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Oklahoma House Bill HB4130

Oklahoma 2022 Regular Session

Oklahoma House Bill HB4130 Compare Versions

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2828 STATE OF OKLAHOMA
2929
3030 2nd Session of the 58th Legislature (2022)
3131
3232 HOUSE BILL 4130 By: May
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3838 AS INTRODUCED
3939
4040 An Act relating to public retirement systems;
4141 amending 62 O.S. 2021, Section 3103, which relates to
4242 the Oklahoma Pension Legislation Actuarial Analysis
4343 Act; modifying definition; amending 11 O.S. 2021,
4444 Sections 49-100.1, 49-103, 49-104, and 49-122, which
4545 relate to the Oklahoma Firefighters Pens ion and
4646 Retirement System; modifying definition; providing
4747 for membership by certain firefighters emp loyed by
4848 federally recognized Native American tri bes;
4949 modifying provisions related to loc al retirement
5050 boards; providing for service in desi gnated
5151 capacities with respect to federally recognized
5252 Native American tribes ; providing for actuarial
5353 analysis of normal cost; requiring reports;
5454 prescribing procedures; and providing effective
5555 dates.
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6060 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
6161 SECTION 1. AMENDATORY 62 O.S. 2021, Section 3103, is
6262 amended to read as follows :
6363 Section 3103. As used in the Oklahoma Pension Legislation
6464 Actuarial Analysis Act:
6565 1. "Amendment" means any amendment, includin g a substitute
6666 bill, made to a retirement bill by any commi ttee of the House or RBH No. 9495
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9393 Senate, any conference committee of the House or Senate or by the
9494 House or Senate;
9595 2. "RB number" means that number preceded by the letters "RB"
9696 assigned to a retirement bill by the respective staffs of the
9797 Oklahoma State Senate and the Oklahoma House of Representatives when
9898 the respective staff office prepares a retirement bill for a member
9999 of the Legislature;
100100 3. "Legislative Actuary" means the firm or entity that enters
101101 into a contract with the Legislative Service Bureau pursuant to
102102 Section 452.15 of Title 74 of the Oklahoma Statutes to provide the
103103 actuarial services and other duties provided for in the Oklahoma
104104 Pension Legislation Actuarial Analysis Act;
105105 4. "Nonfiscal amendment" means an amendment to a retirement
106106 bill having a fiscal impact, which amendment does not change any
107107 factor of an actuarial investigation specified in subsection A of
108108 Section 3109 of this title;
109109 5. "Nonfiscal retirement bill " means a retirement bill:
110110 a. which does not affect the cost or funding factors of a
111111 retirement system,
112112 b. which affects such factors only in a manner which does
113113 not:
114114 (1) grant a benefit increase under the retirement
115115 system affected by the bill, RBH No. 9495
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142142 (2) create an actuarial accrued liab ility for or
143143 increase the actuarial accrued liab ility of the
144144 retirement system affected by the bill, or
145145 (3) increase the normal cost of the retirement system
146146 affected by the bill,
147147 c. which authorizes the purchase by an active member of
148148 the retirement syste m, at the actuarial cost for the
149149 purchase as computed pursuant to the statute in effect
150150 on the effective date of the measure allowing such
151151 purchase, of years of service for purposes of reaching
152152 a normal retirement date in the applicable retirement
153153 system, but which cannot be used in order to compute
154154 the number of years o f service for purposes of
155155 computing the retirement benefit for the member,
156156 d. which provides for the computation of a service -
157157 connected disability retirement benefit for members of
158158 the Oklahoma Law Enforcement Retirement System
159159 pursuant to Section 2-305 of Title 47 of the Oklahoma
160160 Statutes if the members were unable to complete twenty
161161 (20) years of service as a result of the disability,
162162 e. which requires membership in the defined benefit plan
163163 authorized by Section 901 et seq. of Title 74 of the
164164 Oklahoma Statutes for persons whose first elected or
165165 appointed service occurs on or after November 1, 2018, RBH No. 9495
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192192 if such persons had any prior service in the Oklahoma
193193 Public Employees Retirement System prior to November
194194 1, 2015,
195195 f. which provides for a one-time increase in retirement
196196 benefits if the increase in retirement benefits is not
