RBH No. 7825
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ENGROSSED HOUSE
BILL NO. 2486 By: Frix and Randleman of the
House
and
Pemberton of the Senate
[ public retirement systems - imposing conditions
related to approvals by the Internal Revenue
Service - providing for termination of provisions
of the Retirement Freedom Act - modifying
provisions related to participation in defined
contribution plan ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 3103, is
amended to read as follows:
Section 3103. As used in the Oklahoma Pension Legislation
Actuarial Analysis Act:
1. "Amendment" means any amendment, incl uding a substitute
bill, made to a retirement bill by any commi ttee of the House or
Senate, any conference committee of the House or Senate or by the
House or Senate; RBH No. 7825
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2. "RB number" means that number preceded by the letters "RB"
assigned to a retirement b ill by the respective staffs of the
Oklahoma State Senate and the Oklahoma House of Representatives when
the respective staff office prepares a retirement bill for a member
of the Legislature;
3. "Legislative Actuary" means the firm or entity that enters
into a contract with t he Legislative Service Bureau pursuant to
Section 452.15 of Title 74 of the Oklahoma Statutes to provide the
actuarial services and other duties provided for in the Oklahoma
Pension Legislation Actuarial Analysis Act;
4. "Nonfiscal amendment" means an amendment to a retirement
bill having a fiscal impact, which amendment does not change any
factor of an actuarial investigation specified in subsection A of
Section 3109 of this title;
5. "Nonfiscal retirement bill " means a retirement b ill:
a. which does not affect the cost or funding factors of a
retirement system,
b. which affects such factors only in a manner which does
not:
(1) grant a benefit increase under the retirement
system affected by the bill,
(2) create an actuarial accrued liability for or
increase the actuarial accrued liab ility of the
retirement system affected by the bill, or RBH No. 7825
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(3) increase the normal cost of the retirement system
affected by the bill,
c. which authorizes the purchase by an active member of
the retirement system, at the actuarial cost for the
purchase as computed pursuant to the statute in effect
on the effective date of the measure allowing such
purchase, of years of service for purposes of reaching
a normal retirement date in the applicable retirement
system, but which cannot be used in order to compute
the number of years o f service for purposes of
computing the retirement benefit for the member,
d. which provides for the computation of a service -
connected disability retirement benefit for members of
the Oklahoma Law Enforcement Retirement System
pursuant to Section 2-305 of Title 47 of the Oklahoma
Statutes if the members were unable to complete twenty
(20) years of service as a result of the disability,
e. which requires membership in the defined benefit plan
authorized by Section 901 et seq. of Title 74 of the
Oklahoma Statutes for persons whose first elected or
appointed service occurs on or after November 1, 2018,
if such persons had any prior service in the Oklahoma
Public Employees Retirement System p rior to November
1, 2015, RBH No. 7825
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f. which provides for a one-time increase in retirement
benefits if the increase in retirement benefits is not
a permanent increase in the gross annual retirement
benefit payable to a member or beneficiary, occurs
only once pursuant to a single statutory authorization
and does not exceed:
(1) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One
Thousand Dollars ($1,000.00) and requires that
the benefit may only be provided if the funded
ratio of the affected retirement system would not
be less than sixty percent (60%) but not greater
than eighty percent (80%) after the benefit
increase is paid,
(2) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One
Thousand Two Hundred Dollars ($1,200.00) and
requires that the benefit may on ly be provided if
the funded ratio of the affected retirement
system would be greater than eighty percent (80%)
but not greater than one hundred percent (100%)
after the benefit increase is paid,
(3) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One RBH No. 7825
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Thousand Four Hundred Dollars ($1,400.00) and
requires that the benefit may only be provided if
the funded ratio of the affected retirement
system would be greater than one hundred percent
(100%) after the benefit increas e is paid, or
(4) the greater of two percent (2%) of the gross
annual retirement benefit of the volunteer
firefighter or One Hundred Dollars ($100.00) for
persons who retired from the Ok lahoma
Firefighters Pension and Retirement System as
volunteer firefighters and who did not retire
from the Oklahoma Firefighters Pension and
Retirement System as a paid firefighter.
As used in this subparagraph, "funded ratio" means the
figure derived by dividing the actuarial value of
assets of the applicable retirement sy stem by the
actuarial accrued liability of the applicable
retirement system,
g. which modifies the disability pension standard for
police officers who are members of the Oklahoma Police
Pension and Retirement System as provi ded by Section 3
50-115 of this act Title 11 of the Oklahoma Statutes,
or RBH No. 7825
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h. which provides a cost-of-living benefit increase
pursuant to the provisions of Sections 2 through 7 of
this act:
(1) Section 49-143.7 of Title 11 of the Oklahoma
Statutes,
(2) Section 50-136.9 of Title 11 of the Oklahoma
Statutes,
(3) Section 1104K of Title 20 of the Oklahoma
Statutes,
(4) Section 2-305.12 of Title 47 of the Oklahoma
Statutes,
(5) Section 17-116.22 of Title 70 of the Oklahom a
Statutes,
(6) Section 930.11 of Title 74 of the Oklaho ma
Statutes, or
i. which provides for the termination of the d efined
contribution retirement plan created pursuant to
Section 935.1 et seq. of Title 74 of the Oklahoma
Statutes pursuant to the provis ions of Sections 2
through 9 of this act together with provisions for
conversion of defined contribution plan account
balances into participating service in the Oklahoma
Public Employees Retirement System defined benefit
plan created pursuant to Section 90 1 et seq. of Title RBH No. 7825
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74 of the Oklahoma Statutes or such other disposition
of defined contribution plan account balances as may
be authorized pursuant to the provisions of this act .
