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S.F. No. 0059 |
Public employee retirement plans benefit increases. |
Sponsored By: Joint Appropriations Interim Committee
AN ACT relating to public employee retirement plans; eliminating cost-of-living increases for specified plans; providing findings; providing parameters for future benefit increases; requiring information to be provided to employees; providing for a study; making conforming amendments; specifying applicability; and providing for an effective date.
2/9/2012 Bill Number Assigned
2/13/2012 S Received for Introduction
2/14/2012 S Introduced and Referred to S02
ROLL CALL
Ayes: Senator(s) Anderson, Barnard, Bebout, Burns, Case, Coe, Cooper, Dockstader, Driskill, Geis, Hicks, Hines, Jennings, Meier, Nicholas, P., Nutting, Perkins, Peterson, Ross, Schiffer, Scott and Von Flatern
Nays: Senator(s) Christensen, Emerich, Esquibel, F., Hastert, Johnson, Landen, Martin and Rothfuss
Ayes 22 Nays 8 Excused 0 Absent 0 Conflicts 0
2/22/2012 S02 Recommended Amend and Do Pass
ROLL CALL
Ayes: Senator(s) Meier, Nicholas, P., Peterson and Von Flatern
Nays: Senator(s) Hastert
Ayes 4 Nays 1 Excused 0 Absent 0 Conflicts 0
2/22/2012 S Placed on General File
SF0059SS001/ADOPTED
Page 7-line 13 Delete "return" insert "investment return (composed of a three and one-half percent (3.5%) inflation rate and a four and one-half percent (4.5%) net real rate of return)".
Page 8-line 6 Delete "earning rate" insert "investment return". NICHOLAS, CHAIRMAN
SF0059SW001/FAILED
Page 11-line 13 Delete "one hundred twenty percent (120%)" insert "one hundred percent (100%) after the award of any cost of living adjustment,".
Page 12-line 3 Delete "one hundred".
Page 12-line 4 Delete "twenty percent (120%)" insert "one hundred percent (100%) after the award of any cost of living adjustment". ROSS
2/24/2012 S Passed CoW
2/27/2012 S Passed 2nd Reading
SF0059S3001/FAILED
Page 2-line 2 After "(i)" insert "Certain".
Page 3-lines 14 through 22 Delete and renumber.
Page 4-lines 1 through 20 Delete and renumber.
Page 9-line 13 Delete "other".
Page 9-line 14 After "section" delete ", other than the judicial retirement plan".
Page 9-line 15 Delete "and the".
Page 9-line 16 Delete "firefighter's plan B have" insert "has".
Page 11-line 12 Delete "a retirement plan has" insert "the retirement plans specified in this section have".
Page 13-line 7 Delete "," insert "and"; delete "and 9‑3‑708(b)".
Page 14-line 7 Delete "no".
Page 14-line 8 After "are" insert "not necessarily".
Page 14-line 9 Delete and insert "all retirement systems operating in the state of Wyoming;".
Page 15-lines 8 through 17 Delete.
Page 15-line 19 Delete "9‑3‑432(g),".
Page 15-line 20 Delete "9‑3‑707(b), 15‑5‑416,". HASTERT
SF0059S3002/ADOPTED (CORRECTED COPY)
Page 15-line 23 After "4." insert "(a)".
Page 15-line 24 After "study" insert "cost efficiencies of the following: (i) Implementation of an annual cost-of-living adjustment, offered through the current defined benefit plan and paid for with employer and employee contributions; (ii)".
Page 16-line 3 After "act" insert "; and (iii) Other types of pension plans".
Page 16-line 5 Delete "to" insert ".".
