Oklahoma House Bill HB1391

Oklahoma 2023 Regular Session

• Introduced: 2/6/23
• Refer: 2/7/23
• Refer: 2/27/23

Caption

Public retirement systems; Oklahoma Pension Legislation Actuarial Analysis Act; definition; post-retirement employment; effective dates; emergency.

Impact

The provisions outlined in HB 1391 could have significant implications for Oklahoma's public retirement systems and labor force. By permitting earlier re-employment for retirees, the legislation is expected to enhance workforce participation among experienced individuals. It aims to provide incentives for retirees who wish to re-enter the workforce, especially in critical public service areas. Nonetheless, the legislative changes introduce complexities in the calculation of retirement benefits for re-employed retirees. Benefits would be recalculated based on additional service credits accumulated during their re-employment period, which may necessitate further administrative oversight.

Summary

House Bill 1391 seeks to amend the Oklahoma Pension Legislation Actuarial Analysis Act and related statutes concerning public retirement systems. The primary modifications within the bill include changes to the definitions utilized in evaluating retirement bills and adjustments to the time frame regarding post-retirement employment for members of the Oklahoma Public Employees Retirement System (OPERS). Specifically, the bill reduces the mandatory waiting period for retirees returning to work in a participating employer from one year to six months. This allows retirees to access retirement benefits sooner while re-entering the workforce, aiming to address labor shortages in certain sectors that benefit from experienced employees.

Contention

The amendment of the post-retirement employment rules has sparked some discussions around the potential fiscal impact on the retirement systems. While the bill is classified as a nonfiscal retirement bill, concerns remain about the long-term sustainability of the pension systems given the recalibration of benefits and the projected increase in retiree participation. Critics might argue about the balance between making re-employment attractive and ensuring financial integrity within public retirement plans. By increasing the number of retirees accessing benefits while still contributing as employees, some stakeholders express anxiety over unfunded liabilities that may arise from these structural changes.