Oklahoma 2022 Regular Session

Oklahoma House Bill HB2745 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1		RBH No. 10791
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3		-	SENATE FLOOR VERSION - HB2745 SFLR Page 1
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	2	+	ENGR. H. B. NO. 2745 Page 1 1
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29		-	SENATE FLOOR VERSION
30		-	April 13, 2022
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33	27		ENGROSSED HOUSE
34	28		BILL NO. 2745 By: Ford and Davis of the House
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36	30		and
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38	32		Pugh of the Senate
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43	39		[ public retirement systems - disability benefit
44	40		computations - effective dates ]
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49	45		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
50	46		SECTION 1. AMENDATORY 62 O.S. 2021, Section 3103, is
51	47		amended to read as follows:
52	48		Section 3103. As used in the Oklahoma Pension Legislation
53	49		Actuarial Analysis Act:
54	50		1. "Amendment" means any amendment, inc luding a substitute
55	51		bill, made to a retirement bill by any commi ttee of the House or
56	52		Senate, any conference committee of the House or Senate or by the
57	53		House or Senate;
58	54		2. "RB number" means that number preceded by the let ters "RB"
59	55		assigned to a retirement bill by the respective staffs of the
60	56		Oklahoma State Senate and the Oklahoma House of Representatives when
61	57		the respective staff office prepares a retirement bill for a member
62	58		of the Legislature; RBH No. 10791
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90	84		3. "Legislative Actuary" means the firm or entity that enters
91	85		into a contract with t he Legislative Service Bureau pursuant to
92	86		Section 452.15 of Title 74 of the Oklahoma Statutes to provide the
93	87		actuarial services and other duties provided for in the Oklahoma
94	88		Pension Legislation Actu arial Analysis Act;
95	89		4. "Nonfiscal amendment" means an amendment to a retirement
96	90		bill having a fiscal impact, which amendment does not change any
97	91		factor of an actuarial investigation specified in subsection A of
98	92		Section 3109 of this title;
99	93		5. "Nonfiscal retirement bill" means a retirement bill:
100	94		a. which does not affect the cost or funding factors of a
101	95		retirement system,
102	96		b. which affects such factors only in a manner which does
103	97		not:
104	98		(1) grant a benefit increase under the retirement
105	99		system affected by the bi ll,
106	100		(2) create an actuarial accrued liability for or
107	101		increase the actuarial accrued liability of the
108	102		retirement system affected by the bill, or
109	103		(3) increase the normal cost of the retirement system
110	104		affected by the bill,
111	105		c. which authorizes the purchase by an active member of
112	106		the retirement system, at the actua rial cost for the
113	107		purchase as computed pursuant to the statute in effect RBH No. 10791
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141	133		on the effective date of the measure allowing such
142	134		purchase, of years of service for purposes of reaching
143	135		a normal retirement da te in the applicable retirement
144	136		system, but which canno t be used in order to compute
145	137		the number of years o f service for purposes of
146	138		computing the retirement benefit for the member,
147	139		d. which provides for the computation of a service -
148	140		connected disability ret irement benefit for members of
149	141		the Oklahoma Law Enforce ment Retirement System
150	142		pursuant to Section 2-305 of Title 47 of the Oklahoma
151	143		Statutes if the members were unable to complete twenty
152	144		(20) years of service as a result of the disability,
153	145		e. which requires membership in the defined benefit plan
154	146		authorized by Section 901 et seq. of Title 74 of the
155	147		Oklahoma Statutes for persons whose first elected or
156	148		appointed service occurs on or after November 1, 2018,
157	149		if such persons had any prior service in the Oklahoma
158	150		Public Employees Retirement System prior to November
159	151		1, 2015,
160	152		f. which provides for a one-time increase in retirement
161	153		benefits if the increase in retirement benefits is not
162	154		a permanent increase in the gross annual retirement
163	155		benefit payable to a member or beneficiary, occurs RBH No. 10791
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191	181		only once pursuant to a single statutory authorization
192	182		and does not exceed:
193	183		(1) the lesser of two percent (2%) of the gross
194	184		annual retirement benefit of the member or One
