall

may
be increased each year
by at least three percent (3%)

as provided in this subsection
. In the event the most current actuarial valuation indicates the market value

or actuarial value, whichever is less,
of assets is greater than
one hundred fifteen percent (115%)

one hundred percent (100%)
of the actuarial value of liabilities, the board may increase the benefit by an amount determined affordable by the actuary, but in no case shall the
total
increase be greater than

five percent (5%) of the benefit

the amount which after implementation would reduce the
lesser of
market value
or actuarial value
of assets below one hundred percent
(100%)
of the actuarial value of the liabilities
. Any increase under this subsection shall be added to the pension benefit, survivor benefit or disability benefit and compounded for purposes of determining the total benefit amount in subsequent years.

Section 2.

(a)

The legislature finds:

(
i
)

The firemen's pension
fund
providing benefits under the
plan
amended by this act was initially enacted in 1935, with that legislation specifying that "such fund shall be administered by said State Treasurer without liability on part of the State beyond the amount
of
such fund
.
"
The current statute governing the plan amended by this act likewise provides
as to the account providing benefits under the plan amended by this act: "
The account shall be administered without liability on the part of the state beyond the amount of the funds
";

(ii)

The
l
egislature enacted a "Firemen's Pension
Account
Reform Act of 1981" due to the firemen's pension fund's large unfunded liability;

(iii)

Benefits under the firemen's pension
plan amended by this act have been increased numerous times since its inception;

(iv)

I
f a three percent (3%) increase under W.S. 15
‑
5
‑
204(g) is maintained, as of January 1, 2012 there is an unfunded actuarial accrued liability of over forty-two million dollars ($42,000,000.00) for the plan amended by this
a
ct;

(v)

The modifications made by this act to the firemen's pension plan are intended to maintain the integrity of the plan for current and future retirees covered by the plan.

Section
3
.
Nothing in this act shall reduce past increases implemented pursuant to W.S. 15
‑
5
‑
204(g) prior to
the effective date of this act.

Section 4
.
This act is 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.

(END)

1
HB0045