Bill No.:           HB0046                                               Drafter: DKG

LSO No.:         14LSO-0072                                        Effective Date: 7/1/2014

Enrolled Act No.:       HEA0011

Chapter No.:               CH0019

Prime Sponsor:                       Joint Appropriations Interim Committee

Catch Title:                 Public employee pension plans-contributions.

Subject:

· During the 2013 Session, the Legislature passed HB 250 (2013 Wyoming Session Laws Chapter 203) which increased the employee and employer contribution rates in three public employee retirement plans as follows:

o For the plan which includes state and local employees, school employees and numerous other groups (often referred to as the “big plan”):

§ An increased employee contribution of 1/2% of salary was imposed commencing September 1, 2013.  For three years, for state employees, the state will pay half of this increase.  Thereafter, the employee will pay the full increase, assuming no further legislative action.

§ An increase in employer contribution of 1/2% percent of salary was imposed commencing September 1, 2014.

o For the Wyoming state highway patrol, game and fish warden and criminal investigator retirement plan:

§ An increased employee contribution of nine-tenths percent of salary was imposed commencing September 1, 2013.  For three years, for state employees, the state will pay half of this increase (state employers under this plan can pay more of the employee contribution).

§ An increase in employer contribution of nine-tenths percent of salary is imposed commencing September 1, 2014.

o For the “fireman B” plan an employee contribution increase of .225% was imposed commencing September 1, 2014.  (The employer contribution for this plan is calculated based upon the liabilities of the plan and thus a corresponding employer increase was not specified in the Act.)

· This Act increases the employee and employer contribution rates in three public employee retirement plans in addition to the increases in 2013 HB 250.

· For the plan which includes state and local employees, school employees and numerous other groups (often referred to as the “big plan”):

o An increased contribution of 3/4% salary is imposed commencing July 1, 2014.  For three years until June 30, 2017, for state employees, the state will pay half of this increase. Thereafter, the employee will pay the full increase, assuming no further legislative action.

o An increase in employer contribution of 3/4% of salary is imposed commencing July 1, 2014.

· For the Wyoming state highway patrol, game and fish warden and criminal investigator retirement plan:

o An increased employee contribution of 1.02% of salary is imposed commencing July 1, 2014.  For two years, from July 1, 2014 through June 30, 2016, for state employees, the state will pay two-thirds of this increase.  For one year, from July 1, 2016 through June 30, 2017, for state employees, the state will pay one-third of this increase.

o An increase in employer contribution of 1.02% percent of salary is imposed commencing July 1, 2015.

· For the “fireman B” plan an employee contribution increase of .52% is imposed commencing July 1, 2014.  (The employer contribution for this plan is calculated based upon the liabilities of the plan and thus a corresponding employer increase was not specified in the Act.)

· Provides various appropriations for the employer-paid share of the employee contribution increases.

Comments:

·          Contains delayed effective dates:  The employee contribution increases are effective July 1, 2014.  The employer increases are effective July 1, 2015.