HB0186 - Retirement-law enforcement.
|
2001 |
State of Wyoming |
01LSO-0411 |
HOUSE BILL NO. HB0186
Retirement-law enforcement.
Sponsored by: Representative(s) Parady, Baker, McOmie and
Philp and
Senator(s) Anderson, J. and Harris
A BILL
for
1 AN ACT relating to the
Wyoming retirement system;
2 establishing
additional benefits and contributions for law
3
enforcement officers as specified; expanding scope of
4
covered law enforcement officers; defining and specifying
5
eligibility; clarifying retirement system provisions
6
accordingly; specifying implementation; providing for the
7
transfer of eligible officers as specified; conditioning
8
additional benefit implementation and payment upon timely
9
contribution payments and receipt of necessary funding;
10 providing an appropriation; and providing
for an effective
11 date.
12
13 Be It Enacted by the Legislature of the State of Wyoming:
14
15 Section 1. W.S. 9-3-431 is created to read:
16
Page 1
1 9-3-431. Law enforcement officers;
contributions;
2 benefit eligibility;
service and disability benefits; death
3 benefits; benefit options.
4
5 (a) Each law
enforcement officer shall pay into the
6
account eight and one-half percent (8.5%) of his salary to
7
fund benefits provided to law enforcement officers. Any
8
contribution required under this subsection or subsection
9 (b)
of this section shall be paid by the employer from the
10 source of funds used to pay officer salaries
in order to be
11 treated as employer contributions for the
sole purpose of
12 determining tax treatment under the United
States Internal
13 Revenue Code, § 414(h). These payments by
the employer are
14 subject to W.S. 9-3-412(c).
15
16 (b) Each
employer of a law enforcement officer
17 covered under this article shall pay into
the account a
18 contribution equal to eight and one-half
percent (8.5%) of
19 the salary paid to each of its law
enforcement officers
20 covered under this article and may pay into
the account any
21 amount of the officer's share of
contributions under
22 subsection (a) of this section. Payments
under this
23 subsection shall be made monthly to the
account in
24 accordance with W.S. 9-3-413 and are subject
to the
Page 2
1
penalties imposed under W.S. 9-3-413 for delinquent
2
contributions. No additional contribution shall be imposed
3
upon the state, any city, town or county for benefits
4
provided law enforcement officers under this article.
5
6 (c) Normal
retirement benefits are payable under this
7
section to any law enforcement officer who first becomes
8
covered under this section after June 30, 2001, and who:
9
10 (i) Has at
least four (4) years of service
11 credit as a law enforcement officer and is
at least sixty
12 (60) years of age; or
13
14 (ii) Has at
least twenty (20) years of service
15 credit as a law enforcement officer
regardless of age.
16
17 (d) Early
retirement benefits are payable to any law
18 enforcement officer who first becomes
covered under this
19 section after June 30, 2001, who has at
least four (4)
20 years but less than twenty (20) years of
service credit and
21 is at least fifty (50) years of age.
22
23 (e) The normal
retirement benefit for a law
24 enforcement officer under this section is
equal to two and
Page 3
1
one-half percent (2.5%) of the highest average salary
2
multiplied by the years of the officer's service credit, as
3
determined under W.S. 9-3-417. The benefit under this
4
subsection shall not exceed seventy-five percent (75%) of
5 the
officer's highest average salary. Notwithstanding W.S.
6 9-3-402(a)(xix),
"highest average salary" as used in this
7
section means the average annual salary of a law
8
enforcement officer for the highest paid five (5)
9
continuous years of service.
10
11 (f) The early
retirement benefit payable under
12 subsection (d) of this section is equal to
the normal
13 retirement benefit payable under subsection
(e) of this
14 section reduced to an actuarial equivalent
amount as
15 prescribed by rule and regulation of the
board.
16
17 (g) Notwithstanding
W.S. 9-3-419(b) and on July 1 of
18 each year, benefits provided under this
section shall be
19 increased by two percent (2%) for
individuals who have been
20 receiving benefits under this section for at
least two (2)
21 years, either alone or in combination with
an officer, if
22 the individual is a survivor.
