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Oklahoma House Bill HB2189

Oklahoma 2022 Regular Session

Oklahoma House Bill HB2189 Compare Versions

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2828 STATE OF OKLAHOMA
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3030 1st Session of the 58th Legislature (2021)
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3232 HOUSE BILL 2189 By: Johns
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3838 AS INTRODUCED
3939
4040 An Act relating to public retirement systems;
4141 amending 70 O.S. 2011, Section 17 -105, as last
4242 amended by Section 1, Chapter 268, O.S.L. 201 9 (70
4343 O.S. Supp. 2020, Section 17 -105), which relates to
4444 the Teachers' Retirement System of Oklahoma;
4545 modifying period of service required for retirement
4646 benefit eligibility; providing for applicability of
4747 provisions related to retirement eligibility for
4848 persons becoming members of the retirement syst em
4949 between specified dates; providing an effective date ;
5050 and declaring an emergency .
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5656 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
5757 SECTION 1. AMENDATORY 70 O.S. 201 1, Section 17-105, as
5858 last amended by Section 1, Chapter 268, O.S.L. 2019 (70 O.S. Supp.
5959 2020, Section 17-105), is amended to read as follows:
6060 Section 17-105. (1) (a) Any member who has attained age
6161 fifty-five (55) or who has completed thirty (30) years of creditable
6262 service, as defined in Section 17 -101 of this title, or for any
6363 person who initially became a member prior to July 1, 1992,
6464 regardless of whether there were breaks in service after July 1,
6565 1992, whose age and number of years of creditable se rvice total RBH No. 6409
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9292 eighty (80) may be retired upon proper application for retirement on
9393 forms established by the System and executing a retirement contract.
9494 Such a retirement date will also apply to any person who became a
9595 member of the sending system as defined in this act, prior to July
9696 1, 1992, regardless of whether there were breaks in service after
9797 July 1, 1992. Any person who became a member after June 30, 1992,
9898 but prior to November 1, 2011, whose age and number of years of
9999 creditable service total ninety (90) may be retired upon proper
100100 application for retirement and executing a retirement contract. Any
101101 person who becomes a member on or after November 1, 2011, who
102102 attains the age of sixty -five (65) years or who reaches a normal
103103 retirement date pursuant to subparagraph (d) of paragraph (24) of
104104 Section 17-101 of this title having attained a minimum age of sixty
105105 (60) years may be retired upon proper application for retirement and
106106 executing a retirement contract. The application shall be filed on
107107 the form provided by the Board of Trustees for this purpose, not
108108 less than sixty (60) days before the date of retirement, provided
109109 that the Executive Director may waive the sixty -day deadline for
110110 good cause shown as defined by the Board.
111111 1. The employer shall provide the System with the
112112 following information for a retiring member, no later
113113 than the fifteenth day of the month of retirement:
114114 last day physically on the job; last day on payroll; RBH No. 6409
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141141 any regular compensation not already reported to the
142142 System; and final unused sick leave balance.
143143 2. Failure to submit this information by the deadline, or
144144 errors in submitted information that result in a
145145 disqualification of retirement eligibility shall be
146146 the responsibility of the employer. In cases where
147147 the error results in disq ualification of retirement
148148 eligibility, it is the employer's responsibility to
149149 reemploy the member, or retain the member on the
150150 payroll, for the time period required to reach
151151 eligibility, not exceeding two (2) months.
152152 (b) An individual who becomes a membe r of the Teachers'
153153 Retirement System on or after November 1, 2017, shall be employed by
154154 the public schools, state colleges or universities of Oklahoma for a
155155 minimum of seven (7) five (5) years and be a contributing member of
156156 the Teachers' Retirement System of Oklahoma for a minimum of seven
157157 (7) five (5) years to qualify for monthly retirement benefits from
158158 the Teachers' Retirement System of Oklahoma. Any person who became
159159 a member of the System on or after November 1, 2017, and not later
160160 than October 31, 2021, shall be subject to the five -year period of
161161 required contributory membership prescribed by this subsection.