197197 a permanent increase in the gross annual retirement
198198 benefit payable to a member or beneficiary, occurs
199199 only once pursuant t o a single statutory authorization
200200 and does not exceed:
201201 (1) the lesser of two percent (2%) of the gross
202202 annual retirement benefit of the member or One
203203 Thousand Dollars ($1,000.00) and requires that
204204 the benefit may only be provided if the funded
205205 ratio of the affected retirement system would not
206206 be less than sixty percent (60%) but not greater
207207 than eighty percent (80%) after the benefit
208208 increase is paid,
209209 (2) the lesser of two percent (2%) of the gross
210210 annual retirement benefit of the member or One
211211 Thousand Two Hundred Dollars ($1,200.00) and
212212 requires that the benefit may on ly be provided if
213213 the funded ratio of the affected retirement
214214 system would be greater than eighty percent (80%) RBH No. 9495
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241241 but not greater than one hundred percent (100%)
242242 after the benefit increase is paid,
243243 (3) the lesser of two percent (2%) of the gross
244244 annual retirement benefit of the member or One
245245 Thousand Four Hundred Dollars ($1,400.00) and
246246 requires that the benefit may only be provided if
247247 the funded ratio of the affected retirement
248248 system would be greater than one hundred percent
249249 (100%) after the benefit increas e is paid, or
250250 (4) the greater of two percent (2%) of the gross
251251 annual retirement benefit of the volunteer
252252 firefighter or One Hundred Dollars ($100.00) for
253253 persons who retired from the Oklaho ma
254254 Firefighters Pension and Retirement System as
255255 volunteer firefighters and who did not retire
256256 from the Oklahoma Firefighters Pension and
257257 Retirement System as a paid firefighter.
258258 As used in this subparagraph, "funded ratio" means the
259259 figure derived by divi ding the actuarial value of
260260 assets of the applicable retirement sy stem by the
261261 actuarial accrued liability of the applicable
262262 retirement system,
263263 g. which modifies the disability pension standard for
264264 police officers who are members of the Oklahoma Police RBH No. 9495
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291291 Pension and Retirement System as provided by Section 3
292292 of this act, or
293293 h. which provides a cost-of-living benefit increase
294294 pursuant to the provisions of Sections 2 through 7 of
295295 this act, or
296296 i. which allows for the participation of firefighters of
297297 a fire department, within Oklahoma, of an Oklahoma-
298298 based federally recognized Native American tribe
299299 pursuant to the provisions of Sections 2 through 5 of
300300 this act.
301301 A nonfiscal retirement bill shall include any retirement bill that
302302 has as its sole purpose the appropriation or distribution or
303303 redistribution of monies in some manner to a retirement system for
304304 purposes of reducing the unfunded liability of such system or the
305305 earmarking of a portion of the revenue from a tax to a retirement
306306 system or increasing the percentage of the revenue earmar ked from a
307307 tax to a retirement system;
308308 6. "Reduction-in-cost amendment" means an amendment to a
309309 retirement bill having a fiscal impact which reduces the cost of the
310310 bill as such cost is determined by the ac tuarial investigation for
311311 the bill prepared pursu ant to Section 3109 of this title;
312312 7. "Retirement bill" means any bill or joint resolution
313313 introduced or any bill or joint resolution amended by a member of
314314 the Oklahoma Legislature which creates or amends any law directly RBH No. 9495
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341341 affecting a retirement system. A retirement bill shall not mean a
342342 bill or resolution that impacts the revenue of any state tax in
343343 which a portion of the revenue generated from such tax is earmarked
344344 for the benefit of a retirement system;
345345 8. "Retirement bill having a fiscal impact " means any
346346 retirement bill creating or establishing a retirement system and any
347347 other retirement bill other than a nonfiscal retirement bill; and
348348 9. "Retirement system" means the Teachers' Retirement System of
349349 Oklahoma, the Oklahoma Public Employees Retir ement System, the
350350 Uniform Retirement System for Just ices and Judges, the Oklahoma
351351 Firefighters Pension and Retirement System, the Oklahoma Police
352352 Pension and Retirement System, the Oklahoma Law Enforcement
353353 Retirement System, or a retirement system establis hed after January
354354 1, 2006.