23
Page 4
1 (h) Notwithstanding
W.S. 9-3-422, any law enforcement
2
officer in service for which contributions have been paid
3
because of illness or injury in the scope of employment or
4
because of illness or injury outside of the scope of
5
employment, may retire on account of a total or partial
6 disability
in accordance with rules and regulations adopted
7 by
the board. The board shall determine mental or physical
8
incapacitation for disability retirement under this section
9 in
accordance with W.S. 9-3-422(a) and rules and regulation
10 of the board, and the cost of any required
examination or
11 test shall be paid as provided by W.S. 9-3-422
and rule and
12 regulation of the board. Any law enforcement
officer
13 receiving a disability benefit under this
section is
14 subject to reporting, evaluation and excess
earnings
15 deduction requirements imposed under W.S. 9-3-423
and rule
16 and regulation of the board. Upon retirement
for a
17 disability as determined and for which a
member qualifies
18 under this section, a law enforcement
officer shall for the
19 life of the officer or until the officer is
no longer
20 disabled, receive:
21
22 (i) For a
partial or total disability incurred
23 in the scope of employment, a monthly
retirement benefit
24 for the period of qualified disability equal
to sixty-two
Page 5
1 and
one-half percent (62.5%) of his salary at the time the
2
disability was incurred;
3
4 (ii) For a
partial or total disability incurred
5
outside of the scope of employment, a monthly retirement
6
benefit for the period of qualified disability equal to
7
fifty percent (50%) of his salary at the time the
8
disability was incurred.
9
10 (j) Notwithstanding
W.S. 9-3-421, any surviving
11 spouse of an officer who dies in the scope of
employment
12 shall receive a monthly payment equal to
sixty-two and one-
13 half percent (62.5%) of the officer's salary
at the time of
14 death, plus six percent (6%) of that salary
for each child
15 under age eighteen (18), not to exceed one
hundred percent
16 (100%) of the officer's salary. Any
surviving spouse of an
17 officer who dies outside of the scope of
employment shall
18 receive a monthly payment equal to fifty
percent (50%) of
19 the officer's salary at the time of death.
20
21 (k) Except as
provided by subsection (j) of this
22 section, benefits specified under W.S. 9-3-421
apply to
23 beneficiaries of a deceased officer covered
under this
24 article.
Page 6
1
2 (m) Instead of
the service retirement benefits
3 provided
under this section, any officer may elect one (1)
4 of
the forms of retirement benefits specified under W.S.
5 9-3-420.
Unless otherwise provided by a benefit option
6
selected by the officer under W.S. 9-3-420, if an officer
7
receiving benefits or his beneficiary receiving benefits
8
under this section dies before the total amount of benefits
9
paid to either the member or his beneficiary or both equals
10 the amount of the officer's account at
retirement, then the
11 excess, if any, shall be paid to any other
named
12 beneficiary, if any, or to the officer's
estate.
13
14 Section 2. W.S. 9-3-402(a)(xviii),
9-3-405(a)(ii)(B)
15 and (C), 9-3-412(a), 9-3-413, 9-3-415(a)(intro)
and (b),
16 9-3-416, 9-3-417(a), 9-3-418(a), 9-3-419(b)(intro),
17 9-3-420(c), 9-3-422(a) and (b) and 9-3-430
by creating a
18 new subsection (d) are amended to
read:
19
20 9-3-402. Definitions.
21
22 (a) As used in this article:
23
Page 7
1 (xviii) "Law
enforcement officer" or "officer"
2
means any member who is a county sheriff, deputy county
3
sheriff, municipal police officer, Wyoming
correctional
4 officer, Wyoming law enforcement academy instructor,
5 University
of Wyoming campus police officer, jailer
7 agencies;
8
9 9-3-405. Retirement board duties and powers.
10
11 (a) In addition
to any other duties prescribed by
12 law, the board shall:
13
14 (ii) At the
request of any city, town or county
15 not covered by the state retirement system,
negotiate terms
16 and conditions through which the city, town
or county and
17 its employees could become members of the
state retirement
18 system in accordance with the following
terms and
19 conditions:
20
21 (B) Liabilities
for any city, town or
22 county's employees' service rendered prior
to affiliation
23 with the retirement system and credited by
the local
24 retirement program shall be amortized over a period not to
Page 8
1 exceed thirty (30) years, payable by the city, town or
county in level dollar payments. The
liabilities shall be
4
consultation with the system actuary;
5
6 (C) Excluding law enforcement officers, the
7
service rendered by any city, town or county's employees
8
prior to affiliation with the retirement system and which
9 may
be credited toward retirement under the retirement
10 system shall not exceed ten (10) years and
shall be the
11 shorter of ten (10) years or the period from
July 1, 1971
12 to the entry date of the political
subdivision into the
13 retirement system.