Page 16-line 6 Delete. ROTHFUSS
2/28/2012 S Passed 3rd Reading
ROLL CALL
Ayes: Senator(s) Anderson, Bebout, Burns, Case, Christensen, Coe, Cooper, Dockstader, Driskill, Emerich, Geis, Hicks, Hines, Jennings, Landen, Meier, Nicholas, P., Nutting, Perkins, Peterson, Schiffer, Scott and Von Flatern
Nays: Senator(s) Barnard, Esquibel, F., Hastert, Johnson, Martin, Ross and Rothfuss
Ayes 23 Nays 7 Excused 0 Absent 0 Conflicts 0
2/29/2012 H Received for Introduction
2/29/2012 H Introduced and Referred to H02
3/2/2012 H02 Recommended Amend and Do Pass
ROLL CALL
Ayes: Representative(s) Berger, Edmonds, Harshman, Pedersen, Steward and Wallis
Nays: Representative(s) Esquibel, K
Ayes 6 Nays 1 Excused 0 Absent 0 Conflicts 0
3/2/2012 H Placed on General File
SF0059HS001/ADOPTED (TO ENGROSSED COPY)
Page 11-line 16 Delete "one hundred twenty percent (120%)" insert "one hundred five percent (105%)".
Page 12-line 7 Delete "twenty percent (120%)" insert "five percent (105%)".
Page 13-after line 8 Insert:
"(xv) Provided the requirements of paragraphs (xiii) and (xiv) of this subsection are met, the Wyoming retirement board may recommend to the governor and legislature the approval of a cost of living adjustment for any plan administered by the board.".
Page 16-line 21 Delete "shall" insert "may".
Page 16-line 22 After "session" insert "." and delete balance of the line. BERGER, CHAIRMAN
3/5/2012 H Passed CoW
SF0059H2001/FAILED (TO ENGROSSED COPY)
Delete the standing committee amendment (SF0059HS001/AE).
Further amend the engrossed copy as follows:
Page 1-line 2 Delete "eliminating" insert "modifying provisions relating to".
Page 1-line 3 Delete "providing findings;".
Page 1-line 5 After "study;" delete balance of the line.
Page 1-line 6 Delete the line through "applicability;".
Page 1-lines 11 through 17 Delete entirely.
Page 2-line 1 through page 13-line 9 Delete entirely.
Page 13-line 11 Delete "9‑3‑425 and 9‑3‑708" insert "9‑3‑419(b)(v), 9‑3‑432(g)(ii), 9‑3‑610(d)(v), 9‑3‑707(b)(v), 15‑5‑416(b), 35‑9‑608(k)(v) and 35‑39‑106(g)(v)".
Page 14-lines 11 through 13 Delete entirely.
Page 14-line 15 Delete "(C)" insert "(B)".
Page 15-lines 1 through 22 Delete entirely.
Page 16-lines 1 through 3 Delete entirely and insert:
"9-3-419. Retirement benefit adjustments.
(b) Effective July 1, 2001 and on each July 1 thereafter, and except as provided for law enforcement officers under W.S. 9‑3‑432, any retirement benefit, survivor benefit or disability benefit received by eligible individuals under this article shall be adjusted as follows:
(v) An increase in benefits under this subsection is effective only upon a determination by the system's actuary that the increase is actuarially sound. An increase under this subsection shall not be determined to be actuarially sound if the plan has not achieved an actuarial funded ratio of at least one hundred percent (100%) at the time the increase would be implemented or if the plan would not maintain that minimum ratio if the increase is provided. The actuary shall annually report its determination pursuant to this paragraph to the governor and the joint appropriations interim committee; and".
9‑3‑432. Law enforcement officers; contributions; benefit eligibility; service and disability benefits; death benefits; benefit options.
(g) Notwithstanding W.S. 9‑3‑419(b) and on July 1 of each year:
(ii) The board may for any increase under paragraph (i) of this subsection for any year, reduce the percentage adjustment to a level the system's actuary determines renders the system actuarially sound. For purposes of this subsection the system shall be considered actuarially sound if the plan has achieved an actuarial funded ratio of at least one hundred percent (100%) at the time the increase would be implemented and will maintain that minimum ratio if the increase is provided.
9‑3‑610. Amount of benefit.
(d) Effective July 1, 2001 and on each July 1 thereafter, any service retirement allowance, survivor benefit or disability benefit received by eligible individuals under this act shall be adjusted as follows:
(v) An increase in benefits under this subsection is effective only upon a determination by the actuary of the Wyoming retirement system that the increase is actuarially sound. An increase under this subsection shall not be determined to be actuarially sound if the program has not achieved an actuarial funded ratio of at least one hundred percent (100%) at the time the increase would be implemented or if the program would not maintain that minimum ratio if the increase is provided. The actuary shall report its annual determination under this paragraph to the governor and the joint appropriations interim committee; and
9‑3‑707. Amount of benefit; adjustments.