195	185		Thousand Dollars ($1,000.00) and requires that
196	186		the benefit may only be provided if the funded
197	187		ratio of the affected retirement system would not
198	188		be less than sixty percent (60%) but not greater
199	189		than eighty percent (80%) after the benefit
200	190		increase is paid,
201	191		(2) the lesser of two percent (2%) of the gross
202	192		annual retirement benefit of the member or One
203	193		Thousand Two Hundred Dollars ($1,200.00) and
204	194		requires that the benefit may on ly be provided if
205	195		the funded ratio of the affected retirement
206	196		system would be greater than eighty percent (80%)
207	197		but not greater than one hundred perce nt (100%)
208	198		after the benefit increas e is paid,
209	199		(3) the lesser of two percent (2%) of the gross
210	200		annual retirement benefit of the member or One
211	201		Thousand Four Hundred Dollars ($1,400.00) and
212	202		requires that the benefit may only be provided if
213	203		the funded ratio of the affected retirement RBH No. 10791
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241	229		system would be greater than one hundred percent
242	230		(100%) after the benefit increas e is paid, or
243	231		(4) the greater of two percent (2%) of the gross
244	232		annual retirement benefit of the volunteer
245	233		firefighter or One Hundred Dollars ($100.00) for
246	234		persons who retired from the O klahoma
247	235		Firefighters Pension and Retirement System as
248	236		volunteer firefighters and who did not retire
249	237		from the Oklahoma Firefighters Pension and
250	238		Retirement System as a paid firefighter.
251	239		As used in this subparagraph, "funded ratio" means the
252	240		figure derived by dividing the actuarial value of
253	241		assets of the applicable retirement sy stem by the
254	242		actuarial accrued liability of the applicable
255	243		retirement system,
256	244		g. which modifies the disability pension standard for
257	245		police officers who are members of the Oklahoma Polic e
258	246		Pension and Retirement System as provi ded by Section 3
259	247		of this act 50-115 of Title 11 of the Oklahoma
260	248		Statutes, or
261	249		h. which provides a cost-of-living benefit increase
262	250		pursuant to the provisions of Sections 2 through 7 of
263	251		this act: RBH No. 10791
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291	277		(1) Section 49-143.7 of Title 11 of the Oklahoma
292	278		Statutes,
293	279		(2) Section 50-136.9 of Title 11 of the Okl ahoma
294	280		Statutes,
295	281		(3) Section 1104K of Title 20 of the Oklahoma
296	282		Statutes,
297	283		(4) Section 2-305.12 of Title 47 of the Oklahoma
298	284		Statutes,
299	285		(5) Section 17-116.22 of Title 70 of the Oklahoma
300	286		Statutes, or
301	287		(6) Section 930.11 of Title 74 of the Oklahoma
302	288		Statutes.
303	289		A nonfiscal retirement bill shall include any retirement bill that
304	290		has as its sole purpose the appropriation or distribution or
305	291		redistribution of monies in some manner to a retirement system for
306	292		purposes of reducing the unfunded liability of such system or the
307	293		earmarking of a portion of the revenue from a tax to a retirement
308	294		system or increasing the percentage of the revenue earmarked from a
309	295		tax to a retirement system;
310	296		6. "Reduction-in-cost amendment" means an amendment to a
311	297		retirement bill having a fiscal impact wh ich reduces the cost of the
312	298		bill as such cost is determined b y the actuarial investigation for
313	299		the bill prepared pursuant to Section 3109 of this title; RBH No. 10791
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341	325		7. "Retirement bill" means any bill or joint resolution
342	326		introduced or any bill or joint resolution ame nded by a member of
343	327		the Oklahoma Legislature which creates or amends any law directly
344	328		affecting a retirement system. A retirement bill shall not mean a
345	329		bill or resolution that impacts the revenue of any state tax in
346	330		which a portion of the revenue generate d from such tax is earmarked
347	331		for the benefit of a retirement system;
348	332		8. "Retirement bill having a fiscal impact" means any
349	333		retirement bill creating or establishing a retirement system and any
350	334		other retirement bill other than a nonfiscal retirement bill; a nd
351	335		9. "Retirement system" means the Teachers' Retirement System of
352	336		Oklahoma, the Oklahoma Public Employees Retirement System, the
353	337		Uniform Retirement System for Just ices and Judges, the Oklahoma
354	338		Firefighters Pension and Retirement System, the Oklahoma Poli ce
355	339		Pension and Retirement System, the Oklahoma Law Enforcemen t
356	340		Retirement System, or a retirement system established after January
357	341		1, 2006.
