Wyoming private employees' retirement savings plan.

23LSO-0485
2023
STATE OF WYOMING
23LSO-0485
Numbered
2.0

HOUSE BILL NO. HB0129

Wyoming private employees' retirement savings plan.

Sponsored by: Representative(s) Stith, Harshman and Zwonitzer, Dn and Senator(s) Case and Dockstader

A BILL

for

AN ACT relating to labor and employment; establishing the Wyoming private employees' retirement savings task force; requiring the task force to study and make recommendations on the implementation of a Wyoming private employees' retirement savings plan; requiring a report; providing an appropriation; and providing for an effective date.

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

Section 1.

(a)

The Wyoming private employees' retirement savings task force is established. The task force shall consist of seven (7) members as follows:

(i)

The director of the Wyoming retirement system or his designee;

(ii)

The following members appointed by the governor:

(A)

One (1) member representing private employers in Wyoming;

(B)

One (1) member with experience in the field of investments;

(C)

One (1) member who is a member of an association representing private employees;

(D)

One (1) member who is retired from private employment.

(iii)

One (1) member of the senate appointed by the president of the senate to be a nonvoting advisory member of the task force;

(iv)

One (1) member of the house of representatives appointed by the speaker of the house of representatives to be a nonvoting advisory member of the task force.

(b)

The director of the Wyoming retirement system or his designee shall serve as chairperson of the task force.

(c)

Members not otherwise compensated for attending task force meetings shall receive travel expenses and per diem in the same manner and amount as state employees, and any other reasonable reimbursement upon task force approval. The legislative members shall receive salary and per diem for the performance of their duties on the task force, as provided in W.S. 28-5-101.

(d)

The Wyoming retirement system shall provide staff support to the task force.

(e)

The task force shall study and make recommendations including recommended legislation for the development and implementation of a defined contribution retirement plan as provided in subsection (f) of this section for persons employed for compensation in this state who are not public employees.

(f)

The retirement plan studied and recommended by the task force shall:

(i)

Allow private employees who are employed for compensation in this state to contribute to an account established under the plan through payroll deduction;

(ii)

Require each employer to offer its employees the opportunity to contribute to the plan through payroll deductions unless the employer offers a qualified retirement plan as determined by the task force, including but not limited to a plan qualified under section 401(a), section 401(k), section 403(a), section 403(b), section 408(k), section 408(p) or section 457(b) of the Internal Revenue Code;

(iii)

Provide for automatic enrollment of employees and provide a process to allow employees to opt out of the plan;

(iv)

Not require any employer contributions to employee accounts, provided that the plan may allow for voluntary contributions by employers;

(v)

Allow for account owners to maintain an account regardless of the owner's place of employment and to transfer funds into other retirement accounts;

(vi)

Provide for the ability to pool accounts established under the plan for investment purposes;

(vii)

Not impose any duties on employers under the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.);

(viii)

Not guarantee any rate of return or any interest rate on any contribution.

(g)

The study of the task force shall include:

(i)

A market analysis to determine the feasibility of implementing the plan;

(ii)

Legal advice from the attorney general regarding applicability of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1001 et seq.) and the Internal Revenue Code to the plan and consideration of whether the plan would qualify as an employee benefit plan;

(iii)

Recommendations for the creation and administration of the plan including a proposed timeline for implementation of the plan, a structure for oversight and administration of the plan and proposed costs of the plan;

(iv)

An analysis of the potential costs to employers, including administrative costs, associated with offering the plan and providing automatic payroll deductions for participation in the plan, and recommendations on how to eliminate or reduce those costs through incentives, tax credits or other means.

(h)

The recommendations of the task force may include recommendations for:

(i)

A process for enrollment in the plan, including procedures for automatic enrollment of employees and a process for employees to opt out of the plan;

(ii)

Minimum, maximum and default contribution levels in accordance with limits established by the Internal Revenue Code and a process for employees to make default contributions to plan accounts and to adjust their contribution levels;

(iii)

A process for employers to withhold employee contributions to plan accounts from wages and to send the contributions to the plan;

(iv)

A process for employees to make additional contributions to plan accounts including nonpayroll contributions and that would allow for employers to provide voluntary contributions for employees participating in the plan;

(v)

The process for withdrawals from plan accounts;

(vi)

Requirements for an employer to obtain an exemption from offering the plan if the employer offers a qualified retirement plan as determined by the task force;

(vii)

A determination of whether employers that would not be required to offer the plan should be able to make the plan available to their employees;

(viii)

How to allow individuals who are not automatically enrolled in the plan to opt in to the plan and make contributions to an account, either through payroll contributions or through another method of contribution.

(j)

The governor, the president of the senate and the speaker of the house of representatives shall make appointments to the Wyoming private employees' retirement savings task force not later than May 1, 2023.

(k)

The task force shall report to the joint appropriations committee on or before September 15, 2024 on the study and recommendations of the task force under this section.

The report may include proposed legislation for consideration by the committee.

Section 2.

(a)

There is appropriated fifty thousand dollars ($50,000.00) from the general fund to the Wyoming retirement system for the costs of the Wyoming private employees' retirement savings task force to conduct the study and develop recommendations required by this act. This appropriation shall be for the period beginning with the effective date of this act and ending June 30, 2025. This appropriation shall not be transferred or expended for any other purpose and any unexpended, unobligated funds remaining from this appropriation shall revert as provided by law on June 30, 2025.

(b)

There is appropriated twenty thousand dollars ($20,000.00) from the general fund to the legislative service office.

This appropriation shall only be expended for the purpose of funding salary, mileage and per diem of legislative members of the task force.

Notwithstanding any other provision of law, this appropriation shall not be transferred or expended for any other purpose and any unexpended, unobligated funds remaining from this appropriation shall revert as provided by law on June 30, 2025.

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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HB0129