(b) Effective July 1, 2000, and on each July 1 thereafter, any service retirement allowance or survivor benefit received by eligible individuals under this act shall be adjusted as follows:
(v) An increase in benefits under this subsection is effective only upon a determination by the actuary of the Wyoming retirement system that the increase is actuarially sound. An increase under this subsection shall not be determined to be actuarially sound if the program has not achieved an actuarial funded ratio of at least one hundred percent (100%) at the time the increase would be implemented or if the program would not maintain that minimum ratio if the increase is provided. The actuary shall report its annual determination under this paragraph to the governor, the Wyoming supreme court, the board and the joint appropriations interim committee; and
15‑5‑416. Adjustment of benefits.
(b) An increase in benefits under this section is effective only upon a determination that the increase is actuarially sound. The percentage increase in the cost of living for a calendar year is equal to the annual percentage increase in the cost of living as of the immediately preceding July 1 as shown by the Wyoming cost-of-living index as determined by the division of economic analysis of the department of administration and information. The amount of any percentage increase in the cost of living which exceeds the maximum percentage adjustment under subsection (a) of this section shall be accumulated and added to future years' percentage increases in the cost of living. The board may for any increase under this section for any year and in accordance with W.S. 9‑3‑419(b)(v), reduce the percentage adjustment to a level the system's actuary determines renders the system actuarially sound. An increase under this section shall not be determined to be actuarially sound if the pension system has not achieved an actuarial funded ratio of at least one hundred percent (100%) at the time the increase would be implemented or if the pension system would not maintain that minimum ratio if the increase is provided. Actuarial determinations pursuant to this section shall be reported annually to the governor and the joint appropriations interim committee.
35‑9‑608. Benefits enumerated; death of participant or spouse; amount and payment of contributions; withdrawal from plan.
(k) Effective July 1, 2001, and each July 1 thereafter, any retirement or survivor benefit received by eligible individuals under this article shall be adjusted as follows:
(v) An increase in benefits under this subsection is effective only upon a determination by the actuary for the Wyoming retirement system that the increase is actuarially sound. An increase under this subsection shall not be determined to be actuarially sound if the plan has not achieved an actuarial funded ratio of at least one hundred percent (100%) at the time the increase would be implemented or if the plan would not maintain that minimum ratio if the increase is provided. As required under W.S. 9‑3‑419(b)(v), the system actuary shall annually report its determination under this paragraph to the governor and the joint appropriations interim committee; and
35‑29‑106. Benefits enumerated; death of participant or spouse; amount and payment of contributions; withdrawal from plan.
(g) Effective July 1, 2008 and each July 1 thereafter, any retirement or survivor benefit received by eligible individuals under this article shall be adjusted as follows:
(v) An increase in benefits under this subsection shall be implemented only upon a determination by the actuary for the Wyoming retirement system that the increase is actuarially sound. An increase under this subsection shall not be determined to be actuarially sound if the plan has not achieved an actuarial funded ratio of at least one hundred percent (100%) at the time the increase would be implemented or if the plan would not maintain that minimum ratio if the increase is provided. As required under W.S. 9‑3‑419(b)(v), the system actuary shall annually report its determination under this paragraph to the governor and the joint appropriations interim committee; and".
Renumber as necessary. ILLOWAY, MADDEN
3/6/2012 H Passed 2nd Reading
SF0059H3001/ADOPTED (TO ENGROSSED COPY)
Delete the standing committee amendment (SF0059HS001/AE) entirely.
Further amend as follows:
Page 1-line 11 Delete "is" insert "and 9‑3‑454 are".
Page 1-line 14 After "findings" insert "." and delete balance of the line.
Page 1-line 15 Delete entirely.
Page 11-line 13 Delete ";" insert ".".
Page 11-lines 15 through 24 Delete entirely.
Page 12-lines 1 through 8 Delete entirely; insert:
"9‑3‑453. Required determinations for benefit increases.
