An Act
ENROLLED HOUSE
BILL NO. 2458 By: Lepak and Davis of the
House
and
Montgomery of the Senate
An Act relating to public retirement systems;
amending 20 O.S. 2011, Sections 1102C and 1103.1,
which relate to the Uniform Retirement System for
Justices and Judges; amending 74 O.S. 2011, Sections
906, as amended by Section 3, Chapter 312, O.S.L.
2017, 909.1, as amended by Section 1, Chapter 109,
O.S.L. 2012, 915, as last amended by Section 2,
Chapter 112, O.S.L. 2020, 918 and 932 (74 O.S. Supp.
2020, Sections 906, 909.1 and 915), which relate to
the Oklahoma Public Employees Retirement System;
modifying references; authorizing release of certain
information; and providing an effective date.
SUBJECT: Public retirement systems
BE IT ENACTED BY THE PEO PLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 20 O.S. 2011, Section 1102C, is
amended to read as follows:
Section 1102C. A. Except as otherwise provided for in this
section and Section 1104.2 of Title 20 of the Oklahoma Statutes this
title, members who join the Uniform Retirement System for Justices
and Judges on September 1, 2005, or thereafter, may elect to have
the retirement benefit paid under one of the options provided in
this section in lieu of having it paid in th e form stated in Section
1104 of Title 20 of the Oklahoma Statutes this title. The election
of an option must be made prior to the member 's retirement date or
to receipt of a benefit after termination of service with a vested
benefit. A specific person m ust be designated as joint annuitant at
the time of the election of Option A or B. Election of an option is RBH No. 5587
ENR. H. B. NO. 2458 Page 2
available with respect to the vested benefit. All retirement
benefits of a married member shall be paid pursuant to the Option A
plan or Option B plan as provided for in this section unless the
spouse of a member consents in writing for the unreduced benefits to
be paid as provided for in Section 1104 of Title 20 of the Oklahoma
Statutes or pursuant to Option B as provided for in this section
title.
B. The amount of retirement benefit payable under an option
shall be based on the age and sex of the member and the age and sex
of the joint annuitant at the retirement date, and shall be such
amount as to be the actuarial equivalent of the retirement b enefit
otherwise payable under Section 1104 of Title 20 of the Oklahoma
Statutes this title.
C. The retirement options are:
Option A. Joint and one -half to joint annuitant survivor. A
reduced retirement benefit is payable to the retiree during his or
her lifetime with one -half (1/2) of that amount continued to the
joint annuitant during such joint annuitant 's remaining lifetime, if
any, after the death of the retiree. If the named joint annuitant
dies at any time after the member 's retirement date, bu t before the
death of the retiree, the retiree shall return to the unreduced
retirement benefit, including any postretirement benefit increases,
the member would have received had the member not selected Option A.
The benefit shall be determined at the da te of death of the named
joint annuitant. This increase shall become effective the first day
of the month following the date of death of the named joint
annuitant, and shall be payable for the retiree 's remaining
lifetime. The retiree shall notify the Un iform Retirement System
for Justices and Judges of the death of the named joint annuitant in
writing. In the absence of the written notice being filed by the
member notifying the Uniform Retirement System for Justices and
Judges of the death of the named joint annuitant within six (6)
months of the date of death, nothing in this subsection shall
require the Uniform Retirement System for Justices and Judges to pay
more than six (6) months of retrospective benefits increase.
Option B. Joint and survivor. A reduced retirement benefit is
payable to the retiree during his or her lifetime with that amount
continued to the joint annuitant during the joint annuitant 's
remaining lifetime, if any, after the death of the retiree. If the
named joint annuitant dies at any time after the member 's retirement
date, but before the death of the retiree, the retiree shall return RBH No. 5587
ENR. H. B. NO. 2458 Page 3
to the unreduced retirement benefit, including any postretirement
benefit increases, the member would have received had the member not
selected Option B. The benefit shall be determined at the date of
death of the named joint annuitant. This increase shall become
effective the first day of the month following the date of death of
the named joint annuitant, and shall be payable for the retiree 's
remaining lifetime. The retiree shall notify the Uniform Retirement
System for Justices and Judges of the death of the named joint
annuitant in writing. In the absence of such written notice being
filed by the member notifying the Uniform Retirement System for
Justices and Judges of the death of the named joint annuitant within
six (6) months of the date of death, nothing in this subsection
shall require the Uniform Retirement System for Justices and Judges
to pay more than six (6) months of retrospective b enefits increase.
D. If a member who is eligible to retire in accordance with the
provisions of this section or Section 1104 of Title 20 of the
Oklahoma Statutes this title but is not actually retired or is
eligible to vest or has elected a vested benefi t dies, the member's
spouse may elect to receive benefits as a joint annuitant under
Option B, calculated as if the member retired on the date of death,
in lieu of receiving the member 's accumulated contributions.
However, no benefits shall be payable bef ore the date the deceased
member would have met the requirements for a normal or early
retirement. The provisions of this paragraph shall be applicable to
a surviving spouse of a deceased member who died prior to the
effective date of this act, but only i f no benefits or distributions
have been previously paid.
