SF0038 • 2025

Performance compensation-investment performance amendment.

AN ACT relating to the administration of the government; amending the calculation of investment performance for purposes of performance compensation for investment staff; making conforming amendments; and providing for an effective date.

Budget Labor

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Appropriations
Last action: 2025-03-17
Official status: enrolled
Effective date: 7/1/2025

Plain English Breakdown

The official summary does not provide specific details on how the change improves accuracy or updates other parts of existing laws beyond the calculation method.

Amending Investment Performance Calculation for Compensation

This law changes how investment performance is calculated to determine compensation for staff involved in investments, starting from fiscal year 2026.

What This Bill Does

Changes the way investment performance is measured for calculating compensation for investment staff.
Uses a geometric average instead of an arithmetic average for three most recent years' investment returns beginning with fiscal year 2026.

Who It Names or Affects

Investment staff at the State Treasurer's Office
Employees involved with the Wyoming Retirement System

Terms To Know

Geometric average: A type of mean or average which indicates the central tendency or typical value of a set of numbers by using the product of their values (as opposed to the arithmetic mean, which uses their sum).
Arithmetic average: The sum of a series of numbers divided by the count of that series of numbers.

Limits and Unknowns

Does not specify how compensation will be adjusted for fiscal years before 2026.
Only applies to investment staff and does not affect other types of employees or departments.

Bill History

2025-03-17 LSO
Assigned Chapter Number 148
2025-03-17 Governor
Governor Signed SEA No. 0079
2025-03-04 House
H Speaker Signed SEA No. 0079
2025-03-04 Senate
S President Signed SEA No. 0079
2025-03-04 LSO
Assigned Number SEA No. 0079
2025-03-04 House
H 3rd Reading:Passed 60-0-2-0-0
2025-03-03 House
H 2nd Reading:Passed
2025-02-28 House
H COW:Passed
2025-02-25 House
H Placed on General File
2025-02-25 House
H03 - Revenue:Recommend Do Pass 9-0-0-0-0
2025-02-19 House
H Introduced and Referred to H03 - Revenue
2025-01-22 House
H Received for Introduction
2025-01-22 Senate
S 3rd Reading:Passed 30-0-1-0-0
2025-01-21 Senate
S 2nd Reading:Passed
2025-01-20 Senate
S COW:Passed
2025-01-17 Senate
S Placed on General File
2025-01-17 Senate
S02 - Appropriations:Recommend Do Pass 5-0-0-0-0
2025-01-14 Senate
S Introduced and Referred to S02 - Appropriations
2024-12-19 Senate
S Received for Introduction
2024-12-12 LSO
Bill Number Assigned

Official Summary Text

Bill Summary - 25LSO-0389

Bill No.:

SF0038

Effective:

7/1/2025

LSO No.:

25LSO-0389

Enrolled Act No.:

SEA No. 0079

Chapter No.:

148

Prime Sponsor:

Joint Appropriations Committee

Catch Title:

Performance compensation-investment performance amendment.

Has Report:

No

Subject:

Amending the method for calculating investment performance for performance compensation.

Summary/Major Elements:

Current law authorizes the payment of performance compensation to investment staff of the State Treasurer's Office and the Wyoming Retirement System. To determine the performance compensation amount, the arithmetic average of the annual investment performance for the most three recent years is calculated.

This act provides that, beginning for fiscal year 2026 and instead of using the arithmetic average, the geometric average of the annual investment performance for the most recent three (3) years is to be used to calculate investment performance. A geometric average better accounts for compounding and volatility in investment returns.

The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.

While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

Read the full stored bill text

25LSO-0389

ORIGINAL Senate

File No
.
SF0038

ENROLLED ACT NO. 79,

SENATE

SIXTY-EIGHTH LEGISLATURE OF THE STATE OF WYOMING
2025 General Session

AN ACT relating to the administration of the government; amending the calculation of investment performance for purposes of performance compensation for investment staff; making conforming amendments; and providing for an effective date.

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

Section 1
.

W.S. 9
‑
1
‑
409(e)(vi)(C) and by creating a new subparagraph (D) and 9
‑
3
‑
406(a)(vi)(C) and by creating a new subparagraph (D) are amended to read:

9
‑
1
‑
409.

State treasurer; duties generally; demand accounts; state revenues paid to treasurer.

(e)

The state treasurer may implement and administer a performance compensation plan in accordance with this subsection.

The plan shall:

(vi)

Provide that payments for investment performance for any one (1) investment period shall be as follows:

(C)

For payments earned in fiscal year 2022
and each
through

fiscal year
thereafter
2025

‑
the arithmetic average of the annual investment performance beginning that fiscal year and the two (2) immediately preceding fiscal years
;
.

(D)

For payments earned in fiscal year 2026 and each fiscal year thereafter – the geometric average of the annual investment performance beginning that fiscal year and the two (2) immediately preceding fiscal years.

9
‑
3
‑
406.

Retirement board; employment and compensation of director, consulting actuary and assistants; director designated secretary; compensation of members; quorum; seal.

(a)

The board shall employ a director and a consulting actuary and other professional and clerical assistants necessary for the administration of the retirement system and the Wyoming deferred compensation program established under W.S. 9
‑
3
‑
501 through 9
‑
3
‑
508. The compensation of employees shall be fixed by the board, subject to confirmation and approval by the human resources division and together with all other necessary expenses of the board shall be paid by vouchers drawn on the state treasurer of Wyoming. The director shall also serve, without additional compensation, as secretary of the board.

The board shall have the authority to obtain the financial and criminal background history of an employee or employment applicant of the Wyoming retirement system in accordance with W.S. 7
‑
19
‑
106 and 7
‑
19
‑
201.

In fixing compensation of employees the board may implement and administer a performance compensation plan in accordance with this subsection.

The plan shall:

(vi)

Provide that payments for investment performance for any one (1) investment period shall be as follows:

(C)

For payments earned in fiscal year 2022
and each
through
fiscal year
thereafter
2025

‑
the arithmetic average of the annual investment performance beginning that fiscal year and the two (2) immediately preceding fiscal years
;
.

(D)

For payments earned in fiscal year 2026 and each fiscal year thereafter – the geometric average of the annual investment performance beginning that fiscal year and the two (2) immediately preceding fiscal years.

Section 2
.

This act is effective July 1, 2025
.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the Senate.

Chief Clerk

1