162162 (c) Any member with seven (7) or more years of Oklahoma
163163 teaching service and whose accumulated contributions during such
164164 period have not been withdrawn shall be given an indefinite RBH No. 6409
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191191 extension of membership beginning with the sixth year following his
192192 or her last contributing membership and shall become eligible to
193193 apply for retirement and be retired upon attaining age fifty -five
194194 (55).
195195 (2) An unclassified optional member who has retired or who
196196 retires at sixty-two (62) years of age or older or whose retirement
197197 is because of disability shall have his or her minimum retirement
198198 benefits calculated on an average salary of Five Thousand Three
199199 Hundred Fifty Dollars ($5,350.00) or, if a larger monthly allowance
200200 would result, an amount arrived at pursuant to application of the
201201 formula prescribed herein.
202202 (3) No member shall receive a lesser retirement benefit than he
203203 or she would have received under the law in effect at the time he or
204204 she retired. Any individual under the Teachers' Retirement System,
205205 who through error in stating the title of the position which he or
206206 she held, may, at the discretion of the Board of Trustees, be
207207 changed from the nonclassified optional group to the classified
208208 group for the purpose of calculating retirement benefits.
209209 Any individual regardless of residence, who has a minimum of ten
210210 (10) years of teaching in Oklahoma schools prior to July 1, 1943, or
211211 who taught in Oklahoma schools prior to 1934 and thereafter taught a
212212 minimum of ten (10) years and who does not qualify under the present
213213 retirement System, or who has a minimum of thirty (30) years of
214214 teaching in Oklahoma schools and has reached seventy (70) years of RBH No. 6409
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241241 age prior to July 1, 1984, and is not otherwise eligible to receive
242242 any benefits from the retirement system shall receive a minimum of
243243 One Hundred Fifty Dollars ($150.00) per month in retirement benefits
244244 from the Teachers' Retirement System of Oklahoma plus any general
245245 increase in benefits for annuitants as may be provided hereafter by
246246 the Legislature. Each individual must apply to the Teachers'
247247 Retirement System for such benefit and provide evidence to the
248248 Teachers' Retirement System that the service was actually rendered .
249249 The surviving spouse of any person who made application for the
250250 benefit provided for by this paragraph during his or her lifetime
251251 but did not receive the benefit may submit an application to the
252252 System for payment of the benefit for those months during the
253253 lifetime of the deceased person that he or she was eligible for but
254254 did not receive the benefit. Upon approval of the application by
255255 the Board of Trustees, the benefit shall be paid to the surviving
256256 spouse in one lump sum.
257257 (4) The value of each year of prior service is the total
258258 monthly retirement benefit divided by the number of years of
259259 creditable service.
260260 (5) Upon application of a member who is actively engaged in
261261 teaching in Oklahoma or his or her employer, any member who has been
262262 a contributing member for ten (10) years may be retired by the
263263 System subsequent to the execution and filing thereof, on a
264264 disability retirement allowance, provided that it is found by the RBH No. 6409
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291291 Medical Board after medical examination of such member by a duly
292292 qualified physician that such member is mentally or physically
293293 incapacitated for further performance of duty, that such incapacity
294294 is likely to be permanent, and that such member should be retired.
295295 The System shall rely on and give full consideration to the
296296 conclusions and recommendations in the certified written report of
297297 the Medical Board of the Teachers' Retirement System regarding the
298298 disability application of such member. If the Medical Board does
299299 not find that a member applying for disability retirement is
300300 mentally or physically incapacitated for performance of duty or
301301 otherwise eligible for a disability retirement, the application
302302 shall then be considered by the Board of Trustees. If a member is
303303 determined to be eligible for disability benefits pursuant to the
304304 Social Security System, then such determination shall entitle the
305305 member to the authorized disability retirement allowance provided by
306306 law. For members who are not eligible for disability benefits
307307 pursuant to the Social Security System, the Board of Trustees and
308308 the Medical Board shall apply the same standard for which provision
309309 is made in the first two sentences of this subsection for
310310 determining the eligibility of a person for such disability benefits
311311 in making a determination of eligibility for disability b enefits as
312312 authorized by this subsection.
