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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (202 2)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 2487 By: Frix
COMMITTEE SUBSTITUTE
An Act relating to pu blic retirement systems;
amending 62 O.S. 2021, Section 3103, which relates to
the Oklahoma Pension Legislation Actuarial Analysis
Act; modifying definitions; amending 11 O.S. 2021,
Sections 49-100.1, 49-101, 49-101.2, 49-106.1, 49-
108, 49-117.1 and 49-135, which relate to the
Oklahoma Firefighters Pensio n and Retirement System ;
modifying definition; modifying requirements to
receive certain benefit; modifying requirements to
participate in certain plans; modifying requirements
to receive volunteer pension; and providing effective
dates.
BE IT ENACTED BY THE PEOPLE OF TH E 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 Legislatio n
Actuarial Analysis Act:
1. "Amendment" means any amendment, in cluding a substitute
bill, made to a retirement bill by any commi ttee of the House or RBH No. 10792
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Senate, any conference committee of the House or Senate or by the
House or Senate;
2. "RB number" means that number preceded by the letters "RB"
assigned to a retirement bill 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 enter s
into a contract with the 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 Ok lahoma
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 bill:
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 retir ement
system affected by the bill, RBH No. 10792
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(2) create an actuarial accrue d liability for or
increase the actuarial accrued liab ility of the
retirement system affected by the bill, or
(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 s ervice-
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 t he disability,
e. which requires membership in the defined benefi t 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, RBH No. 10792
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if such persons had any prior service in the Oklahoma
Public Employees Retirement System prior to November
1, 2015,
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 r equires 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%) RBH No. 10792
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but not greater than one hundred percent (100%)
after the benefit increa se is paid,
(3) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One
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 Oklahoma
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 Poli ce RBH No. 10792
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Pension and Retirement System as provided by Section 3
of this act, or
h. which provides a cost-of-living benefit increase
pursuant to the provisions of Sections 2 through 7 of
this act, or
i. which restores benefits pursuant to Section 2 through
8 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 suc h 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 havi ng a fiscal impact which reduces the cost of the
bill as such cost is determined by the ac tuarial 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 amends 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 RBH No. 10792
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which a portion of the revenue generated from such tax is earmarked
for the benefit of a retirement system;
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 nonfisc al retirement bill; and
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 Syst em, 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. AMENDATORY 11 O.S. 20 21, Section 49-100.1, is
amended to read as f ollows:
Section 49-100.1 As used in this article:
1. "System" means the Oklahoma Firefighters Pension and
Retirement System and all predecessor municipal firefighters pension
and retirement systems;
2. "Article" means Article 49 of this title;
3. "State Board" means the Oklahoma Firefighters Pension and
Retirement Board;
4. "Local board" means the local firefighters pension and
retirement boards; RBH No. 10792
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5. "Fund" means the Oklahoma Firefi ghters Pension and
Retirement Fund;
6. "Member" means all eligible fir efighters of a participating
municipality or a fire protection district who perform the essential
functions of fire suppression, prevention, and life safety duties in
a fire department. The term "member" shall include but not be
limited to the person serv ing as fire chief of any participating
municipality, provided that a person serving as fire chief of a
participating municipality shall meet the age, agility, physical and
other eligibility requirements required by law at the time said
person becomes a mem ber of the System. Effective July 1, 1987, a
member does not include a "leased employee". The term "leased
employee" means any person (other than an employee of the recipient)
who pursuant to an agreement between the recipient and any other
person ("leasing organization") has performed services for the
recipient (or for the recipient and related persons determined in
accordance with Section 414(n)(6) of the Internal Revenue Code of
1986, as amended) on a substantially full -time basis for a period of
at least one (1) year, and such services are performed under primary
direction or control by the recipient. Contributions or benefits
provided a leased employee by the leasing organization which are
attributable to services performed for the recipient employer shall
be treated as provided by the recipient employer. A leased employee
shall not be considered an employee of the recipient if the RBH No. 10792
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requirements of the safe harbor provisions of Sec tion 414(n)(5) of
the Internal Revenue Code of 1986, as amended, are sa tisfied.
