OK
Oklahoma House Bill HB2457

Oklahoma 2022 Regular Session

Oklahoma House Bill HB2457 Compare Versions

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1-An Act
1+RBH No. 7158
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33+ENGROSSED HOUSE
434 BILL NO. 2457 By: Dobrinski and Lepak of the
535 House
636
737 and
838
939 Quinn of the Senate
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1545 An Act relating to public retirement systems;
1646 amending 11 O.S. 2011, Section 50 -114, as amended by
1747 Section 5, Chapter 346, O.S.L. 2019 (11 O.S. Supp.
1848 2020, Section 50-114), which relates to the Oklahoma
1949 Police Pension and Retirement System; modifying
2050 distribution requirements; and declaring an
2151 emergency.
2252
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2454
25-SUBJECT: Public retirement systems
26-
2755 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
28-
2956 SECTION 1. AMENDATORY 11 O.S. 2011, Section 50 -114, as
3057 amended by Section 5, Chapter 346, O.S.L. 2019 (11 O.S. Supp. 2020,
3158 Section 50-114), is amended to read as follows:
32-
3359 Section 50-114. A. The State Board is hereby a uthorized to pay
3460 out of funds in the System a monthly service pension to any member
3561 eligible as hereinafter provided, not exceeding in any event the
3662 amount of money in such funds and not exceeding in any event the
3763 accrued retirement benefit for such member , except as provided for
3864 herein. In order for a memb er to be eligible for such service
39-pension the following requirements must be complied with:
65+pension the following requirements must be complied with: RBH No. 7158
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4193 1. The member's service with the police department for any
4294 participating municipality must have ceased; howev er, a member may
4395 be subsequently reemployed in the po sition of police chief pursuant
4496 to subsection C of Section 50 -112 of this title;
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4697 2. The member must have reached the member 's normal retirement
47-date; and RBH No. 7158
48-ENR. H. B. NO. 2457 Page 2
98+date; and
4999 3. The member must have complied with any agree ment as to
50100 contributions by the member and other memb ers to any funds of the
51101 System where said agreement has been made as provided by this
52102 article; provided, that should a retired member receive disability
53103 benefits as provided in this and other sections of this article, the
54104 time the retired member is receivi ng said disability benefits shall
55105 count as time on active service if the retired member should be
56106 recalled by the Chief of Police from said disability retirement. It
57107 shall be necessary before said time shall be counted toward
58108 retirement that the retired m ember make the same contribution as the
59109 member would have otherwise made if on active service for the time
60110 the retired member was disabled.
61-
62111 B. Any member complying with all requirements of this article,
63112 who reaches normal retirement date, upon application , shall be
64113 retired at the accrued retirement benefit. When a member has served
65114 for the necessary number of years and is otherwise eligible, as
66-provided in this article, if such member is discharged without cause
115+provided in this article, if such member is discharged with out cause RBH No. 7158
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67143 by the participating municipality, the memb er shall be eligible for
68144 a pension.
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70145 C. Effective July 1, 1989, in no event shall commencement of
71146 distribution of the accrued retirement benefit of a member be
72147 delayed beyond April 1 of the calendar year following the later of:
73-
74148 1. The calendar year in whi ch the member reaches seventy and
75149 one-half (70 1/2) years of age for a member who attains age seventy
76150 and one-half (70 1/2) before January 1, 2020, or effective for
77151 distributions required to be made afte r December 31, 2019, the
78152 calendar year in which the m ember reaches seventy -two (72) years of
79153 age for an individual who attains age seventy and one -half (70 1/2)
80154 after December 31, 2019 ; or
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82155 2. The actual retirement date of the member.
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84156 For distributions mad e for calendar years beginning on or after
85157 January 1, 2001, through December 31, 2004, the System shall apply
86158 the minimum distribution requirements and incidental benefit
87159 requirements of Section 401(a)(9) of the Internal Revenue Code of
88160 1986, as amended, in accordance with the regulations under Section
89161 401(a)(9) of the Internal Revenue Code of 1986, as amended, which
90162 were proposed on January 17, 2001, notwithstanding any provision of
91163 the System to the contrary. For distributions made for calendar
92164 years beginning on or after January 1, 2005, the System shall apply
93-the minimum distribution incidental benefit requirements, incidental RBH No. 7158
94-ENR. H. B. NO. 2457 Page 3
95-benefit requirements, and minimum distribution requirements of
165+the minimum distribution incidental benefit requirements, incidental
166+benefit requirements, and minimum distribution requirements of RBH No. 7158
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96194 Section 401(a)(9) of the Internal Revenue Code of 1986, as amende d,
97195 in accordance with the final regulations under Sec tion 401(a)(9) of
98196 the Internal Revenue Code of 1986, as amended, which were issued in
99197 April 2002 and June 2004 including Treasury Regulations Sections
100198 1.401(a)(9)-1 through 1.401(a)(9) -9; provided, however, that for
101199 distributions required to be made after December 31, 2019, for
102200 individuals who attain seventy and one -half (70 1/2) years of age
103201 after December 31, 2019, such distributions shall take into account
104202 that age 70 1/2 was stricken and age 72 was inserted in Section
105203 401(a)(9)(B)(iv)(I), Section 401(a) (9)(C)(i)(I) and Section
106204 401(a)(9)(C)(ii)(I) of the Internal Revenue Code of 1986, as
107205 amended, notwithstanding any provision of the System to the
108206 contrary. Effective January 1, 2009, with respect to the Oklahoma
109207 Police Deferred Option Plan, to the extent applicable, no minimum
110208 distribution is required for 2009 in accordance with Section
111209 401(a)(9)(H) of the Internal Revenue Code of 1986, as amended.
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113210 Effective September 8, 2009, notwithstanding anything to the