A nonfiscal retirement bill shall include any retirement bill that
has as its sole purpose the appropriat ion or distribution or
redistribution of monies in some manner to a retirement system for
purposes of reducing the unfunded liability of such system or the
earmarking of a portion of the revenue from a tax to a retirement
system or increasing the percentag e of the revenue earmarked fr om a
tax to a retirement system;
6. "Reduction-in-cost amendment" means an amendment to a
retirement bill having a fiscal impact which reduces the cost of the
bill as such cost is determined by the actuarial investigation for
the bill prepared pursuant t o Section 3109 of this title;
7. "Retirement bill" means any bill or joint resolution
introduced or any bill or joint resolution amended by a member of
the Oklahoma Legislature which creates or amen ds any law directly
affecting a retirement system. A re tirement bill shall not mean a
bill or resolution that impacts the revenue of any state tax in
which a portion of the revenue generated from such tax is earmarked
for the benefit of a retirement syste m;
8. "Retirement bill having a fiscal impact " means any
retirement bill creating or establishing a retirement system and any
other retirement bill other than a nonfiscal retirement bill; and RBH No. 7825
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9. "Retirement system" means the Teachers' Retirement System of
Oklahoma, the Oklahoma Public Employees Retir ement System, the
Uniform Retirement System for Just ices and Judges, the Oklahoma
Firefighters Pension and Retirement System, the Oklahoma Police
Pension and Retirement System, the Oklahoma Law Enforcement
Retirement System, or a retirement system establis hed after January
1, 2006.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 935.101 of T itle 74, unless
there is created a duplication in numbering, reads as follows:
The provisions of this act shall be contingent upon final
approval by the Internal Revenue Serv ice with respect to the
distribution of monies from member accounts in the defined
contribution plan established pursuant to Section 935.1 et seq. of
Title 74 of the Oklahoma Statutes. The Oklahoma Public Employees
Retirement System shall make such applic ations to the Internal
Revenue Service as may be required in order to implement th e
provisions of this act.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 935.102 of Title 74, unless
there is created a duplication in numbering, reads as follows:
A. Except as may be req uired by the provisions of this act, the
provisions of Section 935.1 et seq. of Title 74 of the Oklahoma RBH No. 7825
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Statutes shall cease to have the force and effect of law on November
1, 2021.
B. Effective November 1, 2021, each member maintaining an
account established pursuant to the provisions of Section 935.1 et
seq. of Title 74 of the Oklahoma Statutes shall cease making
employee contributions to their account and shall begin
participating service in the defined benefit plan created pursuant
to the provisions of Section 902 et seq. of Title 74 of the Oklahoma
Statutes. Effective November 1, 2021, each member who maintains an
account established pursuant to the provisions of Sectio n 935.1 et
seq. of Title 74 of the Oklahoma Statutes shall make employee
contributions to the defined benefit plan as required by Section
919.1 of Title 74 of the Oklahoma Statutes.
C. Employer contributions and matching amounts otherwise
required by the provisions of Section 935.5 of Title 74 of the
Oklahoma Statutes shall cease and e mployer contributions with
respect to employee compensation shall be made as provided by
Section 920 or 920A of Title 74 of the Oklahoma Statutes.
D. Employees maintaining a plan account established pursuant to
the provisions of Section 935.1 et seq. of T itle 74 of the Oklahoma
Statutes may continue to actively manage the plan account, including
any gains or losses resulting from such active management, until
final disposition of the plan account balance by acquisition of
service credit in the defined bene fit plan created pursuant to the RBH No. 7825
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provisions of Section 901 et seq. of Title 74 of the Oklahoma
Statutes, a transfer of the account balance to a tax -qualified
retirement plan or such other disposition as may be authorized
pursuant to the Internal Revenue Co de of 1986, as amended, and rules
and regulations promulgated pursuant thereto.
E. Each person maintaining a plan account pursuant to the
provisions of Section 935.1 et seq. of Title 74 of the Oklahoma
Statutes shall make an election, which shall be irrev ocable, within
one hundred twenty (120) days from the effective date of this act to
transfer the account balance to acquire participating service credit
in the defined benefi t plan created pursuant to the provisions of
Section 901 et seq. of Title 74 of th e Oklahoma Statutes using the
actuarial cost provisions of Section 913.5 of Title 74 of the
Oklahoma Statutes, to transfer the balance to a tax -qualified plan
or such other disposition as may be allowed pursuant to the Internal
Revenue Code of 1986, as ame nded, or any rules or regulations
promulgated pursuant thereto.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Sec tion 935.103 of Title 74, unless
there is created a duplication in numbering, read s as follows:
A. Subject to the conditions imposed pursuant to this act, the
provisions of the Retirement Freedom Act, Section 935.1 et seq. of
Title 74 of the Oklahoma Stat utes, shall cease to have the force and
effect of law upon November 1, 2022, or th e last date required for RBH No. 7825
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distribution of the plan account balances to acquire service credit
in the defined benefit plan created and maintained by the Oklahoma
Public Employees Retirement System pursuant to Section 901 et seq.
of Title 74 of the Oklahoma S tatutes, transfer of the account
balances to a tax-qualified retirement plan as defined by the
Internal Revenue Code of 1986, as amended, or such other disposition
as may be required in order to terminate the defined contribution
plan and make final dispos ition of account balances created and
maintained pursuant to the provisions of Section 935.1 et seq. of
Title 74 of the Oklahoma Statutes, whichever date last occurs.
B. Effective November 1, 2021, notwithstanding the provisions
of Section 935.7 of Title 74 of the Oklahoma Statutes, a member
maintaining a defined contribution plan account pursuant to the
provisions of the Retirement Freedom Act shall be one hundred
percent (100%) vested in their account balance as of that date,
including employer matching amounts and any gains resulting from
management of the account pursuant to the provisions of the
Retirement Freedom Act.
SECTION 5. NEW LAW A new sect ion of law to be codified
in the Oklahoma Statutes as Section 935.104 of Title 74, unless
there is created a duplication in numbering, reads as follows:
Any service credit in the Oklahoma Public Employees Retirement
System as provided by Section 901 et seq . of Title 74 of the
Oklahoma Statutes acquired by transfer of an account balance RBH No. 7825
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pursuant to the provisions of this act shall not exceed the total
period of participating service accrued by the member while a
participant in the defined contribution plan c reated by Section
935.1 et seq. of Title 74 of the Oklahoma Statutes.
SECTION 6. AMENDATORY 74 O.S. 20 21, Section 902, is
amended to read as follows:
Section 902. As used in Section 901 et seq. of this title:
(1) "System" means the Oklahoma Public Employees Retirement
System as established by this act and as it may hereafter be
amended;
(2) "Accumulated contributions" means the sum of all
contributions by a member to the System which shall be credited to
the member's account;
(3) "Act" means Sections 901 to 932, inclusive, of this title;
(4) "Actuarial equivalent" means a deferred income benefit of
equal value to the accumulated deposits or benefits when computed
upon the basis of the actuarial tables in use by the Sys tem;
(5) "Actuarial tables" means the actuarial tables approved and
in use by the Board at any given time;
(6) "Actuary" means the actuary or firm of actuaries employed
by the Board at any given time;
(7) "Beneficiary" means any person named by a member to receive
any benefits as provided for by Section 901 et seq. of this title. RBH No. 7825
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If there is no beneficiary living at time of member employee's
death, the member's estate shall be the beneficiary;
(8) "Board" means the Oklahoma Public Employees Retirement
System Board of Trustees;
(9) "Compensation" means all salary and wages, as defined by
the Board of Trustees, including amounts deferred under deferred
compensation agreements entered into between a member and a
participating employer, but exclusive of pa yment for overtime,
payable to a member of the System for personal services performed
for a participating employer but shall not include compensation or
reimbursement for traveling, or moving expenses, or any compensation
in excess of the maximum compensat ion level, provided:
(a) For compensation for service prior to January 1, 1988,
the maximum compensation level shall be Twenty -five
Thousand Dollars ($25,000.00) per annum.