358	342		SECTION 2. AMENDATORY 11 O.S. 2021, Section 50-115, is
359	343		amended to read as follows:
360	344		Section 50-115. A. The State Board is authorized to pay a
361	345		disability benefit to a member of the System or a pension to the
362	346		beneficiaries of such member eligible as hereinafter provided, not
363	347		exceeding the accrued retir ement benefit of the member, except as
364	348		otherwise provided in this article. Such disability benefit shall RBH No. 10791
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392	374		be payable immediately upon determination of eligibility. Any
393	375		preexisting condition identified at the time of any init ial or
394	376		subsequent membership sh all be used to offset the percentage of
395	377		impairment to the whole person in determining any disability
396	378		benefit. Once the initial disability benefit has been awarded by
397	379		the Board on the basis of the percentage of impairment to the whole
398	380		person, the member sh all have no further recourse to increase the
399	381		awarded percentage of impairment.
400	382		B. In order for any membe r to be eligible for any disability
401	383		benefit, or the member's beneficiaries to be eligible for a pension,
402	384		the member must have complied with any agreeme nt as to contributions
403	385		by the member and oth er members to any funds of the System where
404	386		said agreement has been made as provided by this article; and the
405	387		State Board must find:
406	388		1. That the member incurred a permanent total d isability or a
407	389		permanent partial disability or died while in, and in conseq uence
408	390		of, the performance of duty as an officer; or
409	391		2. That such member has served ten (10) years and incurred a
410	392		permanent total disability or a permanent partial disability or has
411	393		died from any cause.
412	394		C. In the event of the death of any member who has b een awarded
413	395		a disability benefit or is eligible therefor as p rovided in this
414	396		article, the member's beneficiary shall be paid the benefit. RBH No. 10791
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442	422		D. 1. As of the date of determination by the State Board that
443	423		a member is physically or mentally disabled and that t he disability
444	424		is permanent and partial or permanent and total as was incurred
445	425		while in, and in consequence of, the performance or duty as an
446	426		officer, the member shall be awarded a d isability benefit on the
447	427		basis of the percentage of impairment to the whole person, as
448	428		defined by the most current standards of the impa irment as outlined
449	429		in the "American Medical Association's Guides to the Evaluation of
450	430		Permanent Impairment ", as provided in the following table or as
451	431		prescribed by paragraph 2 of this subsection with respect to
452	432		injuries sustained as a result of a violent a ct:
453	433		1% to 49% impairment to whole person = 50% of the normal
454	434		disability benefit
455	435		50% to 74% impairment to whole person = 75% of the normal
456	436		disability benefit
457	437		75% to 100% impairment to whole pers on = 100% of the normal
458	438		disability benefit.
459	439		2. If an injury to a member results from a violent act as
460	440		defined by this paragraph while in the performance of his or her
461	441		duties as a police officer, the State Board shall make a
462	442		determination that the member h as sustained a one-hundred-percent
463	443		disability and shall make the benefit award in accordance with that
464	444		standard. As used in this paragraph, "violent act" means a violent
465	445		attack upon the member by means of a dang erous weapon, including, RBH No. 10791
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493	471		but not limited to, a firearm, knife, automobile, explosive device
494	472		or other dangerous weapon. In computing the disability benefit as
495	473		provided by this paragraph, the System shall use the compensation
496	474		paid to the highest paid nonsupervisory patrol officer in the
497	475		employment of the municipality which employs the member who becomes
498	476		disabled according to the standard prescribed by this paragraph or a
499	477		one hundred percent (100%) disability based on the member 's final
500	478		average salary whichev er computation results in the highest benefi t.
501	479		E. If the participating municipality denies a disabled me mber
502	480		the option of continuing employment instead of retiring on a
503	481		disability pension, then the burden of proof rests wit h the
504	482		participating municipalit y to show cause to the State Board that
505	483		there is no position as a sworn officer within the police departm ent
506	484		of that municipality which the member can fill.
507	485		F. Upon determination by the State Board that a member is
508	486		physically or mentally disabled and that the disability is permanent
509	487		and total and that the member has completed ten (10) years of
510	488		credited service and is disabled by any cause, the member shall
511	489		receive a disability benefit on the basis of the member 's accrued
512	490		retirement benefit. A permanent an d total impairment equates to one
513	491		hundred percent (100%) of accrued retirement benefit.
