RBH No. 7250
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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
HOUSE BILL 2745 By: Ford
AS INTRODUCED
An Act relating to public retirement systems;
amending 62 O.S. 2011, Section 3103, as last amended
by Section 1, Chapter 121, O.S.L. 2020 ( 62 O.S. Supp.
2020, Section 3103), which relates to the Oklahoma
Pension Legislation Actuarial Analysis Act; modifying
definition; amending 11 O.S. 2011, Section 50-115, as
last amended by Section 3, Chapter 120, O.S.L. 2020
(11 O.S. Supp. 2020, Section 50-115), which relates
to disability benefit computations ; modifying
computation of certain disability benefit; providing
for use of certain compensation amount in determ ining
disability benefit; and providing effective date s.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2011, Section 3103, as
last amended by Section 1, Chapter 121, O.S.L. 2020 (62 O.S. Supp.
2020, 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, including a substitute
bill, made to a retirement bill by any committee of the House or RBH No. 7250
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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 enters
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 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 specifi ed 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 retirement
system affected by the bill, RBH No. 7250
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(2) create an actuarial accrued liability for or
increase the actuarial accrued liability 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 of 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 Novemb er 1, 2018, RBH No. 7250
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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 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 only be provided if
the funded ratio of the affected retirement
system would be greate r than eighty percent (80%) RBH No. 7250
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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
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 increase is paid, or
(4) the greater of two percent (2%) of the gross
annual retirement ben efit 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 system by the
actuarial accrued liability of the applicable
retirement system, or RBH No. 7250
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g. which provides a cost -of-living benefit increase
pursuant to the provisions of Sections 2 through 7 of
this act, or
h. which modifies the computation of the line -of-duty
disability benefit pursuant to the provisions of
Section 2 of this act.
A nonfiscal retirement bill shall include any retirement bill that
has as its sole purpose the appropriation 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 percentage of the revenue earmarked from a
tax to a retirement system;
6. "Reduction-in-cost amendment" means an amendment to a
retirement bill having a fiscal impact which r educes the cost of the
bill as such cost is determined by the actuarial investigation for
the bill prepared pursuant to 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 retirement bill shall not mean a
bill or resolution that impacts the revenue of any state tax in
which a portion of the revenue generated fro m such tax is earmarked
for the benefit of a retirement system; RBH No. 7250
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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
9. "Retirement system" means the Teachers' Retirement System of
Oklahoma, the Oklahoma Public Employees Retirement System, the
Uniform Retirement System for Justices 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 established after January
1, 2006.
SECTION 2. AMENDATORY 11 O.S. 2011, Section 50 -115, as
last amended by Section 3, Chapter 120, O.S.L. 2020 (11 O.S. Supp.
2020, Section 50-115), is amended to read as follows:
Section 50-115. A. The State Board is authorized to pay a
disability benefit to a member of the System or a pension to the
beneficiaries of such member eligible as hereinaft er provided, not
exceeding the accrued retirement benefit of the member, except as
otherwise provided in this article. Such disability benefit shall
be payable immediately upon determination of eligibility. Any
preexisting condition identified at the tim e of any initial or
subsequent membership shall be used to offset the percentage of
impairment to the whole person in determining any disability
benefit. Once the initial disability benefit has been awarded by
the Board on the basis of the percentage of i mpairment to the whole RBH No. 7250
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person, the member shall have no further recourse to increase the
awarded percentage of impairment.
B. In order for any member to be eligible for any disability
benefit, or the member 's beneficiaries to be eligible for a pension,
the member must have complied with any agreement as to contributions
by the member and other members to any funds of the System where
said agreement has been made as provided by this article; and the
State Board must find:
1. That the member incurred a perm anent total disability or a
permanent partial disability or died while in, and in consequence
of, the performance of duty as an officer; or
2. That such member has served ten (10) years and incurred a
permanent total disability or a permanent partial disa bility or has
died from any cause.
C. In the event of the death of any member who has been awarded
a disability benefit or is eligible therefor as provided in this
article, the member's beneficiary shall be paid the benefit.
D. 1. As of the date of dete rmination by the State Board that
a member is physically or mentally disabled and that the disability
is permanent and partial or permanent and total as was incurred
while in, and in consequence of, the performance or duty as an
officer, the member shall b e awarded a disability benefit on the
basis of the percentage of impairment to the whole person, as
defined by the most current standards of the impairment as outlined RBH No. 7250
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in the "American Medical Association 's Guides to the Evaluation of
Permanent Impairment ", as provided in the following table or as
prescribed by paragraph 2 of this subsection with respect to
injuries sustained as a result of a violent act:
1% to 49% impairment to whole person = 50% of the normal
disability benefit
50% to 74% impairment to w hole person = 75% of the normal
disability benefit
75% to 100% impairment to whole person = 100% of the normal
disability benefit.
