Fiscal Note - 23LSO-0023

Benefits for spouses of law enforcement members.

23LSO-0023, 1.1

FISCAL NOTE

	FY 2024	FY 2025	FY 2026
NON-ADMINISTRATIVE IMPACT
Anticipated Expenditure increase
WARDEN & PATROL RETIREMENT	$8,400	$8,400	$8,400

Source of expenditure increase:

State Highway Patrol, Game and Fish Warden and Criminal Investigator Retirement Plan: The bill modifies the pre-retirement duty-related death benefit to be the same as the benefit in the Law Enforcement Plan. The benefit is increased from 50% of officer’s salary at time of death to the greater of either 62.5% of officer’s salary at time of death or 2.5% of the officer’s salary multiplied by the years of service. The bill provides an expanded definition of officer’s salary for death benefits: the greater of highest average salary over three years or final actual salary during the last full month of credited service. The bill provides an increase in the surviving child benefit from 5% of salary to 6% of salary, with the same expanded definition of salary.

The bill changes the pre-retirement non-duty spousal death benefit from the current 2% of salary for each year of service not to exceed 50% of salary to 50% of salary. The non-duty child benefit is increased from 5% to 6% of salary and the cap for combined spousal + child benefits is increased from 60% of salary to 100% of salary, with the definitions of salary conforming with the duty related section.

The bill adjusts the post-retirement surviving child benefit to 6% of salary instead of 5% of salary.

The Wyoming Retirement System’s (WRS) actuaries estimate that the present value of accrued liabilities for these changes is $90,674. WRS uses a layered 20-year amortization policy on any new liability changes. $90,674 amortized over 20 years at 6.8% rate of return implies an annual increase of about $8,400 per year.

Law Enforcement Retirement Plan: The bill changes the duty-related spousal death benefit from 62.5% of the officer’s final salary to the greater of that or 2.5% of salary multiplied by the years of service. The bill increases the duty-related child survivor benefit from 5% to 6% of final salary. For members retired under W.S. 15-5-301 through W.S. 15-5-314 this bill changes the child benefit from $60.00 for each child under age eighteen to 6 percent of the officer’s salary for each child under the age of eighteen. The bill provides an expanded definition of officer’s salary for death benefits: the greater of highest average salary over three years or final actual salary during the last full month of credited service.

WRS’ actuarial analysis found that the changes in the Law Enforcement Plan are so minor as to be immaterial and/or within measurement error.

WRS estimates this bill would result in an expenditure increase of approximately $4,500 in FY 2023 for revision of printed material and modest programming changes in the pension administration software.

Prepared by: Polly Scott, LSO Phone: 777-7881

(Information provided by Mike Bleakley, Retirement System, 777-6109)

SF0018

ORIGINAL Senate

File No. SF0018

ENROLLED ACT NO. 22, SENATE

SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING

2023 General Session

AN ACT relating to administration of the government; amending death benefits for the law enforcement retirement plan and the state highway patrol, game and fish warden and criminal investigator retirement plan; conforming provisions; specifying applicability; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1. W.S. 9‑3‑432(j) and by creating a new subsection (p), 9‑3‑613, 9‑3‑614 and 9‑3‑615(a)(intro) are amended to read:

9‑3‑432. Law enforcement officers; contributions; benefit eligibility; service and disability benefits; death benefits; benefit options.

(j) Notwithstanding W.S. 9‑3‑421, any surviving spouse of an officer:

(i) Who dies in the scope of employment shall receive a monthly death benefit payment equal to the greater of sixty‑two and one‑half percent (62.5%) of the officer's salary at the time of death or two and one‑half percent (2.5%) of the officer's salary multiplied by the years of the officer's service credit, as determined under W.S. 9‑3‑417, plus six percent (6%) of that salary for each child under age eighteen (18), not to exceed one hundred percent (100%) of the officer's salary;.

(ii) Any surviving spouse of an officer Who dies outside of the scope of employment but before receiving retirement benefits under this section shall receive a monthly nonduty death benefit payment equal to fifty percent (50%) of the officer's salary, at the time of death, plus six percent (6%) of that salary for each child under age eighteen (18), not to exceed one hundred percent (100%) of the officer's salary;.

(iii) Notwithstanding any other provision in this subsection, any surviving spouse of any officer Who retired under W.S. 15‑5‑301 through 15‑5‑314 shall, notwithstanding any other provision in this subsection, receive a monthly pension equal to two‑thirds (2/3) of the pension the retired law enforcement officer was receiving at the time of his the officer's death, plus sixty dollars ($60.00) six percent (6%) of the officer's salary for each child under age eighteen (18), not to exceed one hundred percent (100%) of the officer's salary.

