Bill > SF0038

This bill amends the performance compensation calculation methods for investment staff at the Wyoming State Treasurer's office and the Wyoming Retirement Board. Specifically, the bill changes how investment performance is calculated for performance-based compensation payments. For fiscal years 2022 through 2025, the compensation will be based on the arithmetic average of investment performance over three years. Starting in fiscal year 2026, the calculation will switch to using the geometric average of investment performance over three years. The geometric average (which multiplies the annual returns and then takes the root of that product) can provide a more accurate representation of investment performance over time, particularly when returns are volatile. The bill will take effect on July 1, 2025, allowing state agencies time to prepare for the new performance compensation calculation method. The change applies to both the state treasurer's office and the retirement board, ensuring consistent performance compensation calculation across these state investment entities.