Committee narrowly advances 0.25% retirement contribution increase after debate over timing and local impacts

The Appropriations Committee voted to advance Senate File 0187, a measure that would increase both employer and employee contributions to the state's large public-employee retirement plan by 0.25 percentage points for one year. The committee recorded a 3–2 roll-call vote in favor of sending the bill forward.

Senator Hicks, who presented the bill, described it as the same measure the legislature considered last year and said its purpose is to "jump start" progress toward actuarial soundness for the large retirement plan, which he and the retirement system described in testimony as carrying an unfunded liability of about $2.5 billion. Hicks said the bill's change would be a one-year increase by one quarter of a percent for both employers and employees and cited a fiscal note showing the state's share of the one-year increase would be about $1.7 million from the general fund and $3.4 million from the public school foundation fund.

David Swindell, executive director of the Wyoming Retirement System, told the committee the retirement board had no position on the bill (neutral) and provided analysis explaining that a mechanism enacted last year — an actuarially determined contribution (ADC) in statute — creates a predetermined path to full funding. Swindell told senators that using the ADC will adjust rates over time and that accelerating contributions now would not change the statutory target date for full funding but could modestly lower steady-state rates later.

Betsy Anderson, deputy chief of staff and general counsel to Governor Gordon, testified the governor opposes the bill at this time. She told the committee the governor prefers to rely on the ADC mechanism passed last year, both to preserve budget stability for local governments and to avoid adding immediate contribution costs while state employees continue to recover from inflation-driven pay pressures.

Committee members discussed near-term budget impacts for local employers and the long-term funding trajectory. Senator Giroux asked whether the school share reflected in the fiscal note matched prior estimates; Senator Hicks and Director Swindell explained the fiscal split reflects the participation of school employees in the large plan.

The committee took a recorded roll-call vote. The clerk read the votes in the transcript as: Senator Driscoll — Aye; Senator Garou — No; Senator Larson — No; Senator Smith — Aye; Chairman Salazar — Aye. The clerk announced the outcome as "3 ayes, 2 nos, do pass." The transcript shows no amendments adopted at the hearing and no additional committee directions.