Wyoming retirement plans-contributions.

2018
STATE OF WYOMING
18LSO-0276
Numbered
1.2

HOUSE BILL

NO.
HB0102

Wyoming retirement plans-contributions.

Sponsored by:
Representative(s) Jennings, Clem, Edwards, Halverson, Lone, Miller and Stith and Senator(s) Hicks

A BILL

for

AN ACT relating to public employees; authorizing additional employee contributions in certain plans under the Wyoming Retirement Act, the Wyoming State Highway Patrol, Game and Fish Warden and Criminal Investigator Retirement Act, the Wyoming Judicial Retirement Act and the Firemen's Pension Account Reform Act of 1981 as specified; requiring additional employee contributions to be paid through a reduction in cash salary of the employee; repealing archaic provisions; and providing for an effective date.

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

Section 1
.

W.S. 9
‑
3
‑
412(a)
,
(c)
(ii
) through
(iv) and by creating new paragraph
s
(v)
and (vi)
,
9
‑
3
‑
413,
9
‑
3
‑
432
(a) and
(b)
,

9
‑
3
‑
604(a) and
(c)
(ii)
, 9
‑
3
‑
605,
9
‑
3
‑
704(a)
and (c)
and 15
‑
5
‑
420(a)
and (c)(ii)
are amended to read:

9
‑
3
‑
412
.

Members' contributions; payroll deductions; employer authorized to pay employee's share.

(a)

Except as otherwise provided in this section and W.S. 9
‑
3
‑
431 and 9
‑
3
‑
432, every member covered under this article, shall pay into the account
seven and one
‑
half percent (7.5%) of his salary for the period from September 1, 2013 through June 30, 2014, and thereafter
eight and one
‑
quarter percent (8.25%)

of his salary.

Every firefighter member covered under this article shall pay into the account seven percent (7%)

of his salary.

The contributions under this subsection shall be subject to the following:

(i)

Upon a deter
mination by the board that the current f
unded ratio of the applicable retirement plan

is
below one hundred percent (100%)
, as
annually
calcul
ated by the system's actuaries,
every member covered by the applicable retirement plan shall pay into the account an additional one percent (1%) of his salary as the board
determines

necessary for the applicable retirement plan to meet a current funded ratio of on
e hundred percent (100%)
.

The
contribution

imposed
under this paragraph shall not exceed one percent (1%)
of the
member's salary
;

(ii)

Payments shall be deducted each pay period from each member's salary by the chief fiscal officer of each participating employer. Employee contributions shall be transferred to the account in accordance with subsection (c) of this section.

(c)

The contributions under subsection (b) of this section shall be paid from the source of funds which is used in paying salary to the member. The employer may pay these contributions by a reduction in cash salary of the member or by an offset against a future salary increase, or by a combination of a reduction in salary and an offset against a future salary increase, provided:

(ii)

Except as provided in paragraphs (iii)
and (iv)
through (v)

of this subsection, any employer may pay any amount of a member's share of retirement contributions without a salary reduction, offset or combination thereof;

(iii)

For state employee members five and fifty
‑
seven hundredths percent (5.57%)
, except that for the period from September 1, 2013 through June 30, 2014 five and eighty
‑
two hundredths percent (5.82%), for the period from July 1, 2014 through June 30, 2016 six and one hundred ninety
‑
five thousandths percent (6.195%), and for the period from July 1, 2016 through June 30, 2017 five and nine hundred forty
‑
five thousandths percent (5.945%),
of the member's salary shall be paid by the employer without any salary reduction or offset. The remaining portion of the state employee's contribution shall be paid through a reduction in cash salary of the state employee unless specified otherwise by legislative act;
and

(iv)

For full
‑
time brand inspection contract employees authorized to participate in the state retirement system under W.S. 9
‑
2
‑
1022(a)(xi)(F)(IV)
, not more than
five and fifty
‑
seven hundredths percent (5.57%)
, except that for the period from September 1, 2013 through June 30, 2014 five and eighty
‑
two hundredths percent (5.82%), for the period from July 1, 2014 through June 30, 2016 six and one hundred ninety
‑
five thousandths percent (6.195%), and
for the period from July 1, 2016 throu
gh June 30, 2017 five and nine hundred forty
‑
five thousandths percent (5.945%),

of the contract employee's salary shall be paid by the livestock board unless specified otherwise by legislative act
;
.

(v
)

For
employers specified in W.S. 9
‑
3
‑
402(a)(vi)(B), (C), (D), (S), (U) and (W)
, the additional one percent (1%) contribution
imposed pursuant to paragraph
(a)
(i)
of this section shall be paid through a reduction in cash salary of the
member
unless specified otherwise by legislative act
.

