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