355355 SECTION 2. AMENDATORY 11 O.S. 2021, Section 49 -100.1, is
356356 amended to read as follows:
357357 Section 49-100.1 As used in this article:
358358 1. "System" means the Oklahoma Firefighters Pension and
359359 Retirement System and a ll predecessor municipal firefighters pension
360360 and retirement systems;
361361 2. "Article" means Article 49 of this title;
362362 3. "State Board" means the Oklahoma Firefighters Pension and
363363 Retirement Board; RBH No. 9495
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390390 4. "Local board" means the local firefighters pension and
391391 retirement boards;
392392 5. "Fund" means the Oklahoma Firefighters Pension and
393393 Retirement Fund;
394394 6. "Member" means all eligible firefighters of a participating
395395 municipality or a fire protection district wh o perform the essential
396396 functions of fire suppression, pr evention, and life safety duties in
397397 a fire department. The term "member" shall include but not be
398398 limited to the person s erving as fire chief of any participating
399399 municipality, provided that a perso n serving as fire chief of a
400400 participating municipality s hall meet the age, agility, physical and
401401 other eligibility requirements required by law at the time s aid
402402 person becomes a member of the System. Effective July 1, 1987, a
403403 member does not include a "leased employee". The term "leased
404404 employee" means any person (other than an employee of the recipient)
405405 who pursuant to an agreement between the recipient and any other
406406 person ("leasing organization") has performed services for the
407407 recipient (or for the re cipient and related persons determined in
408408 accordance with Section 414(n)(6) of the Internal Revenue Code of
409409 1986, as amended) on a substantially full -time basis for a period of
410410 at least one (1) year, and such services are performed under primary
411411 direction or control by the recipient. Contributions or benefits
412412 provided a leased employee by the leasing organization which are
413413 attributable to services performed fo r the recipient emplo yer shall RBH No. 9495
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440440 be treated as provided by the recipient employer. A leased employe e
441441 shall not be considered an employee of the recipient if the
442442 requirements of the safe harbor provisions of Section 414(n)(5) of
443443 the Internal Revenue Code of 1986, as amended, are satisfied.
444444 Effective July 1, 1999, any individual who agrees with the
445445 participating municipality that the individual 's services are to be
446446 performed as a leased employee or an independent contractor shall
447447 not be a member regardless of any classification a s a common law
448448 employee by the Internal Revenue Service or any other governme ntal
449449 agency, or any court of competent jurisdiction . Effective November
450450 1, 2022, member shall include any firefighter who otherwise meets
451451 the requirements to become a member, including but not limited to
452452 the age requirements in Section 49-135 of this title, and who is
453453 employed by a fire department, within Okl ahoma, of an Oklahoma-based
454454 federally recognized Native American tri be that adopts a resolution
455455 or other affirmative act allowing a fire department to become a
456456 participating municipality as defined i n paragraph 9 of this
457457 section;
458458 7. "Normal retirement dat e" means the date at which the member
459459 is eligible to receive the unreduced payments of the member 's
460460 accrued retirement benefit. Such date shall be the first day
461461 following the date the member complet es twenty (20) years of
462462 credited service. For a member w hose first employment with a
463463 participating employer of the System occurs on or after November 1, RBH No. 9495
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490490 2013, such date shall be the first day following the date the member
491491 completes twenty-two (22) years of credited service and has attained
492492 the age of at least f ifty (50) years. If the member 's employment
493493 continues past the normal retirement date of the member , the actual
494494 retirement date of the member shall be the first day following the
495495 date the member terminates employment with more than twenty (20)
496496 years of credited service, or with respect to members who are
497497 required to complete twenty -two (22) years of ser vice, the first day
498498 following the date the member terminates employment with more than
499499 twenty-two (22) years of service and who has also attained the age
500500 of at least fifty (50) years;
501501 8. "Credited service" means the period of service used to
502502 determine the eligibility for and the amount of benefits payable to
503503 a member. Credited service shall consist of the period during which
504504 the member participated in the S ystem or the predecessor municipal
505505 systems as an active employee in an eligible membership
506506 classification, plus any service prior to the establishment of the
507507 predecessor municipal systems which was c redited under the
508508 predecessor municipal systems; provided , however, "credited service"
509509 for members from a fire protection district shall not begin accruing
510510 before July 1, 1982;
511511 9. "Participating municipality " means a municipality, county
512512 fire department organized pursuant to subsection D of Section 351 of
513513 Title 19 of the Oklahoma Statutes, or fire protection district which RBH No. 9495
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540540 is making contributions to the Syste m on behalf of its firefighters.