313313 (6) (a) A member who at the time of retirement has been found
314314 to be permanently physically or mentally incapacitated to perform RBH No. 6409
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341341 the necessary duties to continue in his or her current position
342342 shall receive a mini mum monthly retirement payment for life or until
343343 such time as the member may be found to be recovered to the point
344344 where he or she may return to teaching. Any member retired before
345345 July 1, 1992, shall be eligible to receive the monthly retirement
346346 allowance herein provided, but such payment shall not begin until
347347 the first payment due him or her after July 1, 1992, and shall not
348348 be retroactive. The Board of Trustees is empowered to make such
349349 rules and regulations as it considers proper to preserve equity in
350350 retirements under this provision, which shall include a provision to
351351 protect the rights of the member's spouse.
352352 (b) A member who has qualified for retirement benefits under
353353 disability retirement shall have the total monthly payment deducted
354354 from his or her accumulated contributions plus interest earned and
355355 any money remaining in the member's account after the above
356356 deductions at the death of the member shall be paid in a lump sum to
357357 the beneficiary or to the estate of the member. Provided, if the
358358 deceased disabled member had thirty (30) years or more of creditable
359359 service and the death occurred after June 30, 1981, and death
360360 occurred prior to the disabled member receiving twelve monthly
361361 retirement payments, a surviving spouse may elect to receive the
362362 retirement benefit to which the deceased member would have been
363363 entitled at the time of death under the Option 2 Plan of Retirement
364364 provided for in subsection (8) of this section in lieu of the death RBH No. 6409
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391391 benefit provided for in this subsection and in subsection (1 2) of
392392 this section.
393393 (c) Once each year the System may require any disabled
394394 annuitant who has not yet attained the age of sixty (60) years to
395395 undergo a medical examination, such examination to be made at the
396396 place of residence for the disabled annuitant or other place
397397 mutually agreed upon by a physician or physicians designated by the
398398 System. Should any disabled annuitant who has not yet attained the
399399 age of sixty (60) years refuse to submit to at least one medical
400400 examination in any such year by a physicia n or physicians designated
401401 by the System his or her allowance may be discontinued until he or
402402 she submits to such examination.
403403 (d) Should the Medical Board report and certify to the Board of
404404 Trustees that such disabled annuitant is engaged in or is able t o
405405 engage in a gainful occupation paying more than the difference
406406 between his or her retirement allowance and the average final
407407 compensation, and should the Board of Trustees concur in such report
408408 then the amount of his or her pension shall be reduced to an amount
409409 which, together with his or her retirement allowance and that amount
410410 earnable by him or her, shall equal the amount of his or her average
411411 final compensation. Should his or her earning capacity be later
412412 increased, the amount of his or her pension m ay be further modified,
413413 provided the new pension shall not exceed that amount of the pension
414414 originally granted nor an amount, which when added to the amount RBH No. 6409
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441441 earnable by the member, together with his or her annuity, equals the
442442 amount of his or her average final compensation.
443443 (e) Should a disabled annuitant be restored to active service,
444444 his or her disability retirement allowance shall cease and he or she
445445 shall again become a member of the Teachers' Retirement System and
446446 shall make regular contributions as required under this article.
447447 The unused portion of his or her accumulated contributions shall be
448448 reestablished to his or her credit in the Teachers' Savings Fund.
449449 Any such prior service certificates on the basis of which his or her
450450 service was computed a t the time of his or her retirement shall be
451451 restored to full force and effect.