For compensation for service on or after January 1,
1988, through June 30, 1994, th e maximum compensation
level shall be Forty Thousand Dollars ($40,000.00) per
annum.
For compensation for service on or after July 1, 1994,
through June 30, 1995, the maximum compensation level
shall be Fifty Thousand Dollars ($50,000.00) per
annum; for compensation for service on or after July
1, 1995, through June 30, 1996, the maximum RBH No. 7825
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compensation level shall be Sixty Thousand Dollars
($60,000.00) per annum; for compensation for service
on or after July 1, 1996, through June 30, 1997, the
maximum compensation level shall be Seventy Thousand
Dollars ($70,000.00) per annum; and for compensation
for service on or after July 1, 1997, through June 30,
1998, the maximum compensation level shall be Eighty
Thousand Dollars ($80,000.00) per annum. For
compensation for services on or after July 1, 1998,
there shall be no maximum compensation level for
retirement purposes.
(b) Compensation for retirement purposes shall include any
amount of elective salary reduction under Section 457
of the Internal Revenue Code of 1986 and any amount of
nonelective salary reduction under Section 414(h) of
the Internal Revenue Code of 1986.
(c) Notwithstanding any provision to the contrary, the
compensation taken into account for any employee in
determining the contribution or benefi t accruals for
any plan year is limited to the annual compensation
limit under Section 401(a)(17) of the federal Internal
Revenue Code.
(d) Current appointed members of the Oklahoma Tax
Commission whose salary is constitutionally limited RBH No. 7825
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and is less than the highest salary allowed by law for
his or her position shall be allowed, within ninety
(90) days from the effective date of this act, to make
an election to use the highest salary allowed by law
for the position to which the member was appointed for
the purposes of making contributions and determination
of retirement benefits. Such election shall be
irrevocable and be in writing. Reappointment to the
same office shall not permit a new election. Members
appointed to the Oklahoma Tax Commission after the
effective date of this act shall make such election,
pursuant to this subparagraph, within ninety (90) days
of taking office;
(10) "Credited service" means the sum of participating service,
prior service and elected service;
(11) "Dependent" means a par ent, child, or spouse of a member
who is dependent upon the member for at least one -half (1/2) of the
member's support;
(12) "Effective date" means the date upon which the System
becomes effective by operation of law;
(13) "Eligible employer" means the s tate and any county, county
hospital, city or town, conservation districts, circuit engineering
districts and any public or private trust in which a county, city or
town participates and is the primary beneficiary, is to be an RBH No. 7825
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eligible employer for the pur pose of this act only, whose employees
are covered by Social Security and are not covered by or eligible
for another retirement plan authorized under the laws of this state
which is in operation on the initial entry date. Emergency medical
service districts may join the System upon proper application to the
Board. Provided affiliation by a county hospital shall be in the
form of a resolution adopted by the board of control.
(a) If a class or several classes of employees of any
above-defined employers are covered by Social Security
and are not covered by or eligible for and will not
become eligible for another retirement plan authorized
under the laws of this state, which is in operation on
the effective date, such employer shall be deemed an
eligible employer, but only with respect to that class
or those classes of employees as defined in this
section.
(b) A class or several classes of employees who are
covered by Social Security and are not covered by or
eligible for and will not become eligible for anothe r
retirement plan authorized under the laws of this
state, which is in operation on the effective date,
and when the qualifications for employment in such
class or classes are set by state law; and when such
class or classes of employees are employed by a county RBH No. 7825
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or municipal government pursuant to such
qualifications; and when the services provided by such
employees are of such nature that they qualify for
matching by or contributions from state or federal
funds administered by an agency of state government
which qualifies as a participating employer, then the
agency of state government administering the state or
federal funds shall be deemed an eligible employer,
but only with respect to that class or those classes
of employees as defined in this subsection ; provided,
that the required contributions to the retirement plan
may be withheld from the contributions of state or
federal funds administered by the state agency and
transmitted to the System on the same basis as the
employee and employer contributions are transmitted
for the direct employees of the state agency. The
retirement or eligibility for retirement under the
provisions of law providing pensions for service as a
volunteer firefighter shall not render any person
ineligible for participation in th e benefits provided
for in Section 901 et seq. of this title. An employee
of any public or private trust in which a county, city
or town participates and is the primary beneficiary RBH No. 7825
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shall be deemed to be an eligible employee for the
purpose of this act onl y.
(c) All employees of the George Nigh Rehabilitation
Institute who elected to retain membership in the
System, pursuant to Section 913.7 of this title, shall
continue to be eligible employees for the purposes of
this act. The George Nigh Rehabilitation Institute
shall be considered a participating employer only for
such employees.
(d) All employees of CompSource Mutual Insurance Company
who retain membership in the Oklahoma Public Employees
Retirement System pursuant to Section 913.9 of this
title shall continue to be eligible employees for the
purposes of the Oklahoma Public Employees Retirement
System. CompSource Mutual Insurance Company shall be
considered a participating employer only for such
employees.
(e) All employees of a successor organization, as defined
by Section 5-60.12 of Title 2 of the Oklahoma
Statutes, who retain membership in the Oklahoma Public
Employees Retirement System pursuant to Section 5 -
60.35 of Title 2 of the Oklahoma Statutes shall
continue to be eligible employees for the pur poses of
the Oklahoma Public Employees Retirement System. A RBH No. 7825
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successor organization shall be considered a
participating employer only for such employees.
(f) A participating employer of the Teachers' Retirement
System of Oklahoma, who has one or more emplo yees who
have made an election pursuant to enabling legislation
to retain membership in the System as a result of
change in administration, shall be considered a
participating employer of the Oklahoma Public
Employees Retirement System only for such employ ees;
(14) "Employee" means any officer or employee of a
participating employer, whose employment is not seasonal or
temporary and whose employment requires at least one thousand
(1,000) hours of work per year and whose salary or wage is equal to
the hourly rate of the monthly minimum wage for state employees.
For those eligible employers outlined in Section 910 of this title,
the rate shall be equal to the hourly rate of the monthly minimum
wage for that employer. Each employer, whose minimum wage is les s
than the state's minimum wage, shall inform the System of the
minimum wage for that employer. This notification shall be by
resolution of the governing body.