2. If an injury to a member results from a violent act as
defined by this paragraph while in the performance of his or her
duties as a police officer, the State Board shall make a
determination that the member has sustained a one -hundred-percent
disability and shall make the benefit award in accordance with that
standard. As used in this paragraph, "violent act" means a violent
attack upon the member by means of a dangerous weapon, including,
but not limited to, a firearm, knife, automobile, explosive device
or other dangerous weapon. In computing the disability benefit as
provided by this paragraph, the System shall use the compensation
paid to the highest paid nonsupervisory patrol officer in the
employment of the municipality which employs the member who becomes
disabled according to the standard prescribed by this paragraph or a RBH No. 7250
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one hundred percent (100%) disability based on the member's final
average salary whichever computation results in the highest benefit .
E. If the participating municipality denies a disabled member
the option of continuing employment instead of retiring on a
disability pension, then the burden of pr oof rests with the
participating municipality to show cause to the State Board that
there is no position as a sworn officer within the police department
of that municipality which the member can fill.
F. Upon determination by the State Board that a member is
physically or mentally disabled and that the disability is permanent
and total and that the member has completed ten (10) years of
credited service and is disabled by any cause, the member shall
receive a disability benefit on the basis of the member 's accrued
retirement benefit. A permanent and total impairment equates to one
hundred percent (100%) of accrued retirement benefit.
G. Upon determination by the State Board that a member is
physically or mentally disabled and that the disability is perman ent
and partial and that the member has completed ten (10) years of
credited service as a member and is disabled from any cause, the
member shall be awarded a disability benefit on the basis of the
member's years of credited service as a member and the per centage of
impairment to the whole person, as defined by the most current
standards of the impairment as outlined in the "American Medical RBH No. 7250
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Association's Guides to the Evaluation of Permanent Impairment ", on
the basis of the following table:
1% to 24% impaired = 25% of accrued retirement benefit
25% to 49% impaired = 50% of accrued retirement benefit
50% to 74% impaired = 75% of accrued retirement benefit
75% to 99% impaired = 90% of accrued retirement benefit.
H. Before making a finding as to the disab ility of a member,
the State Board shall require that, if the member is able, the
member shall make a certificate as to the disability which shall be
subscribed and sworn to by the member. It shall also require a
certificate as to such disability to be ma de by some physician
licensed to practice in this state as selected by the State Board.
The State Board may require other evidence of disability before
making the disability benefit. The salary of any such member shall
continue while the member is so nec essarily confined to such
hospital bed or home and necessarily requires medical care or
professional nursing on account of such sickness or disability for a
period of not more than six (6) months, after which said period the
other provisions of this articl e may apply. The State Board, in
making disability benefits, shall act upon the written request of
the member or without such request, if it deem it for the good of
the police department. Any disability benefits shall cease when the
member receiving same shall be restored to active service at a RBH No. 7250
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salary not less than three -fourths (3/4) of the member 's average
monthly salary.
I. Any member of a police department of any municipality who,
in the line of duty, has been exposed to hazardous substances,
including but not limited to chemicals used in the manufacture of a
controlled dangerous substance or chemicals resulting from the
manufacture of a controlled dangerous substance, or to blood -borne
pathogens and who is later disabled from a condition that was the
result of such exposure and that was not revealed by the physical
examination passed by the member upon entry into the System shall be
presumed to have incurred such disability while performing the
officer's duties unless the contrary is shown by competen t evidence.
The presumption created by this subsection shall have no application
whatever to any workers ' compensation claim or claims, and it shall
not be applied or be relied upon in any way in workers ' compensation
proceedings. All compensation or ben efits due to any member
pursuant to the presumption created by this subsection shall be paid
solely by the system.
J. If the requirements of Section 50 -114.4 of this title are
satisfied, a member who, by reason of disability, is separated from
service as a public safety officer with the member 's participating
municipality, may elect to have payment made directly to the
provider for qualified health insurance premiums by deduction from
his or her monthly disability benefit, after December 31, 2006, in RBH No. 7250
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accordance with Section 402(l) of the Internal Revenue Code of 1986,
as amended.
SECTION 3. Section 1 of this act shall become effective October
1, 2021.
SECTION 4. Section 2 of this act shall become effective
November 1, 2021.
58-1-7250 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 Ross Ford
Room 453.2
Re: RBH No. 7250
RBH No. 7250 for a police officer who is disabled due a violent act
the disability benefit shall be based on the highest compensation of
the highest nonsupervisory officer in the employment of the
municipality.
The bill also amends OPLAAA definition of a nonfiscal bill to
include the above.
RBH No. 7250 is a nonfiscal bill as defined by OPLAAA as the 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