541541 All participating municipalities shall appoint a fire chief who
542542 shall supervise and administer the fire department;
543543 10. "Disability" means the complete inability of the
544544 firefighter to perform any and every duty of the fir efighter's
545545 regular occupation; provided further, that once benefits have been
546546 paid for twenty-four (24) months the provisions of Section 49 -110 of
547547 this title shall apply to the firefighter;
548548 11. "Executive Director" means the managing officer of the
549549 System employed by the State Board;
550550 12. "Eligible employer" means any municipality with a municipal
551551 fire department, any county fire department organized pursuan t to
552552 subsection D of Section 351 of Title 19 of the Oklahoma Statutes or
553553 any fire protection distric t with an organized fire department , and
554554 effective November 1, 2022, a fi re department within Oklah oma of an
555555 Oklahoma-based federally recognized Native Amer ican tribe with
556556 respect to firefighters employed by such fire department on or after
557557 November 1, 2022, if the tribe adopts a resolution or other
558558 affirmative act allowing such fire department to become a
559559 participating employer of the system as defined in paragraph 9 of
560560 this section;
561561 13. "Entry date" means the date as of which an eligible
562562 employer joins the System. The first entry date pursuant to this
563563 article shall be January 1, 1981; RBH No. 9495
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590590 14. "Final average salary" means the average paid gross salar y
591591 of the firefighter for normally scheduled hours over the highest
592592 salaried thirty (30) consecutive months of the last sixty (60)
593593 months of credited service. Gross salary shall not include payment
594594 for accumulated sick or annual leave upon termination of e mployment,
595595 any uniform allowances or any other compensation for reimbursement
596596 of out-of-pocket expenses. Only sa lary on which the required
597597 contributions have been made may be used in computing the final
598598 average salary. Effective January 1, 1988, gross sa lary shall
599599 include any amount of elective salary reduction under Section 125 of
600600 the Internal Revenue Code of 1986 , as amended. Gross salary shall
601601 include any amount of elective salary reduction under Section 457 of
602602 the Internal Revenue Code of 1986, as am ended, and any amount of
603603 nonelective salary reduction under Section 414(h) of the Internal
604604 Revenue Code of 1986, as amended. Effective July 1, 1998, for
605605 purposes of determining a member 's compensation, any co ntribution by
606606 the member to reduce the member 's regular cash remuneration under
607607 132(f)(4) of the Internal Revenue Code of 1986, as amended, shall be
608608 treated as if the member did not make such an election. Only salary
609609 on which required contributions have b een made may be used in
610610 computing final average salary.
611611 In addition to other applicable limitations, and notwithstanding
612612 any other provision to the contrary, fo r plan years beginning on or
613613 after July 1, 2002, the annual gross salary of each "Noneligible RBH No. 9495
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640640 Member" taken into account under the System shall not exceed the
641641 Economic Growth and Tax Relief Reconciliation Act of 2001 ( "EGTRRA")
642642 annual salary limit. The EG TRRA annual salary limit is Two Hundred
643643 Thousand Dollars ($200,000.00), as adjusted by the Commi ssioner for
644644 increases in the cost of living in accordance with Section
645645 401(a)(17)(B) of the Internal Revenue Code of 1986, as amended. The
646646 annual salary limit in effect for a calendar year applies to any
647647 period, not exceeding twelve (12) months, over whic h salary is
648648 determined ("determination period ") beginning in such calendar year.