452452 (7) Should a member before retirement under Section 1 -101 et
453453 seq. of this title make application for withdrawal duly filed with
454454 the System, not earlier than four (4) months af ter the date of
455455 termination of such service as a teacher, the contribution standing
456456 to the credit of his or her individual account in the Teachers'
457457 Savings Fund shall be paid to him or her or, in the event of his or
458458 her death before retirement, shall be pa id to such person or persons
459459 as he or she shall have nominated by written designation, duly
460460 executed and filed with the System; provided, however, if there be
461461 no designated beneficiary surviving upon such death, such
462462 contributions shall be paid to his or h er administrators, executors,
463463 or assigns, together with interest as hereinafter provided. In lieu
464464 of a lump-sum settlement at the death of the member, the amount of RBH No. 6409
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491491 money the member has on deposit in the Teachers' Savings Fund and
492492 the money the member has on deposit in the Teachers' Deposit Fund
493493 may be paid in monthly payments to a designated beneficiary, who
494494 must be the spouse, under the Maximum or Option 1 Plan of Retirement
495495 providing the monthly payment shall be not less than Twenty -five
496496 Dollars ($25.00) per month. The monthly payment shall be the
497497 actuarial equivalent of the amount becoming due at the member's
498498 death based on the sex of the spouse and the age the spouse has
499499 attained at the last birthday prior to the member's death. Provided
500500 further, if there be no designated beneficiary surviving upon such
501501 death, and the contributions standing to the credit of such member
502502 do not exceed Two Hundred Dollars ($200.00), no part of such
503503 contributions shall be subject to the payment of any expense of the
504504 last illness or funeral of the deceased member or any expense of
505505 administration of the estate of such deceased and the System, upon
506506 satisfactory proof of the death of such member and of the name or
507507 names of the person or persons who would be entitled to receive such
508508 contributions under the laws of descent and distribution of the
509509 state, may authorize the payment of accumulated contributions to
510510 such person or persons. A member terminating his or her membership
511511 by withdrawal after June 30, 2003, shall have the int erest computed
512512 at a rate of interest determined by the Board of Trustees and paid
513513 to him or her subject to the following schedule: RBH No. 6409
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540540 (a) If termination occurs within sixteen (16) years from the
541541 date membership began, fifty percent (50%) of such interest
542542 accumulations shall be paid.
543543 (b) With at least sixteen (16) but less than twenty -one (21)
544544 years of membership, sixty percent (60%) of such interest
545545 accumulations shall be paid.
546546 (c) With at least twenty -one (21) but less than twenty -six (26)
547547 years of membership, seventy-five percent (75%) of such interest
548548 accumulations shall be paid.
549549 (d) With at least twenty -six (26) years of membership, ninety
550550 percent (90%) of such interest accumulations shall be paid.
551551 In case of death of an active member, the interest shal l be
552552 calculated and restored to the member's account and paid to his or
553553 her beneficiary.
554554 (8) (a) In lieu of his or her retirement allowance payable
555555 throughout life for such an amount as determined under this section,
556556 the member may select a retirement al lowance for a reduced amount
557557 payable under any of the following options the present value of
558558 which is the actuarial equivalent thereof.
559559 (b) A member may select the option under which he or she
560560 desires to retire at the end of the school year in which he or she
561561 attains age seventy (70) and the option shall be binding and cannot
562562 be changed. Provided further that if a member retires before age
563563 seventy (70), no election of an option shall be effective in case an RBH No. 6409
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590590 annuitant dies before the first payment due unde r such option has
591591 been received.
