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HB1016 • 2021

Firemen's pension plan revisions.

AN ACT relating to firemen pensions; removing future increases to the firemen's pension plan pending future legislative action; specifying the investment of firemen's pension funds; and providing for an effective date.

Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor
Representative Nicholas
Last action
2021-11-03
Official status
inactive
Effective date
3/1/2021

Plain English Breakdown

The official source material does not provide specific details on how changes in investment strategies will affect pension benefits over time.

Changes to Firefighters' Pension Plan

This act stops future automatic increases in firefighters' pension benefits and changes how these pensions are invested.

What This Bill Does

  • Removes automatic yearly increases of up to three percent for firefighters' pension benefits starting January 1, 2022.
  • Changes the investment strategy of firefighters' pension funds to match other retirement fund investments managed by the board.

Who It Names or Affects

  • Firefighters who receive pensions and their survivors
  • The Wyoming Retirement System's Fire A retirement program

Terms To Know

Actuarial valuation
A report that estimates the financial health of a pension plan based on future projections.
Prudent investor rule
Guidelines for making investment decisions that are financially sound and responsible.

Limits and Unknowns

  • The bill does not specify what will happen to firefighters' pensions after January 1, 2022 without further legislative action.
  • It is unclear how the changes in investment strategies will affect pension benefits over time.

Bill History

  1. 2021-11-03 House

    H Did Not Consider for Introduction

  2. 2021-10-22 House

    H Received for Introduction

  3. 2021-10-21 LSO

    Bill Number Assigned

Current Bill Text

Read the full stored bill text 
21LSO-1057
2021
STATE OF WYOMING
21LSO-1057
Numbered
2.0

HOUSE BILL NO. HB1016

Firemen's pension plan revisions.

Sponsored by: Representative(s) Nicholas and Senator(s) Gierau

A BILL

for

AN ACT relating to firemen pensions; removing future increases to the firemen's pension plan pending future legislative action; specifying the investment of firemen's pension funds; 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)

Except as otherwise provided in this subsection, a
ny 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 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.
No increase shall be authorized under this subsection on or after January 1, 2022 without further action by the legislature.

Section 2
.

As soon as practicable after the effective date of this act and to the extent consistent with law, the
retirement board of the Wyoming retirement system shall modify the investment of funds related to the Fire A retirement program to a portfolio consistent with other retirement funds managed by the board that are not invested predominantly in a fixed
‑
income investment portfolio, which the legislature finds is consistent with the prudent investor rule.

Section 3.

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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HB1016