Effective July 1, 1999, any individual who agrees with the
participating municipality that the individual's services are to be
performed as a leased employee or an independent contractor shall
not be a member regardless of any classification as a common law
employee by the Internal Revenue Service or any other governmental
agency, or any court of competent jurisdiction;
7. "Normal retirement date" means the date at which the m ember
is eligible to receive the unreduced payments of the member's
accrued retirement benefit. Such date shall be the first day
following the date the member completes twenty (20) years of
credited service. For a member whose first employment with a
participating employer of the System occurs on or after November 1,
2013, such date shall be the first day following the date the member
completes twenty-two (22) years of credited service and has attained
the age of at least fifty (50) years. If the member's employment
continues past the normal retirement date of the member, t he actual
retirement date of the member shall be the first day following the
date the member terminates employment with more than twenty (20)
years of credited service , or with respect to members who are
required to complete twenty -two (22) years of servic e, the first day
following the date the member terminates employment with more than RBH No. 10792
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twenty-two (22) years of service and who has also attained the age
of at least fifty (50) years ;
8. "Credited service" means the period of service used to
determine the eligibility for and the amount of benefits payable to
a member. Credited service shall consist of the period during which
the member participated in the System or the predecessor municip al
systems as an active employee in an eligible membership
classification, plus any service prior to the establishment of the
predecessor municipal systems which was credited under the
predecessor municipal systems; provided, however, "credited service"
for members from a fire protection district shall not begin accruing
before July 1, 1982;
9. "Participating municipality" means a municipality, county
fire department organized pursuant to subsection D of Section 351 of
Title 19 of the Oklahoma Statutes, or fire protection district which
is making contributions to the System o n behalf of its firefighters.
All participating municipalities shall appoint a fire chief who
shall supervise and administer the fire department;
10. "Disability" means the complete i nability of the
firefighter to perform any and every duty of the firefi ghter's
regular occupation; provided further, that once benefits have been
paid for twenty-four (24) months the provisions of Section 49 -110 of
this title shall apply to the firefighter ; RBH No. 10792
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11. "Executive Director" means the managing officer of the
System employed by the State Board;
12. "Eligible employer" means any municipality with a municipal
fire department, any county fire department organized pursuant to
subsection D of Section 351 of Title 19 of the Oklahoma Statutes or
any fire protection district w ith an organized fire department;
13. "Entry date" means the date as of which an eligible
employer joins the System. The first entry date pursuant to this
article shall be January 1, 1981;
14. "Final average salary" means the average paid gross salary
of the firefighter for normally scheduled hours over the highest
salaried thirty (30) consecutive months of the last sixty (60)
months of credited service. Gross salary shall not includ e payment
for accumulated sick or annual leave upon termination of empl oyment,
any uniform allowances or any other compensation for reimbursement
of out-of-pocket expenses. Only salary on which the required
contributions have been made may be used in comp uting the final
average salary. Effective January 1, 1988, gross salar y shall
include any amount of elective salary reduction under Section 125 of
the Internal Revenue Code of 1986, as amended. Gross salary shall
include any amount of elective salary red uction under Section 457 of
the Internal Revenue Code of 1986, as amend ed, and any amount of
nonelective salary reduction under Section 414(h) of the Internal
Revenue Code of 1986, as amended. Effective July 1, 1998, for RBH No. 10792
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purposes of determining a member's compensation, any contribution by
the member to reduce the member's re gular cash remuneration under
132(f)(4) of the Internal Revenue Code of 1986, as amended, shall be
treated as if the member did not make such an election. Only salary
on which required contributions have been made may be used in
computing final average sa lary.
In addition to other applicable limitations, and notwithstanding
any other provision to the contrary, for plan years beginning on or
after July 1, 2002, the annual gross salary of each "Noneligible
Member" taken into account under the System shall no t exceed the
Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA")
annual salary limit. The EGTRRA annual salary limit is Two Hundred
Thousand Dollars ($200,000.00), as adjusted by the Commissioner for
increases in the cost of living in acc ordance with Section
401(a)(17)(B) of the Internal Revenue Code of 1986, as amended. The
annual salary limit in effect for a calendar year applies to any
period, not exceeding twelve ( 12) months, over which salary is
determined ("determination period") be ginning in such calendar year.
If a determination period consists of fewer than twelve (12) months,
the EGTRRA salary limit will be multiplied by a fraction, the
numerator of which is the number of months in the determination
period, and the denominator o f which is twelve (12). For purposes
of this subsection, a "Noneligible Member" is any member who first RBH No. 10792
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became a member during a plan year commencing on or after July 1,
1996.
For plan years beginning on or after July 1, 2002, any reference
to the annual salary limit under Section 401(a)(17) of the Internal
Revenue Code of 1986, as amended, shall mean the EGTRRA salary limit
set forth in this subsection.
Effective June 9, 2010, gross sa lary shall also include gross
salary, as described above, for services, but paid by the later of
two and one-half (2 1/2) months after a firefighter's severance from
employment or the end of the calendar year that includes the date
the firefighter terminat ed employment, if it is a payment that,
absent a severance from employm ent, would have been paid to the
firefighter while the firefighter continued in employment with the
participating municipality.