(a) Any employee of the county extension agents who is not
currently participating in the Teach ers' Retirement
System of Oklahoma shall be a member of this System. RBH No. 7825
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(b) Eligibility shall not include any employee who is a
contributing member of the United States Civil Service
Retirement System.
(c) It shall be mandatory for an officer, appointee or
employee of the office of district attorney to become
a member of this System if he or she is not currently
participating in a county retirement system. Provided
further, that if an officer, appointee or employee of
the office of district attorney is curren tly
participating in such county retirement system, he or
she is ineligible for this System as long as he or she
is eligible for such county retirement system. Any
eligible officer, appointee or employee of the office
of district attorney shall be given c redit for prior
service as defined in this section. The provisions
outlined in Section 917 of this title shall apply to
those employees who have previously withdrawn their
contributions.
(d) Eligibility shall also not include any officer or
employee of the Oklahoma Employment Security
Commission, except for those officers and employees of
the Commission electing to transfer to this System
pursuant to the provisions of Section 910.1 of this
title or any other class of officers or employees RBH No. 7825
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specifically exempted by the laws of this state,
unless there be a consolidation as provided by Section
912 of this title. Employees of the Oklahoma
Employment Security Commission who are ineligible for
enrollment in the Employment Security Commission
Retirement Plan, tha t was in effect on January 1,
1964, shall become members of this System.
(e) Any employee employed by the Legislative Service
Bureau, State Senate or House of Representatives for
the full duration of a regular legislative session
shall be eligible for memb ership in the System
regardless of classification as a temporary employee
and may participate in the System during the regular
legislative session at the option of the employee.
For purposes of this subparagraph, the determination
of whether an employee i s employed for the full
duration of a regular legislative session shall be
made by the Legislative Service Bureau if such
employee is employed by the Legislative Service
Bureau, the State Senate if such employee is employed
by the State Senate, or by the H ouse of
Representatives if such employee is employed by the
House of Representatives. Each regular legislative
session during which the legislative employee or an RBH No. 7825
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employee of the Legislative Service Bureau
participates full time shall be counted as six (6 )
months of full-time participating service.
(i) Except as otherwise provided by this
subparagraph, once a temporary session employee
makes a choice to participate or not, the choice
shall be binding for all future legislative
sessions during which the emp loyee is employed.
(ii) Notwithstanding the provisions of division (i) of
this subparagraph, any employee, who is eligible
for membership in the System because of the
provisions of this subparagraph and who was
employed by the State Senate or House of
Representatives after January 1, 1989, may file
an election, in a manner specified by the Board,
to participate as a member of the System prior to
September 1, 1989.
(iii) Notwithstanding the provisions of division (i) of
this subparagraph, a temporary legisla tive
session employee who elected to become a member
of the System may withdraw from the System
effective the day said employee elected to
participate in the System upon written request to
the Board. Any such request must be received by RBH No. 7825
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the Board prior to October 1, 1990. All employee
contributions made by the temporary legislative
session employee shall be returned to the
employee without interest within four (4) months
of receipt of the written request.
(iv) A member of the System who did not initially
elect to participate as a member of the System
pursuant to this subparagraph shall be able to
acquire service performed as a temporary
legislative session employee for periods of
service performed prior to the date upon which
the person became a member of the System if:
a. the member files an election with the System
not later than December 31, 2000, to
purchase the prior service; and
b. the member makes payment to the System of
the actuarial cost of the service credit
pursuant to subsection A of Section 91 3.5 of
this title. The provisions of Section 913.5
of this title shall be applicable to the
purchase of the service credit, including
the provisions for determining service
credit in the event of incomplete payment
due to cessation of payments, death, RBH No. 7825
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termination of employment or retirement, but
the payment may extend for a period not to
exceed ninety-six (96) months;
(15) "Entry date" means the date on which an eligible employer
joins the System. The first entry date pursuant to Section 901 et
seq. of this title shall be January 1, 1964;
(16) "Executive Director" means the managing officer of the
System employed by the Board under Section 901 et seq. of this
title;
(17) "Federal Internal Revenue Code" means the federal Internal
Revenue Code of 1954 or 1986, as amended and as applicable to a
governmental plan as in effect on July 1, 1999;
(18) "Final average compensation" means the average annual
compensation, including amounts deferred under deferred compensation
agreements entered into between a membe r and a participating
employer, up to, but not exceeding the maximum compensation levels
as provided in paragraph (9) of this section received during the
highest three (3) of the last ten (10) years of participating
service immediately preceding retirement or termination of
employment and with respect to members whose first participating
service occurs on or after July 1, 2013, the compensation received
during the highest five (5) of the last ten (10) years of
participating service immediately preceding ret irement or
termination of employment. Provided, no member shall retire with a RBH No. 7825
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final average compensation unless the member has made the required
contributions on such compensation, as defined by the Board of
Trustees;
(19) "Fiscal year" means the period commencing July 1 of any
year and ending June 30 of the next year. The fiscal year is the
plan year for purposes of the federal Internal Revenue Code;
however, the calendar year is the limitation year for purposes of
Section 415 of the federal Internal Re venue Code;
(20) "Fund" means the Oklahoma Public Employees Retirement Fund
as created by Section 901 et seq. of this title;
(21) "Leave of absence" means a period of absence from
employment without pay, authorized and approved by the employer and
acknowledged to the Board, and which after the effective date does
not exceed two (2) years;
(22) "Member" means an eligible employee or elected official
who is in the System and is making the required employee or elected
official contributions, or any former e mployee or elected official
who shall have made the required contributions to the System and
shall have not received a refund or withdrawal;
(23) "Military service" means service in the Armed Forces of
the United States by an honorably discharged person d uring the
following time periods, as reflected on such person's Defense
Department Form 214, not to exceed five (5) years for combined
participating and/or prior service, as follows: RBH No. 7825
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(a) during the following periods, including the beginning
and ending dates, and only for the periods served,
from:
(i) April 6, 1917, to November 11, 1918, commonly
referred to as World War I,
(ii) September 16, 1940, to December 7, 1941, as a
member of the 45th Division,
(iii) December 7, 1941, to December 31, 1946, commonly
referred to as World War II,
(iv) June 27, 1950, to January 31, 1955, commonly
referred to as the Korean Conflict or the Korean
War,
(v) February 28, 1961, to May 7, 1975, commonly
referred to as the Vietnam era, except that:
a. for the period from February 28, 1961, to
August 4, 1964, military service shall only
include service in the Republic of Vietnam
during that period, and
b. for purposes of determining eligibility for
education and training benefits, such period
shall end on December 31, 1976, or
(vi) August 1, 1990, to December 31, 1991, commonly
referred to as the Gulf War, the Persian Gulf
War, or Operation Desert Storm, but excluding any RBH No. 7825
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person who served on active duty for training
only, unless discharged from such active duty for
a service-connected disability;
(b) during a period of war or combat military operation
other than a conflict, war or era listed in
subparagraph (a) of this paragraph, beginning on the
date of Congressional authorization, Congressional
resolution, or Executive Order of th e President of the
United States, for the use of the Armed Forces of the
United States in a war or combat military operation,
if such war or combat military operation lasted for a
period of ninety (90) days or more, for a person who
served, and only for th e period served, in the area of
responsibility of the war or combat military
operation, but excluding a person who served on active
duty for training only, unless discharged from such
active duty for a service -connected disability, and
provided that the bu rden of proof of military service
during this period shall be with the member, who must
present appropriate documentation establishing such
service.
