Non-recurring retiree inflation adjustments.

20LSO-0462
2020
STATE OF WYOMING
20LSO-0462
Numbered
2.0

HOUSE BILL NO. HB0110

Non-recurring retiree inflation adjustments.

Sponsored by: Representative(s) Harshman, Brown, Henderson, Kirkbride, Olsen, Schwartz, Sweeney and Zwonitzer and Senator(s) Pappas

A BILL

for

AN ACT relating to retirement benefits administered by the Wyoming retirement system; providing for additional noncumulative benefit payments under the Wyoming Retirement Act, the Wyoming State Highway Patrol, Game and Fish Warden and Criminal Investigator Retirement Act, the Wyoming Judicial Retirement Act, the Firemen's Pension Account Reform Act of 1981 and the volunteer firefighter, EMT and search and rescue pension account; conforming provisions; providing an appropriation; and providing for an effective date.

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

Section 1.

W.S. 9
‑
3
‑
453(a)(i) and (xiv) is amended to read:

9
‑
3
‑
453.

Public employee retirement plans; funding; legislative findings; required determinations for benefit increases.

(a)

The legislature finds:

(i)

Wyoming public employee retirement plans' actuarial funding levels are higher than many public employee retirement plans in other states, but as constructed by statute, the Wyoming plans were not intended to and cannot support
ongoing or cumulative
cost of living or other
ongoing or cumulative
benefit increases. Numerous indicators support this conclusion;

(xiv)

It is the intent of the legislature that
ongoing or cumulative
cost
‑
of
‑
living increases and changes to multipliers be allowed only in the event that the actuarial funded level for the affected plan remains above one hundred percent (100%), plus the additional percentage
the retirement board determines is reasonably necessary to withstand market fluctuations. This determination is to be made for the entire amortization period affected by the change using then current actuarial assumptions.

Section 2.

Two (2) additional payments shall be made, one (1) on or before July 1, 2020 and one (1) on or before July 1, 2021, to each eligible individual receiving a service pension, survivor's pension, retirement benefit, survivor benefit, death benefit or disability pension or benefit under
the Wyoming Retirement Act, the Wyoming State Highway Patrol, Game and Fish Warden and Criminal Investigator Retirement Act, the Wyoming Judicial Retirement Act, the Firemen's Pension Account Reform Act of 1981
or the volunteer firefighter, EMT and search and rescue pension account as provided in this section. The additional payments shall be limited to individuals who first began receiving the applicable benefit prior to July 1, 2019, either alone or in combination with a member or retired or disabled employee if the individual is a survivor. If the individual is a survivor, the payment applicable benefit date shall be based on the initial
retirement or disability benefit of the pertinent member. Each additional payment to an eligible individual shall be calculated by multiplying the eligible individual's existing annual benefit by one
‑
tenth of one percent (0.1%) for each year the individual's retirement or disability benefit was effective prior to July 1, 2019, or if the individual is a survivor for each year the pertinent member's or employee's benefit was effective prior to July 1, 2019, up to a maximum amount of three percent (3%) of the existing annual benefit. The additional payments under this section shall not be ongoing or cumulative.

Section 3.

(a)

Not later than sixty (60) days after making the additional payments required under this act on or before July 1, 2020, the retirement board of the Wyoming retirement system shall certify to the state treasurer the total amount of funds paid from retirement accounts or funds administered by the Wyoming retirement system for those additional payments. The certification shall not
include amounts that will be paid on or before July 1, 2021.

(b)

There is appropriated to the state treasurer's office an amount of general funds equal to the amount certified under subsection (a) of this section. The state treasurer shall transfer this appropriation to the retirement board of the Wyoming retirement system not later than ninety (90) days after the receipt of certification under subsection (a) of this section for credit to the retirement accounts or funds from which the additional payments were made. This appropriation shall not be transferred or expended for any other purpose.

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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HB0110