RBH No. 6785
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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
HOUSE BILL 2487 By: Frix
AS INTRODUCED
An Act relating to public retirement systems;
amending 74 O.S. 2011, Sections 902, as last amended
by Section 1, Chapter 112, O.S.L. 2020 a nd 919.1, as
last amended by Section 4, Chapter 112, O.S.L. 2020
(74 O.S. Supp. 2020, Sections 902 and 919.1), which
relate to the Oklahoma Public Employees Retirement
System; modifying definition; providing for employee
contributions by the State Fire Marshal and other
fire marshals; providing an effective date; and
declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2011, Section 902, as last
amended by Section 1, Chapter 112, O.S.L. 2020 (74 O.S. Supp. 2020,
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; RBH No. 6785
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(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 System;
(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.
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 payment for overtime,
payable to a member of the System for personal services performed
for a participating employer but shall not include compensation or RBH No. 6785
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reimbursement for traveling, or moving expenses, or any compensation
in excess of the maximum compensation 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, the 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
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, RBH No. 6785
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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 benefit 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
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 s hall be
irrevocable and be in writing. Reappointment to the
same office shall not permit a new election. Members RBH No. 6785
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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 parent, 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 state and any county, county
hospital, city or town, conservation districts, circuit enginee ring
districts and any public or private trust in which a county, city or
town participates and is the primary beneficiary, is to be an
eligible employer for the purpose of this act only, whose employees
are covered by Social Security and are not covered b y 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 cou nty 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 RBH No. 6785
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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 another
retirement plan authorized under the laws of this
state, which is in operation on the eff ective 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
or municipal government pursuant to such
qualifications; and when the services provi ded 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 administe ring the state or
federal funds shall be deemed an eligible employer,
but only with respect to that class or those classes RBH No. 6785
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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 eligibilit y for retirement under the
provisions of law providing pensions for service as a
volunteer firefighter shall not render any person
ineligible for participation in the 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
shall be deemed to be an eligible employee for the
purpose of this act only.
(c) All employees of the George Nigh Rehabilitation
Institute who elected to retain memb ership 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. RBH No. 6785
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(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 Retirem ent
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 i n 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 purposes of
the Oklahoma Public Employees Retirement System. A
successor organization shall b e considered a
participating employer only for such employees.
(f) A participating employer of the Teachers ' Retirement
System of Oklahoma, who has one or more employees 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 employees; RBH No. 6785
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(14) "Employee" means any officer or employee of a
participating employer, whose empl oyment 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 outli ned 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 less
than the state's minimum wage, shall inform the System of the
minimum wage for that emplo yer. 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 Teachers ' Retirement
System of Oklahoma shall be a member of this System.
(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 currently
participating in such county retirement system, he or RBH No. 6785
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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 credit 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
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, that 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 RBH No. 6785
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shall be eligible for membership 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 is 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 House of
Representatives if such employee is employed by the
House of Representatives. Each regular legislative
session during which the legislative employee or an
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 employee is employed.