Service rendered by any city, town or
14 county law
enforcement officer prior to affiliation with
15 the retirement
system and which may be credited toward
16 retirement under
W.S. 9-3-431 shall include all years
17 served as a law
enforcement officer with that city, town or
18 county;
19
20 9-3-412. Members' contributions;
payroll deductions;
21 employer authorized to pay employee's share.
22
23 (a) Except as
otherwise provided in this section and
24 W.S.
9-3-431, every member covered under this article shall
Page 9
1 pay
into the account five and fifty-seven hundredths
2
percent (5.57%) of his salary. Payments shall be deducted
3
each pay period from each member's salary by the chief
4
fiscal officer of each participating employer.
5
6 9-3-413. Employer's contributions;
transfer to
7 account; recovery of
delinquent contributions with
8 interest.
9
10 Except as provided by W.S. 9-2-1022(a)(xi)(F)(III)
or (IV)
11 and 9-3-431,
each employer shall pay into the account a
12 contribution equal to five and sixty-eight
hundredths
13 percent (5.68%) of the salary paid to each
of its members
14 covered under this article and may pay into
the account any
15 amount of the members' share of retirement
contributions.
16 These contributions, together with the
members'
17 contributions, if any, shall be transferred
and credited to
18 the account in a manner as directed by the
board. If the
19 contributions are not transferred to the
board when due,
20 they may be recovered, together with
interest at the rate
21 of twelve percent (12%) per annum, in an
action brought for
22 that purpose in the district court in and
for the county in
23 which the employer has its principal office
or place of
24 activity.
Page 10
1
2 9-3-415. When retirement permitted; service credit.
3
4 (a) Except as provided under W.S. 9-3-431, normal
5
retirement benefits under the system are payable to a
6
member who:
7
8 (b) Except as provided under W.S. 9-3-431, early
9
retirement benefits are payable to a member who has at
10 least four (4) years of service and is at
least fifty (50)
11 but not yet sixty (60) years of age or has
at least twenty-
12 five (25) years of service and is not yet
fifty (50) years
13 of age. The early retirement benefit amount
is equal to the
14 normal retirement benefit amount otherwise
payable reduced
15 on an actuarial equivalent basis under rules
established by
16 the board.
17
18 9-3-416. Members leaving service
without withdrawing
19 accumulated contributions eligible for retirement; law
20 enforcement officers.
21
22 Except for law
enforcement officers, any member who has
23 left service without withdrawing his
accumulated
24 contributions and who has a minimum of four
(4) years of
Page 11
1
service is eligible to receive a retirement benefit amount
2
according to the terms of this article, at the age
3
specified in W.S. 9-3-415(a) and (b). Law
enforcement
4 officers leaving service without withdrawing accumulated
5 contributions and who have a minimum of four (4) years of
6 service may receive a retirement benefit amount in
7 accordance with W.S. 9-3-431.
8
9 9-3-417. Determination of eligibility
for retirement;
10 board to determine equivalent for year of service; credit
11 for military service.
12
13 (a) The board
shall determine the total years of
14 service creditable to each member for the
purpose of
15 determining eligibility for retirement under
this article
16 including law
enforcement officers for retirement under
17 W.S. 9-3-431.
It may require members to file detailed
18 statements of all service as a covered
member and to give
19 other necessary information as a condition
to the receipt
20 of benefits under this article.
21
22 9-3-418. Amount of service retirement benefit.
23
Page 12
1 (a) Except for law enforcement officers as provided
2 under W.S. 9-3-431, the
normal retirement benefit for a
3
member who first becomes covered under this article after
4
June 30, 1981 is equal to two percent (2%) of the highest
5
average salary multiplied by his years of service credit.
6
7 9-3-419. Retirement benefit adjustments.
8
9 (b) Effective
July 1, 1999 and on each July 1
10 thereafter, and
except as provided for law enforcement
11 officers under
W.S. 9-3-431, any retirement benefit,
12 survivor benefit or disability benefit
received by eligible
13 individuals under this article shall be
adjusted as
14 follows:
15
16 9-3-420. Option as to form of
benefit; beneficiary
17 designations.
