RBH No. 10791
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SENATE FLOOR VERSION
April 13, 2022
ENGROSSED HOUSE
BILL NO. 2745 By: Ford and Davis of the House
and
Pugh of the Senate
[ public retirement systems - disability benefit
computations - effective dates ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 3103, is
amended to read as follows:
Section 3103. As used in the Oklahoma Pension Legislation
Actuarial Analysis Act:
1. "Amendment" means any amendment, including a substitute
bill, made to a retirement bill by any commi ttee of the House or
Senate, any conference committee of the House or Senate or by the
House or Senate;
2. "RB number" means that number preceded by the let ters "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; RBH No. 10791
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3. "Legislative Actuary" means the firm or entity th at 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 Actu arial 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 retirement
system affected by the bi ll,
(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 RBH No. 10791
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on the effective date of the measure allowing such
purchase, of years of service for purposes of reaching
a normal retirement da te in the applicable retir ement
system, but which cannot be used in order to compute
the number of years o f service for purposes of
computing the retirement benefit for the member,
d. which provides for the computation of a service -
connected disability ret irement benefit for member s 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 define d benefit plan
authorized by Section 901 et seq. of Title 74 of the
Oklahoma Statutes for persons whose first elected or
appointed service occurs on or after November 1, 2018,
if such persons had any prior service in the Oklahoma
Public Employees Retiremen t 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 RBH No. 10791
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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 fund ed
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 O ne
Thousand Two Hundred Dollars ($1,200.00) and
requires that the benefit may on ly be provided if
the funded ratio of the affected retirement
system would be greater than eighty percent (80%)
but not greater than one hundred perce nt (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 RBH No. 10791
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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 f rom 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 Oklaho ma Police
Pension and Retirement System as provi ded by Section 3
of this act 50-115 of Title 11 of the Oklahoma
Statutes, or
h. which provides a cost-of-living benefit increase
pursuant to the provisions of Sections 2 through 7 of
this act: RBH No. 10791
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(1) Section 49-143.7 of Title 11 of the Oklahoma
Statutes,
(2) Section 50-136.9 of Title 11 of the Okl ahoma
Statutes,
(3) Section 1104K of Title 20 of the Oklahoma
Statutes,
(4) Section 2-305.12 of Title 47 of the Oklahoma
Statutes,
(5) Section 17-116.22 of Title 70 of t he Oklahoma
Statutes, or
(6) Section 930.11 of Title 74 of the Oklahoma
Statutes.
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 wh ich reduces the cost of the
bill as such cost is determined b y the actuarial investigation for
the bill prepared pursuant to Section 3109 of this title; RBH No. 10791
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7. "Retirement bill" means any bill or joint resolution
introduced or any bill or joint resolution ame nded 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 generate d 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 nonfiscal retirement bill; a nd
9. "Retirement system" means the Teachers' Retirement System of
Oklahoma, the Oklahoma Public Employees Retirement System, the
Uniform Retirement System for Jus tices and Judges, the Oklahoma
Firefighters Pension and Retirement System, the Oklahoma Poli ce
Pension and Retirement System, the Oklahoma Law Enforcemen t
Retirement System, or a retirement system established after January
1, 2006.
SECTION 2. AMENDATORY 11 O.S. 2021, 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 herei nafter provided, not
exceeding the accrued retir ement benefit of the member, except as
otherwise provided in this article. Such disability benefit shall RBH No. 10791
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be payable immediately upon determination of eligibility. Any
preexisting condition identified at the time of any initial or
subsequent membership sh all 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 impairment to the whole
person, the member sh all have no further recourse to increase the
awarded percentage of impairment.
B. In order for any membe r 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 agreeme nt as to contributions
by the member and oth er 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 permanent total disability or a
permanent partial disability or died while in, and in conseq uence
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 disability or has
died from any cause.
C. In the event of the death of any member who has b een awarded
a disability benefit or is eligible therefor as p rovided in this
article, the member's beneficiary shall be paid the benefit. RBH No. 10791
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D. 1. As of the date of determination by the State Board that
a member is physically or mentally disabled and that t he 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 sha ll be 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 impa irment as outlined
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 a ct:
1% to 49% impairment to whole person = 50% of the normal
disability benefit
50% to 74% impairment to whole person = 75% of the normal
disability benefit
75% to 100% impairment to whole pers on = 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 h as 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 dang erous weapon, including, RBH No. 10791
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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
one hundred percent (100%) disability ba sed on the member's final
average salary whichev er computation results in the highest benefi t.
E. If the participating municipality denies a disabled me mber
the option of continuing employment instead of retiring on a
disability pension, then the burden o f proof rests with the
participating municipalit y to show cause to the State Board that
there is no position as a sworn officer within the police departm ent
of that municipality which the member can fill.
F. Upon determination by the State Board that a me mber 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 memb er's accrued
retirement benefit. A permanent an d 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 pe rmanent
and partial and that the member has comp leted ten (10) years of RBH No. 10791
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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 percentage of
impairment to the whole person, a s defined by the most current
standards of the impairment as outlined in the "American Medical
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 retiremen t benefit
50% to 74% impaired = 75% of accrued retirement be nefit
75% to 99% impaired = 90% of accrued retirement benefit.
H. Before making a finding as to the d isability of a member,
the State Board shall req uire 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 b e made by some physician
licensed to practice in this state as selected by the State Board.
The State Board may require other evidence of disability bef ore
making the disability benefit. The salary of any such member shall
continue while the member is so necessarily confined to such
hospital bed or home and necessarily requires medical care or
professional nursing on account of such sickness or disabilit y for a
period of not more than six (6) months, after which said period the
other provisions of this ar ticle may apply. The State Board, in RBH No. 10791
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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
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 substa nce or chemicals resulting from the
manufacture of a controll ed 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 re vealed 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 comp etent 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 benefits due to any member
pursuant to the pres umption 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 RBH No. 10791
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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 in surance premiums by deduction from
his or her monthly disability benefit, after December 31, 2006, in
accordance with Section 402(l) of the Internal Re venue Code of 1986,
as amended.
SECTION 3. Section 1 of this act shall become effective October
1, 2022.
SECTION 4. Section 2 of this act shall become effective
November 1, 2022.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
April 13, 2022 - DO PASS