592592 (c) The first payment of any benefit selected shall be made on
593593 the first day of the month following approval of the retirement by
594594 the System. If the named designated joint annuitant under Option 2
595595 or 3 dies at any time af ter the member's retirement date, but before
596596 the death of the member, the member shall return to the retirement
597597 benefit, including any post retirement benefit increases the member
598598 would have received had the member not selected Option 2 or 3 of
599599 this subsection. The benefit shall be determined at the date of
600600 death of the designated joint annuitant. This increase shall become
601601 effective the first day of the month following the date of death of
602602 the designated joint annuitant, and shall be payable for the
603603 member's remaining lifetime. The member shall notify the Teachers'
604604 Retirement System of Oklahoma of the death of the designated joint
605605 annuitant in writing. In the absence of the written notice being
606606 filed by the member notifying the Teachers' Retirement Syst em of
607607 Oklahoma of the death of the designated joint annuitant within six
608608 (6) months of the date of death, nothing in this subsection shall
609609 require the Teachers' Retirement System of Oklahoma to pay more than
610610 six (6) months of retrospective benefits increas e.
611611 Option 1. If he or she dies before he or she has received in
612612 annuity payments the present value of his or her annuity as it was
613613 at the time of his or her retirement, the balance shall be paid to RBH No. 6409
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640640 his or her legal representatives or to such person as he or she
641641 shall nominate by written designation duly acknowledged and filed
642642 with the System at the time of his or her retirement; or
643643 Option 2. A member takes a reduced retirement allowance for
644644 life. Upon the death of the member the payments shall continue t o
645645 the member's designated joint annuitant for the life of the joint
646646 annuitant. The written designation of the joint annuitant must be
647647 duly acknowledged and filed with the System at the time of the
648648 member's retirement and, except as provided in paragraph ( e) of this
649649 subsection, cannot be changed after the effective date of the
650650 member's retirement; or
651651 Option 3. A member receives a reduced retirement allowance for
652652 life. Upon the death of the member one -half (1/2) of the retirement
653653 allowance paid the member shall be continued throughout the life of
654654 the designated joint annuitant. A written designation of a joint
655655 annuitant must be duly acknowledged and filed with the System at the
656656 time of the member's retirement and, except as provided in paragraph
657657 (e) of this subsection, cannot be changed after the effective date
658658 of the member's retirement; or
659659 Option 4. Some other benefit or benefits shall be paid either
660660 to the member or to such joint annuitant as he or she shall
661661 nominate, provided such other benefit or bene fits, together with the
662662 reduced retirement allowance, shall be certified by the actuary to RBH No. 6409
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689689 be of equivalent actuarial value to his or her retirement allowance
690690 and shall be approved by the System.
691691 (d) Provided that Option 2 and Option 3 shall not be availa ble
692692 if the member's expected benefit is less than fifty percent (50%) of
693693 the lump-sum actuarial equivalent and the designated joint annuitant
694694 is not the spouse of the member.
695695 (e) A member who chose the maximum retirement benefit plan at
696696 the time of retirement may make a one-time election to choose either
697697 Option 2 or 3 and name the member's spouse as designated joint
698698 annuitant if the member marries after making the initial election.
699699 Such an election shall be made within one (1) year of the date of
700700 marriage. The member shall provide proof of a member's good health
701701 before the System will permit a change to either Option 2 or 3 and
702702 the naming of a designated joint annuitant. A medical examination
703703 conducted by a licensed physician is required for purposes of
704704 determining good health. Such examination must be approved by the
705705 Medical Board. The member shall be required to provide proof of age
706706 for the new joint annuitant. The System shall adjust the monthly
707707 benefit to the actuarially equivalent amount based on the new
708708 designated joint annuitant's age. The Board of Trustees shall
709709 promulgate rules to implement the provisions of this subsection.
710710 (f) A member who retires after the effective date of this act
711711 and has selected a retirement allowance for a reduced amo unt payable
712712 under one of the options provided for in this subsection may make a RBH No. 6409
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739739 one-time irrevocable election to select a different option within
740740 sixty (60) days of the member's retirement date. The beneficiary or
741741 joint annuitant designated by the member at the time of retirement
742742 shall not be changed if the member makes the election provided for
743743 in this paragraph.
