SF0124 - Wyoming deferred compensation program.
|
2001 |
State of Wyoming |
01LSO-0349.E1 ENGROSSED |
SENATE FILE NO. SF0124
Wyoming deferred compensation program.
Sponsored by: Management Audit Committee
A BILL
for
1 AN ACT relating to the
Wyoming deferred compensation
2
program; transferring program administration from the state
3
treasurer to the Wyoming retirement board; eliminating the
4
Wyoming deferred compensation board; continuing the
5
deferred compensation board in an advisory capacity for a
6
limited time; modifying retirement board membership and
7
specifying implementation of modified board; modifying
8
deferred compensation program participation as specified;
9
providing an appropriation; providing for a study;
10 providing an appropriation for the
study; transferring
11 program accounts; grandfathering
existing contracts and
12 other arrangements as specified; and
providing for
13 effective dates.
14
15 Be It Enacted by the Legislature of the State of Wyoming:
16
Page 1
1 Section
1. W.S.
9-3-404(a)(iii), 9-3-405(a) by
2
creating a new paragraph (vi), 9-3-406(a), 9-3-409(a),
3
9-3-501(a)(ii) and (iii), 9-3-502(a), 9-3-503 and 9-3-505
4
through 9-3-507 are amended to read:
5
6 9-3-404. Wyoming retirement board;
responsibility for
7 administration
of system; composition; appointment; term;
8
vacancies; meetings; election of
chairman.
9
10 (a) The
responsibility for the administration and
11 operation of the retirement system
is vested solely and
12 exclusively in the Wyoming
retirement board. The board
13 shall be composed of eleven (11)
members, not more than six
14 (6) of whom shall be from the same
political party. The
15 members shall be:
16
17 (iii) Two (2) members,
exclusive of the public
18 school system, the community
colleges and the University of
19 Wyoming,
one (1) of which is a participant in the Wyoming
20 deferred compensation program established under W.S.
21 9-3-501 through 9-3-507;
22
23 9-3-405. Retirement board duties and powers.
24
Page 2
1 (a) In addition
to any other duties prescribed by
2
law, the board shall:
3
4 (vi) Through the
director employed under W.S.
5 9-3-406(a), administer the Wyoming
deferred compensation
6 program established under W.S. 9-3-501
through 9-3-507.
7
8 9-3-406. Retirement board; employment
and
9 compensation
of director, consulting actuary and
10 assistants; director designated secretary; compensation of
11 members; quorum; seal.
12
13 (a) The board
shall employ a director and a
14 consulting actuary and other
professional and clerical
15 assistants necessary for the
administration of the
16 retirement system and the Wyoming deferred compensation
17 program established under W.S. 9-3-501 through 9-3-507.
The
18 compensation of employees shall be
fixed by the board,
19 subject to confirmation and approval
by the personnel
20 division and together with all other
necessary expenses of
21 the board shall be paid by vouchers
drawn on the state
22 treasurer of Wyoming. The director
shall also serve,
23 without additional compensation, as
secretary of the board.
24
Page 3
1 9-3-409. Retirement board; rules and
regulations;
2 powers
and privileges required to perform functions;
3
requiring employers to furnish
information and keep
4
records.
5
6 (a) The
retirement board shall adopt rules and
7
regulations for the administration of the retirement system
8
and the control and disbursement of its assets, the
9 administration of the Wyoming deferred
compensation program
10 established under W.S. 9-3-501 through 9-3-507 and
shall
11 have the powers and privileges
required in the performance
12 of its functions under this article and W.S. 9-3-501
13 through 9-3-507.
14
15 9-3-501. Definitions.
16
17 (a) As used in this article:
18
19 (ii) "Board"
means the Wyoming deferred 20
compensation retirement
board established under this 21
article W.S. 9-3-404(a);
22
23 (iii) "Employee"
means any person including any
24 elected official employed by and
receiving compensation
Page 4
1 from
the state of Wyoming, or a county, city, town or other
2
political subdivision, or any employee of
the program 3
coordinator but does not
include any at-will contract
4
employee under W.S. 9-2-1022(a)(xi)(F);
5
6 9-3-502. Establishment of program by
state;
7 administration
by Wyoming retirement board; establishment
8
of separate deferred compensation
by political
9
subdivisions; investment
permitted; limitation on amount
10 deferred; taxability.