9
‑
3
‑
413
.

Employer's contributions; payable monthly; transfer to account; interest imposed upon delinquent contributions; recovery.

Except as provided by W.S. 9
‑
2
‑
1022(a)(xi)(F)(III) or (IV), 9
‑
3
‑
431 and 9
‑
3
‑
432, each employer
including
excluding
employers of firefighter members, shall on a monthly basis, pay into the account a contribution equal to
seven and twelve hundredths percent (7.12%) until June 30, 2014, of the salary paid to each of its members covered under this
article. For the period from July 1, 2014 through June 30, 2015, each employer, excluding employers of firefighter members, shall on a monthly basis, pay into the account a contribution equal to seven and sixty
‑
two hundredths percent (7.62%) of the salary paid and thereafter
eight and thirty
‑
seven hundredths percent (8.37%) of the salary paid.
After June 30, 2014
E
mployers of firefighter members shall pay into the account a contribution equal to seven and twelve hundredths percent (7.12%) of the salary paid. 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 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 assumed rate of return as determined by the board, compounded annually. 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.

9
‑
3
‑
432
.

Law enforcement officers; contributions; benefit eligibility; service and disability benefits; death benefits; benefit options.

(a)

Each law enforcement officer shall pay into the account eight and six
‑
tenths percent (8.6%) of his salary to fund benefits provided to law enforcement officers. Any contribution required under this subsection or subsection (b) of this section shall be paid by the employer from the source of funds used to pay officer salaries in order to be treated as employer contributions for the sole purpose of determining tax treatment under the United States Internal Revenue Code, § 414(h). These payments by the employer are subject to W.S. 9
‑
3
‑
412(c)
.

and the following:

(i)

Upon a determination by the board that the

current funded
ratio of the
plan
covering
law enforcement officers

is
below one hundred percent (100%)
, as
annually
calculated by the system's actuaries,
e
ach law enforcement
officer
shall pay into the account an additiona
l one percent (1%) of his salary as the board
determines

necessary for
the plan
to meet a current funded ratio of
one hundred percent (100%)
. The contribution imposed
u
nder this paragraph shall:

(A)

Not exceed one percent (1%)
of the law enforcement officer's
salary; and

(B)

B
e paid through a reduction in cash salary of the law enforcement officer unless specified otherwise by legislative act.

(b)

Each employer of a law enforcement officer covered under this article shall pay into the account a contribution equal to eight and six
‑
tenths percent (8.6%) of the salary paid to each of its law enforcement officers covered under this article and may pay into the account any amount

of the officer's share of contributions under subsection (a) of this section
, except the contribution imposed pursuant to paragraph (a)(i) of this section
. Payments under this subsection shall be made monthly to the account in accordance with W.S. 9
‑
3
‑
413 and are subject to
the penalties imposed under W.S. 9
‑
3
‑
413 for delinquent contributions. No additional contribution shall be imposed upon the state, any city, town or county for benefits provided law enforcement officers under this article.

9
‑
3
‑
604
.

Employee contributions.

(a)

Except as otherwise provided in this section, every employee covered by this article shall pay into the fund
thirteen and fifty
‑
four hundredths percent (13.54%) of his salary from September 1, 2013 through June 30, 2014, and thereafter
fourteen and fifty
‑
six hundredths percent (14.56%) of his salary
,
.
For the period from September 1, 2013 through June 30, 2014 forty
‑
five hundredths percent (.45%), for the period from July 1, 2014 through June 30, 2016 ninety
‑
six hundredths percent (.96%) and for the period from July 1, 2016 through June 30, 2017, fifty
‑
one hundredths percent (.51%) salary contribution required by this subsection shall be paid by the employer on behalf of the member.

provided:

(i)

U
pon a determination by the board that the
current
funded ratio of the retirement
plan under this
article
is
below one hundred percent (100%),
as
annually
calculated by the Wyoming retirement system's actuaries,
every employee covered by this article shall pay into the account an additional one percent (1%) of his salary as the board determines
necessary for
the retirement
plan to meet a current funded ratio
of
one

hundred percent (100%).
The contribution imposed under this paragraph shall not exceed one percent (1%) of the employee's salary
;

(ii)

To the extent the
remaining amount
employee contribution

is not paid by an employer on behalf of the member,
this
payment
under this section

shall be deducted each pay period from employees' salaries by the respective chief fiscal officers of the employers.