An eligible member under this paragraph shall include only those
persons who shall have served during the t imes or in the areas
prescribed in this paragraph, and only if such person provides RBH No. 7825
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appropriate documentation in such time and manner as required by the
System to establish such military service prescribed in this
paragraph, or for service pursuant to subd ivision a of division (v)
of subparagraph (a) of this paragraph those persons who were awarded
service medals, as authorized by the United States Department of
Defense as reflected in the veteran's Defense Department Form 214,
related to the Vietnam Confli ct for service prior to August 5, 1964;
(24) "Normal retirement date" means the date on which a member
may retire with full retirement benefits as provided in Section 901
et seq. of this title, such date being whichever occurs first:
(a) the first day of the month coinciding with or
following a member's:
(1) sixty-second birthday with respect to members
whose first participating service occurs prior to
November 1, 2011, or
(2) sixty-fifth birthday with respect to members
whose first participating service o ccurs on or
after November 1, 2011, or with respect to
members whose first participating service occurs
on or after November 1, 2011, reaches a minimum
age of sixty (60) years and who also reaches a
normal retirement date pursuant to subparagraph c
of this paragraph, RBH No. 7825
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(b) for any person who initially became a member prior to
July 1, 1992, and who does not reach a normal
retirement date pursuant to division (1) of
subparagraph (a) of this paragraph, the first day of
the month coinciding with or following the date at
which the sum of a member's age and number of years of
credited service total eighty (80); such a normal
retirement date will also apply to any person who
became a member of the sending system as defined in
Section 901 et seq. of this title, prior to July 1,
1992, regardless of whether there were breaks in
service after July 1, 1992,
(c) for any person who became a member after June 30,
1992, but prior to November 1, 2011, and who does not
reach a normal retirement date pursuant to division
(1) of subparagraph (a) of this paragraph, the first
day of the month coinciding with or following the date
at which the sum of a member's age and number of years
of credited service total ninety (90),
(d) in addition to subparagraphs (a), (b) and (c) of this
paragraph, the first day of the month coinciding with
or following a member's completion of at least twenty
(20) years of full-time-equivalent employment as: RBH No. 7825
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(i) a correctional or probation and parole officer
with the Department of Corrections and at the
time of retirement, the member was a correctional
or probation and parole officer with the
Department of Corrections, or
(ii) a correctional officer, probation and parole
officer or fugitive apprehension agent with the
Department of Corrections who is in such p osition
on June 30, 2004, or who is hired after June 30,
2004, and who receives a promotion or change in
job classification after June 30, 2004, to
another position in the Department of
Corrections, so long as such officer or agent has
at least five (5) ye ars of service as a
correctional officer, probation and parole
officer or fugitive apprehension agent with the
Department, has twenty (20) years of full -time-
equivalent employment with the Department and was
employed by the Department at the time of
retirement, or
(iii) a firefighter with the Oklahoma Military
Department either employed for the first time on
or after July 1, 2002, or who was employed prior
to July 1, 2002, in such position and who makes RBH No. 7825
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the election authorized by division (2) of
subparagraph b of paragraph (9) of subsection A
of Section 915 of this title and at the time of
retirement, the member was a firefighter with the
Oklahoma Military Department, and such member has
at least twenty (20) years of credited service
upon which the two and o ne-half percent (2 1/2%)
multiplier will be used in calculating the
retirement benefit, or
(iv) a public safety officer employed by the Grand
River Dam Authority for the first time on or July
1, 2016, or
(v) a deputy sheriff or jailer employed by any count y
that is a participating employer in the System
for the first time as a deputy sheriff or jailer
on or after November 1, 2020,
(e) for those fugitive apprehension agents who retire on
or after July 1, 2002, the first day of the month
coinciding with or fo llowing a member's completion of
at least twenty (20) years of full -time-equivalent
employment as a fugitive apprehension agent with the
Department of Corrections and at the time of
retirement, the member was a fugitive apprehension
agent with the Departme nt of Corrections, or RBH No. 7825
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(f) for any member who was continuously employed by an
entity or institution within The Oklahoma State System
of Higher Education and whose initial employment with
such entity or institution was prior to July 1, 1992,
and who without a break in service of more than thirty
(30) days became employed by an employer participating
in the Oklahoma Public Employees Retirement System,
the first day of the month coinciding with or
following the date at which the sum of the member's
age and number of years of credited service total
eighty (80);
(25) "Participating employer" means an eligible employer who
has agreed to make contributions to the System on behalf of its
employees;
(26) "Participating service" means the period of employment
after the entry date for which credit is granted a member and for
purposes of this act shall include any period of service purchased
at actuarial cost according to the requirements of Section 913.5 of
this title as a result of an election made by a person having a
defined contribution plan account created pursuant to the provisions
of Section 935.1 et seq. of this title as provided by Section 3 of
this act; RBH No. 7825
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(27) "Prior service" means the period of employment of a member
by an eligible employer prior to the member 's entry date for which
credit is granted a member under Section 901 et seq. of this title;
(28) "Retirant" or "retiree" means a member who has retired
under the System;
(29) "Retirement benefit" means a monthly income with benefits
accruing from the fir st day of the month coinciding with or
following retirement and ending on the last day of the month in
which death occurs or the actuarial equivalent thereof paid in such
manner as specified by the member pursuant to Section 901 et seq. of
this title or as otherwise allowed to be paid at the discretion of
the Board;
(30) "Retirement coordinator" means the individual designated
by each participating employer through whom System transactions and
communication shall be directed;
(31) "Social Security" means the old-age survivors and
disability section of the Federal Social Security Act;
(32) "Total disability" means a physical or mental disability
accepted for disability benefits by the Federal Social Security
System;
(33) "Service-connected disability bene fits" means military
service benefits which are for a service -connected disability rated
at twenty percent (20%) or more by the Veterans Administration or
the Armed Forces of the United States; RBH No. 7825
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(34) "Elected official" means a person elected to a state
office in the legislative or executive branch of state government or
