§ 9-3-413.1 — Members' and employers' contributions based on actuarially determined contribution rates; calculation of rates; reports

Wyoming § 9-3-413.1

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

Text

(a) Beginning with the 2027-2028 fiscal biennium, the
retirement system shall calculate the percentage of salary for
members' contributions required under W.S. 9-3-412(a) and for
the employers' contribution required under W.S. 9-3-413 based on
an actuarially determined contribution rate in accordance with
the following:
(i) The retirement system, in consultation with any
actuary that the system utilizes, shall calculate the
actuarially determined contribution rate for each fiscal year;
(ii) The retirement system shall calculate the
actuarially determined contribution rate by using the actuarial
value of that portion of the retirement account designated for
the public employee retirement plan as of January 1, 2025 and
January 1 of each odd-numbered year thereafter, the value of
benefits, estimated administrative expenses and officially
adopted actuarial assumptions. The retirement system shall use
this valuation to calculate the actuarially determined
contribution rate for the immediately succeeding fiscal
biennium;
(iii) Not later than April 15, 2025 and April 15 of
each odd-numbered year thereafter, the retirement system shall
report the actuarially determined contribution rate to each
local government entity participating in the public employee
retirement plan, the governor, the state auditor, the state
budget department and the joint appropriations committee,
subject to the requirements of this subsection;
(iv) Not later than April 15, 2026 and April 15 of
each even-numbered year thereafter, the retirement system shall
calculate a valuation of the account and an updated actuarially
determined contribution rate, using the actuarial value of that
portion of the account designated for the public employee
retirement plan as of January 1 of that year, for informational
purposes and shall report the valuation and rate to each entity
specified in paragraph (iii) of this subsection. The actuarially
determined contribution rate calculated under this paragraph
shall not be used as the actuarially determined contribution
rate for purposes of this section;
(v) After calculation of the actuarially determined
contribution rate under paragraph (ii) of this subsection, the
state budget department and the retirement system shall
calculate necessary amounts to account for any changes in the
appropriations necessary to fund the contributions for the
public employee retirement plan and shall include those amounts
in the budget prepared under W.S. 9-2-1010 through 9-2-1014.1,
including changes in amounts for school districts necessary to
account for the employer's share of the actuarially determined
contribution rate in accordance with this section for benefits
paid from the education resource block grant model defined in
W.S. 21-13-101(a)(xiv) and as enumerated in Attachment
A(b)(xxxviii), as defined in W.S. 21-13-101(a)(xvii);
Note: Effective 7/1/2026 this paragraph will read as:
(v) After calculation of the actuarially determined
contribution rate under paragraph (ii) of this subsection, the
state budget department and the retirement system shall
calculate necessary amounts to account for any changes in the
appropriations necessary to fund the contributions for the
public employee retirement plan and shall include those amounts
in the budget prepared under W.S. 9-2-1010 through 9-2-1014,
including changes in amounts for school districts necessary to
account for the employer's share of the actuarially determined
contribution rate in accordance with this section for benefits
paid from the education resource block grant model defined in
W.S. 21-13-101(a)(xiv) and as enumerated in Attachment
A(b)(xxxviii), as defined in W.S. 21-13-101(a)(xvii);
(vi) Any change in the actuarially determined
contribution rate calculated under paragraph (ii) of this
subsection shall take effect on July 1 of the subsequent even-
numbered year;
(vii) Any change in the actuarially determined
contribution rate calculated and reported under this subsection
shall be in accordance with the following:
(A) The actuarially determined contribution rate
shall not be increased more than one-half percent (0.5%) nor
decreased more than one-half percent (0.5%) from:
(I) The rates specified in W.S. 9-3-412(a)
and 9-3-413 for the fiscal biennium beginning July 1, 2026;
(II) The actuarially determined
contribution rate for the preceding fiscal biennium for each
fiscal biennium beginning July 1, 2028.
(B) The actuarially determined contribution rate
for a fiscal biennium shall not be decreased if the public
employee retirement plan has a funded ratio of less than ninety-
nine percent (99%), on both a market and actuarial basis, as
calculated on the date specified in paragraph (ii) of this
subsection;
(C) For purposes of this paragraph, the
actuarially determined contribution rate shall use a closed
amortization period of thirty (30) years calculated from January
1, 2018, with each subsequent amortization base created as a
result of year-to-year experience changes over individual twenty
(20) year closed periods;
(D) In no event shall the actuarially determined
contribution rate be less than the normal cost contribution,
plus the rate necessary to meet administrative expenses. As used
in this subparagraph, "normal cost contribution" means the
contribution calculated using the entry age normal actuarial
cost method to determine the average uniform and constant
percentage rate of employer contributions that, if applied to
the compensation of each new member during the entire period of
the member's anticipated covered service, would be required to
meet the costs of all benefits payable on the member's behalf
based on the benefits provisions applicable for the individual
member.
(b) The actuarially determined contribution rate shall be
paid through monthly contributions into the account as follows:
(i) Subject to paragraph (iii) of this subsection and
except as otherwise provided in W.S. 9-3-412, 9-3-431 and 9-3-
432, every member covered under this article shall pay into the
account a percentage of his salary in an amount equal to forty-
nine and sixty-eight hundredths percent (49.68%) of the
actuarially determined contribution rate calculated under this
section;
(ii) Every employer excluding employers of
firefighter members shall pay into the account a contribution of
members' salary in an amount equal to fifty and thirty-two
hundredths percent (50.32%) of the actuarially determined
contribution rate calculated under this section;
(iii) For state employee members, five and fifty-
seven hundredths percent (5.57%) of the member's salary that
would otherwise be withheld in accordance with paragraph (i) of
this subsection shall be paid by the employer without any salary
reduction or offset. The remaining portion of the state
employee's contribution required under paragraph (i) of this
subsection shall be paid through a reduction in cash salary of
the state employee unless specified otherwise by legislative
act.