649649 If a determination period consists of fewer than twelve (12) months,
650650 the EGTRRA salary limit will be multiplied by a fraction, the
651651 numerator of which is the number of months in the determination
652652 period, and the denominato r of which is twelve (12). For purposes
653653 of this subsection, a "Noneligible Member" is any member who first
654654 became a member during a plan year commencing on or after July 1,
655655 1996.
656656 For plan years beginning on o r after July 1, 2002, any reference
657657 to the annual salary limit under Section 401(a)(17) of the Internal
658658 Revenue Code of 1986, as amended, shall mean the EGTRRA salary limit
659659 set forth in this subsection.
660660 Effective June 9, 2010, gross salary shall also inclu de gross
661661 salary, as described above, for servic es, but paid by the later of
662662 two and one-half (2 1/2) months after a firefighter 's severance from
663663 employment or the end of the calendar year that includes the date RBH No. 9495
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690690 the firefighter terminated employment, if it is a payment that,
691691 absent a severance from empl oyment, would have been paid to the
692692 firefighter while the firefighter continued in employment with the
693693 participating municipality.
694694 Effective June 9, 2010, any payments not described above shall
695695 not be considered gross salary if paid after severance from
696696 employment, even if they are paid by the later of two and one -half
697697 (2 1/2) months after the date of severance from employment or the
698698 end of the calendar year that includes the date of severance from
699699 employment, except payments to an individual who does not c urrently
700700 perform services for the participating municipality by reason of
701701 qualified military service within the m eaning of Section 414(u)(5)
702702 of the Internal Revenue Code of 1986, as amended, to the extent
703703 these payments do not exceed the amounts the indivi dual would have
704704 received if the individual had continued to perform services for the
705705 participating municipality r ather than entering qualified military
706706 service.
707707 Effective June 9, 2010, back pay, within the mea ning of Section
708708 1.415(c)-2(g)(8) of the Income Tax Regulations, shall be treated as
709709 gross salary for the year to which the back pay relates to the
710710 extent the back pay represents wages and compensation that would
711711 otherwise be included in this definition. RBH No. 9495
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738738 Effective for years beginning after December 31, 2008, gross
739739 salary shall also include differential wage payments under Section
740740 414(u)(12) of the Internal Revenue Code of 1986, as amended;
741741 15. "Accrued retirement benefit " means two and one-half percent
742742 (2 1/2%) of the firefighter 's final average salary multiplied by the
743743 member's years of credited service not to exceed thirty (30) years;
744744 16. "Beneficiary" means a member's surviving spouse or any
745745 surviving children, including biological and adopted children, at
746746 the time of the member 's death. The survivi ng spouse must have been
747747 married to the firefighter for the thirty (30) continuous months
748748 preceding the firefight er's death provided a surviving spouse of a
749749 member who died while in, or as a consequence of, th e performance of
750750 the member's duty for a participating municipality, shall not be
751751 subject to the marriage limitation for survivor benefits. A
752752 surviving child of a member shall be a beneficiary until reaching
753753 eighteen (18) years of age or twenty -two (22) years of age if the
754754 child is enrolled full time and regularly attending a public or
755755 private school or any institution of higher education. Any child
756756 adopted by a member after the member 's retirement shall be a
757757 beneficiary only if the child is adopted by th e member for the
758758 thirty (30) continuous months preceding the member's death. Any
759759 child who is adopted by a member after the member 's retirement and
760760 such member dies accidentally or as a consequence of the performance
761761 of the member's duty as a firefighter shall not be subject to the RBH No. 9495
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788788 thirty-month adoption requirement. This definition of beneficiary
789789 shall be in addition to any other requirement set forth in this
790790 article;
791791 17. "Accumulated contributions " means the sum of all
792792 contributions made by a member to the System and includes both
793793 contributions deducted from the compensation of a member and
794794 contributions of a member picked up and paid by the participating
795795 municipality of the member. Accumulated contributions shall not
796796 include any interest on the contrib utions of the member, interest on
797797 any amount contributed by the municipality or state and any amount
798798 contributed by the municipality or state; and
799799 18. "Limitation year" means the year used in applying the
800800 limitations of Section 415 of the Internal Revenue Code of 1986,
801801 which year shall be the calendar year.