a person elected to a county office for a definite number of years
and shall include an individual who is appointed to fill the
unexpired term of an elected state official;
(35) "Elected service" means the period of service as an
elected official;
(36) "Limitation year" means the year used in applying the
limitations of Section 415 of the Internal Revenue Code of 1986,
which year shall be the calendar year; and
(37) "Public safety officer s of the Grand River Dam Authority"
means those persons hired by the Grand River Dam Authority on or
after the effective date of this act who are certified by the
Council on Law Enforcement Education and Training or an equivalent
certifying entity for law enforcement personnel training and who
perform law enforcement functions as part of their regularly
assigned duties and responsibilities on a full -time basis. With
respect to any public safety officer hired by the Grand River Dam
Authority on or after the effective date of this act, any earned
benefits or credits toward retirement benefits from previous
participation within the Oklahoma Public Employees Retirement System
or the Oklahoma Law Enforcement Retirement System shall remain
within that system. RBH No. 7825
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SECTION 7. AMENDATORY 74 O.S. 20 21, Section 913.4, is
amended to read as follows:
Section 913.4 A. 1. Except as otherwise provided in this
subsection, an elected official may elect to participate in the
System and if he or she elects to d o so shall have the option of
participating at any one of the computation factors set forth in
paragraph 3 or 4 of this subsection and will receive retireme nt
benefits in accordance with the computation factor chosen. The
election on participation in the System must be in writing, must
specify the computation factor chosen, and must be filed with the
System within ninety (90) days after the elected official takes
office. The election to participate and the election of a
computation factor shall be irrevoc able. Reelection to the same
office will not permit new elections. Failure of an elected
official to file such election form within the ninety -day period
shall be deemed an irrevocable election to participate in the System
at the maximum computation fact or.
2. Contributions and benefits will be based upon the elected
official's annual compensation as defined in Section 902 of this
title. Employer and elec ted official contributions shall be
remitted at least monthly, or as the Board may otherwise provide , to
the System for deposit in the Oklahoma Public Employees Retirement
Fund. Effective July 1, 1994, and thereafter, the participating
employer shall contribute as provided in Section 920 of this title. RBH No. 7825
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3. Except as provided in paragraph 4 of this subse ction,
effective July 1, 1994, the computation factor selected and the
corresponding elected official contribution rate shall be as
follows:
Elected official Computation Alternate
Contribution Rate Factor Formula
4.5% 1.9% $12.50
6% 2.5% $20.00
7.5% 3.0% $25.00
8.5% 3.4% $27.50
9% 3.6% $30.00
10% 4.0% $40.00
4. Elected officials who are first elected or appointed to an
elected office on or after November 1 , 2010, shall elect a
computation factor of either 1.9% or 4%. The elected official
contribution rate for the 1.9% computation factor is currently 4.5%
and the contribution rate for the 4% computation factor is currently
10%. All other computation factor s and contribution rates set forth
in paragraph 3 of this subsection shall not be available to any
person first elected or appointed to an elected office on or after
November 1, 2010.
5. The contribution rate for elected officials who are first
elected or appointed to an elected office on or after November 1,
2011, shall be in the amount specified in pa ragraph (a) of RBH No. 7825
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subsection (1) of Section 919.1 of this title. The amount of the
retirement benefit for elected officials who are first elected or
appointed to an elected office on or after November 1, 2011, shall
be based on the provisions of paragraph (1 ) of subsection A of
Section 915 of this title.
6. The computation factors and corresponding elected official
contribution rates provided for in paragraphs 3 and 4 of this
subsection shall be based on the entire compensation as an elected
official subject to the definition and maximum compensation levels
as set forth in paragraph (9) of Section 902 of this title.
7. Elected officials who are first elected o r appointed on or
after November 1, 2011, shall also be eligible to make the election
of an alternate multiplier and contribution rate pursuant to
paragraph 2 of subsection A of Section 915 of this title.
8. A statewide elected official or legislator whos e first
service as an elected official occurs on or after November 1, 2015,
shall become a participa nt in the defined contribution system
created by Sections 935.1 through 935.11 of this title and such
elected official shall not accrue any service credit i n the defined
benefit plan of the Oklahoma Public Employees Retirement System
created pursuant to Se ction 901 et seq. of this title.
9. Notwithstanding the provisions of paragraph 8 of this
subsection, a statewide elected official or legislator who is fir st
elected or appointed on or after November 1, 2018, and who has RBH No. 7825
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participating service in the defin ed benefit plan prior to November
1, 2015, shall be a member of the defined benefit plan.
B. The normal retirement date for an elected official shall be
the first day of the month coinciding with or following the
official's sixtieth birthday or the first day of the month
coinciding with or following the date at which the sum of the
elected official's age and number of years of credited service total
eighty (80). The normal retirement date for an elected official
first elected or appointed to an elected of fice on or after November
1, 2011, shall be the first day of the month coinciding with or
following the official's sixty -fifth birthday or the date upon whi ch
the elected or appointed official attains the age of sixty -two (62)
and who has at least ten (10) years of elected or appointed service.
Any elected official first elected or appointed to an elected office
before November 1, 2011, who has a minimum of ten (10) years'
participating service may retire under the early retirement
provisions of this act, including those electing a vested benefit
and shall receive an adjustment of annual benefits in accordance
with the following percentage schedule:
Percentage of Normal
Age Retirement Benefits
60 100%
59 94%
58 88% RBH No. 7825
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57 82%
56 76%
55 70%
Any elected official first elected or appointed to an elected
office on or after November 1, 2011, who has a minimum of ten (10)
years' elected or appointed service may retir e under the early
retirement provisions of this act, including those electing a vested
benefit and shall receive an adjustment of annual benefits in
accordance with the following percentage schedule:
Percentage of Normal
Age Retirement Benefits
62 100%
61 93.33%
60 86.67%
C. 1. Any elected official shall receive annual benefits
computed based upon the computation factor selected multiplied by
the member's highest annual compensation received as an elected
official prior to retirement or termination of employment multiplied
by the number of years of credited service. No elected official
shall retire using such highest annual compensation unless the
elected official has made the required election and has paid the
required contributions on such salary.