Effective June 9, 2010, any payments not described above shall
not be considered gross salary if paid after severance from
employment, even if they are paid by the later of two and one -half
(2 1/2) months after the date of severance from employment or the
end of the calendar year that includes the date of severa nce from
employment, except payments to an individual who does not curr ently
perform services for the participating municipality by reason of
qualified military service within the meaning of Section 414(u)(5)
of the Internal Revenue Code of 1986, as amende d, to the extent
these payments do not exceed the amounts the individua l would have RBH No. 10792
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received if the individual had continued to perform services for the
participating municipality rather than entering qualified military
service.
Effective June 9, 2010, bac k pay, within the meaning of Section
1.415(c)-2(g)(8) of the Income Tax Regulations, shall be treated as
gross salary for the year to which the back pay relates to the
extent the back pay represents wages and compensation that would
otherwise be included i n this definition.
Effective for years beginning after December 31, 200 8, gross
salary shall also include differential wage payments under Section
414(u)(12) of the Internal Revenue Code of 1986, as amended;
15. "Accrued retirement benefit" means two and one-half percent
(2 1/2%) of the firefighter's final average salary mul tiplied by the
member's years of credited service not to exceed thirty (30) years;
16. "Beneficiary" means a member's surviving spouse or any
surviving children, including biological a nd adopted children, at
the time of the member's death. The surviving spouse must have been
married to the firefighter for the thirty (30) continuous months
preceding the firefighter's death provided a surviving spouse of a
member who died while in, or as a consequence of, the performance of
the member's duty for a participa ting municipality, shall not be
subject to the marriage limitation for survivor benefits. A
surviving child of a member shall be a beneficiary until reaching
eighteen (18) years of age or twenty-two (22) years of age if the RBH No. 10792
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child is enrolled full time and regularly attending a public or
private school or any institution of higher education. Any child
adopted by a member after the member's retirement shall be a
beneficiary only if the c hild is adopted by the member for the
thirty (30) continuous months pre ceding the member's death. Any
child who is adopted by a member after the member's retirement and
such member dies accidentally or as a consequence of the performance
of the member's duty as a firefighter shall not be subject to the
thirty-month adoption requirement. This definition of beneficiary
shall be in addition to any other requirement set forth in this
article;
17. "Accumulated contributions" means the sum of all
contributions made by a member to the System and includes both
contributions deducte d from the compensation of a member and
contributions of a member picked up and paid by the participating
municipality of the member. Accumulated contributions shall not
include any interest on the contributions of the member, interest on
any amount contributed by the municipality or state and any amount
contributed by the municipality or state; and
18. "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 ye ar.
SECTION 3. AMENDATORY 11 O.S. 20 21, Section 49-101, is
amended to read as follows: RBH No. 10792
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Section 49-101. A. All retired volunteer firefighters who
qualify for retirement shall be entitled to a monthly pension. The
monthly pension of a volunteer firefighter shall be in the amount
retired volunteer firefighters are receiving at the time the
volunteer firefighter begins to receive a pension for each year of
credited service not to exceed thirty (30) years. In determining
the number of years of credited service, a fractional year of six
(6) months or more shall be counted as one (1) full year and a
fractional year of less than six (6) months shall no t be counted in
such determination. Retired volunteer firefighters of a
municipality shall receive a pension of not less than that which
retired volunteer firefighters of such municipality were receiving
on June 30, 1985.
B. If a A volunteer firefighter whose first service with a
participating employer of the System occurs prior to Novemb er 1,
2013, who terminates service after completing ten (10) years of
credited service, the volunteer firefighter shall but less than
twenty (20) years of credited se rvice, shall be entitled to receive
a vested benefit. The volunteer firefighter whose first service
with a participating employer of the System occurs prior to November
1, 2013, shall be entitled to a monthly pension commencing on the
date the firefighter reaches fifty (50) years of age or the date the
firefighter would have had twenty (20) ye ars of credited service had
the firefighter's service continued uninterrupted, whichever is RBH No. 10792
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later. If a volunteer firefighter whose first service with a
participating employer of the S ystem occurs on or after November 1,
2013, terminates service after c ompleting eleven (11) years of
credited service, the volunteer firefighter shall receive a vested
benefit. The volunteer firefighter whose first service with a
participating employer of the System occurs on or after November 1,
2013, shall be entitled t o a monthly pension commencing on the date
the firefighter reaches fifty (50) years of age or the date the
firefighter would have had twenty -two (22) years of cr edited service
had the firefighter's service continued uninterrupted, whichever is
later. The monthly amount of such retirement benefit shall be the
amount being paid to volunteer firefighters at the time the member
vests multiplied by the number of yea rs of credited service.
Credited service must be established at the time of the volunteer
firefighter's termination. If a volunteer firefighter who
terminates terminated employment and receives elected, or was
eligible to elect, a vested benefit dies p rior to being eligible to
receive benefits, the volunteer firefighter's beneficiary, as
defined in paragraph 16 of Section 49-100.1 of this title, shall be
entitled to the volunteer firefighter's normal monthly retirement
benefit on the date the deceased volunteer firefighter would have
been eligible to receive the benefit.
