Firemen's pension plan benefits.

WORKING DRAFT
2014
STATE OF
WYOMING
14LSO-0071.E1

HOUSE BILL
NO.
HB0051

Firemen's pension plan benefits.

Sponsored by:
Joint Appropriations Interim Committee

A BILL

for

AN ACT relating to a firemen's pension p
lan
;
modifying
provision for increases in benefits after retirement; specifying application; requiring payment from employers with employees
or
retirees in the plan; providing for withholding of severance tax distributions to employers failing to make required payments; requiring reports; providing
an
appropriation;
specifying use of appropriated funds;
and providing for effective dates.

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

Section 1.
W.S. 15
‑
5
‑
203 by creating a new subsection (h), 15
‑
5
‑
204(g) and 39
‑
14
‑
801
(e)(intro) and
by creating a new subsection (f) are amended to read:

15
‑
5
‑
203.

Firemen and employer contributions; imposition at discretion of board; amounts; how and when collected, suspended and reinstated.

(h)

In addition to any other contribution provided by this section,
commencing with the 2015 fiscal year
the
board shall assess emplo
yers for
contributions in an annual amount necessary to achieve a projected one hundred percent (100%) actuarial funding level
for the account
by the end of fiscal year 202
9
. The
total
assessment shall be
paid proportionately by employers with payment
s
allocated to each employer by the board. The amount allocated shall
be
determined by multiplying the total amount
necessary
for each fiscal year by a fraction, the numerator of which is the amount
projected to be
paid in the
upcoming
fiscal year to all benefit units attributable to the employer and the denominator of which is the total amount
projected to be
paid in the
upcoming
fiscal year to all benefit units under this article. The board shall provide to each employer by August 1 of the fiscal year in which payment is due an assessment of the amount due. The employer shall pay the contributions
in quarterly payments
not later than September 1
, December 1, March 1 and June
1
of the same
fiscal
year. All contributions imposed under this
subsection shall be credited to the account. If a
contribution
is not paid to the
board when due the board shall report the delinquency to the state treasurer and the treasurer shall make the delinquent contribution as provided in W.S. 39
‑
14
‑
801(f). Any delinquency not satisfied by that withholding may be
recovered in the manner provided in subsection (
d
) of this section, together with interest as provided therein.
The board shall review the assessments annually and adjust the assessment as necessary to achieve a projected one hundred percent (100%) funding level using the board's prevailing assumptions and actuarial methods. The board is authorized to discontinue assessments and to reinstate assessments at the commencement of any fiscal year, and to continue assessments beyond fiscal year 202
9
, as necessary to maintain a funding level of one hundred percent (100
%). No employer shall be entitled to a return of any assessment under this subsection should the funding level exceed one hundred percent (100%).
The board shall report the assessments, assumptions, methods and projected funding levels by November 1 of each year to the joint appropriations
interim
committee.

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 be increased each year by
at least

three percent (3%)
.
In the event the most current actuarial valuation indicates the market value of assets is greater than one hundred fifteen percent (115%) 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.

Any

two and one-tenth percent (2.1%).
An

increase under this subsection shall be added to the pension benefit, survivor benefit or disability benefit
and
but shall not be
c
ompounded for purposes of determining the total benefit amount in subsequent years.

39
‑
14
‑
801.

Severance tax distributions; distribution account created; formula.

(e)

Deposits into the account created by subsection (a) of this section shall be distributed as follows, subject to subsections (b) through (d)
and (f)

of this section:

(f)

The state treasurer shall withhold from any payment due to a city or county under this section an amount equal to any delinquent payment owed by a city or county under W.S. 15
‑
5
‑
203(h). The withheld amount shall be deposited to the firemen's pension account created by W.S. 15
‑
5
‑
202 and credited against the delinquent entity's assessment.

Section
2
.
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 3.

T
here is appropriated from the general fund to the
firemen's pension account created by W.S. 15
‑
5
‑
202
thirty-
one

million
four
hundred thousand
dollars
($
3
1
,
4
00,000.00)
.
Of this appropriation
fifteen
million
seven
hundred thousand dollars ($1
5,7
00,000.00) shall be deposited in the account on July 1, 2014 and
fifteen
million seven hundred
thousand dollars ($1
5
,
7
00,000.00) shall be deposited
on
July 1, 2015.

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)

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HB0051