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.