744744 (g) Any individual who is eligible to be a beneficiary or joint
745745 annuitant of a member under this subsection, and who is also a
746746 beneficiary of a trust created under the Oklahoma Discretionary and
747747 Special Needs Trust Act, Section 175.81 et seq. of Title 60 of the
748748 Oklahoma Statutes, or a comparable Trust Act created under the laws
749749 of another state, hereinafter collectively referred to as "Trust
750750 Acts", may be a beneficiary or joint annuitant under this subsection
751751 by having the trustee of the trust established for the benefit of
752752 that individual named as the legal beneficiary or joint annuitant
753753 under this subsection. The age of that beneficiary shall b e used
754754 for calculating any benefit payable to the trust under this
755755 subsection. The beneficiary of such a trust shall be treated as the
756756 beneficiary or joint annuitant under this subsection except that
757757 payments of any benefits due under this subsection shal l be payable
758758 to the lawfully appointed trustee of the trust. The obligation of
759759 the System to pay the beneficiary or joint annuitant under this
760760 subsection shall be satisfied by payment to the trustee whom the
761761 System, in good faith, believes to be the lawfu lly appointed
762762 trustee. Any conflict between the statutes creating and governing RBH No. 6409
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789789 the Teachers' Retirement System in Section 17 -101 et seq. of this
790790 title and the provisions of any Trust Act referred to above shall be
791791 resolved in favor of the statutes govern ing the System. If an
792792 eligible beneficiary or joint annuitant is named at the time of
793793 retirement, and becomes a beneficiary of a trust under one of the
794794 Trust Acts described herein after that time, the System will
795795 acknowledge the trust as the beneficiary u pon the submission of
796796 adequate documentation of the existence of the trust. All other
797797 provisions of this subsection shall apply to these subsequently
798798 created trusts.
799799 (h) The Board of Trustees of the System may recognize other
800800 trusts set up for the benefi t of individuals otherwise eligible to
801801 be named as a beneficiary or joint annuitant under this subsection
802802 by administrative rule if it can be done without undue additional
803803 administrative expense of the System.
804804 (9) The governing board of any "public school ", as that term is
805805 defined in Section 17 -101 of this title, is hereby authorized and
806806 empowered to pay additional retirement allowances or compensation to
807807 any person who was in the employ of such public school for not less
808808 than seven (7) school years preced ing the date of his or her
809809 retirement. Payments so made shall be a proper charge against the
810810 current appropriation or appropriations of any such public school
811811 for salaries for the fiscal year in which such payments are made.
812812 Such payments shall be made i n regular monthly installments in such RBH No. 6409
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839839 amounts as the governing board of any such public school, in its
840840 judgment, shall determine to be reasonable and appropriate in view
841841 of the length and type of service rendered by any such person to
842842 such public school b y which such person was employed at the time of
843843 retirement. All such additional payments shall be uniform, based
844844 upon the length of service and the type of services performed, to
845845 persons formerly employed by such public school who have retired or
846846 been retired in accordance with the provisions of Section 17 -101 et
847847 seq. of this title.
848848 The governing board of any such public school may adopt rules
849849 and regulations of general application outlining the terms and
850850 conditions under which such additional retirement b enefits shall be
851851 paid, and all decisions of such board shall be final.
852852 (10) In addition to the teachers' retirement herein provided,
853853 teachers may voluntarily avail themselves of the Federal Social
854854 Security Program upon a district basis.
855855 (11) Upon the death of an in-service member, the System shall
856856 pay to the designated beneficiary of the member or, if there is no
857857 designated beneficiary or if the designated beneficiary predeceases
858858 the member, to the estate of the member, the sum of Eighteen
859859 Thousand Dollars ($18,000.00) as a death benefit. Provided, if the
860860 deceased member had ten (10) year s or more of creditable service ,
861861 the member's designated beneficiary may elect to receive the
862862 retirement benefit to which the deceased member would have been RBH No. 6409
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889889 entitled at the time of death under the Option 2 plan of retirement
890890 in lieu of the death benefit provided for in this subsection.