(a) In accordance with the findings specified in W.S. 9‑3‑452:
(i) The board shall not recommend to the governor and the legislature increases in benefits, including but not limited to cost-of-living increases, from a retirement plan's assets until the plan has achieved an actuarial funded ratio of at least one hundred five percent (105%);
(ii) When determining whether to increase benefits, including changes to multipliers and cost-of-living increases, the full cost of the increases should be considered and funded. At a minimum the analysis should include a decision matrix in which the first step is determining whether the contribution rate is currently sufficient to cover what is actuarially required and whether the actuarial funded ratio is at least one hundred five percent (105%). If not, there should be no increase. If so, further analysis should include:
Page 13-after line 8 Insert:
"(iii) Provided the requirements of paragraphs (i) and (ii) of this subsection are met, the Wyoming retirement board may recommend to the governor and legislature the approval of a cost of living adjustment for any plan administered by the board.
(b) Nothing in this section shall affect the authority of the board to grant a cost of living adjustment as authorized by W.S. 15‑5‑204.".
Page 16-line 21 Delete "shall" insert "may".
Page 16-line 22 After "session" insert "." and delete balance of the line.
Renumber as necessary. GINGERY
SF0059H3002/FAILED (TO ENGROSSED COPY)
Page 12-lines 1 through 8 Delete the Gingery third reading amendment (SF0059H3001/AE) to these lines; insert:
"9‑3‑453. Required determinations for benefit increases.
(a) In accordance with the findings specified in W.S. 9‑3‑452:
(i) The board shall not recommend to the governor and the legislature increases in benefits, including but not limited to cost-of-living increases, from a retirement plan's assets until the plan has achieved an actuarial funded ratio of at least one hundred percent (100%);
(ii) When determining whether to increase benefits, including changes to multipliers and cost-of-living increases, the full cost of the increases should be considered and funded. At a minimum the analysis should include a decision matrix in which the first step is determining whether the contribution rate is currently sufficient to cover what is actuarially required and whether the actuarial funded ratio is at least one hundred percent (100%). If not, there should be no increase. If so, further analysis should include:". MCOMIE
3/7/2012 H Passed 3rd Reading
ROLL CALL
Ayes: Representative(s) Berger, Blikre, Bonner, Brechtel, Brown, Campbell, Cannady, Childers, Edmonds, Eklund, Gingery, Greear, Harshman, Harvey, Hunt, Jaggi, Kroeker, Lockhart, Loucks, Lubnau, Madden, Miller, Nicholas, B., Peasley, Pedersen, Petersen, Quarberg, Reeder, Semlek, Steward, Stubson, Teeters and Wallis
Nays: Representative(s) Blake, Botten, Burkhart, Byrd, Connolly, Craft, Davison, Freeman, Gay, Greene, Illoway, Kasperik, Krone, McKim, McOmie, Moniz, Patton, Petroff, Roscoe, Throne, Vranish, Zwonitzer, Dn. and Zwonitzer, Dv.
Excused: Representative(s) Barbuto, Buchanan, Esquibel, K. and Goggles
Ayes 33 Nays 23 Excused 4 Absent 0 Conflicts 0
3/7/2012 S Received for Concurrence
3/7/2012 S Did Not Concur
ROLL CALL
Ayes: Senator(s) Hastert, Johnson, Nutting and Ross
Nays: Senator(s) Anderson, Barnard, Bebout, Burns, Case, Christensen, Coe, Cooper, Dockstader, Driskill, Emerich, Esquibel, F., Geis, Hicks, Hines, Jennings, Landen, Martin, Meier, Nicholas, P., Perkins, Peterson, Rothfuss, Schiffer, Scott and Von Flatern
Ayes 4 Nays 26 Excused 0 Absent 0 Conflicts 0
3/7/2012 S Appointed JCC01 Members
Senator(s) Nicholas, P., Martin, Meier
3/7/2012 H Appointed JCC01 Members
Representative(s) Pedersen, Harshman, Petroff
3/8/2012 S Adopted SF0059JC01
ROLL CALL
Ayes: Senator(s) Anderson, Barnard, Bebout, Burns, Case, Christensen, Coe, Cooper, Dockstader, Driskill, Emerich, Esquibel, F., Geis, Hicks, Hines, Jennings, Landen, Martin, Meier, Nicholas, P., Nutting, Perkins, Peterson, Ross, Rothfuss, Schiffer and Von Flatern
Nays: Senator(s) Hastert, Johnson and Scott
Ayes 27 Nays 3 Excused 0 Absent 0 Conflicts 0
3/8/2012 H Adopted SF0059JC01
ROLL CALL
Ayes: Representative(s) Berger, Blikre, Bonner, Botten, Brechtel, Brown, Buchanan, Burkhart, Campbell, Cannady, Childers, Edmonds, Eklund, Gay, Gingery, Greear, Harshman, Harvey, Hunt, Jaggi, Kasperik, Kroeker, Lockhart, Loucks, Lubnau, Madden, McOmie, Nicholas, B., Patton, Peasley, Pedersen, Petersen, Petroff, Quarberg, Reeder, Semlek, Steward, Stubson, Teeters and Wallis
Nays: Representative(s) Barbuto, Blake, Byrd, Connolly, Craft, Davison, Esquibel, K., Freeman, Greene, Illoway, Krone, McKim, Moniz, Roscoe, Vranish and Zwonitzer, Dv.