2. The retirement benefit may be computed pursuant to the
provisions of paragraph (1) of subsection A of Section 915 of this RBH No. 7825
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title if the benefit would be higher. Elected officials who have a
vested benefit prior to July 1, 1980, may elect to receive annu al
benefits based on the alternate formula provided above. Such annual
benefits shall be paid in eq ual monthly installments.
3. Elected officials who become members of the Oklahoma Public
Employees Retirement System on or after August 22, 2008, will
receive retirement benefits in accordance with the computation
factor selected pursuant to subsection A of this section multiplied
by the member's highest annual compensation received as an elected
official and only for those years of credited service the memb er
served as an elected official. If such elected official has
participating service as a nonelecte d member, then such nonelected
service shall be computed separately pursuant to the provisions of
paragraph (1) of subsection A of Section 915 of this title with the
final benefit result added to the final benefit result for elected
service. In no event s hall the elected official be entitled to
apply the computation factor selected pursuant to subsection A of
this section or the compensation received as an e lected official to
the computation of nonelected service.
4. Elected officials who are first electe d or appointed to an
elected office on or after August 22, 2008, may not receive a
maximum benefit greater than their single highest annual
compensation received as a member of the Oklahoma Public Employees
Retirement System. RBH No. 7825
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D. Any elected official makin g an election to participate at a
computation factor less than the maximum and later selecting a
higher computation factor shall contribute to the System a sum equal
to the amount which the elected official would have contributed if
the elected official ha d made such election at the time the elected
official first became eligible, plus interest as determined by the
Board, in order to receive the additional be nefits for all service
as an elected official; otherwise, the additional benefits shall be
applicable only to service for which the elected official pays the
appropriate percent of contributions to the System.
E. The surviving spouse of a deceased elected official who was
first elected or appointed to an elected office before November 1,
2011, and who has at least six (6) years of participating service
and the surviving spouse of a deceased elected official who was
first elected or appointed to an elected office on or after November
1, 2011, and who has at least eight (8) years of participating
service shall be entitled to receive survivor benefits in the amount
herein prescribed, if married to the decedent continuously for a
period of at least three (3) ye ars immediately preceding the elected
official's death. Provided the elected official had met the s ervice
requirements, survivor benefits shall be payable when the deceased
member would have met the requirements for normal or early
retirement. The amount of the benefits the surviving spouse may
receive shall be fifty percent (50%) of the amount of bene fits the RBH No. 7825
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deceased elected official was receiving or will be eligible to
receive. Elected officials may elect a retirement option as
provided in Section 918 of this title in lieu of the survivors
benefit provided above.
F. Any elected official who served in the Armed Forces of the
United States, as defined in paragraph (23) of Section 902 of this
title, prior to membership in the Oklahoma Public Employees
Retirement System shall be granted credited service of not to exceed
five (5) years for those periods of active military service during
which the elected official was a war veteran.
G. Anyone appointed or elected to an elected position after
July 1, 1990, shall not be eligible to receive benefits as provided
in this section until such person has participa ted as an elected
official for six (6) years. Anyone appointed or elected to an
elected position on or after November 1, 2011, shall not be eligible
to receive benefits as provided in this section until such person
has participated as an elected official for eight (8) years.
H. Elected officials who terminate participation in the System
and who have a minimum of six (6) years of participating service
shall be entitled to elect a vested benefit and shall be entitled to
the retirement options as provided in Section 918 of this title in
lieu of the survivors benefit provided in subsection E of this
section. Elected officials, first elected or appointed to an
elected office on or after November 1, 2011, who terminate RBH No. 7825
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participation in the System and who have a minimum of eight (8)
years of participating service shall be entitled to elect a vested
benefit and shall be entitled to retirement options as provided in
Section 918 of this title in lieu of the survivors benefits provided
in subsection E of this section .
I. In determining the number of years of credited service, a
fractional year of six (6) months or more shall be considered as one
(1) year, and less than six (6) months or more shall be disregarded.
For members who joined the System on or after Novembe r 1, 2011, the
number of years of credited service shall be based on actual years
and months of credited service without rounding up or down.
SECTION 8. AMENDATORY 74 O.S. 20 21, Section 920, is
amended to read as follows:
Section 920. (1) Effective July 1, 1994, every state agency
which is a participating employer shall contribute to the System an
amount equal to eleven and one -half percent (11 1/2%) of the monthly
compensation of each member, but not in excess of Forty Thousand
Dollars ($40,000.00).
(2) Effective July 1, 1995, every state ag ency which is a
participating employer shall contribute to the System an amount
equal to eleven and one -half percent (11 1/2%) of the monthly
compensation of each member, not to exceed the al lowable annual
compensation as defined in paragraph (9) of Sectio n 902 of this
title. RBH No. 7825
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(3) Effective July 1, 1996, every state agency which is a
participating employer shall contribute to the System an amount
equal to twelve percent (12%) of the monthly co mpensation of each
member, not to exceed the allowable annual com pensation defined in
paragraph (9) of Section 902 of this title.
(4) Effective July 1, 1999, and through the fiscal year ending
June 30, 2005, every state agency which is a participating emp loyer
shall contribute to the System an amount equal to ten perce nt (10%)
of the monthly compensation of each member, not to exceed the
allowable annual compensation defined in paragraph (9) of Section
902 of this title.
(5) Effective July 1, 2005, except as otherwise provided by
subsection (11) of this section, every state agency which is a
participating employer shall contribute an amount to the System
equal to a percentage of monthly compensation of each member, not to
exceed the allowable annual compen sation defined in paragraph (9) of
Section 902 of this title as f ollows:
July 1, 2005 – June 30, 2006 11 1/2%
July 1, 2006 – June 30, 2007 12 1/2%
July 1, 2007 – June 30, 2008 13 1/2%
July 1, 2008 – June 30, 2009 14 1/2%
July 1, 2009 – June 30, 2011 15 1/2%
July 1, 2011 – June 30, 2012
and each year thereafter 16 1/2% RBH No. 7825
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(6) The Board shall certify, on or before November 1 of each
year, to the Office of Management and Enterprise Services an
actuarially determined estimate of the rate of contribution which
will be required, together with all accumulated contributions and
other assets of the System, to be paid by each participating
employer to pay all liabilities which shall exist or accrue under
the System, including amortization of the past service cost over a
period of not to exceed forty (40) years from June 30, 1987, a nd the
cost of administration of the System, as determined by the Board,
upon recommendation of the actuary.
(7) The Office of Management and Enterprise Services and the
Governor shall inclu de in the budget and in the budget request for
appropriations the sum required to satisfy the state's obligation
under this section as certified by the Board and shall present the
same to the Legislature for allowance and appropriation.