891891 Provided further, the option provided in this subsection is only
892892 available when the member has designated one individual as the
893893 designated beneficiary. The beneficiary or beneficiaries of death
894894 benefits in the amount not to exceed Eighteen Thousand Dollars
895895 ($18,000.00), but exclusive of any retirement benefit received by an
896896 electing beneficiary based upon creditable service performed by th e
897897 deceased member, which are provided pursuant to this subsection may
898898 elect to disclaim such death benefits in which case such benefits
899899 will be transferred to a person licensed as a funeral director or to
900900 a lawfully recognized business entity licensed as r equired by law to
901901 provide funeral services for the deceased member. The qualified
902902 disclaimer must be in writing and will be an irrevocable and an
903903 unqualified refusal to accept all or a portion of the death benefit.
904904 It must be received by the transferor n o more than nine (9) months
905905 after the later of the day the transfer creating the interest in the
906906 disclaiming person is made or the day the disclaiming person attains
907907 age twenty-one (21). The interest in the death benefits must pass
908908 without direction by th e disclaiming person to another person.
909909 (12) Upon the death of a retired member who has contributed to
910910 the System, the retirement system shall pay to the designated
911911 beneficiary of the member or, if there is no designated beneficiary
912912 or if the designated b eneficiary predeceases the member, to the RBH No. 6409
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939939 estate of the member, the sum of Five Thousand Dollars ($5,000.00)
940940 as a death benefit. The beneficiary or beneficiaries of benefits
941941 provided pursuant to this subsection may elect to disclaim such
942942 death benefits in which case such benefits will be transferred to a
943943 person licensed as a funeral director or to a lawfully recognized
944944 business entity licensed as required by law to provide funeral
945945 services for the deceased member. The qualified disclaimer must be
946946 in writing and will be an irrevocable and an unqualified refusal to
947947 accept all or a portion of the death benefit. It must be received
948948 by the transferor no more than nine (9) months after the later of
949949 the day the transfer creating the interest in the disclaiming p erson
950950 is made or the day the disclaiming person attains age twenty -one
951951 (21). The interest in the death benefits must pass without
952952 direction by the disclaiming person to another person. The benefit
953953 payable pursuant to this subsection shall be deemed, for purposes of
954954 federal income taxation, as life insurance proceeds and not as a
955955 death benefit if the Internal Revenue Service approves this
956956 provision pursuant to a private letter ruling request which shall be
957957 submitted by the Board of Trustees of the System f or that purpose.
958958 (13) Upon the death of a member who dies leaving no living
959959 beneficiary or having designated his or her estate as beneficiary,
960960 the System may pay any applicable death benefit, unpaid
961961 contributions, or unpaid benefit which may be subject to probate, in
962962 an amount of Twenty-five Thousand Dollars ($25,000.00) or less, RBH No. 6409
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989989 without the intervention of the probate court or probate procedure
990990 pursuant to Section 1 et seq. of Title 58 of the Oklahoma Statutes.
