§ 9-3-406 — Retirement board; employment and compensation of director, consulting actuary and assistants; director designated secretary; compensation of members; quorum; seal

Wyoming § 9-3-406

• Jurisdiction: Wyoming
• Title 09: Administration of the Government
• Ch. 3: COMPENSATION AND BENEFITS
• Art. 4: RETIREMENT

Text

(a) The board shall employ a director and a consulting
actuary and other professional and clerical assistants necessary
for the administration of the retirement system and the Wyoming
deferred compensation program established under W.S. 9-3-501
through 9-3-508. The compensation of employees shall be fixed by
the board, subject to confirmation and approval by the human
resources division and together with all other necessary
expenses of the board shall be paid by vouchers drawn on the
state treasurer of Wyoming. The director shall also serve,
without additional compensation, as secretary of the board. The
board shall have the authority to obtain the financial and
criminal background history of an employee or employment
applicant of the Wyoming retirement system in accordance with
W.S. 7-19-106 and 7-19-201. In fixing compensation of employees
the board may implement and administer a performance
compensation plan in accordance with this subsection. The plan
shall:
(i) Be limited to those at-will employees of the
board listed in paragraph (ii) of this subsection who are
directly engaged in investing assets of the retirement system;
(ii) Be limited to the following participating
employees:
(A) Chief investment officer;
(B) Senior investment officer;
(C) Investment officer;
(D) Senior analyst;
(E) Analyst.
(iii) Seek to maximize total returns net of fees on
investments authorized by law and in the best interest of the
retirement system;
(iv) Be based solely on investment performance
exceeding investment benchmarks established pursuant to this
paragraph. The board shall establish investment benchmarks,
which shall be approved by the investment funds committee
created by W.S. 9-4-720, for each fund and account for an
investment period. No performance compensation shall be paid
under the plan unless the board determines, subject to review by
the investment funds committee, that the established benchmarks
have been exceeded;
(v) Measure investment performance during an
investment period based one hundred percent (100%) on total fund
performance. For purposes of this subsection, "total fund"
means the total or overall investment portfolio of the
retirement system;
(vi) Provide that payments for investment performance
for any one (1) investment period shall be as follows:
(A) For payments earned in fiscal year 2020 -
the investment performance beginning July 1, 2019 and ending
June 30, 2020;
(B) For payments earned in fiscal year 2021 -
the arithmetic average of the investment performance beginning
July 1, 2019 and ending June 30, 2020 and the investment
performance beginning July 1, 2020 and ending June 30, 2021;
(C) For payments earned in fiscal year 2022
through fiscal year 2025 - the arithmetic average of the annual
investment performance beginning that fiscal year and the two
(2) immediately preceding fiscal years;
(D) For payments earned in fiscal year 2026 and
each fiscal year thereafter – the geometric average of the
annual investment performance beginning that fiscal year and the
two (2) immediately preceding fiscal years.
(vii) Be funded from investment returns, with each
invested fund's share calculated in proportion to the magnitude
of aggregate investment earnings of each fund invested,
including interest and dividends, which shall be continuously
appropriated for payment of performance compensation as
authorized by this subsection;
(viii) Include a limit for total payments to all
participating employees for performance compensation earned in
any one (1) investment period in an amount not to exceed two
percent (2%) of net investment returns above the established
benchmark of the total fund for that investment period;
(ix) Include a limit for total payments to an
individual employee for performance compensation earned in any
one (1) investment period in an amount not to exceed the
following:
(A) One hundred percent (100%) of a chief
investment officer's base salary;
(B) Seventy-five percent (75%) of a senior
investment officer's base salary;
(C) Fifty percent (50%) of an investment
officer's base salary;
(D) Thirty-five percent (35%) of a senior
analyst's or analyst's base salary.
(x) Provide that performance compensation earned in
any one (1) investment period will be paid over a three (3) year
period as follows:
(A) Twenty-five percent (25%) during the fiscal
year immediately following the fiscal year in which the
performance compensation was earned;