SECTION 4. AMENDATORY 11 O.S. 2021, Section 49-101.2, is
amended to read as follows: RBH No. 10792
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Section 49-101.2 Any member serving as an active volunteer
firefighter who receives annual compensation fr om the fire
department the firef ighter is enrolled in as a member of the System
for services related to firefighting, other than reimbursement of
expenses in excess of two (2) five and one-half (5 1/2) times the
annual pension benefit paid by the System to a retired volunteer
firefighter with twenty (20) years cr edited service, shall be
considered a paid firefighter and must meet the physical and agility
requirements pursuant to Section 49 -116 of this title to continue as
an active member of the System. Cr edited service earned as a paid
firefighter pursuant to th is section shall not be considered actual
experience as a paid firefighter for purposes of meeting the
qualifications of a paid fire chief as provided in Section 29 -102 of
this title. No fire depar tment of a participating municipality
shall employ a volun teer firefighter from another fire department to
perform services relating to firefighting for any compensation of
any kind.
SECTION 5. AMENDATORY 11 O.S. 2021, Section 49 -106.1, is
amended to read as follows:
Section 49-106.1 A. In lieu of terminating employment and
accepting a service reti rement pension pursuant to Sections 49 -101
and 49-106 of this title, any member of the Oklahoma Firefighters
Pension and Retiremen t System serving as an active firefighter in a
fire department of a participating municipality who has not less RBH No. 10792
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than twenty (20) years of creditable service , or any member of the
Oklahoma Firefighters Pension and Retirement System whose first
employment with a participating employer of the System occurs on or
after November 1, 2013, and who has not less than twenty-two (22)
years of creditable service and who is eligible to receive a service
retirement pension may elect to participate in the Oklahoma
Firefighters Deferred Option Plan and defer the receipts of benefits
in accordance with the provisions of this section.
B. For purposes of this section, creditable service shall
include service credit reciprocally recognized pursuant to Sections
49-100.1 through 49-100.8 and Sections 49-101, 49-101.1 and 49-101.2
of this title but for eligibility purposes only.
C. The duration of par ticipation in the Oklahoma Firefighters
Deferred Option Plan for active firefighters shall not exceed five
(5) years. Participati on in the Oklahoma Firefighters Deferred
Option Plan must begi n the first day of a month and end on the last
day of a month. At the conclusion of a member's participation in
the Oklahoma Firefighters Deferred Option Plan, the member shall
terminate employment with all participating municipalities as a
firefighter, and shall start receiving the member's accrued monthly
retirement benefit from the System. Such a member may be reemployed
by a participating municipality but only in a position not covered
under the System, and receive in-service distributions of such
member's accrued monthly retirement benefit from the System. RBH No. 10792
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D. When a member begins participation in the Oklahoma
Firefighters Deferred Option Plan, the contribution of the member
shall cease. The employer contributions shall continue to be paid
in accordance with subsection B of Section 49-122 of this title.
Employer contributions for members who elect the Oklahoma
Firefighters Deferred Option Plan shall be credited equally to the
Oklahoma Firefighters Pension and Retirement System and to the
member's Oklahoma Firefighters Deferred Option Plan account. The
monthly retirement benefits that would have been payable had the
member elected to cease employment and receive a service retirement
shall be paid into the member's Oklahoma Firefighters Deferred
Option Plan account.
E. 1. A member who participates in this plan sh all be eligible
to receive cost-of-living increases.
2. A member who participates in this plan shall earn interest
at a rate of two percentage points below the rate of return of the
investment portfolio of the System, but no less than the actuarial
assumed interest rate as certified by the actuary in the yearly
evaluation report of the actuary. The interest shall be credited to
the individual account balance of the member on an annual basis.
3. Effective November 1, 2013, the Oklahoma Firefighters
Deferred Option Plan account for a member whose first service with a
participating municipality of the System occurs on or after Novembe r
1, 2013, and who participates for the first time in the Okla homa RBH No. 10792
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Firefighters Deferred Option Plan on or after November 1, 2 013, and
has completed active participation in the Oklahoma Firefighters
Deferred Option Plan, shall earn interest at a rate equal to the
actual rate of return of the investment portfolio of t he System,
less one (1) percentage point to offset administrativ e costs of the
System as determined by the System.