11
12 (a) As directed by The board, the administrator shall
13 establish and administer the program
for employees in
14 addition to any retirement, pension,
benefit or other
15 deferred compensation programs
established by the
16 governmental entity. Subject to
requirements of this
17 article, any county, city, town or
other political
18 subdivision may establish and
administer a deferred
19 compensation program separate from
the program established
20 under this article. A county, city,
town or other political
21 subdivision which wishes to enter
into the state program
22 established under this article shall
adopt the plan,
23 provide the program to employees in
accordance with this
Page 5
1 article
and be subject to program administration by the
2
administrator, under the direction of the board.
3
4 9-3-503. Investment of deferred
compensation;
5 limitation
on approved investment plans; enrolling and
6
servicing fees; holding of funds;
limited liability of
7
state and political subdivision.
8
9 (a) The administrator with the approval of the board,
10 may approve investment of deferred
compensation in
11 insurance and annuity contracts or
other investment plans
12 upon competitive bidding. No
investment plan shall be
13 approved unless the plan is offered
by a provider and is
14 subject to rules and regulations of
applicable federal and
15 state regulatory agencies. The administrator, with the 16
approval of the board,
may establish an account for the
17 purpose of conducting the daily
financial operations of the
18 program and to avoid having to
liquidate investments prior
19 to maturity. The funds in this
account shall be invested
20 in, and be subject to the same terms
and conditions as, the
21 pool for investments established
under W.S. 9-1-416, known
22 commonly as "Wyo-Star".
23
Page 6
1 (b) The administrator with the approval of the board
2
may establish by contract the fees for enrolling program
3
participants and servicing participant accounts with
4
providers. Fees shall be established at amounts necessary
5
to maintain the account balance in accordance with W.S.
6
9-3-507.
7
8 (c) All
compensation deferred pursuant to this
9
article and all earnings thereon shall be held in trust or
10 pursuant to custodial accounts or
contracts meeting the
11 requirements of 26 USC 457(g) and
for the exclusive benefit
12 of program participants and their
beneficiaries. An account
13 is established within the trust and
agency fund to be used
14 by the administrator
board for depositing deferred
15 compensation and earnings on
deferred compensation as
16 necessary to fulfill the
requirements of this article.
17 Funds in the account shall be held
separately from all
18 other funds and monies held by the
state and shall be
19 expended only as provided by this
article and pursuant to
20 written agreements entered into
under this article.
21 Notwithstanding the provisions of
this subsection, the
22 financial liability of the state,
county, city, town or
23 other political subdivision is
limited to the value of the
24 investment plan purchased.
Page 7
1
2 9-3-505. Duties of Wyoming retirement board.
3
4 (a) The board
shall: direct
the administrator on 5
program administration, including
the:
6
7 (i) Investment of Invest
compensation deferred
8
pursuant to this article;
9
10 (ii) Selection of Select providers
and the 11 review and
evaluation of evaluate
provider contracts and
12 provider investment plans;
13
14 (iii) Selection of Select the
program
15 coordinator and the review and evaluation
of evaluate his
16 performance; and
17
18 (iv) Establishment of Establish policy
governing
19 overall operation of the program.
20
21 9-3-506. Program coordinator;
selection by contract
22 upon competitive bid; duties.
23
Page 8
1 (a) The administrator with the approval of the board
2
shall may
contract with an individual, firm or corporation
3
to serve as program coordinator upon competitive bidding.
4
Selection shall be based upon costs, background and
5
relevant experience, expected performance and other
6
criteria imposed by the board.
7
8 (b) The program
coordinator shall enroll program
9
participants, service accounts established under the plan
10 for program participants and report
to the administrator 11
and the board.
12
13 9-3-507. Special account for administrative
expenses;
14 deposits and expenditures; account balance
specified; audit
15 required.
16
17 (a) The administrator board
shall deposit all fees
18 paid by providers under the program
for enrollment and
19 servicing of accounts of program
participants and all
20 amounts deducted from compensation
deferred by program
21 participants for administrative and
accounting purposes,
22 into an account with a financial
institution selected by
23 the administrator
with the approval of the board. The
Page 9
1 administrator board
shall account for all deposits into and
2
all authorized payments from the account.
3
4 (b) Expenditures
from the account established under
5
subsection (a) of this section shall be by
the 6
administrator subject to the approval
of the board, for the
7
following administrative expenses:
8
9 (i) Enrollment of program participants;
10
11 (ii) Servicing
of accounts established for
12 program participants;
13
14 (iii) Necessary
accounting, and
legal and other
15 professional services;
16
17 (iv) Per diem
and travel expense reimbursement
18 to members and employees of the board for time actually
19 devoted to the administration of and responsibilities
20 imposed under this article; and
21
22 (v) Other
necessary administrative costs
23 incurred by
the administrator in administering the program.