SECTION 2. AMENDATORY 20 O.S. 2011, Section 1103.1, is
amended to read as follows:
Section 1103.1 A. On and after January 1, 2001, the
Administrative Director of the Co urts, in addition to the members '
contributions, shall transfer monthly amounts for deposit in the
State Judicial Retirement Fund as set out in Section 1309 of this
title equal to two percent (2.0%) of the monthly total actual paid
gross salaries of the me mbers of the Uniform Retirement System for
Justices and Judges. Effective July 1, 2005, such amounts
transferred by the Administrative Director of the Courts shall be as
follows:
Fiscal Year Ending Percentage of Contribution
June 30, 2006 3.0% RBH No. 5587
ENR. H. B. NO. 2458 Page 4
June 30, 2007 4.0%
June 30, 2008 5.5%
June 30, 2009 7.0%
June 30, 2010 8.5%
June 30, 2011 10.0%
June 30, 2012 11.5%
June 30, 2013 13.0%
June 30, 2014 14.5%
June 30, 2015 16.0%
June 30, 2016 17.5%
June 30, 2017 19.0%
June 30, 2018 20.5%
June 30, 2019 and thereafter 22.0%
B. The State Judicial Retirement Fund should have a funded
ratio at or near ninety percent (90%) or be receiving sufficient
contributions to amortize any unfunded liability of the fund
according to the amortization schedule adopted by the Board of
Trustees of the Oklahoma Public Employees Retirement System. The
Board of Trustees shall provide a copy of the annual actuarial
report to the Governor, the Chief Justice of the Supreme Court, the
Legislative Service Bureau, the Speaker of the House of
Representatives and the President Pro Tempore of the Senate. In
addition to this report, the Board shall provide a letter setting
forth the amount of the actuarially required contributions for the
System and any other recommendations that the Bo ard may deem
necessary.
C. The Administrative Director of the Courts shall remit to the
System all statutorily required retirement contributions due on a
monthly basis. All required court and employee contributions and
supporting documentation are due a nd must be received by the System RBH No. 5587
ENR. H. B. NO. 2458 Page 5
on or before the fifteenth day of the month following the month for
which the contributions are due. Court and employee contributions
remitted to the System after thirty (30) days from the above due
date shall be subject to a monthly late charge of one and one -half
percent (1.5%) of the unpaid balance to be paid by the
Administrative Director of the Courts to the System.
SECTION 3. AMENDATORY 74 O.S. 2011, Section 906, as
amended by Section 3, Ch apter 312, O.S.L. 2017 (74 O.S. Supp. 2020,
Section 906), is amended to read as follows:
Section 906. (1) The Board shall hold regular meetings in
Oklahoma City at least once each quarter, the dates, time, and place
thereof to be fixed by the Board. Th e Board shall hold a regular
meeting in July of each year which meeting shall be the annual
meeting and at which meeting it shall elect its Chairman chair.
Special meetings may be called upon written call of the Chairman
chair or by agreement of any seven eight members of the Board.
Notice of a special meeting shall be delivered to all trustees in
person or, by registered or certified United States mail , or by
electronic mail not less than seven (7) days prior to the date fixed
for the meeting; provided, however, that notice of such meeting may
be waived by any member either before or after such meeting and
attendance at such meeting shall constitute a waiver of notice of
such meeting, unless a member participates therein solely to object
to the transaction of any business because the meeting has not been
legally called or convened.
(2) Eight (8) trustees shall constitute a quorum for the
transaction of business, but any official action of the Board shall
be based upon a favorable vote by at least eight ( 8) trustees at a
regular or special meeting of the Board.
(3) The trustees shall serve the System without compensation
but shall receive their actual and necessary expenses, subject to
statutory limitations applying to other state employees, as are
incurred in the performance of their duties, which shall be paid as
an operating expense from the appropriate operating fund of the
System.
SECTION 4. AMENDATORY 74 O.S. 2011, Section 909.1, as
amended by Section 1, Chapter 109, O.S.L . 2012 (74 O.S. Supp. 2020,
Section 909.1), is amended to read as follows:
RBH No. 5587
ENR. H. B. NO. 2458 Page 6
Section 909.1 A. The Oklahoma Public Employees Retirement
System Board of Trustees shall discharge their duties with respect
to the System solely in the interest of the participa nts and
beneficiaries and:
1. For the exclusive purpose of:
a. providing benefits to participants and their
beneficiaries, and
b. defraying reasonable expenses of administering the
System;
2. With the care, skill, prudence, and diligence under the
circumstances then prevailing that a prudent person acting in a like
capacity and familiar with such matters would use in the conduct of
an enterprise of a like character and with like aims;
3. By diversifying the investments of the System so as to
minimize the risk of large losses, unless under the circumstances it
is clearly prudent not to do so; and
4. In accordance with the laws, documents and instruments
governing the System.
B. The Board of Trustees may procure insurance indemnifying the
members of the Board of Trustees from personal loss or
accountability from liability resulting from a member 's action or
inaction as a member of the Board of Trustees.
