Retirement Contributions for Traditional Pay
The Wyoming Retirement System (WRS) has defined what constitutes pension eligible compensation. WRS will review contributions and employee compensation to ensure compliance with applicable law and regulation.
WRS cannot accept retirement contributions on nonrecurring payments to employees. Nonrecurring amounts are considered equivalent to bonuses paid in addition to base salary and have the potential to "spike" retirement benefits without providing the consistent funding necessary to pay future benefits.
Below is a chart describing the most common pay types employers encounter and whether the pay is pension eligible.
|Pay Type||Description/Examples||Pension Eligible||Explanation|
|Bonuses||Financial compensation above and beyond the normal payment expectations of the recipient.||No|
|Cell Phone||Cell phone reimbursement stipends: a sum of money given to employees to purchase a cell phone or a cell phone plan.||No|
|Comp Time||Used accumulated comp time to cover time off.
||Restrictions - See Explanation
||Yes, If used instead of leave to cover time off.|
Unused comp time lump sum payout yearly or end of employment.
Restrictions - See Explanation
WRS Chapter 8 Cash Remuneration rule definition includes any pay for compensatory time, provided that any such pay for compensatory time is made during the same calendar year in which the compensatory time is earned.
WRS has determined this is a rolling calendar year (for example, if the employer's fiscal year ends in June, you can pay any earned comp time back to July).
If the comp time lump sum payout inflates the member's highest average salary, WRS will require the lump sum to be reversed and reported for the months earned.
|Disability insurance: replaces a certain percentage of an employee’s gross monthly income.||No|
|Early Retirement Incentive Pay (ERIP)||Pay intended as incentive for employees approaching or at retirement age to retire earlier than they might have otherwise.||No|
|Extra Duty Payments
||An allowance payable to employees who are given special assignments or perform additional duties.
Examples: coaching, summer school, activity bus driving, etc.
|Fringe Benefits||An extra benefit supplementing an employee's salary.
Examples: company car, subsidized meals, health insurance, etc.
||Reimbursement to an employee for basic living expenses.
|Leave – Sick, Annual, etc.||
Used accrued leave.
Unused lump sum payout of accrued leave.
|Medical Insurance (paid by the employer)
||Employer paid health insurance premiums.
|National Board Certification (NBC)
||NBC is a voluntary, advanced teaching credential that goes beyond state licensure.||Yes||If paid in the calendar year earned.|
issued to an employee while on-call.
court orders, arbitration awards, grievance settlements. Etc.
earned by an employee for service rendered.
||Lump sum payment to an employee upon dismissal or discharge from employment.||No|
Specific reimbursement for the cost of business transportation by car, plane, train, etc. Examples: vehicle expenses, fuel, mileage, parking fees, lodging, meals, or telephone charges.
|Benefits to an employee who suffers a work-related injury or illness. Helps pay for medical cares, wages from last work, etc.||No|
|Benefits to an employee who suffers a work-related injury or illness.||Yes||Up to six months per Wyo. Stat. 9-2-1022(g).|
Additional Payment Types Information
- Payments received by an employee in lieu of previously employer-provided fringe benefits under an agreement between the employee and participating employer entered into within sixty (60) months before retirement or any other payment which may reasonably be construed to be a fringe benefit are not pension eligible.
- Any payment made during any three-year period of employment deemed to increase the highest average salary for the primary purpose of increasing a retirement benefit is not pension eligible.
- Nonrecurring lump-sum payments to employees who have reached the highest level of pay in their pay grade (i.e., “red lined”) are not pension eligible.
- Call for specific pay types not listed on this webpage for WRS staff to review and provide guidance regarding eligible compensation.