Excused: Representative(s) Goggles, Miller, Throne and Zwonitzer, Dn.
Ayes 40 Nays 16 Excused 4 Absent 0 Conflicts 0
SF0059JC01/AA ADOPTED (TO ENGROSSED COPY)
Delete the following House amendments:
SF0059H3001/AE
SF0059HS001/AE
Further amend the ENGROSSED COPY as follows:
Page 1-line 2 Delete "eliminating" insert "repealing provisions relating to".
Page 1-line 11 Delete "is" insert "and 9‑3‑454 are".
Page 11-lines 15 through 24 Delete entirely; insert:
"(xiii) It is the intent of the legislature that all public employee retirement plans be managed to maintain an actuarial funded ratio of not less than one hundred percent (100%) and that the retirement board determine from time to time an appropriate level of funding sufficient to withstand market fluctuations without experiencing reductions below the desired one hundred percent (100%) funding ratio;
(xiv) It is the intent of the legislature that cost of living increases and changes to multipliers be allowed only in the event that the actuarial funded level for the affected plan remains above one hundred percent (100%), plus the additional percentage the retirement board determines is reasonably necessary to withstand market fluctuations. This determination is to be made for the entire amortization period affected by the change using then current actuarial assumptions.".
Page 12-lines 1 through 8 Delete entirely; insert:
"9‑3‑454. Required determinations for recommended benefit increases.
(a) In accordance with the findings specified in W.S. 9‑3‑453:
(i) All plans shall be managed to maintain their actuarial funded ratio at or above (100%) throughout the life of the plan. The actual funded ratio recommended by the board shall provide for an appropriate margin above this funding ratio to allow for market fluctuations above the one hundred percent (100%) base;
(ii) No benefit changes, including cost of living increases and changes to multipliers, shall be recommended for implementation by the legislature unless the system's actuaries provide an opinion that the funded ratio of the plan will remain above the funding level set out in paragraph (i) of this subsection throughout the life of the benefit change;
(iii) Any analysis upon which a proposed benefit change is proposed shall include a decision matrix which shall include the following minimum elements:".
Page 13-line 8 Delete "." insert ";".
Page 13-after line 8 Insert
"(G) The appropriate level of actuarial funding ratio above one hundred percent (100%) needed to buffer the plan from market fluctuations.
(b) Nothing in this section shall affect the authority of the board to grant a cost of living adjustment as authorized by W.S. 15‑5‑204.".
Page 16-line 21 Delete "shall" insert "may".
Page 16-line 22 After "session" insert "." and delete balance of the line. NICHOLAS, MARTIN, MEIER, PEDERSEN, HARSHMAN, PETROFF
3/8/2012 Assigned Number SEA No. 0066
3/8/2012 S President Signed SEA No. 0066
3/8/2012 H Speaker Signed SEA No. 0066
3/23/2012 Governor Signed SEA No. 0066
3/26/2012 Assigned Chapter Number
Chapter No. 0107 Session Laws of Wyoming 2012