(ii) Notwithstanding the provisions of division (i) of
this subparagraph, any employee, who is eligible RBH No. 6785
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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 legislative
session employee who elected to become a member
of the System may withdraw from the Sy stem
effective the day said employee elected to
participate in the System upon written request to
the Board. Any such request must be received by
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 RBH No. 6785
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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 913.5 of
this title. The provisions of Section 913.5
of this title shall be applicable to th e
purchase of the service credit, including
the provisions for determining service
credit in the event of incomplete payment
due to cessation of payments, death,
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 o f the
System employed by the Board under Section 901 et seq. of this
title; RBH No. 6785
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(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 member 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 retirement or
termination of employment. Provided, no member shall retire with a
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 Revenue Code; RBH No. 6785
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(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 employee or elected official
who shall have made the required contributions to the System an d
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 during 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:
(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, RBH No. 6785
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(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 o f 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 Gu lf
War, or Operation Desert Storm, but excluding any
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 RBH No. 6785
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resolution, or Executive Order of the 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 the 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 burden 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 times or in the areas
prescribed in this paragraph, and only if such person provides
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 subdivision a of division (v)
of subparagraph (a) of this paragraph those persons who were awar ded
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 Conflict for service prior to August 5, 1964; RBH No. 6785
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(24) "Normal retirement date " means the date on wh ich 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 t o members
whose first participating service occurs prior to
November 1, 2011, or
(2) sixty-fifth birthday with respect to members
whose first participating service occurs on or
after November 1, 2011, or with respect to
members whose first participating se rvice 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,
(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 eight y (80); such a normal
retirement date will also apply to any person who RBH No. 6785
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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:
(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 position
on June 30, 2004, or who is hired after June 30, RBH No. 6785
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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) years of service as a
correctional officer, probation and parole
officer or fugitive apprehen sion 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
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 one -half percent (2 1/2%)
multiplier will be used in calculating the
retirement benefit, or RBH No. 6785
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(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 county
that is a participating employer in the System
for the first time as a deputy sheriff or jailer
on or after November 1, 2020, or
(vi) effective July 1, 2021, the State Fire Marshal
and any other fire marshal employed by the State
Fire Marshal,
(e) for those fugitive apprehension agents who retire on
or after July 1, 2002, 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 a fugitive apprehension agent with the
Department of Corrections and at the time of
retirement, the member was a fugitive apprehens ion
agent with the Department of Corrections, or
(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 Jul y 1, 1992,
and who without a break in service of more than thirty
(30) days became employed by an employer participating RBH No. 6785
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in the Oklahoma Public Employees Retirement System,
the first day of the month coinciding with or
following the date at which the sum o f 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;
(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 first day of the month coinciding with or
following retirement and endin g 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; RBH No. 6785
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(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 Se curity Act;
(32) "Total disability" means a physical or mental disability
accepted for disability benefits by the Federal Social Security
System;
(33) "Service-connected disability benefits " 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;
(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 officers of the Grand River Dam Authority "
means those persons hired by the G rand River Dam Authority on or RBH No. 6785
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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 functio ns 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 ret irement benefits from previous
participation within the Oklahoma Public Employees Retirement System
or the Oklahoma Law Enforcement Retirement System shall remain
within that system.
SECTION 2. AMENDATORY 74 O.S. 2011, Section 919 .1, as
last amended by Section 4, Chapter 112, O.S.L. 2020 (74 O.S. Supp.
2020, Section 919.1), is amended to read as follows:
Section 919.1 (1) Employee contributions to the System shall
be:
(a) for employees except as otherwise provided in
paragraphs (b), (c), (d), (e), (f) and (g) of this