F. A member in the plan shall receive, at the option of the
member, a lump-sum payment from the account equal to the payments to
the account or an annuity based upon the account of the member or
may elect any other method of payment if approved by the Board of
Trustees. If a member becomes so physically or mentally disabled
while in, or in consequence of, the performance of his or her duty
as to prevent the effective performance of his or her duties that
the State Board approves an in -line-of-duty disability pension, the
payment from the account shall be an in -line-of-duty disability
payment. Notwithstanding any other provision contained here in to
the contrary, commencement of distributions under the Okla homa
Firefighters Deferred Option Plan shall be no later than the time as
set forth in subsection B of Section 49 -106 of this title and a
member whose first service with a participating munici pality of the
System occurs on or after November 1, 2013, and wh o participates for
the first time in the Oklahoma Firefighters Deferred Option Plan on
or after November 1, 2013, must receive a d istribution of the entire
remaining balance in the member's Ok lahoma Firefighters Deferred RBH No. 10792
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Option Plan account no later than A pril 1 of the calendar year
following the later of:
1. The calendar year in which the member reaches seventy and
one-half (70 1/2) years of age for a member who attains age seventy
and one-half (70 1/2) before January 1, 2020, or effective for
distributions required to be made after December 31, 2019, the
calendar year in which the member reaches seventy -two (72) years of
age for an individual who attains age seventy and one -half (70 1/2)
after December 31, 2019; or
2. The actual retirement date of the me mber.
G. If a member dies while maintaining an account balance in the
plan the System shall pay to the designated recipient or re cipients
of the member, or if there is no designated recipient or if the
designated recipient predeceases the member, to the s pouse of the
member, or if there is no spouse or if the spouse predeceases the
member, to the estate of the member a lump -sum payment equal to the
account balance of the member. If such membe r was receiving, or
eligible to receive, an in-line-of-duty disability pension at the
time of his or her death, payment of the account balance shall be an
in-line-of-duty disability payment. If a designated recipient is
the surviving spouse of the member, the surviving spouse shall
receive his or her portion of the ac count balance of the member
pursuant to subsection F of this section. The surviving spouse,
whether or not he or she is a designa ted recipient of the member, RBH No. 10792
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may elect to receive his or her p ortion of the account balance of
the member in the same manner a s was applicable to the member.
H. In lieu of participating in the Oklahoma Firefighters
Deferred Option Plan pursuant to subsect ions A, B, C, D, E and F of
this section, a member may elect t o participate in the Oklahoma
Firefighters Deferred Option Plan pursuant to this subsection as
follows:
1. For purposes of this subsection and subsection I of this
section, the following defini tions shall apply:
a. "back drop date" means the member's norm al retirement
date or the date five (5) years before the member
elects to participate in the Oklahoma Firefighters
Deferred Option Plan, whichever date is later,
b. "termination date" means the date the member elects to
participate in the Oklahoma Firefigh ters Deferred
Option Plan pursuant to this subsection, and the d ate
the member terminates employment with all
participating municipalities as an active firefighter,
c. "earlier attained credited service" means the credited
service earned by a member as of the back drop date,
and
d. "deferred benefit balance" means all monthly
retirement benefits that would have been payable had
the member elected to cease employment on the back RBH No. 10792
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drop date and receive a service retirement from the
back drop date to the termin ation date, all the
member's contributions and one-half (1/2) of the
employer contributions from the back drop date to the
termination date, with interest based on how the
benefit would have acc umulated on a compound annual
basis as if the member had parti cipated in the
Oklahoma Firefighters Deferred Option Plan pursua nt to
subsections A, B, C, D, E and F of this section from
the back drop date to the termination date; and
2. At the termination date, the monthly pension benefit shall
be determined based on earlier attained credited service and on the
final average salary as of the back drop date. The member's
individual deferred option account shall be credited with an amount
equal to the deferred benefit balance, the member shall terminate
employment with all participating municipalities as a firefighter,
and shall start receiving the member's accrued monthly retirement
benefit from the System. Such a member may be reemployed by a
participating municipality but only in a position not covered under
the System, and receive in-service distributions of such member's
accrued monthly retirement benefit from the System. The provisions
of subsections B, C, E, F and G of this section shall apply to this
subsection. A member shall not participate in the Oklahoma
Firefighters Deferred Option Plan pursuant to this subsection if the RBH No. 10792
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member has elected to participate in the Oklahoma Firefighters
Deferred Option Plan pursuant to subsections A, B, C, D, E and F of
this section.
I. Certain surviving spouses and members s hall be eligible to
participate in the Oklahoma Firefighters Def erred Option Plan
pursuant to subsection H of this section and this subsection.