C. The Board of Trustees may establish an investment committee.
The investment committee shall be composed of not more than five (5)
members of the Board of Trustees appointed by the chairman of the
Board of Trustees. The committee shall make recommendations to the
full Board of Trustees on all matters related to the choice of
custodians and manag ers of the assets of the System, on the
establishment of investment and fund management guidelines, and in
planning future investment policy. The committee shall have no
authority to act on behalf of the Board of Trustees in any
circumstances whatsoever. No recommendation of the committee shall
have effect as an action of the Board of Trustees nor take effect
without the approval of the Board of Trustees as provided by law.
D. The Board of Trustees shall retain qualified investment
managers to provide f or the investment of the monies of the System. RBH No. 5587
ENR. H. B. NO. 2458 Page 7
The investment managers shall be chosen by a solicitation of
proposals on a competitive bid basis pursuant to standards set by
the Board of Trustees. Subject to the overall investment guidelines
set by the Board of Trustees, the investment managers shall have
full discretion in the management of those monies of the System
allocated to the investment managers. The Board of Trustees shall
manage those monies not specifically allocated to the investment
managers. The monies of the System allocated to the investment
managers shall be managed by the investment managers, which may
include selling investments and realizing losses if such action is
considered advantageous to longer term return maximization. Because
of the total return objective, no distinction shall be made for
management and performance evaluation purposes between realized and
unrealized capital gains and losses.
E. Funds and revenues for investment by the investment managers
or the Board of Trus tees shall be placed with a custodian selected
by the Board of Trustees. The custodian shall be a bank or trust
company offering pension fund master trustee and master custodial
services. The custodian shall be chosen by a solicitation of
proposals on a competitive basis pursuant to standards set by the
Board of Trustees. In compliance with the investment policy
guidelines of the Board of Trustees, the custodian bank or trust
company shall be contractually responsible for ensuring that all
monies of the System are invested in income -producing investment
vehicles at all times. If a custodian bank or trust company has not
received direction from the investment managers of the System as to
the investment of the monies of the System in specific investment
vehicles, the custodian bank or trust company shall be contractually
responsible to the Board of Trustees for investing the monies in
appropriately collateralized short -term interest-bearing investment
vehicles.
F. By November 1, 1988, and prior to August 1 of each year
thereafter, the Board of Trustees shall develop a written investment
plan for the System.
G. The Board of Trustees shall compile a quarterly financial
report of all the funds of the System on a fiscal year basis. The
report shall be compi led pursuant to uniform reporting standards
prescribed by the Oklahoma State Pension Commission for all state
retirement systems. The report shall include several relevant
measures of investment value, including acquisition cost and current
fair market value with appropriate summaries of total holdings and
returns. The report shall contain combined and individual rate of RBH No. 5587
ENR. H. B. NO. 2458 Page 8
returns of the investment managers by category of investment, over
periods of time. The Board of Trustees shall include in the
quarterly reports all commissions, fees or payments for investment
services performed on behalf of the Board. The report shall be
distributed to the Governor, the Oklahoma State Pension Commission,
the Legislative Service Bureau, the Speaker of the House of
Representatives and the President Pro Tempore of the Senate. In
lieu of compiling and distributing the quarterly report, the Board
may provide the Pension Commission with direct access to the same
data from the custodian bank for the System.
H. After July 1 and before December 1 of each year, the Board
of Trustees shall publish widely an annual report presented in
simple and easily understood language pursuant to uniform reporting
standards prescribed by the Oklahoma State Pension Commission for
all state retirement systems. The report shall be submitted to the
Governor, the Speaker of the House of Representatives, the President
Pro Tempore of the Senate, the Oklahoma State Pension Commission and
the members of the System. The annual report shall cover the
operation of the System during the past fiscal year, including
income, disbursements, and the financial condition of the System at
the end of the fiscal year. The annual report shall also contain
the information issued in the quarterly reports required pur suant to
subsection G of this section as well as a summary of the results of
the most recent actuarial valuation to include total assets, total
liabilities, unfunded liability or over funded status, contributions
and any other information deemed relevant b y the Board of Trustees.
The annual report shall be written in such a manner as to permit a
readily understandable means for analyzing the financial condition
and performance of the System for the fiscal year.
I. The Board shall distribute the corpus an d income of the
System to the members and their beneficiaries in accordance with the
System's laws and rules and regulations. At no time prior to the
satisfaction of all liabilities with respect to members and their
beneficiaries shall any part of the cor pus and income be used for,
or diverted to, purposes other than the exclusive benefit of the
members and their beneficiaries.
SECTION 5. AMENDATORY 74 O.S. 2011, Section 915, as last
amended by Section 2, Chapter 112, O.S.L. 2020 (74 O.S. Supp. 2020,
Section 915), is amended to read as follows:
Section 915. A. (1) Except as otherwise provided in this
subsection and as provided for elected officials in Section 913.4 of RBH No. 5587
ENR. H. B. NO. 2458 Page 9
this title, any member who shall retire on or after the mem ber's
normal retirement date shall be entitled to receive an annual
retirement benefit equal to two percent (2%) of the member 's final
average compensation as determined pursuant to paragraph (18) of
Section 902 of this title, multiplied by the number of y ears of
credited service that has been credited to the member in accordance
with the provisions of Section 913 of this title other than years
credited pursuant to paragraph (2) of this subsection.