(c)

The contributions under subsection (b) of this section shall be paid from the source of funds which is used in paying salary to the employee. The employer may pay these contributions by a reduction in cash salary of the employee or by an offset against a future salary increase, or by a combination of a reduction in salary and an offset against a future salary increase, provided:

(ii)

Except as otherwise provided in this paragraph, any employer may pay any amount of an employee's share of retirement contributions without a salary reduction or offset, or combination thereof.
For the period from July 1, 2012 through June 30, 2014, at least one and sixty
‑
two hundredths percent (1.62%), for the period from July 1, 2014 through June 30, 2016 at least one and ninety
‑
six hundredths percent (1.96%), for the period from July 1, 2016 through June 30, 2017 at least two and thirty hundredths percent (2.30%) and thereafter
A
t least two and sixty
‑
four hundredths (2.64%)

of the employee's share of retirement contributions
plus
the additional one percent (1%) contributions
imposed pursuant to paragraph
(a)
(i)
of this section

shall be paid through a reduction in cash salary of the employee unless specified otherwise by legislative act.

9
‑
3
‑
605
.

Employer contributions.

Each employer subject to this article shall pay into the fund a contribution equal to
twelve and ninety
‑
six hundredths percent (12.96%) until June 30, 2014, and for the period from July 1, 2014 through June 30, 2015,
thirteen and eighty
‑
six hundredths percent (13.86%) and thereafter
fourteen and eighty
‑
eight hundredths percent (14.88%) of all salaries paid to its employees. These contributions, together with the employees' contributions, shall be transferred and credited to the retirement program in a manner the board directs.

9
‑
3
‑
704
.

Employee contributions.

(a)

Except as otherwise provided in this section, every employee covered by this article shall pay into the account nine and twenty
‑
two one
‑
hundredths percent (9.22%) of his salary
,
.

p
rovided:

(i)

U
pon a determination by the
board

that
the
current
funded ratio of the retirement
plan under this article

is
below one hundred percent (100%),
as
annually
calculated by the Wyoming retirement system's actuaries,
every employee covered by
the plan
shall pay into the account an additional one percent (1%) of his salary as the board determines

necessary for
retirement program
to meet a current funded ratio of one hundred percent (100%)
.
The
contribution imposed under this paragraph shall not exceed one percent (1%) of the employee's salary
;

(ii)

To the extent
this

the employee
contribution
under this subsection

is not paid by the employer as authorized in this section, this payment shall be deducted each pay period from employees' salaries by the respective fiscal officers of the employers.

(c)

The contributions under subsection (b) of this section shall be paid from the source of funds which is used in paying salary to the employee. The employer may pay these contributions without offset of the employee's salary in the same salary percentage as provided by state employers under W.S. 9
‑
3
‑
412(c). The employer shall also reduce the cash salary of the employee by three and sixty
‑
five hundredths percent (3.65%)

plus the

additional one percent (1%)
contribution imposed under paragraph
(a)
(i)
of this section
unless specified otherwise by legislative act
.

15
‑
5
‑
420
.

Member contributions.

(a)

Each employer shall deduct monthly from the compensation of each member participating in the account a sum equal to
eight and seven hundred twenty
‑
five thousandths percent (8.725%) of the member's compensation until June 30, 2014, and thereafter
nine and two hundred forty
‑
five thousandths percent (9.245%) of his compensation, and that amount shall be paid by the employer to the account
,
.

provided:

(i)

Upon a determination by the board that the funded ratio of
the
pension system
is
below one hundred percent (100%),
as
annually
calculated by the Wyoming retirement system's actuaries,

each employer shall deduct monthly from the compensation of each member participating in the account
an additional one percent (1%) of his salary as the board determines
necessary for

the pension
system
to meet a current
funded ratio of one
hundred percent (100%)
. The contribution imposed under this paragraph shall not exceed one percent (1%) of the member's salary.

(c)

The contributions under subsection (b) of this section shall be paid from the source of funds which is used in paying salary to the employee. The employer may pay
these contributions by a reduction in cash salary of the employee or by an offset against a future salary increase, or by a combination of a reduction in salary and an offset against a future salary increase, provided:

(ii)

Any employer may pay any amount

of an employee's share of retirement contributions without a salary reduction or offset, or combination thereof

except the
additional one percent (1%) contribution
imposed pursuant to

paragraph
(a)
(i)
of this section shall be paid through a reduction in cash salary of the employee unless specified otherwise by legislative act
.

Section 2
.

This act is effective July 1, 201
8
.

(END)

1
HB0102