(8) Each other participating employer shall appropriate and pay
to the System a sum sufficient to satisfy the obligation under this
section as certified by the Board.
(9) Each participating employer is hereby authorized to pay the
employer's contribution from the same fund that the compensation for
which said contribution is paid from o r from any other funds
available to it for such purpose.
(10) Forfeitures arising from severance of employment, death or
for any other reason may not be applied to increase the benefits any RBH No. 7825
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member would otherwise receive under the System's law. However,
forfeitures may be used to reduce an employer's contribution.
(11) Effective November 1, 2015, an employer shall be required
to make payment to the Oklahoma Public Employees Retirement Syste m
of the amount described by subsection A of Section 10 of this a ct
with respect to any employee who is a participant in the defined
contribution system created pursuant to the provisions of Sections 1
through 11 of this act. The employer shall be require d to make the
required matching contribution amount for all emplo yees that
participate in the defined contribution system and to remit the
difference between such amount and the amount the employer would
otherwise have paid pursuant to the provisions of th is section to
the Oklahoma Public Employees Retirement System.
SECTION 9. AMENDATORY 74 O.S. 20 21, Section 1707, is
amended to read as follows:
Section 1707. A. Effective January 1, 1998, for each qual ified
participant as define d in this section who is a state employee as
defined in this section, the Oklahoma Public Employees Retirement
System shall pay each month from funds appropriated or deposited to
the Oklahoma State Employees Deferred Savings Ince ntive Plan Fund
created pursuant to this section the sum of Twenty -five Dollars
($25.00) to a plan established pursuant to the Internal Revenue
Code, Section 401(a), for the benefit of the employee; provided, if
monies in the fund are insufficient to fully fund the contributions RBH No. 7825
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in any month, payments shall be suspended until such time as
sufficient monies are available. Employees receiving payroll other
than monthly shall have an amount contributed which is equivalent to
Twenty-five Dollars ($25.00) per m onth.
B. For the purposes of this section, "qualified participant"
means a state employee as defined in this section who is an active
participant in the Oklahoma State Employees Deferred Compensation
Plan making deferrals of at least Twenty -five Dollars ($25.00) per
month. A qualified participant shall not include an employee who
participates in the defined contribution system administered by the
Oklahoma Public Employees Retirement System on or after November 1,
2015. Effective July 1, 2000, each qualif ied participant shall be
eligible for a contribution of Twenty -five Dollars ($25.00) to the
Oklahoma State Employees Deferred Savings Incentive Plan beginning
with the first employee deferral into the Oklahoma State Employees
Deferred Compensation Plan. T he Director of the Office o f
Management and Enterprise Services shall be responsible for the
provision of such information and assistance as may be necessary to
determine which employees are qualified participants and shall
provide for appropriate payroll transactions to accomplish
contributions to the Oklahoma State Employees Deferred Savings
Incentive Plan and the Oklahoma State Employees Deferred
Compensation Plan. The Oklahoma Public Employees Retirement System
shall be responsible for establishing rul es and plan documents for RBH No. 7825
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administration of such contributions. Funds so credited shall be
held and invested in the same manner as the Oklahoma State Employees
Deferred Compensation Plan, as provided in Section 1701 of this
title.
C. For the purposes of this section, "state employ ee" means any
officer or employee of the executive, legislative, or judicial
branches of the government of this state who is an active member of
a public retirement system of this state, but does not include:
1. Employees of the public elementary, seconda ry, or area
vocational school districts;
2. Employees of The Oklahoma State System of Higher Education
except employees of the Oklahoma State Regents of Higher Education,
employees of the governing boards and employees of the Bo ard of
Regents of the Unive rsity of Oklahoma who are participating members
of the Oklahoma Public Employees Retirement System;
3. Persons on temporary, student, internship, or other limited -
term appointments except for Executive Fellows in the Carl Albert
Public Internship Program created in Section 840-3.4 of this title;
or
4. Persons employed pursuant to Section 1.6a of Title 53 of the
Oklahoma Statutes.
D. No public official shall be able to make contributions to
the Section 401(a) plan described by t his section during a term o f
office which commenced prior to July 1, 1997. A public official may RBH No. 7825
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make contributions to the Section 401(a) plan described by this
section during a term of office which commences after July 1, 1997.
No legislator shall be el igible to make contribution s to the Section
401(a) plan described by this section until such contributions have
been approved by the Board on Legislative Compensation. The
provisions of this subsection shall be applicable only in the event
that the Plan permits employee contributio ns.
E. There is hereby created in the State Treasury a revolving
fund to be designated the "Oklahoma State Employees Deferred Savings
Incentive Plan Fund". The fund shall be a continuing fund, not
subject to fiscal year limitat ions, and shall consist of any monies
the Legislature may appropriate or transfer to the fund and any
monies contributed for the fund from any other sources, public or
private. All monies accruing to the credit of said fund are hereby
appropriated and may be budgeted and expended b y the Oklahoma Public
Employees Retirement System for the matching of deferred
compensation contributions pursuant to this section and in
accordance with rules promulgated by the Oklahoma Public Employees
Retirement System and fo r reimbursement of expenses for
administration of the Deferred Savings Incentive Plan and the
Oklahoma State Employees Deferred Compensation Plan. Expenditures
from the fund shall be made by warrants issued by the State
Treasurer against claims filed as p rescribed by law with the RBH No. 7825
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Director of the Office of Management and Enterprise Services for
approval and payment.
F. Effective July 1, 2000, every employer which has state
employees participating in the Oklahoma State Employees Deferred
Savings Incentive Plan shall pay to the Fund a n amount equal to
Twenty-five Dollars ($25.00) each month for each qualified
participant as defined in this section, along with an amount to
reimburse the cost of administration of the Oklahoma State Employees
Deferred Savings Incentive Plan and the Oklaho ma State Employees
Deferred Compensation Plan for each qualified participant, as
determined by the Board.
1. The Board shall certify each year to the Office of
Management and Enterprise Services the determined amount for the
administrative cost of the Okl ahoma State Deferred Savings Incentive
Plan and the Oklahoma State Employees Deferred Compensation Plan
which will be required to be paid for each qualified participant.
The Board of Trustees shall promulgate such rules as are n ecessary
to implement the provisions of this subsection and provide the
methodology for the determination.
2. Each employer shall pay at least monthly to the Fund the sum
sufficient to satisfy the obligation under this section as certified
by the Board.
3. Each employer is hereby authorized to pay the employer's
contribution from the same fund that the compensation for which said RBH No. 7825
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contribution is paid from or from any other funds available to it
for such purpose.
Passed the House of Representatives the 24th day of March, 2022.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2022.
Presiding Officer of the Senate