(2) Effective January 1, 2004, except as otherwise provid ed for
elected officials in Section 913.4 of this title and except for
those members making contributions pursuant to paragraphs (c), (d),
(e) and (f) of subsection (1) of Section 919.1 of this title, any
member who shall retire shall be entitled to receiv e an annual
retirement benefit equal to two and one -half percent (2 1/2%) of the
member's final average compensation as determined pursuant to
paragraph (18) of Section 902 of this title, multiplied by the
number of full years of participating service afte r January 1, 2004,
that have been credited to the member in accordance with the
provisions of Section 913 of this title and only for those full
years of participating service for which contributions have been
made pursuant to paragraph (g) of subsection (1 ) of Section 919.1 of
this title. The two and one -half percent (2 1/2%) multiplier shall
not apply to purchased service, purchased or granted military
service or transferred service. In order to receive the two and
one-half percent (2 1/2%) multiplier in computing retirement
benefits, an active member shall make an irrevocable written
election to pay the contributions pursuant to paragraph (g) of
subsection (1) of Section 919.1 of this title. The two and one -half
percent (2 1/2%) multiplier pursuant to t his paragraph shall not
apply to additional years of service credit attributed to sick leave
pursuant to paragraph 7 of subsection B of Section 913 of this title
and fractional years pursuant to subsection C of Section 913 of this
title and shall be attrib utable only to the participating service
credited after the election of the member.
(3) The minimum final average compensation for any person who
becomes a member of the System on or after July 1, 1995:
a. and who had twenty (20) or more years of credit ed
service within the System as of the member 's
retirement date shall be no less than Thirteen
Thousand Eight Hundred Dollars ($13,800.00) per annum,
RBH No. 5587
ENR. H. B. NO. 2458 Page 10
b. and who had at least fifteen (15) but not more than
nineteen (19) years of credited service within the
System as of the member 's retirement date shall be no
less than Six Thousand Nine Hundred Dollars
($6,900.00) per annum,
c. and who had less than fifteen (15) years of credited
service within the System as of the member 's
retirement date shall not be eli gible for any minimum
amount of final average compensation and the member 's
final average compensation shall be the final average
compensation as defined by paragraph (18) of Section
902 of this title.
(4) Provided, further, any member who has elected a vested
benefit pursuant to Section 917 of this title shall be entitled to
receive benefits as outlined in this section except the percent
factor and the member 's maximum compensation level in effect the
date the member's employment was terminated with a pa rticipating
employer shall be applicable.
(5) Any member who is a correctional officer or a probation and
parole officer employed by the Department of Corrections at the time
of retirement and who retires on or before June 30, 2000, shall be
entitled to receive an annual retirement benefit equal to two and
one-half percent (2 1/2%) of the final average compensation of the
member not to exceed Twenty -five Thousand Dollars ($25,000.00) and
two percent (2%) of the final average salary in excess of Twenty -
five Thousand Dollars ($25,000.00) but not exceeding the maximum
compensation level as provided in paragraph (9) of Section 902 of
this title, multiplied by the number of years of service as a
correctional officer or a probation and parole officer ,; provided,
any years accrued prior to July 1, 1990, as a correctional officer
or a probation and parole officer by a member who is employed as a
correctional officer or a probation and parole officer on July 1,
1990, shall be calculated for retirement purposes at tw o and one-
quarter percent (2 1/4%) of the final average compensation of the
member not to exceed Twenty -five Thousand Dollars ($25,000.00) and
two percent (2%) of the final average salary in excess of Twenty -
five Thousand Dollars ($25,000.00) but not excee ding the maximum
compensation level as provided in paragraph (9) of Section 902 of
this title, multiplied by the number of years of such service and
any years in excess of twenty (20) years as such an officer or years
credited to the member in accordance w ith the provisions of Section
913 of this title shall be calculated for retirement purposes at two RBH No. 5587
ENR. H. B. NO. 2458 Page 11
percent (2%) of the final average compensation of the member
multiplied by the number of years of such service. Any person who
contributes to the System as a correctional officer or a probation
and parole officer as provided in paragraph (b) or (c) of subsection
(1) of Section 919.1 of this title, on or before June 30, 2000, but
who does not make such contributions after June 30, 2000, and who
does not qualify for normal retirement under subparagraph (c) of
paragraph (24) of Section 902 of this title shall have retirement
benefits for each year of full -time-equivalent participating service
as a correctional or a probation and parole officer after July 1,
1990, computed on two and one -half percent (2 1/2%) of the final
average compensation based upon those years as a correctional
officer or a probation and parole officer. Provided, further, any
fugitive apprehension agent shall be entitled to receive benefits a s
outlined in this act for service as a fugitive apprehension agent
prior to July 1, 2002, only upon payment to the System of the
employee contributions which would have been paid if such fugitive
apprehension agent had been covered by this section prior t o the
effective date of this act, plus interest of not to exceed ten
percent (10%) as determined by the Board. The Department of
Corrections may make the employee contribution and interest payment
on behalf of such member.