991991 (a) Before any applicable probate procedure may be waived, the
992992 System must be in receipt of the member's proof of death and the
993993 following documents from those persons claiming to be the legal
994994 heirs of the deceased member:
995995 1. The member's valid last will and testament, trust
996996 documents or affidavit t hat a will does not exist;
997997 2. An affidavit or affidavits of heirship which must
998998 state:
999999 a. the names and signatures of all claiming heirs to
10001000 the deceased member's estate including the
10011001 claiming heirs' names, relationship to the
10021002 deceased, current addresses, t ax I.D. numbers if
10031003 known and current telephone numbers,
10041004 b. a statement or statements by the claiming heirs
10051005 that no application or petition for the
10061006 appointment of a personal representative is
10071007 pending or has been granted in any jurisdiction,
10081008 c. a description of the personal property claimed,
10091009 (i.e., death benefit or unpaid contributions or
10101010 both) together with a statement that such
10111011 personal property is subject to probate, RBH No. 6409
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10381038 d. a statement by each individual claiming heir
10391039 identifying the amount of personal propert y that
10401040 the heir is claiming from the System, and that
10411041 the heir has been notified of, is aware of and
10421042 consents to the identified claims of all the
10431043 other claiming heirs of the deceased member
10441044 pending with the System;
10451045 3. A written agreement or agreements sign ed by all
10461046 claiming heirs of the deceased member which provides
10471047 that the claiming heirs release, discharge and hold
10481048 harmless the System from any and all liability,
10491049 obligations and costs which it may incur as a result
10501050 of making a payment to any of the deceas ed member's
10511051 heirs;
10521052 4. A corroborating affidavit from an individual other
10531053 than a claiming heir, who was familiar with the
10541054 affairs of the deceased member;
10551055 5. Proof that all debts of the deceased member, including
10561056 payment of last sickness, hospital, medical, death,
10571057 funeral and burial expenses have been paid or provided
10581058 for.
10591059 (b) The Executive Director of the System shall retain complete
10601060 discretion in determining which requests for probate waiver may be
10611061 granted or denied, for any reason. Should the System have any RBH No. 6409
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10881088 question as to the validity of any document presented by the
10891089 claiming heirs, or as to any statement or assertion contained
10901090 therein, the probate requirement provided for in Section 1 et seq.
10911091 of Title 58 of the Oklahoma Statutes shall not be waived.
10921092 (c) After paying any death benefits or unpaid contributions to
10931093 any claiming heirs as provided pursuant to this subsection, the
10941094 System is discharged and released from any and all liability,
10951095 obligation and costs to the same extent as if the System had dealt
10961096 with a personal representative of the deceased member. The System
10971097 is not required to inquire into the truth of any matter specified in
10981098 this subsection or into the payment of any estate tax liability.
10991099 (14) Upon the death of a retired member, the benefit pay ment
11001100 for the month in which the retired member died, if not previously
11011101 paid, shall be made to the joint annuitant if still living, to the
11021102 beneficiary of the member if the joint annuitant is deceased, or to
11031103 the member's estate if there is no surviving joint annuitant or
11041104 beneficiary. Such benefit payment shall be made in an amount equal
11051105 to a full monthly benefit payment regardless of the day of the month
11061106 in which the retired member died.
11071107 SECTION 2. This act shall become effective July 1, 202 1.
11081108 SECTION 3. It being immediately necessary for the preservation
11091109 of the public peace, health or safety, an emergency is hereby RBH No. 6409
11101110
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11361136 declared to exist, by reason whereof this act shall take effect and
11371137 be in full force from and after its passag e and approval.
11381138
11391139 58-1-6409 MAH 01/15/21
11401140
11411141 THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
11421142 2512 E. 71
11431143 st
11441144 Street , Suite D ∙ Tulsa, Oklahoma 74136 (918) 492-9658 ∙ (918) 492- 9659
11451145
11461146
11471147
11481148
11491149 January 18, 2021
11501150
11511151
11521152
11531153 Representative Ronny Johns
11541154 Room 243.2
11551155
11561156
11571157
11581158 Re: RBH No. 6409
11591159
11601160
11611161
11621162 RBH No. 6409 reduces the vesting service requirement to 5 years f rom
11631163 7 years for members of Oklahoma Teachers Retirement System.
11641164
11651165 RBH No. 6409 is a fiscal bill as defined by OPLAAA.
11661166
11671167 I am a member of the American Academy of Actuaries and meet the
11681168 Qualification Standards of the American Academy of Actuaries to
11691169 render the actuarial opinion herein.
11701170
11711171
11721172 Thomas E. Cummins
11731173
11741174 Thomas E. Cummins, MAAA
11751175
11761176