18
19 (c) The
retirement benefits payable under optional
20 forms available under this section shall be
the actuarial
21 equivalent amount of the normal benefit form
under W.S.
22 9-3-415 and if
applicable, under W.S. 9-3-431.
23
Page 13
1 9-3-422. Disability retirement; board
determination;
2 reports and examinations;
amount; options as to form of
3 benefit.
4
5 (a) Except as specified for law enforcement officers
6 under W.S. 9-3-431, any
member in service who has ten (10)
7 or
more years of service credit during which contributions
8 have
been paid because of illness or injury outside of or
9 in
the scope of employment, or any law enforcement
officer
in service for
whom contributions have been paid because of
injury in the
scope of employment, may retire on account of
12 a total or partial disability in accordance
with rules and
13 regulations adopted by the board. In
determining mental or
14 physical incapacitation for disability
retirement under
15 this section, the board may require
physician reports,
16 medical examinations, functional capacity
evaluations,
17 vocational examinations and other necessary
reports and
18 examinations for purposes of this section.
The costs of any
19 functional capacity evaluation, vocational
examination or
20 other specialized test required under this
subsection shall
21 be paid from the retirement account.
22
23 (b) Upon
retirement for a total disability and except
24 as
provided under W.S. 9-3-431 for law enforcement
Page 14
1 officers, a member shall receive a monthly
disability
2
retirement benefit for the period of his disability equal
3 to
one hundred percent (100%) of his service retirement
4
benefit under this article as if the member was eligible
5 for
normal retirement benefits. Upon retirement for a
6
partial disability, a member shall receive a monthly
7
disability retirement benefit for the period of his
8
disability equal to fifty percent (50%) of the normal
9
retirement benefit payable to the member as if the member
10 were eligible for normal retirement
benefits. Disability
11 benefits are payable for the life of the
member or until
12 the member is no longer disabled.
13
14 9-3-430. Application for benefits;
benefit payment
15 effective dates; minimum distribution rules.
16
17 (d) This section applies to benefits payable under
18 W.S.
9-3-431.
19
20 Section 3. W.S.
9-3-412(d) and 9-3-415(f) are
21 repealed.
22
24
Page 15
1 (a) Not later than June 30,
2001, each city, town or
2
county with law enforcement officers covered under the
3
Wyoming retirement system or under a police pension fund
4
established pursuant to W.S. 15-5-301 through 15-5-314,
5
shall transfer the covered officers to the retirement
6
system for coverage under W.S. 9-3-431, as created by
7
section 1 of this act, or ensure retirement system coverage
8 for
its officers is under W.S. 9-3-431. In addition, all
9
assets of any police pension fund shall be transferred by
10 the city, town or county to the retirement
system not later
11 than June 30, 2001.
12
13 (b) Coverage
of Wyoming law enforcement academy
14 instructors and Wyoming correctional
officers under W.S.
15 9-3-431 as created by section 1 of this act,
and the
16 transfer of law enforcement officers covered
under a police
17 pension fund of a city, town or county to
coverage under
18 W.S. 9-3-431, as created by section 1 of
this act, shall
19 not be implemented by the Wyoming retirement
board until
20 funds payable to the Wyoming retirement
system are received
21 under this act for deposition into the
retirement account,
22 as necessary for maintaining the actuarial
integrity of the
23 account and funding any unfunded liability,
for years of
24 service prior to July 1, 2001.
Page 16
1
2 (c) In addition to subsection
(b) of this section,
3
W.S. 9-3-431, as created by section 1 of this act, shall
4 not
be implemented by the Wyoming retirement board until
5 the
amount appropriated under section 5 of this act is
6
deposited into the Wyoming retirement account, and
7
contributions required under W.S. 9-3-431(a) and (b), as
8
created under section 1 of this act, are paid to the
9
Wyoming retirement system for disposition into the
10 retirement account for the period of covered
service
11 beginning July 1, 2001, and ending August
31, 2001.
12
13 Section 5. Twelve million
dollars ($12,000,000.00) is
14 appropriated from the general fund to the
Wyoming
15 retirement account for purposes of this act.
16
17 Section 6. This act is effective July 1, 2001.
18
19 (END)
Page 17