(6) Any member who is a correc tional officer, a probation and
parole officer or a fugitive apprehension agent employed by the
Department of Corrections at the time of retirement and who retires
on or after July 1, 2002, shall be entitled to receive an annual
retirement benefit equal to two and one-half percent (2 1/2%) of the
final average compensation of the member, but not exceeding the
maximum compensation level as provided in paragraph (18) of Section
902 of this title, multiplied by the number of years of service as a
correctional officer, a probation and parole officer or a fugitive
apprehension agent, and any years in excess of twenty (20) years as
such an officer or agent, or years credited to the member in
accordance with the provisions of Section 913 of this title, shall
be calculated for retirement purposes at two percent (2%) of the
final average compensation of the member multiplied by the number of
years of such service. For purposes of this paragraph, "final
average compensation " shall be determined by computing the averag e
annual salary, in the manner prescribed by paragraph (18) of Section
902 of this title, for the highest three (3) years of the last ten
(10) years of participating service immediately preceding retirement
or termination of employment for all years of ser vice performed by
such member, both for years of service performed as a correctional
officer, probation and parole officer or fugitive apprehension RBH No. 5587
ENR. H. B. NO. 2458 Page 12
agent, not in excess of twenty (20) years, and for years of service
performed in excess of twenty (20) years , whether as a correctional
officer, probation and parole officer, fugitive apprehension agent
or other position unless the computation of benefits would result in
a lower retirement benefit amount than if final average compensation
were to be computed as otherwise provided by this paragraph. "Final
average compensation " shall be determined by computing the average
annual salary for the highest five (5) of the last ten (10) years of
participating service immediately preceding retirement or
termination of employment, with respect to members whose first
participating service occurs on or after July 1, 2013.
(7) Any member who is a correctional officer, a probation and
parole officer or a fugitive apprehension agent who has at least
five (5) years of service as a correctional officer, a probation and
parole officer or a fugitive apprehension agent who is in such
position on June 30, 2004, or who is hired after June 30, 2004, in
such position, and who receives a promotion or change in job
classification after June 30, 2004, to another position in the
Department of Corrections, and who is employed by the Department of
Corrections at the time of retirement and who retires on or after
July 1, 2004, shall be entitled to receive an annual retirement
benefit equal to two and one-half percent (2 1/2%) of the final
average compensation of the member, but not exceeding the maximum
compensation level as provided in paragraph (18) of Section 902 of
this title, multiplied by the number of years of service with the
Department of Corrections and any years in excess of twenty (20)
years with the Department or years credited to the member in
accordance with the provisions of Section 913 of this title, shall
be calculated for retirement purposes at two percent (2%) of the
final average compensation of the member multiplied by the number of
years of such service. For purposes of this paragraph, "final
average compensation " shall be determined by computing the average
annual salary, in the manner prescribed by paragraph (18) of Sec tion
902 of this title, for the highest three (3) years of the last ten
(10) years of participating service immediately preceding retirement
or termination of employment for all years of service performed by
such member with the Department. "Final average compensation" shall
be determined by computing the average annual salary for the highest
five (5) of the last ten (10) years of participating service
immediately preceding retirement or termination of employment, with
respect to members whose first partic ipating service occurs on or
after July 1, 2013.
RBH No. 5587
ENR. H. B. NO. 2458 Page 13
(8) Any person who contributed to the System as a correctional
officer, a probation and parole officer or a fugitive apprehension
agent as provided in paragraphs paragraph (b) or (c) of subsection
(1) of Section 919.1 of this title, and who retires under normal
retirement or early retirement on or after January 1, 2004, under
paragraph (24) of Section 902 of this title, and any public safety
officer described by paragraph (37) of Section 902 of this title
hired on or after the effective date of this act by the Grand River
Dam Authority and who retires on or after the effective date of this
act, shall have retirement benefits for each year of full -time-
equivalent participating service as a correctional office r, a
probation and parole officer or a fugitive apprehension agent, or
Grand River Dam public safety officer computed on two and one -half
percent (2 1/2%) of the final average compensation based upon those
years as a correctional officer, a probation and p arole officer, a
fugitive apprehension agent or a Grand River Dam public safety
officer. For purposes of this paragraph, "final average
compensation" shall be determined by computing the average annual
salary, in the manner prescribed by paragraph (18) of Section 902 of
this title, for the highest three (3) years of the last ten (10)
years of participating service immediately preceding retirement or
termination of employment for all years of service performed by such
member, both for years of service perfo rmed as a correctional
officer, probation and parole officer or fugitive apprehension
agent, or years of service performed as a Grand River Dam public
safety officer, not in excess of twenty (20) years, and for years of
service performed in excess of twent y (20) years, whether as a
correctional officer, probation and parole officer, fugitive
apprehension agent, Grand River Dam public safety officer, or other
position unless the computation of benefits would result in a lower
retirement benefit amount than i f final average compensation were to
be computed as otherwise provided by this paragraph. "Final average
compensation" shall be determined by computing the average annual
salary for the highest five (5) of the last ten (10) years of
participating service immediately preceding retirement or
termination of employment, with respect to members whose first
participating service occurs on or after July 1, 2013, or with
respect to Grand River Dam public safety officers whose first
participating service occurs on or after the effective date of this
act.