24
Page 10
1 (c) The account
balance shall not exceed the amount 2
necessary be an amount sufficient to meet the annual
3
administrative expenses of the program. With
the approval 4
of The board, the
administrator may shall
conduct contract
5
negotiations with providers to establish enrolling and
6
servicing fees imposed upon the program at an amount
7
necessary to pay administrative expenses from the account
8
while providing the maximum investment earnings and
9
benefits to program participants.
10
11 (d) The board
shall provide for an independent audit
12 of the account on an annual
basis. A summary of the audit
13 and its findings shall be included
as part of the annual
14 report by the state treasurer to the governor board as
15 required by law.
16
17 Section 2. W.S.
9-3-501(a)(i) and 9-3-504 are
18 repealed.
19
21
22 (a) Up to fifty
thousand dollars ($50,000.00) is
23 appropriated from the special
account for administrative
24 expenses established under W.S. 9-3-507(a)
to the director
Page 11
1 of
the Wyoming retirement system, on behalf of the Wyoming
2
retirement board. The amount appropriated under this
3
section shall be used to employ necessary personnel and to
4
arrange for necessary office space for purposes of
5
implementing this act.
6
7 (b) Twenty-five
thousand dollars ($25,000.00) is
8
appropriated from the Wyoming retirement account
9
established under W.S. 9-3-407(a) and twenty-five thousand
10 dollars ($25,000.00) is appropriated
from the special
11 account for administrative expenses
established under W.S.
12 9-3-507(a) in the deferred
compensation program to the
13 director of the Wyoming retirement
system to contract for a
14 study of the Wyoming retirement
system benefits.
15
16 Section 4.
17
18 (a) Notwithstanding
section 2 of this act, the
19 Wyoming deferred compensation board
existing as of June 30,
20 2001, shall serve as the Wyoming
deferred compensation
21 advisory board to the Wyoming
retirement board. The
22 Wyoming deferred compensation
advisory board shall assist
23 the Wyoming retirement board in
carrying out its
24 responsibilities assigned under this
act.
Page 12
1
2 (b) The members
of the Wyoming deferred compensation
3
board existing on June 30, 2001, shall serve as members of
4
the Wyoming deferred compensation advisory board for a term
5
commencing July 1, 2001, and ending December 31, 2001.
6
7 (c) For the
period beginning July 1, 2001, and ending
8
December 31, 2001, members of the Wyoming deferred
9
compensation advisory board shall serve without
10 compensation but shall for the
actual time devoted to
11 advisory board duties imposed under
this section, receive
12 per diem and mileage in the same
manner and amount as
13 provided by law for state employees.
14
15 Section 5. The
implementation of W.S.
16 9-3-404(a)(iii), as amended by
section 1 of this act, shall
17 allow all members appointed to the
Wyoming retirement board
18 under W.S. 9-3-404(a)(iii) prior to
the effective date of
19 this act to serve their full term. The implementation of
20 W.S. 9-3-404(a)(iii), as amended by
section 1 of this act,
21 shall be such that the change in the
Wyoming retirement
22 board member requirements shall be
implemented as soon as
23 practicable, upon expiration of the
appropriate term or
Page 13
1 upon any vacancy in the
appropriate membership, whichever
2
first occurs.
3
4 Section 6. The
management and control of all accounts
5
comprising and otherwise pertaining to the Wyoming deferred
6
compensation program pursuant to W.S. 9-3-501 through
7
9-3-507, including all monies contained within these
8
accounts and an accounting of such monies, shall be
9
transferred to the Wyoming retirement board.
10
11 Section 7. All rules,
regulations, contracts,
12 agreements or other obligations
adopted, executed and
13 otherwise established by the Wyoming
deferred compensation
14 board, the state treasurer and any
consultant acting on
15 behalf of and authorized by the
Wyoming deferred
16 compensation board or the state
treasurer, are not affected
17 by this act and shall continue to be
in effect until such
18 time as the Wyoming retirement board
determines otherwise.
19
20 Section 8.
21
22 (a) Except as
provided by subsection (b) of this
23 section, this act is effective July
1, 2001.
24
Page 14
1 (b) Notwithstanding subsection
(a) of this section,
2
section 3 of this act is effective immediately upon
3
completion of all acts necessary for a bill to become law
4
as provided by Article 4, Section 8 of the Wyoming
5
Constitution.
6
7 (END)
Page 15