RBH No. 7158
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SENATE FLOOR VERSION
March 29, 2021
ENGROSSED HOUSE
BILL NO. 2457 By: Dobrinski and Lepak of the
House
and
Quinn of the Senate
An Act relating to public retirement systems;
amending 11 O.S. 2011, Section 50 -114, as amended by
Section 5, Chapter 346, O.S.L. 2019 (11 O.S. Supp.
2020, Section 50-114), which relates to the Oklahoma
Police Pension and Retirement System; modifying
distribution requirements; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 11 O.S. 2011, Section 50 -114, as
amended by Section 5, Chapter 346, O.S.L. 2019 (11 O.S. Supp. 2020,
Section 50-114), is amended to read as follows:
Section 50-114. A. The State Board is hereby a uthorized to pay
out of funds in the System a monthly service pension to any member
eligible as hereinafter provided, not exceeding in any event the
amount of money in such funds and not exceeding in any event the
accrued retirement benefit for such member , except as provided for
herein. In order for a memb er to be eligible for such service
pension the following requirements must be complied with: RBH No. 7158
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1. The member's service with the police department for any
participating municipality must have ceased; howev er, a member may
be subsequently reemployed in the po sition of police chief pursuant
to subsection C of Section 50 -112 of this title;
2. The member must have reached the member 's normal retirement
date; and
3. The member must have complied with any agree ment as to
contributions by the member and other memb ers to any funds of the
System where said agreement has been made as provided by this
article; provided, that should a retired member receive disability
benefits as provided in this and other sections of this article, the
time the retired member is receivi ng said disability benefits shall
count as time on active service if the retired member should be
recalled by the Chief of Police from said disability retirement. It
shall be necessary before said time shall be counted toward
retirement that the retired m ember make the same contribution as the
member would have otherwise made if on active service for the time
the retired member was disabled.
B. Any member complying with all requirements of this article,
who reaches normal retirement date, upon application , shall be
retired at the accrued retirement benefit. When a member has served
for the necessary number of years and is otherwise eligible, as
provided in this article, if such member is discharged with out cause RBH No. 7158
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by the participating municipality, the memb er shall be eligible for
a pension.
C. Effective July 1, 1989, in no event shall commencement of
distribution of the accrued retirement benefit of a member be
delayed beyond April 1 of the calendar year following the later of:
1. The calendar year in whi ch the member reaches seventy and
one-half (70 1/2) years of age for a member who attains age seventy
and one-half (70 1/2) before January 1, 2020, or effective for
distributions required to be made afte r December 31, 2019, the
calendar year in which the m ember reaches seventy -two (72) years of
age for an individual who attains age seventy and one -half (70 1/2)
after December 31, 2019 ; or
2. The actual retirement date of the member.
For distributions mad e for calendar years beginning on or after
January 1, 2001, through December 31, 2004, the System shall apply
the minimum distribution requirements and incidental benefit
requirements of Section 401(a)(9) of the Internal Revenue Code of
1986, as amended, in accordance with the regulations under Section
401(a)(9) of the Internal Revenue Code of 1986, as amended, which
were proposed on January 17, 2001, notwithstanding any provision of
the System to the contrary. For distributions made for calendar
years beginning on or after January 1, 2005, the System shall apply
the minimum distribution incidental benefit requirements, incidental
benefit requirements, and minimum distribution requirements of RBH No. 7158
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Section 401(a)(9) of the Internal Revenue Code of 1986, as amende d,
in accordance with the final regulations under Sec tion 401(a)(9) of
the Internal Revenue Code of 1986, as amended, which were issued in
April 2002 and June 2004 including Treasury Regulations Sections
1.401(a)(9)-1 through 1.401(a)(9) -9; provided, however, that for
distributions required to be made after December 31, 2019, for
individuals who attain seventy and one -half (70 1/2) years of age
after December 31, 2019, such distributions shall take into account
that age 70 1/2 was stricken and age 72 was inserted in Section
401(a)(9)(B)(iv)(I), Section 401(a) (9)(C)(i)(I) and Section
401(a)(9)(C)(ii)(I) of the Internal Revenue Code of 1986, as
amended, notwithstanding any provision of the System to the
contrary. Effective January 1, 2009, with respect to the Oklahoma
Police Deferred Option Plan, to the extent applicable, no minimum
distribution is required for 2009 in accordance with Section
401(a)(9)(H) of the Internal Revenue Code of 1986, as amended.
Effective September 8, 2009, notwithstanding anything to the
contrary of the System, the System, which is a g overnmental plan
(within the meaning of Section 414(d) of the Internal Revenue Code
of 1986, as amended) is treated as having complied with Section
401(a)(9) of the Internal Revenue Code of 1986, as amen ded, for all
years to which Section 401(a)(9) of the Internal Revenue Code of
1986, as amended, applies to the System if the System complies with RBH No. 7158
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a reasonable and good faith good-faith interpretation of Section
401(a)(9) of the Internal Revenue Code of 198 6, as amended.
D. In the event of the death of any member who h as been awarded
a retirement benefit or is eligible therefor as provided in this
section, such member 's beneficiaries shall be paid such retirement
benefit. The remaining portion of the membe r's retirement benefit
shall be distributed to the beneficiaries at least as rapidly as
under the method of distribution to the member. Effective March 1,
1997, if a member to whom a retirement benefit has been awarded or
who is eligible therefor dies pri or to the date as of which the
total amount of retirement benefi t paid equals the total amount of
the employee contributions paid by or on behalf of the member and
the member does not have a surviving beneficiary, the total benefits
paid as of the date of the member's death shall be subtracted from
the accumulated empl oyee contribution amount and the balance, if
greater than zero (0), shall be paid to the member 's estate.
E. The State Board may review and affirm a member 's request for
retirement benefits p rior to the member's normal retirement date
provided that no ret irement benefits are paid prior to the normal
retirement date.
F. A member retired under the provisions of this article may
apply to the State Board to have the member 's retirement benefits
set aside and may make application for disability benefits. Upon
approval of the disability benefits, the member would become subject RBH No. 7158
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to all provisions of this article pertaining to disability
retirement.
G. Upon the death of a retired member or a benefic iary, the
benefit payment for the month in which the retired mem ber or
beneficiary died, if not previously paid, shall be made to the
beneficiary of the member, which shall include a successor in
interest for whom an affidavit is provided to the System in
accordance with Section 393 of Title 58 of the Oklahoma Statutes , or
to the member's or beneficiary's estate if there is no beneficiary.
Such benefit payment shall be made in an amount equal to a full
monthly benefit payment regardless of the day of the m onth in which
the retired member or beneficiary died.
H. If the requirements of Section 50 -114.4 of this title are
satisfied, a member who, by reason of attainment of normal
retirement date or age, is separated from service as a public safety
officer with the member's participating municipality, may elect to
have payment made directly to the provider for qualified health
insurance premiums by deduction from his or her monthly pension
payment, after December 31, 2006, in accordance with Section 402(l)
of the Internal Revenue Code of 1986, as amended.
SECTION 2. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
RBH No. 7158
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declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE
March 29, 2021 - DO PASS