(B) Twenty-five percent (25%) during the second
fiscal year following the fiscal year in which the performance
compensation was earned;
(C) Fifty percent (50%) during the third fiscal
year following the fiscal year in which the performance
compensation was earned.
(xi) Provide that performance compensation shall be
forfeited by an employee upon termination of employment subject
to an anti-compete agreement for future employment related to
asset management. This paragraph shall not apply to termination
based on death, disability or retirement;
(xii) Provide that performance compensation shall not
be included as compensation for the purpose of computing
retirement or pension benefits earned by the employee;
(xiii) Subject participating employees to the
following terms and conditions related to leave time:
(A) Chief investment officers, senior investment
officers and investment officers shall receive leave time in the
same manner and amount as department directors under W.S. 9-2-
1706(b);
(B) Senior analysts and analysts shall receive
leave time in accordance with standards and rules established or
promulgated in accordance with W.S. 9-2-3207(a).
(xiv) Provide that performance compensation shall
only be based on performance criteria occurring on or after the
execution of an employment contract in accordance with this
subsection. No performance compensation shall be paid other
than as provided in the employment contract;
(xv) Be submitted to the joint appropriations
committee and the select committee on capital financing and
investments for comment, and approved by the human resources
division, prior to implementation. The human resources division
shall not disapprove a performance compensation plan which
complies with the requirements of this subsection;
(xvi) Be submitted and administered by the board as a
separately designated and appropriated budget unit.
(b) The members of the board, other than the five (5)
elector members shall serve without compensation but shall
suffer no loss of wages for the time devoted to the duties of
the board. The elector members of the board shall receive fifty
dollars ($50.00) per day for the time actually and necessarily
devoted to the duties of the board. All members and employees of
the board shall be reimbursed for their expenses incurred
through service on the board at rates applicable to other state
employees.
(c) A majority of the members of the board constitutes a
quorum for the transaction of its business. The board may adopt
and use a common seal and alter it at the board's direction.
(d) The board shall report to the joint appropriations
committee and the select committee on capital financing and
investments by November 1 of each year on the plan authorized by
subsection (a) of this section. The report shall include:
(i) Payments and methodology of calculating payments
under the plan;
(ii) A measurement quantifying the risk resulting
from the variation between the prior year's investment
benchmarks and the prior year's actual investments;
(iii) An estimate of future payments under the plan
and future expected investment benchmarks.
(e) The board may reimburse the actual moving expenses of
employees specified in paragraph (ii) of this subsection when
the employee is moving to begin employment with the Wyoming
retirement system and for the benefit of the state of Wyoming in
accordance with the following:
(i) The reimbursement provided to any one (1)
employee under this subsection shall not exceed the employee's
actual moving expenses or ten thousand dollars ($10,000.00),
whichever is less;
(ii) The reimbursement shall only be provided to
employees hired to fill the position of chief investment
officer, senior investment officer, investment officer, senior
analyst or analyst;
(iii) The reimbursement shall only be provided to
employees who are relocating to live and establish residency in
Wyoming. Reimbursement shall be repaid in full if the employee
does not retain residency for two (2) years and the employee
does not remain employed by the Wyoming retirement system or the
state treasurer's office.
(f) Beginning on July 1, 2023 and thereafter, the maximum
annual salary to be paid for each investment staff position
classification, as determined by the board, shall be as follows:
(i) Three hundred thousand dollars ($300,000.00) for
the chief investment officer;
(ii) Two hundred twenty-six thousand eight hundred
dollars ($226,800.00) for a senior investment officer;
(iii) One hundred fifty-eight thousand four hundred
dollars ($158,400.00) for an investment officer;
(iv) One hundred eleven thousand six hundred dollars
($111,600.00) for a senior analyst;
(v) Eighty-four thousand dollars ($84,000.00) for an
analyst.