114211 contrary of the System, the System, which is a g overnmental plan
115212 (within the meaning of Section 414(d) of the Internal Revenue Code
116213 of 1986, as amended) is treated as having complied with Section
117214 401(a)(9) of the Internal Revenue Code of 1986, as amen ded, for all
118215 years to which Section 401(a)(9) of the Internal Revenue Code of
119-1986, as amended, applies to the System if the System complies with
120-a reasonable and good -faith interpretation of Section 401(a)(9) of
121-the Internal Revenue Code of 1986, as amended.
216+1986, as amended, applies to the System if the System complies with RBH No. 7158
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244+a reasonable and good faith good-faith interpretation of Section
245+401(a)(9) of the Internal Revenue Code of 198 6, as amended.
123246 D. In the event of the death of any member who h as been awarded
124247 a retirement benefit or is eligible therefor as provided in this
125248 section, such member 's beneficiaries shall be paid such retirement
126249 benefit. The remaining portion of the membe r's retirement benefit
127250 shall be distributed to the beneficiaries at least as rapidly as
128251 under the method of distribution to the member. Effective March 1,
129252 1997, if a member to whom a retirement benefit has been awarded or
130253 who is eligible therefor dies pri or to the date as of which the
131254 total amount of retirement benefi t paid equals the total amount of
132255 the employee contributions paid by or on behalf of the member and
133256 the member does not have a surviving beneficiary, the total benefits
134257 paid as of the date of the member's death shall be subtracted from
135258 the accumulated empl oyee contribution amount and the balance, if
136259 greater than zero (0), shall be paid to the member 's estate.
137-
138260 E. The State Board may review and affirm a member 's request for
139-retirement benefits prior to the member 's normal retirement date RBH No. 7158
140-ENR. H. B. NO. 2457 Page 4
261+retirement benefits p rior to the member's normal retirement date
141262 provided that no ret irement benefits are paid prior to the normal
142263 retirement date.
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144264 F. A member retired under the provisions of this article may
145265 apply to the State Board to have the member 's retirement benefits
146266 set aside and may make application for disability benefits. Upon
147-approval of the disability benefits, the member would become subject
267+approval of the disability benefits, the member would become subject RBH No. 7158
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148295 to all provisions of this article pertaining to disability
149296 retirement.
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151297 G. Upon the death of a retired member or a benefic iary, the
152298 benefit payment for the month in which the retired mem ber or
153299 beneficiary died, if not previously paid, shall be made to the
154300 beneficiary of the member, which shall include a successor in
155301 interest for whom an affidavit is provided to the System in
156302 accordance with Section 393 of Title 58 of the Oklahoma Statutes , or
157303 to the member's or beneficiary's estate if there is no beneficiary.
158304 Such benefit payment shall be made in an amount equal to a full
159305 monthly benefit payment regardless of the day of the m onth in which
160306 the retired member or beneficiary died.
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162307 H. If the requirements of Section 50 -114.4 of this title are
163308 satisfied, a member who, by reason of attainment of normal
164309 retirement date or age, is separated from service as a public safety
165310 officer with the member's participating municipality, may elect to
166311 have payment made directly to the provider for qualified health
167312 insurance premiums by deduction from his or her monthly pension
168313 payment, after December 31, 2006, in accordance with Section 402(l)
169314 of the Internal Revenue Code of 1986, as amended.
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171315 SECTION 2. It being immediately necessary for the preservation
172316 of the public peace, health or safety, an emergency is hereby
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173345 declared to exist, by reason whereof this act shall take effect and
174346 be in full force from and after its passage and approval.
175- RBH No. 7158
176-ENR. H. B. NO. 2457 Page 5
177-Passed the House of Representatives the 2nd day of March, 2021.
178-
179-
180-
181-
182- Presiding Officer of the House
183- of Representatives
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186-Passed the Senate the 21st day of April, 2021.
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191- Presiding Officer of the Senate
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193-
194-
195-OFFICE OF THE GOVERNOR
196-Received by the Office of the Governor this ____________________
197-day of ___________________, 20_______, at _______ o'clock _______ M.
198-By: _________________________________
199-Approved by the Governor of the State of Oklahoma this _________
200-day of ___________________, 20_______, at _______ o'clock _______ M.
201-
202-
203- _________________________________
204- Governor of the State of Oklahoma
205-
206-OFFICE OF THE SECRETARY OF STATE
207-Received by the Office of the Secretary of State this __________
208-day of ___________________, 20_______, at _______ o'clock _______ M.
209-By: _________________________________
210-
211-THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
212-2512 E. 71
213-st
214-Street , Suite D ∙ Tulsa, Oklahoma 74136 (918) 492-9658 ∙ (918) 492- 9659
215-
216-
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220-January 20, 2021
221-
222-
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224-Representative Mark Lapak
225-Room 453.2
226-
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229-Re: RBH No. 7158
230-
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233-RBH No. 7158 conforms the distribution rules of the Oklahoma Police Pension and Retirement System
234-to those rules found in the CARES act.
235-
236-RBH No. 7158 a nonfiscal bill as defined by OPLAAA.
237-
238-I am a member of the American Academy of Actuaries and meet the Qualification Standards of the
239-American Academy of Actuaries to render the actuarial opinion herein.
240-
241-
242-Thomas E. Cummins
243-
244-Thomas E. Cummins, MAAA
245-
246-
347+COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE
348+March 29, 2021 - DO PASS