(9) Any member who is:
a. initially on or after July 1, 2002, employed as a
firefighter for the Oklahoma Military Department and RBH No. 5587
ENR. H. B. NO. 2458 Page 14
who retires on or after the member 's normal retirement
date shall be entitled to re ceive an annual retirement
benefit equal to two and one -half percent (2 1/2%) of
the final average compensation of the member
multiplied by the number of years of service in such
service,
b. (1) a firefighter who performs firefighting services
for the Oklahoma Military Department prior to
July 1, 2002, and who makes an election in
writing on a form prescribed for this purpose by
the System not later than December 31, 2002,
shall be entitled to receive a retirement benefit
based upon two and one -half percent (2 1/2%) of
the final average compensation of the member
multiplied by the number of years of service as a
firefighter with the Oklahoma Military Department
on or after July 1, 2002. The election
authorized by this subdivision shall be
irrevocable once the election is filed with the
System,
(2) a firefighter who performs firefighting services
for the Oklahoma Military Department prior to
July 1, 2002, and who makes the election in
division (1) of this subparagraph may also make
an election in writing on a form prescribed for
this purpose by the System not later than
December 31, 2002, to receive a retirement
benefit based upon two and one -half percent (2
1/2%) of the final average compensation of the
member multiplied by the number of years of
service as a firefighter with the Oklahoma
Military Department prior to July 1, 2002. The
election authorized by this subdivision shall be
irrevocable once the election is filed with the
System. Retirement benefits shall be calculated
based upon the two and one -half percent (2 1/2%)
multiplier upon payment being made pursuant to
Section 913.5 of this title.
(10) Any person who contributes to the System as a deputy
sheriff or county jailer as provided in paragraph (f) of subsection
(1) of Section 919.1 of this tit le, and who retires under normal
retirement or early retirement under division (v) of subparagraph RBH No. 5587
ENR. H. B. NO. 2458 Page 15
(d) of paragraph (24) of Section 902 of this title, shall have
retirement benefits for each year of full -time-equivalent
participating service as a deputy sh eriff or county jailer computed
on two and one-half percent (2 1/2%) of the final average
compensation based upon those years as a deputy sheriff or county
jailer, and any years in excess of twenty (20) years as a deputy
sheriff or county jailer, or years credited to the member in
accordance with the provisions of Section 913 of this title, shall
be calculated for retirement purposes at two percent (2%) of the
final average compensation of the member multiplied by the number of
years of such service. For p urposes of this paragraph, "final
average compensation " shall be determined by computing the average
annual salary, in the manner prescribed by paragraph (18) of Section
902 of this title, both for years of service performed as a deputy
sheriff or county jailer not in excess of twenty (20) years, and for
years of service performed in excess of twenty (20) years, whether
as a deputy sheriff or county jailer.
(11) Upon death of a retirant retiree, there shall be paid to
his or her beneficiary an amount equa l to the excess, if any, of his
or her accumulated contributions over the sum of all retirement
benefit payments made.
(12) Such annual retirement benefits shall be paid in equal
monthly installments, except that the Board may provide for the
payment of retirement benefits which total less than Two Hundred
Forty Dollars ($240.00) a year on other than a monthly basis.
(13) Pursuant to the rules established by the Board, a retiree
receiving monthly benefits from the System may authorize warrant
deductions for any products currently offered to active state
employees through the Employees Benefits Council, provided that
product is offered to state retirees as a group and has a minimum
participation of five hundred state retirees. The System has no
responsibility for the marketing, enrolling or administration of
such products, but shall retain a processing fee of two percent (2%)
of the gross deductions for the products. Retirement benefit
deductions shall be made for membership dues for any statewide
association for which payroll deductions are authorized pursuant to
subsection B of Section 34.70 of Title 62 of the Oklahoma Statutes
for retired members of any state -supported retirement system, upon
proper authorization given by the member to the board from w hich the
member or beneficiary is currently receiving retirement benefits.