802802 SECTION 3. AMENDATORY 11 O.S. 2021, Section 49 -103, is
803803 amended to read as follow s:
804804 Section 49-103. A. The mayor, the clerk and the treasurer of
805805 every incorporated municipality (or the equivalent officers of an
806806 Oklahoma-based federally recognized Native American tri be that is a
807807 participating municipality) are, in addition to the duti es now
808808 required of them, hereby created and constituted, together with
809809 three members from the fire department of such municipality, a local
810810 firefighters pension and retirement board of each such municipality,
811811 which board shall be known as the Local Firefig hters Pension and RBH No. 9495
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838838 Retirement Board. The fire department of each such municipality
839839 shall elect, by ballot, three members of such fire department, one
840840 of whom shall serve for the term of one (1) year, and one for the
841841 term of two (2) years, and one for the t erm of three (3) years, and
842842 thereafter such fire department shall, every year, elect by ballot
843843 one of its members to serve for the term of three (3) year s upon the
844844 local board; provided, the provisions of this article shall not
845845 apply to any municipality wh ere no regularly organized fire
846846 department is maintained, nor to any municipality where the fire
847847 department has firefighting apparatus of less than One T housand
848848 Dollars ($1,000.00) value.
849849 B. Local firefighter pension and retirement boards of
850850 participating employers of the System shall b e terminated on
851851 December 31, 2016, and all powers, duti es and functions shall be
852852 assumed by the Executive Director unless a majority of the active
853853 firefighters of an affected fire department elect to continue their
854854 local firefighter pension and retirement board before the
855855 termination date prescribed by this su bsection, provided that an
856856 election shall be held within twenty (2 0) days of the date a
857857 petition is presented to the fire chief of a fire department signed
858858 by at least ten percent (10%) of the active f irefighters on the
859859 rolls as of the petition date reques ting an election to continue the
860860 local firefighter pension and ret irement board. RBH No. 9495
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887887 SECTION 4. AMENDATORY 11 O.S. 2021, Section 49 -104, is
888888 amended to read as follows:
889889 Section 49-104. The mayor shall be an ex officio member and
890890 chairman of the local board, the municipal clerk shall be ex officio
891891 secretary, and the municipal treasurer shall be ex officio tre asurer
892892 of the local board. The mayor shall have a casting vote with the
893893 members only when necessary to avoid a tie vote among them. In the
894894 case of an Oklahoma-based federally recognized Native American tribe
895895 that is a participating municipality, the pers ons serving in
896896 equivalent offices to a mayo r, municipal clerk and municipal
897897 treasurer shall serv e in those positions for purposes of this
898898 section. The members shall elect a vice chairman from amo ng them
899899 and promulgate such other rules and offices as may b e necessary to
900900 insure the orderly conduct o f business.
901901 SECTION 5. AMENDATORY 11 O.S. 2021, Section 49 -122, is
902902 amended to read as follows:
903903 Section 49-122. A. Each municipality having a paid member of a
904904 fire department shall deduct monthly from the salary of each member
905905 of the fire department of such municipality an amount equal to nine
906906 percent (9%) of the actual paid gross salary of each member of the
907907 fire department. Th e deduction shall be considered the minimum
908908 deduction. At the option of the municipality, the municip ality may
909909 pay all or any part of the member 's required contribution. The
910910 treasurer of each municipality shall deduct the authorized RBH No. 9495
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937937 deductions from the s alary of each paid member of the fire
938938 department. The treasurer of the municipality shall deposit wit hin
939939 ten (10) days from each ending payroll date in the System the amount
940940 deducted from the salary of each member of the fire department.