1. For purposes of this subsection, the following definitions
shall apply:
a. "back drop election date" means t he date the surviving
spouse or member elects to commence partic ipation in
the Oklahoma Firefighters Deferred Option Plan
pursuant to subsection H of this section and this
subsection,
b. "interest" means the actuarial assumed interest rate
as certified by the actuary in the yearly evaluation
report of the actuary,
c. "monthly adjustment amount" means the difference
between the monthly pension prior to the back drop
election and the adjusted month ly pension due to the
back drop election,
d. "back drop pension adjustment amount" means the sum of
all the monthly adjustment amounts adjusted for
interest from the pension commencement date to the
back drop election date, and RBH No. 10792
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e. "deferred benefit balance adjustment amount" means the
interest on the deferred benefit balance from the
pension commencement date to the back drop ele ction
date.
2. If a member who has more than twenty (20) years of
creditable service and is eligible to receive a service , or a member
of the Oklahoma Firefighters Pension and Retirement Syst em whose
first employment with a participating employer of the S ystem occurs
on or after November 1, 2013, and such member has more than twenty -
two (22) years of creditable service, retirement pension dies on or
after June 4, 2007, and prior to terminating employment, the
member's surviving spouse shall be eligible to elect to receive a
benefit determined as if the member had elected to participate in
the Oklahoma Firefighters Deferred Option Pla n in accordance with
subsection H of this section on the day i mmediately preceding such
member's death. Prior to July 1, 2010 , the surviving spouse must
make any such election within one (1) year from the date of the
member's death. Effective July 1, 201 0, the surviving spouse must
make any such election within nin ety (90) days from the date of the
member's death. If on or aft er June 4, 2007, such election is made,
the monthly pension such surviving spouse is entitled to receive
shall be adjusted in acco rdance with the provisions of subsection H
of this section to account for the member's participation in the
Oklahoma Firefighters Deferred Option Plan. The surviving spouse RBH No. 10792
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may only make this election if the member has not previously elected
to participate in the Oklahoma Firefighters Deferred Option Plan.
For purposes of this election, the surviving spouse must have been
married to the firefighter for the thirty (30) continuous months
preceding the firefighter's death; provided, the surviving spouse of
a member who died while in, or as a consequence of, the perform ance
of the member's duty for a participating municipality shall not be
subject to the marriage limitation for this election.
3. If a member has more than twenty (20) years of creditable
service, or a member of the Oklahoma Firefighters Pension and
Retirement System whose first employment with a participating
employer of the System occurs on or after November 1, 2013, and such
member has more than twenty -two (22) years of creditable service and
is eligible to receive a service retirement pension, and is eligible
for a retirement for disability monthly pension pursuant to Section
49-109 of this title on or after June 4, 2007, such member shall be
eligible to elect to receive a benefit determined a s if the member
had elected to participate in the Oklahoma Fir efighters Deferred
Option Plan, in accordance with subsection H of this section, on the
day immediately preceding the date of the member's disability
retirement, provided such election is made w ithin two (2) years from
the date of the member's disability r etirement. The disability
monthly pension such member is receiv ing, or entitled to receive,
shall be adjusted in accordance with the provisions of subsection H RBH No. 10792
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of this section to account for th e member's participation in the
Oklahoma Firefighters Deferred Option Plan. The deferred benefit
balance such member is entit led to receive shall be reduced by the
back drop pension adjustment amount and increased by the deferred
benefit balance adjustmen t amount. The member may only make a back
drop election if the deferred benefit balance after the adjustment
described in this paragraph is greater than Zero Dollars ($0.00).
The member may only make this election if the member has not
previously elected to participate in the Oklahoma Firefighters
Deferred Option Plan.
4. If a member has more than twenty (20) years of creditab le
service, or a member of the Oklahoma Firefighters Pension and
Retirement System whose first employment with a participating
employer of the System occurs on or after November 1, 2013, and s uch
member has more than twenty-two (22) years of creditable ser vice and
is eligible to receive a service retirement pension, and filed a
grievance for wrongful termination occurring on or after June 4,
2007, or is not a member of a collective bargaining o rganization as
a firefighter, is involuntarily terminated and is seeking to have
his or her position as a firefighter reinstated through a legal
process, but is not reinstated as an active membe r, such member
shall be eligible to elect to receive a benefit determined as if the
member had elected to participate in the O klahoma Firefighters
Deferred Option Plan in accordance with subsection H of this section RBH No. 10792
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on the day immediately preceding the dat e of the member's
termination. Such election must be made wit hin two (2) years from
the date of the member's termination as a n active member and, if the
member's case pertaining to the member's termination is on appeal to
a court of competent jurisdiction , within such period set by the
State Board in its sole discre tion. The monthly pension such member
is receiving, or entitled to receive, shall be adjusted in
accordance with the provisions of subsection H of this section to
account for the member's parti cipation in the Oklahoma Firefighters
Deferred Option Plan. T he deferred benefit balance such member is
entitled to receive s hall be reduced by the back drop pension
adjustment amount and increased by the deferred benefit balance
adjustment amount. The m ember may only make a back drop election if
the deferred benefit balance after the adjustment described in this
paragraph is greater than Zero Dollars ($0.00). The member may only
make this election if the member has not previously elected to
participate in the Oklahoma Firefighters Deferred Option Plan.