RBH No. 5587
ENR. H. B. NO. 2458 Page 16
B. A member shall be considered disabled if such member
qualifies for the payment of Social Security disability benefits, or
the payment of benefits pursuant to the Railroad Retir ement Act of
1974, Section 231 et seq. of Title 45 of the United States Code, and
shall be eligible for benefits hereunder upon proof of such
disability, provided such member is an active regularly scheduled
employee with a participating employer at the ti me of injury or
inception of illness or disease resulting in subsequent
certification of eligibility for Social Security disability benefits
by reason of such injury, illness or disease, providing such
disability is certified by the Social Security Adminis tration within
one (1) year after the last date physically on the job and after
completion of at least eight (8) years of participating service or
combined prior and participating service or resulting in subsequent
certification of eligibility of disabilit y by the Railroad
Retirement Board providing such certification is made by the
Railroad Retirement Board within one (1) year after the last date
physically on the job and after completion of at least eight (8)
years of participating service or combined pri or and participating
service. The member shall submit to the Retirement System the
Social Security Award Notice or the Railroad Retirement Award Notice
certifying the date of entitlement for disability benefits, as
issued by the Social Security Administra tion, Department of Health
and Human Services or the Railroad Retirement Board. Disability
benefits shall become effective on the date of entitlement as
established by the Social Security Administration or the Railroad
Retirement Board, but not before the first day of the month
following removal from the payroll, whichever is later, and final
approval by the Retirement System. Benefits shall be based upon
length of service and compensation as of the date of disability,
without actuarial reduction because of commencement prior to the
normal retirement date. The only optional form of benefit payment
available for disability benefits is Option A as provided for in
Section 918 of this title. Option A must be elected in accordance
with the provisions of Secti on 918 of this title. Benefit payments
shall cease upon the member 's recovery from disability prior to the
normal retirement date. Future benefits, if any, shall be paid
based upon length of service and compensation as of the date of
disability. In the event that disability ceases and the member
returns to employment within the System credited service to the date
of disability shall be restored, and future benefits shall be
determined accordingly.
C. A member who incurred a disability pursuant to subse ction B
of this section on or after July 1, 1999, and who has retired from RBH No. 5587
ENR. H. B. NO. 2458 Page 17
the System with an early retirement benefit pending certification
from the Social Security Administration or the Railroad Retirement
Board shall receive a retirement benefit not les s than the
disability retirement benefit provided by subsection B of this
section once the System receives a Social Security Award Notice or a
Railroad Retirement Award Notice pursuant to subsection B of this
section and a completed Application for Disabil ity Benefits. In
addition, such member shall receive the difference, if any, between
the early retirement benefit and the disability benefit from the
date the Social Security Administration or the Railroad Retirement
Board establishes disability entitleme nt.
D. Any actively participating member of the System on or after
July 1, 1998, except for those employees provided in subparagraph
(e) of paragraph (14) of Section 902 of this title, whose employment
is less than full-time, shall have his or her final average
compensation calculated on an annualized basis using his or her
hourly wage subject to the maximum compensation limits; provided,
however, any such member whose first participating service occurred
before July 1, 2013, and who has at least three (3 ) years of full-
time employment during the last ten (10) years immediately preceding
termination or retirement shall not be eligible for the
annualization provisions contained herein ; and provided further, any
such member whose first participating service occurred on or after
July 1, 2013, and who has at least five (5) years of full -time
employment during the last ten (10) years immediately preceding
termination or retirement shall not be eligible for the
annualization provisions contained herein . The Board of Trustees
shall promulgate such administrative rules as are necessary to
implement the provisions of this subsection.
SECTION 6. AMENDATORY 74 O.S. 2011, Section 918, is
amended to read as follows:
Section 918. (1) Except as otherwise provided for in this
section and Section 918.1 of this title, a member may elect to have
the retirement benefit paid under one of the options provided in
this section in lieu of having it paid in the form stated in Section
915 of this title. The election of an option must be made at any
time prior to retirement or prior to termination of service with a
vested benefit. A specific person must be designated as joint
annuitant at the time of election of Option A or B. Election of an
option is available with respect to the vested benefit. All
retirement benefits of a married member shall be paid pursuant to
the Option A plan or Option B plan as provided for in this section RBH No. 5587
ENR. H. B. NO. 2458 Page 18
unless the spouse of a member consents in writing for the benefits
to be paid as provided for in Section 915 of this title or pursuant
to Option B or Option C as provided for in this section.
(2) The amount of retirement benefit payable under an option
shall be based on the age and sex of the member and the age and sex
of the joint annuitant, and shall be such amount as to be the
actuarial equivalent of the retirement benefit otherwise payable
under Section 915 of this title.
(3) The retirement options are:
Option A. Joint and one -half to joint annuitant survivor. A
reduced retirement benefit is payable to the retirant retiree during
his or her lifetime with one -half (1/2) of that amount continued to
the joint annuitant during such joint annuitant 's remaining
lifetime, if any, after the death of the retirant retiree. If the
named joint annuitant dies at any time after the member 's retirement
date, but before the death of the retirant retiree, the retirant
retiree shall return to the retirement benefit, including any post -
retirement benefit increases the member would have re ceived had the
member not selected Option A. The benefit shall be determined at
the date of death of the named joint annuitant or July 1, 1994,
whichever is later. This increase shall become effective the first
day of the month following the date of deat h of the named joint
annuitant or July 1, 1994, whichever is later, and shall be payable
for the retirant's retiree's remaining lifetime. The retirant
retiree shall notify the Oklahoma Public Employees Retirement System
of the death of the named joint ann uitant in writing. In the
absence of the written notice being filed by the member notifying
the Oklahoma Public Employees Retirement System of the death of the
named joint annuitant within six (6) months of the date of death,
nothing in this subsection sh all require the Oklahoma Public
Employees Retirement System to pay more than six (6) months of
retrospective benefits increase.
