Elected Officials and Board Member Guidance
I.
General Rule: any person who becomes a
full-time or regular part-time employee of a participating employer should be
enrolled as a “member” and participate in WRS, even if that employment is as an
elected official. If the person is otherwise employed by another WRS
participating employer at the time they assume their position as an elected
official, contributions shall be submitted for all applicable employment and
retirement benefits will accrue accordingly.
A.
Exceptions to the general rule:
1.
Elected
members of the Wyoming Legislature do not participate in WRS. Wyo. Stat. §
9-3-402(a)(vii)(G).
Example: Jeff is running for a political office in the
Wyoming State Legislature. If elected, he is not eligible to participate in
WRS.
A legislator who is also an
employee of the Executive Branch of the State is required to take leave without
pay for the performance of all legislative duties, per State Personnel
rules. A legislator employed by any other employer would follow the rules of
that employer as to how time for legislative duties would be handled.
Legislators are not eligible for State retirement based on compensation they
receive as a legislator.
2.
Any
person appointed to a state board or commission who is not otherwise employed
by the state may elect in writing not to participate in WRS for purposes of
their state board or commission appointment. Wyo. Stat. § 9-3-402(a)(vii)(E).
a.
The
phrase “employed by the state” includes any individual entering into service of
or working under an employment contract with any agency of the State of Wyoming
for which compensation is paid or which qualifies the individual to participate
in the state retirement account. The University of Wyoming is not considered a
State of Wyoming employer in this instance.
b.
A
member that is otherwise employed by the
state is not eligible to opt-out
of participation in WRS for purposes of service on a state board or commission.
The service credit and other benefits accrued for all employment will be
combined.
Example:
Susan is currently working for the Department of Health and is appointed to a
position on the Livestock Board. She is required to pay contributions for her
term on the Livestock Board because she is also employed by a State of Wyoming
employer.
Example:
Frank is currently working for the City of Cheyenne and is appointed to the Community
College Commission. Because he is not currently working for a State of Wyoming
employer, he has the option to “opt out” of participating in WRS during his
term on the Community College Commission.
3.
An
elected member of a county, municipal or school district commission, council or
board may elect in writing at the beginning of their term in office not to
participate in WRS for purposes of their elected commission, council or board
position only if they are otherwise
employed by an entity participating in WRS at the time they assume office. Wyo.
Stat. § 9-3-402(a)(vii)(N).
a.
An
elected official choosing to opt-out of WRS for purposes of elected office employment
must make the election by the time the first payroll would be processed for
that employment as an elected official.
b.
Any election made by a member to opt-out of WRS for purposes of elected
office employment is irrevocable for the remainder of the elected official’s
time in office, even if re-elected to the same office.
Example: Betty works for WYDOT and
has been elected to the City Council. At the beginning of her term, Betty
opts-out of participating in WRS for purposes of elected office employment. She
cannot change her decision to opt-out of WRS, even if she is subsequently
re-elected to the same office.
c.
A
member who does opt-out of WRS for purposes of elected office employment is
eligible to terminate from and begin retirement benefits for other employment
with an entity participating in WRS, and does not have to terminate their
elected office employment.
Example: Harry works for the
Department of Education and is elected to a position on the School Board. He
opts-out of participating in WRS for purposes of elected office employment. He
can terminate his employment with the Department of Employment and begin to
draw his benefit, while continuing to serve on the School Board.
d.
A
member who does not opt-out of WRS
for purposes of elected office employment at the beginning of a term in office
may elect to opt-out upon re-election to the same office, provided that the
member is otherwise employed by an entity participating in WRS at the beginning
of the new term.
Example: James works for Casper College
and is also serving as a County Commissioner. He is participating in WRS for
both positions. James’ term as County Commissioner is ending, but he runs for
another term and is re-elected as a County Commissioner. He continues his
employment at Casper College, but at the beginning of this new term as County
Commissioner, James elects to opt-out of WRS for purposes of elected office
employment.
e.
A
member who does not opt-out of WRS for purposes of elected office employment is
not eligible to begin retirement benefits for other employment with an entity
participating in WRS unless all employment within the plan is terminated,
including elected office employment.
Example: Gloria works for the City
of Evanston and also is in an elected position on the City Council. Gloria is
participating in WRS for both positions. Gloria wants to retire from the City
of Evanston, but continue serving on the City Council. Because Gloria did not
opt-out of WRS for purposes of her elected office employment, she is not
eligible to begin retirement benefits for the City of Evanston unless she also
resigns from her elected position on the City Council.
f.
A
member who is otherwise employed by an entity participating in WRS in an
elected position, the term for which technically terminates prior to the
beginning of the term of the new elected office employment, should be
considered “employed” for purposes of this section and may opt-out of participation
in WRS for purposes of the new elected office employment.
Example: Mary is the
elected County Treasurer and has been making contributions to WRS. She wants to
run for a County Commissioner position but also wants to retire from her
employment as County Treasurer and start drawing the benefit she’s earned. She
is elected County Commissioner. She finishes out her term as County Treasurer
and is sworn in as County Commissioner the next day. She takes advantage of the
“opt out” provision so does not contribute to WRS for purposes of her
employment as County Commissioner and she applies for her retirement benefit.
She is not considered a rehired retiree and the employer does not need to pay
the rehired retiree payment.
II.
General Rule: A person cannot simultaneously be
employed by an entity participating in WRS and apply for or draw a retirement
benefit related to employment in that same plan.
A.
Exceptions to the general rule:
1.
A
member may apply for and begin drawing a retirement benefit from non-elected
employment while continuing elected office employment only if the member
opted-out of elected office employment at the beginning of the term in
accordance with Wyo. Stat. § 9-3-402(a)(vii)(N).
2.
A
member who meets all of the requirements under Wyo. Stat. § 9-3-415(g-j) and
Chapter 12, Section 7 of the WRS administrative rules to be a rehired retiree
may elect upon re-employment to continue receiving retirement benefits and not
be re-enrolled into WRS for purposes of the new employment.
a.
A
member running for elected office employment that participates in WRS and who
terminates all employment in a plan prior to being elected is eligible to make
an election as a rehired retiree upon assuming office.
Example:
Joe is the elected County Sheriff and has been making contributions to WRS. He
wants to run for reelection, but also wants to start drawing his retirement
benefit. He terminates his employment by resigning from office BEFORE the
election and applies for and starts drawing his monthly retirement benefit. He
is subsequently reelected as County Sheriff. He can continue to draw his
benefit and not contribute to WRS. He is a rehired retiree and his employer is
required to pay the rehired retiree payment.
b.
A
member running for elected office employment that participates in WRS and who
terminates all employment in a plan after being elected cannot use the
intervening time between election and assuming office as the bona fide
separation of service required to be eligible to make an election as a rehired
retiree. Such member’s application or benefit should be terminated and the
member returned to service in WRS upon assuming office.
Example: Same
scenario as above, but this time Joe doesn’t terminate employment until AFTER he
knows he has been elected. He cannot use the intervening time between election
and assuming office as the bona fide separation of service required to be
eligible to make an election as a rehired retiree. Although he is eligible to
apply for retirement when he terminates employment, he knows that he will begin
employment in the system when he assumes the newly elected office. Therefore he
does not meet the requirements for retirement and we would terminate either his
retirement application or his retirement benefit and re-enroll him in WRS.