(p) As used in subsection (j) of this section, the officer's salary for purposes of determining death benefit payments shall be equal to the greater of:

(i) The officer's highest average salary at the time of death, as defined in subsection (e) of this section; or

(ii) The officer's final actual salary at the time of death, which means the gross salary paid to the officer during the last full month of credited service.

9‑3‑613. Payment on death; duty related.

(a) If a member of the retirement program dies as a result of any activity related to official duties as an employee prior to retirement under this article, a monthly death benefit equal to fifty percent (50%) the greater of sixty‑two and one‑half percent (62.5%) of the member's final actual salary at time of death or two and one‑half percent (2.5%) of the member's salary multiplied by the years of the member's service credit, as determined under W.S. 9‑3‑417, shall be paid to the surviving spouse.

(b) In addition to the benefits provided under subsection (a) of this section, an additional amount equal to five percent (5%) six percent (6%) of the final actual member's salary shall be paid as a benefit for each unmarried child under the age of eighteen (18) years, provided the total death benefit paid to the surviving spouse and children in accordance with this section shall not exceed one hundred percent (100%) of the employee's final actual salary.

(c) A member's salary for purposes of determining death benefit payments under this section shall be equal to the greater of:

(i) The member's highest average salary at the time of death, as defined in W.S. 9‑3‑602(a)(xvi); or

(ii) The member's final actual salary at the time of death as defined in W.S. 9‑3‑602(a)(vi).

9‑3‑614. Payment on death; not duty‑related death of retired member.

(a) If a member dies prior to retirement and his the member's death is not related to his the member's official duties as an employee, a monthly nonduty death benefit shall be paid to the surviving spouse, equal to two percent (2%) of the member's final actual salary at time of death for each year of credited service. The maximum nonduty death benefit payable to the spouse shall not exceed fifty percent (50%) of the member's final actual salary.

(b) In addition to the benefits provided under subsection (a) of this section, an additional amount equal to five percent (5%) six percent (6%) of the final actual member's salary shall be paid as a benefit for each unmarried child under the age of eighteen (18) years. The total nonduty death benefit paid to the surviving spouse and children in accordance with this subsection shall not exceed sixty percent (60%) one hundred percent (100%) of the employee's final actual salary.

(b)(c) If a retired member of the retirement program dies, the spouse of the deceased member shall receive a benefit equal to fifty percent (50%) of the retirement allowance paid in accordance with W.S. 9‑3‑607 through 9‑3‑614. In determining the benefit to be paid to the spouse, no reduction due to social security shall be taken into account. In addition, an amount equal to five percent (5%) six percent (6%) of the final actual member's salary shall be paid as a benefit for each unmarried child under the age of eighteen (18) years. The total benefit paid to the surviving spouse and children on the death of the retired member in accordance with this subsection shall not exceed sixty percent (60%) one hundred percent (100%) of the employee's final actual salary.

(d) As used in this section, the member's salary for purposes of determining death benefit payments means as provided in W.S. 9‑3‑613(c).

9‑3‑615. Election of coverage under Wyoming Retirement Act.

(a) Subject to uniform rules and regulations the retirement board prescribes, instead of the service allowance provided in this article and instead of the benefit specified in W.S. 9‑3‑614(b) 9‑3‑614(c), a member of the retirement program may elect one (1) of the following forms of service retirement benefits which shall be the actuarial equivalent of the benefit to which he would otherwise be entitled:

Section 2.

(a) This act shall apply to the distribution of all benefits for the death of members subject to this act made on or after the effective date of this act.

(b) Nothing in this act shall be construed to modify or impair existing contracts, benefits or other obligations arising or awarded before the effective date of this act.

Section 3. This act is effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)


Speaker of the House			President of the Senate


	Governor

	TIME APPROVED: _________

	DATE APPROVED: _________

I hereby certify that this act originated in the Senate.

Chief Clerk

SF0018

Benefits for spouses of law enforcement members.