5. Subparagraphs d and e of paragraph 1 and paragraphs 3 and 4
of this subsection are effective June 4, 2007, provided the Internal
Revenue Service issues a favorable determination letter for the
System which includes the provisions of such subparagraphs and
paragraphs without modification or as modified to conform to any
changes required by the Internal Revenue Service as part of its
determination letter review process. In the event the Internal RBH No. 10792
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Revenue Service does not issue such a determination letter which
includes the provisions of such subparagraphs or paragraphs without
modification or as modified to conform to any changes required by
the Internal Revenue Service as part of its determination letter
review process, then subparagraphs d and e of paragraph 1 and
paragraphs 3 and 4 of this subsection shall be repealed effectiv e
June 4, 2007.
SECTION 6. AMENDATORY 11 O.S. 20 21, Section 49-108, is
amended to read as follows:
Section 49-108. A. Any volunteer firefighter who is appointed
as a paid firefighter whose first service with a participating
employer of the System occurs prior to November 1, 2013, and serves
less than ten (10) years as a paid firefighter, shall be entitled to
receive one-twentieth (1/20) of a volunteer pension earn ed over
twenty (20) years for each full year served as a volunteer
firefighter and one-twentieth of one-half (1/20 of 1/2) of the
average salary received for each full year the firefighter served as
a paid firefighter. Any volunteer firefighter who is appointed as a
paid firefighter whose first service with a participating employer
of the System occurs on or after November 1, 2013, and serves less
than eleven (11) years as a paid firefighter, shall be entitled to
receive one-twenty-second (1/22) of a volunteer pension ear ned over
twenty-two (22) years for each full year served as a volunteer
firefighter and one-twenty-second of fifty-five percent (1/22 of RBH No. 10792
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55%) of the average salary rece ived for each full year the
firefighter served as a paid firefighter.
B. Any volunteer firefighter who is appointed as a paid
firefighter after May 15, 1992, whose first service with a
participating employer of the System occurs prior to November 1,
2013, and serves ten (10) or more years as a paid firefighter, shall
be entitled to credit no more than five (5) years of volunteer time
to complete a twenty -year paid service pension with remaining
volunteer time computed at one -twentieth (1/20) of a volu nteer
pension earned over twenty (20) years for each additional v olunteer
year. Any volunteer firefighter who is appointed as a paid
firefighter before May 15, 1992, and serves ten (10) or more years
as a paid firefighter, shall be entitled to credit a ll of the
firefighter's volunteer time to complete a twenty -year paid service
pension. Any volunteer firefighter who is appointed as a paid
firefighter whose first service with a participating employer of the
System occurs on or after November 1, 2013, and serves eleven (11)
or more years as a paid firefighter, shall be entitled to credit no
more than five (5) years of volunteer time to complete a twenty -two-
year paid service pension with remaining volunteer time computed at
one-twenty-second (1/22) of a volunteer pension earned o ver twenty-
two (22) years for each a dditional volunteer year.
C. For purposes of determining benefits pursuant to this
section, total credited service for paid and volunteer service shall RBH No. 10792
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not exceed thirty (30) years; provided , the most recent years of
service shall be used in determining t otal credited service for paid
and volunteer service.
D. Nothing contained in this section shall be construed to
create an eligibility for pension which is not otherwise provided by
law.
SECTION 7. AMENDATORY 11 O.S. 20 21, Section 49-117.1, is
amended to read as follows:
Section 49-117.1 A. A member who terminates service before
normal retirement date, other than by death or disability shall,
upon application filed with the State Board, be re funded from the
Fund an amount equal to the accumulated contributions t he member has
made to the Fund, but excluding any interest or any amount
contributed by the municipality or state.
B. If a member, whose first employment with a participating
employer of the System occurs prior to Novemb er 1, 2013, has
completed ten (10) years of credited service at the date of
termination, the memb er may elect a vested benefit in lieu of
receiving the member's accumulated contributions.
C. If a member whose first empl oyment with a participating
employer of the System occurs on or after N ovember 1, 2013, has
completed eleven (11) years of credited s ervice at the date of
termination, the member may elect a vested benefit in lieu of
receiving the member's accumulated cont ributions. RBH No. 10792
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D. If the member who has completed ten (10) or more years o f
credited service as prescribed by subsection B of this secti on
elects the vested benefit, the member shall be entitled to a monthly
retirement annuity commencing on the date the membe r reaches fifty
(50) years of age or the date the member would have had twenty (20)
years of credited service had the member's employ ment continued
uninterrupted, whichever is later. The annual amount of such
retirement annuity shall be equal to two and o ne-half percent (2
1/2%) of the annualized final average salary multipl ied by the
number of years of credited service not to exceed t hirty (30) years.