subsection: beginning July 1, 2006, and thereafter,
three and one-half percent (3.5%) of allowable annual
compensation;
(b) for correctional officers and probation and parole
officers employed by the Department of Co rrections:
beginning July 1, 1998, and thereafter, and for RBH No. 6785
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correctional officers or probation and parole officers
who are in such position on June 30, 2004, or who are
hired after June 30, 2004, and who receive a promotion
or change in job classification after June 30, 2004,
to another position in the Department of Corrections,
so long as such officers have at least five (5) years
of service as a correctional officer or probation and
parole officer, eight percent (8%) of allowable
compensation as provided in paragraph (9) of Section
902 of this title;
(c) for fugitive apprehension agents who are employed with
the Department of Corrections on or after July 1,
2002, and for fugitive apprehension agents who are in
such position on June 30, 2004, or who are hir ed after
June 30, 2004, and who receive a promotion or change
in job classification after June 30, 2004, to another
position in the Department of Corrections, so long as
such agents have at least five (5) years of service as
a fugitive apprehension agent, eight percent (8%) of
allowable compensation as provided in paragraph (9) of
Section 902 of this title;
(d) for firefighters of the Oklahoma Military Department
first employed beginning July 1, 2002, and thereafter,
and such firefighters who performed serv ice prior to RBH No. 6785
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July 1, 2002, for the Oklahoma Military Department and
who make the election authorized by division (1) of
subparagraph b of paragraph (9) of subsection A of
Section 915 of this title who perform service on or
after July 1, 2002, in such capac ity, eight percent
(8%) of allowable compensation as provided in
subsection (9) of Section 902 of this title;
(e) for all public safety officers of the Grand River Dam
Authority as defined by paragraph (37) of Section 902
of this title, eight percent (8%) of allowable
compensation as provided in paragraph (9) of Section
902 of this title;
(f) for deputy sheriffs and county jailers employed by any
county that is a participating employer in the System
for the first time as a deputy sheriff or jailer on or
after November 1, 2020, eight percent (8%) of
allowable compensation as provided in paragraph (9) of
Section 902 of this title; and
(g) for the State Fire Marshal and any other person having
the title of fire marshal employed by the Office of
the State Fire Marshal, on or after July 1, 2021,
eight percent (8%) of allowable compensation as
provided in paragraph (9) of Section 902 of this
title; and RBH No. 6785
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(h) for all employees except those who make contributions
pursuant to paragraphs (b), (c), (d), (e) and, (f) and
(g) of this subsection who make an irrevocable written
election pursuant to paragraph (2) of subsection A of
Section 915 of this title: six and forty -one one-
hundredths percent (6.41%) of allowable annual
compensation.
The contributions required by paragra phs (b), (c), (e), and (f)
and (g) of this subsection shall be made by a member for not more
than twenty (20) years and thereafter shall be as provided in
paragraph (a) of this subsection.
(2) Contributions shall be deducted by each state agency by the
participating employer for such benefits as the Board is authorized
to administer as provided for by law. Employee and employer
contributions shall be remitted monthly, or as the Board may
otherwise provide, to the Executive Director for deposit in the
Oklahoma Public Employees Retirement Fund.
(3) Each participating employer shall pick up under the
provisions of Section 414(h)(2) of the Internal Revenue Code of 1986
and pay the contribution which the member is required by law to make
to the System for all compensation earned after December 31, 1988.
Although the contributions so picked up are designated as member
contributions, such contributions shall be treated as contributions
being paid by the participating employer in lieu of contributions by RBH No. 6785
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the member in determining tax treatment under the Internal Revenue
Code of 1986 and such picked up contributions shall not be
includable in the gross income of the member until such amounts are
distributed or made available to the member or the beneficiary of
the member. The member, by the terms of this System, shall not have
any option to choose to receive the contributions so picked up
directly and the picked up contributions must be paid by the
participating employer to the System.
Member contributions which ar e picked up shall be treated in the
same manner and to the same extent as member contributions made
prior to the date on which member contributions were picked up by
the participating employer. Member contributions so picked up shall
be included in gross salary for purposes of determining benefits and
contributions under the System.
The participating employer shall pay the member contributions
from the same source of funds used in paying salary to the member,
by effecting an equal cash reduction in gross s alary of the member.
(4) By September 1, 1989, the System shall refund the
accumulated employee contributions of any member who elects to
retain the member's membership in the Teachers ' Retirement System of
Oklahoma, in accordance with Section 17 -104 of Title 70 of the
Oklahoma Statutes, to such member. Upon the refund of the
accumulated employee contributions referred to in this subsection,
all benefits and rights accrued to such member are terminated. RBH No. 6785
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SECTION 3. This act shall become ef fective July 1, 2021.
SECTION 4. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from an d after its passage and approval.
58-1-6785 MAH 01/20/21
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
2512 E. 71
st
Street , Suite D ∙ Tulsa, Oklahoma 74136 (918) 492-9658 ∙ (918) 492- 9659
January 20, 2021
Representative Avery Frix
Room 405.1
Re: RBH No. 6785
RBH No. 6785 includes the State Fire Marshall and any other fire
marshall employee in the Hazardous benefit formula in OPERS.
RBH No. 6785 is a fiscal bill as defined by OPLAAA as a result of
the amendment.
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