514	492		G. Upon determination by the State Board that a member is
515	493		physically or mentally disabled and that the disability is permanent
516	494		and partial and that the member has comp leted ten (10) years of RBH No. 10791
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544	520		credited service as a member and is disabled from any cause, the
545	521		member shall be awarded a disability benefit on the basis of the
546	522		member's years of credited service as a member and the percentage of
547	523		impairment to the whole person, a s defined by the most current
548	524		standards of the impairment as outlined in the "American Medical
549	525		Association's Guides to the Evaluation of Permanent Impairment", on
550	526		the basis of the following table:
551	527		1% to 24% impaired = 25% of accrued retirement benefit
552	528		25% to 49% impaired = 50% of accrued retiremen t benefit
553	529		50% to 74% impaired = 75% of accrued retirement be nefit
554	530		75% to 99% impaired = 90% of accrued retirement benefit.
555	531		H. Before making a finding as to the disability of a me mber,
556	532		the State Board shall req uire that, if the member is able, the
557	533		member shall make a certificate as to the disability which shall be
558	534		subscribed and sworn to by the member. It shall also require a
559	535		certificate as to such disability to be made by some ph ysician
560	536		licensed to practice in this state as selected by the State Board.
561	537		The State Board may require other evidence of disability bef ore
562	538		making the disability benefit. The salary of any such member shall
563	539		continue while the member is so necessarily conf ined to such
564	540		hospital bed or home and necessarily requires medical care or
565	541		professional nursing on account of such sickness or disabilit y for a
566	542		period of not more than six (6) months, after which said period the
567	543		other provisions of this article may apply. The State Board, in RBH No. 10791
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595	569		making disability benefits, shall act upon the written request of
596	570		the member or without such request, if it deem it for the good of
597	571		the police department. Any disability benefits shall cease when the
598	572		member receiving same shall be res tored to active service at a
599	573		salary not less than three -fourths (3/4) of the member's average
600	574		monthly salary.
601	575		I. Any member of a police department of any municipality who,
602	576		in the line of duty, has been exposed to hazardous substances,
603	577		including but not li mited to chemicals used in the manufacture of a
604	578		controlled dangerous substa nce or chemicals resulting from the
605	579		manufacture of a controll ed dangerous substance, or to blood-borne
606	580		pathogens and who is later disabled from a condition that was the
607	581		result of such exposure and that was not re vealed by the physical
608	582		examination passed by the member upon entry into the System shall be
609	583		presumed to have incurred such disability while performing the
610	584		officer's duties unless the contrary is shown by competent evidence.
611	585		The presumption created by this subsection shall have no application
612	586		whatever to any workers' compensation claim or claims, and it shall
613	587		not be applied or be relied upon in any way in workers' compensation
614	588		proceedings. All compensation or benefits due to any member
615	589		pursuant to the pres umption created by this subsection shall be paid
616	590		solely by the system.
617	591		J. If the requirements of Section 50-114.4 of this title are
618	592		satisfied, a member who, by reason of disability, is separated from RBH No. 10791
619		-
620		-	SENATE FLOOR VERSION - HB2745 SFLR Page 13
621		-	(Bold face denotes Committee Amendments) 1
	593	+	ENGR. H. B. NO. 2745 Page 13 1
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646	618		service as a public safe ty officer with the member 's participating
647	619		municipality, may elect to have payment made directly to the
648	620		provider for qualified health in surance premiums by deduction from
649	621		his or her monthly disability benefit, after December 31, 2006, in
650	622		accordance with Section 402(l) of the Internal Re venue Code of 1986,
651	623		as amended.
652	624		SECTION 3. Section 1 of this act shall become effective October
653	625		1, 2022.
654	626		SECTION 4. Section 2 of this act shall become effective
655	627		November 1, 2022.
656		-	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
657		-	April 13, 2022 - DO PASS
	628	+	Passed the House of Representatives the 15th day of March, 2022.
	629	+
	630	+
	631	+
	632	+
	633	+	Presiding Officer of the House
	634	+	of Representatives
	635	+
	636	+
	637	+	Passed the Senate the ___ day of __________, 2022.
	638	+
	639	+
	640	+
	641	+
	642	+	Presiding Officer of the Senate
	643	+
	644	+