The death benefits provided for in Section 49 -113.2 of this title
shall not apply to any member retiring under the provisions of this
section.
E. If the member who has comple ted eleven (11) or more years of
credited service as prescribe d by subsection C of this section
elects the vested benefit, the member shall be entitled to a monthly
retirement annuity c ommencing on the date the member rea ches fifty
(50) years of age or the date the member would have had twenty-two
(22) years of credited service had the member's employment continued
uninterrupted, whichever is later. The annual amount of such
retirement annuity shall be equal to two and on e-half percent (2
1/2%) of the annualized final average salary multiplied by the
number of years of credited service not to exceed thirty (30) years.
The death benefits provided for in Section 49 -113.2 of this title RBH No. 10792
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shall not apply to any member retiring under the provisions of this
section.
F. D. If a member who terminates terminated employment and
elects elected, or was eligible to elect, a vested benefit dies
prior to being eligible to receive benefits, the member's
beneficiary, as defined in paragraph 16 of Section 49-100.1 of this
title, shall be entitled to the member's normal monthly retiremen t
benefit on the date the deceased member would have been eligible to
receive the benefit.
G. E. If a member terminates em ployment and withdraws the
member's accumulated contributions and then subsequently rejoins the
System, he may pay to the System the sum of the accumulated
contributions he has withdrawn plus five percent (5%) annual
interest from the date of withdrawal an d shall receive the same
benefits as if he had never withdrawn his cont ributions; however,
effective January 1, 1991, the rate of int erest provided herein
shall be ten percent (10%) per annum.
H. F. Lump-sum payments for repayment of any amounts received
because of a member's prior terminat ion with interest may be repaid
by a trustee-to-trustee transfer of non-Roth funds from a Code
Section 403(b) annuity, a governmental Code Section 457 plan, and/or
a Code Section 401(a) qualified plan. RBH No. 10792
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I. G. A firefighter shall not be permitted to withdra w from the
System while employed as a firefighter in a participating
municipality.
SECTION 8. AMENDATORY 11 O.S. 20 21, Section 49-135, is
amended to read as follows:
Section 49-135. A. No person shall be employed in a fire
department who has reached the age of fo rty-five (45) years, unless
it appears he or she shall become eligible for retirement at the age
of sixty-five (65) years, or at the age of sixty -seven (67) years
for a firefighter whos e first service with a participating employer
of the System occurs on o r after November 1, 2013, or unless he or
she be retired from a municipal fire department in the State of
Oklahoma. This section shall not apply to professional engineers,
or to persons employed as technical specialists on a temporary
basis. The State Bo ard shall be authorized to establish the maximum
age, within the limits herein prescribed, over which an applicant
may not be considered for initial employment, but no person shall be
prohibited from making application fo r reemployment and having such
reemployment application considered merely because of his or her
age, provided that such person be under the age of forty -five (45)
years, and provided further, that such reemployment shall be with
the consent of the fire chi ef of such municipality.
B. On or after the effective date of this act, a person who
performs volunteer services as a firefighter, who has attained the RBH No. 10792
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age of forty-five (45) or more years as of the first date such
volunteer services are performed, for a municipality or a county
shall not be eligible to be a member of the Oklahoma Firefighters
Pension and Retirement System for any purpose, shall not be eligible
for any benefit payable by the System and shall not receive any form
of service credit from the System resulting from such voluntee r
services. The person responsible for decisions regarding the
performance of firefighting services having jurisdiction, which in
the absence of any other requirement to the contrary s hall be the
Fire Chief, shall make t he final determination on applicant s for
positions that would involve the performance of volunteer
firefighting services if the applicant is over the age of forty -five
(45) years based on local rules, regulations, ordina nces, guidelines
and standard operating procedures.
C. Notwithstanding the requirements of subsections C and H of
Section 49-106.1 of this title to terminate employment with all
participating municipalities as a firefighter, a person receiving an
accrued retirement benefit pursuant to Secti on 49-106 of this title
may perform volunteer firefighting services for a volunteer
department pursuant to subsection B of this section and continue to
receive the member's accrued retirement benefit; provided, that the
pension shall cease during any perio d of time the member may
thereafter serve for compensation in any municipal fire department
in the state; provided further, that no person shall perform any RBH No. 10792
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services as a firefighter if such person is receiving disabilit y
benefits pursuant to Section 49 -109 of this title.
SECTION 9. Section 1 of this act shall become effective October
1, 2022.
SECTION 10. Sections 2 though 8 of this act sh all become
effective November 1, 2022.
58-2-10792 MAH 02/28/22