Option B. Joint and survivor. A reduced retirement benefit is
payable to the retirant retiree during his or her lifetime with that
amount continued to the joint annuitant during the joint annuitant 's
remaining lifetime, if any, after the death of the retirant retiree.
If the named joint annuitant dies at any time after the member 's
retirement date, but before the death of the retirant retiree, the
retirant retiree shall return to the retirement benefit, including
any post retirement benefit increases the member would have received
had the member not selected Option B. The benefit shall be RBH No. 5587
ENR. H. B. NO. 2458 Page 19
determined at the date of death of the named joint annuitant or July
1, 1994, whichever is later. This increase shall become effective
the first day of the month following the date of death of the named
joint annuitant or July 1, 1994, whichever is later, and shall be
payable for the retirant's retiree's remaining lifetime. The
retirant retiree shall notify the Oklahoma Public Employees
Retirement System of the death of the named joint annuitant in
writing. In the absence of such written notice being filed by the
member notifying the Oklahoma Public Employees Retirement System of
the death of the named joint annuitant within six (6) months of the
date of death, nothing in this subsection shall require the Oklahoma
Public Employees Retirement System to pay more than six (6) months
of retrospective benefits increase.
Option C. Life with ten (10) years certain. A reduced
retirement benefit is payable to the retirant retiree during his or
her lifetime and if the retirant retiree dies within the ten-year
certain period, measured from the commence ment of retirement
benefits payments, such payments will be continued to the
beneficiary during the balance of the ten -year certain period. If
the retirant retiree dies within the ten-year certain period, and
there are no living designated beneficiaries, the person responsible
for the estate of the retirant retiree may elect for the estate to
be paid the benefits for the remainder of the term or to receive the
present value of the remaining benefit payments according to rules
adopted by the Board of Truste es of the System. If the retirant
retiree predeceases a designated beneficiary within the ten -year
certain period, and the beneficiary dies after the beneficiary has
begun to receive benefits, the person responsible for the estate of
the beneficiary may e lect for the estate to be paid the benefits for
the remainder of the term or to receive the present value of the
remaining benefit payments according to rules adopted by the Board
of Trustees of the System.
(4) If the selection of a joint annuitant would violate the
distribution requirements contained in Section 918.1 of this title,
such selection will not be permitted.
(5) If a member who is eligible to retire in accordance with
the provisions of Section 914 of this title but is not actually
retired or is eligible to vest or has elected a vested benefit dies,
the member's spouse may elect to receive benefits as a joint
annuitant under Option B calculated as if the member retired on the
date of death, in lieu of receiving the member 's accumulated
contributions. However, no benefits shall be payable before the RBH No. 5587
ENR. H. B. NO. 2458 Page 20
date the deceased member would have met the requirements for a
normal or early retirement. The provisions of this paragraph shall
be applicable to a surviving spouse of a deceased member who died
prior to the effective date of this act, but only if no benefits or
distributions have been previously paid.
(6) Benefits payable to a joint annuitant shall accrue from the
first day of the month following the death of a member or retirant
retiree and, in the case of Option A and Option B, shall end on the
last day of the month in which the joint annuitant dies.
SECTION 7. AMENDATORY 74 O.S. 2011, Section 932, is
amended to read as follows:
Section 932. Except for the member 's name, age, amount of
contributions paid in, benefits being paid, amount of credited
service and any documents verifying credited service or benefits,
all information, documents and copies thereof contained in a
member's retirement file shall be given confi dential treatment and
shall not be made public by the System without the prior written
consent of the member to which it pertains, but shall be subject to
subpoena or court order. Notwithstanding any provision to the
contrary, the System may release tax i nformation returns of a
deceased member to a person acting in a fiduciary capacity on behalf
of the decedent or the decedent 's estate for the purposes of filing
a tax return, a court -appointed personal representative or
administrator of the decedent 's estate, the person responsible for
an intestate estate, a trustee of a valid trust document, the
decedent's prior attorney-in-fact, the spouse of the decedent, the
decedent's court-appointed guardian, or some other person acting on
behalf of the decedent.
SECTION 8. This act shall become effective November 1, 2021.
RBH No. 5587
ENR. H. B. NO. 2458 Page 21
Passed the House of Representatives the 2nd day of March, 2021.
Presiding Officer of the House
of Representatives
Passed the Senate the 19th day of April, 2021.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of t he State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of St ate this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
2512 E. 71
st
Street , Suite D ∙ Tulsa, Oklahoma 74136 (918) 492-9658 ∙ (918) 492- 9659
January 13, 2021
Representative Mark Lepak
Room 453.2
Re: RBH No. 5587
RBH No. 5587 has cleanup language for Oklahoma Public Employees Retirement System and
Uniform Retirement System for Justices and Judges.
It also allows the systems to release tax information of a deceased member to a person acting in a
fiduciary capacity for purposes of filing a tax return.
RBH No. 5587 is a non fiscal bill as defined by OPLAAA.
I am a member of the American Academy of Actuaries and meet the Qualification Standards of the
American Academy of Actuaries to render the actuarial opinion herein.
Thomas E. Cummins
Thomas E. Cummins, MAAA