Wyoming legislators act to bolster state pension funds

JACKSON — Several bills signed into law by Gov. Mark Gordon aim to safeguard pension funds for state employees across Wyoming.

Government employees receive pensions through the state of Wyoming, and the Legislature controls how much of their salary they can contribute for retirement.

David Swindell, executive director of the Wyoming Retirement System, said there was catching-up to do to ensure funds will be healthy for employees in 30 years. The promise of a pension is the No. 1 recruitment and retention tool used to fill positions across the state, Swindell said.

Effective July 1, retirement contributions will increase for Wyoming State Highway Patrol, Game and Fish wardens and judges. Employees and employers will be splitting the increases.

One bill that has yet to receive Gordon’s signature is Senate File 47, which increases retirement contributions for law enforcement officers. The fund is only 84% funded, Swindell said. SF 47 would get the fund to 96% funded, over the course of 30 years.

“Eighty-four percent means ... we don’t quite have enough money right now to pay all the benefits that ultimately we expect to pay,” Swindell said. “But eventually we do need to get to 100% funding.”

The law enforcement fund has 2,500 participating employees throughout the state, Swindell said. Most of those are in local law enforcement, such as the Jackson Police Department and Teton County Sheriff’s Office, but state correctional officers and state dispatchers also participate.

Teton County has 59 active employees in the plan, according to Swindell.

Allen Thompson, executive director of the Wyoming Association of Sheriffs and Chiefs of Police, said officers across the state “begrudgingly support” the bill.

“It comes out to be a pay reduction for employees to put money toward retirement; however, we need a sound retirement in 30 years,” Thompson said.

The plan hasn’t changed since 2002, when it was formed, Swindell said.

“Rate increases are difficult,” Swindell said. “The trouble of it is, if you don’t do it on a regular schedule, if you get behind with this stuff, then the rate increases have to be larger. It doesn’t get any cheaper if you wait.”

If the pending bill becomes law, a 5.4% increase in retirement contributions will be phased in over three years. That increase will be evenly split between the employee and employer.

Every local entity has the ability to subsidize all or part of that cost. Teton County in the past has subsidized the total contribution by shouldering two-thirds of the annual percentage. That will likely be taken up in the county’s next budget session.

The Wyoming Retirement Fund administers eight pension plans for public employees of the state and paid out $780 million in benefits last year. The largest plan, known as the “Public Employee Plan,” encompasses about 35,000 retirees and 41,000 active contributing members.

Two bills that would impact contributions to the Public Employee Plan, Senate File 67 and House Bill 83, had not yet been signed into law as of press time.

Swindell expects SF 47 will receive the governor’s support. Gordon has until March 23 to decide.

If the bill isn’t signed into law, in 30 years the fund could be only 55% funded, which would likely impact the government’s ability to attract candidates.

“Although these contribution rate increases are necessary and difficult, it does preserve a benefit that is highly regarded as the No. 1 reason that employees enter public service,” Swindell said. “It’s the No. 1 benefit to keep them in public service. And so it’s worth it.”

This story was published on March 19, 2024.