This bill introduces a new section, W.S. 9-3-455, to The Wyoming Retirement Act, which establishes a framework for benefit adjustments for retired members based on the investment earnings of their retirement accounts. Starting January 1, 2028, the retirement board will provide annual benefit adjustments to eligible retired members, with specific criteria based on the actual rate of return of the retirement account compared to an actuarially determined assumed rate of return. The adjustments will vary depending on the performance of the retirement account, with provisions for members who have been receiving benefits for different lengths of time. Additionally, the bill specifies that no adjustments will be made if the actuarial funded ratio of the individual plan is below 80%.

The bill also amends several existing sections to incorporate the new benefit adjustment provisions, including requirements for the retirement board to report on these adjustments and their impact on the retirement account. It clarifies that benefit adjustments will be made in accordance with W.S. 9-3-455 and emphasizes that these adjustments are intended to be funded by investment earnings from the previous calendar year. Furthermore, the bill repeals a previous finding that restricted cost-of-living adjustments until the actuarial funded ratio exceeded 100%, thereby allowing for more flexibility in benefit adjustments moving forward. The act is set to take effect immediately upon completion of the necessary legislative processes.

Statutes affected:
27LSO-0186 v0.6: 9-3-405, 9-3-406, 9-3-453, 9-3-454, 35-9-621