Sponsored By: Joint Transportation, Highways & Military Affairs Interim Committee

12/1/2022 Bill Number Assigned

12/28/2022 S Received for Introduction

1/10/2023 S Introduced and Referred to S08 - Transportation

1/12/2023 S08 - Transportation:Recommend Do Pass 5-0-0-0-0

ROLL CALL

Ayes: Senator(s) Boner, Brennan, Furphy, Kolb, Pappas

Ayes 5 Nays 0 Excused 0 Absent 0 Conflicts 0

1/12/2023 :Rerefer to S02 - Appropriations

1/16/2023 S02 - Appropriations:Recommend Do Pass 4-0-1-0-0

ROLL CALL

Ayes: Senator(s) Anderson, Gierau, Kinskey, Salazar

Excused: Senator Nethercott

Ayes 4 Nays 0 Excused 1 Absent 0 Conflicts 0

1/16/2023 S Placed on General File

1/16/2023 S COW:Passed

1/17/2023 S 2nd Reading:Passed

1/18/2023 S 3rd Reading:Passed 29-1-1-0-0

ROLL CALL

Ayes: Senator(s) Anderson, Baldwin, Barlow, Biteman, Boner, Bouchard, Brennan, Cooper, Dockstader, Ellis, French, Furphy, Gierau, Hicks, Hutchings, Ide, Jones, Kinskey, Kolb, Landen, Laursen, Mckeown, Nethercott, Pappas, Rothfuss, Salazar, Schuler, Scott, Steinmetz

Nays: Senator Case

Excused: Senator President Driskill

Ayes 29 Nays 1 Excused 1 Absent 0 Conflicts 0

1/18/2023 H Received for Introduction

2/8/2023 H Introduced and Referred to H08 - Transportation

2/9/2023 H08 - Transportation:Recommend Do Pass 9-0-0-0-0

ROLL CALL

Ayes: Representative(s) Berger, Brown, Niemiec, Obermueller, O'hearn, Pendergraft, Smith, Styvar, Wylie

Ayes 9 Nays 0 Excused 0 Absent 0 Conflicts 0

2/9/2023 H Placed on General File

2/10/2023 H COW:Passed

2/13/2023 H 2nd Reading:Passed

2/14/2023 H 3rd Reading:Passed 60-1-1-0-0

ROLL CALL

Ayes: Representative(s) Allemand, Allred, Andrew, Angelos, Banks, Bear, Berger, Brown, Burkhart, Jr, Byron, Chadwick, Chestek, Clouston, Conrad, Crago, Davis, Eklund, Haroldson, Heiner, Henderson, Hornok, Knapp, Larsen, Lloyd, Larson, Jt, Lawley, Locke, Neiman, Newsome, Nicholas, Niemiec, Northrup, Oakley, Obermueller, O'hearn, Olsen, Ottman, Pendergraft, Penn, Provenza, Rodriguez-Williams, Sherwood, Singh, Slagle, Smith, Speaker Sommers, Stith, Storer, Strock, Styvar, Tarver, Trujillo, Walters, Ward, Washut, Western, Winter, Wylie, Yin, Zwonitzer, Dan, Zwonitzer, Dave

Nays: Representative Jennings

Excused: Representative Harshman

Ayes 60 Nays 1 Excused 1 Absent 0 Conflicts 0

2/14/2023 Assigned Number SEA No. 0022

2/14/2023 S President Signed SEA No. 0022

2/14/2023 H Speaker Signed SEA No. 0022

2/15/2023 Governor Signed SEA No. 0022

2/15/2023 Assigned Chapter Number 5

Chapter No. 5 Session Laws of Wyoming 2023

Bill No.: SF0018 Effective: Immediately

LSO No.: 23LSO-0023

Enrolled Act No.: SEA No. 0022

Chapter No.: 5

Prime Sponsor: Joint Transportation, Highways & Military Affairs Interim Committee

Catch Title: Benefits for spouses of law enforcement members.

Subject: Retirement benefits.

Summary/Major Elements:

This act amends and conforms two (2) retirement plans, the Law Enforcement Retirement Plan and the State Highway Patrol, Game and Fish Warden and Criminal Investigator Retirement Plan, to provide for the following benefits:
- The pre-retirement duty-related death benefit paid to a spouse is amended be the greater of either sixty-two and one-half percent (62.5%) of the member's salary at time of death or two and one-half (2.5%) of the member's salary multiplied by the number of years of the service;
- The pre-retirement non-duty death benefit paid to a spouse is amended to be fifty percent (50%) of salary.
- The amount paid as a benefit for a member's children is amended to be six percent (6%) of salary;
- The maximum allowable benefit paid to the surviving spouse and children is amended to be one hundred percent (100%) of salary;
- The definition of \"salary\" for purposes of calculating benefits is amended to be the greater of the member's highest average salary over three (3) years or final actual salary during the last full month of credited service.

The act applies to benefits paid after the effective date of the act.

The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent. While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.