941941 Amounts deducted from the salary of a member and not paid to the
942942 System after thirty (30) days from each ending payrol l date shall be
943943 subject to a monthly late charge of one and one -half percent (1
944944 1/2%) of the unpaid balance to be paid by the municipality to the
945945 System.
946946 Each municipality shall pick up under the provisions of Section
947947 414(h)(2) of the Internal Revenue Code of 1986, as amended, and pay
948948 the contribution which the member is required by law to make to the
949949 System for all compensation earned after December 31, 19 88.
950950 Although the contributions so picked up are designated as member
951951 contributions, such contribution s shall be treated as contributions
952952 being paid by the municipality in lieu o f contributions by the
953953 member in determining tax treatment under the Internal Revenue Code
954954 of 1986, as amended, and such picked up contributions shall not be
955955 includable in the gros s income of the member until such amounts are
956956 distributed or made available to the member or the beneficiary of
957957 the member. The member, by the terms of t his System, shall not have
958958 any option to choose to receive the contributions so picked up
959959 directly and the picked up contributions must be paid by the
960960 municipality to the System. RBH No. 9495
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987987 Member contributions which are picked up shall be treated in the
988988 same manner and to the same extent as member contributions made
989989 prior to the date on which member contributions we re picked up by
990990 the municipality. Member contributions so picked up shall b e
991991 included in salary for purposes of the System.
992992 The municipality shall pay th e member contributions from the
993993 same source of funds used in paying salary to the member, by
994994 effecting an equal cash reduction in gross salary of the member, or
995995 by an offset against future salary increases, or by a combination of
996996 reduction in gross salary and offset against future salary
997997 increases.
998998 The treasurer of each municipality shall deduct the picked up
999999 contributions from the salary of each paid member of the fire
10001000 department. The treasurer of the municipality shall deposit monthly
10011001 in the System the amount picked up from the salary of each member of
10021002 the fire department.
10031003 B. Each municipality having a paid member of a fire department
10041004 shall deposit monthly with the State Board an amount equal to the
10051005 following:
10061006 1. Prior to July 1, 1991, ten percent (10%) of the total actual
10071007 paid gross salaries of the members of the fire department;
10081008 2. Beginning July 1, 1991 through June 30, 1992, ten and one -
10091009 half percent (10 1/2%) of the total actual paid gross salaries of
10101010 the members of the fire department; RBH No. 9495
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10371037 3. Beginning July 1, 1992 through June 30, 1993, eleven percent
10381038 (11%) of the total actual paid gross salaries of the members of the
10391039 fire department;
10401040 4. Beginning July 1, 1993 through June 30, 1994, eleven and
10411041 one-half percent (11 1/2%) of the total actual paid gross salaries
10421042 of the members of the fire department;
10431043 5. Beginning July 1, 1994 through June 30, 1995, twe lve percent
10441044 (12%) of the total actual paid gross salaries of the members of the
10451045 fire department;
10461046 6. Beginning July 1, 1995 through June 30, 1996, twelve and
10471047 one-half percent (12 1/2%) of the total actual paid gross salaries
10481048 of the members of the fire depa rtment;
10491049 7. Beginning July 1, 1996, thirteen percent (13%) of the total
10501050 actual paid gross salaries of the members of the fire department;
10511051 and
10521052 8. Beginning November 1, 2013, fourteen percent (14%) of the
10531053 total actual paid gross salaries of the members of the fire
10541054 department.
10551055 C. Each county or municipality having a volunteer memb er of a
10561056 fire department shall deposit yearly with the State Board Sixty
10571057 Dollars ($60.00) for each volunteer member of the department.
10581058 Provided, the above-mentioned volunteer county or municipal
10591059 contributions shall be reevaluated by the next scheduled actua rial
10601060 study and the amounts adjusted so that in a nine -year period of RBH No. 9495
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10871087 time, the amounts would reflect the actuarial recommendations at
10881088 that time. Any county or municipality with an income of less than
10891089 Twenty-five Thousand Dollars ($25,000.00) to its genera l fund during
10901090 a fiscal year shall be exempt from the provisions of this
10911091 subsection.
10921092 Any municipality that fails to comply with the provisions of
10931093 this section shall not be entitled to its proportionate share of the
10941094 Motor Fuel Excise Tax which is received th rough the Oklahoma Tax
10951095 Commission. Any county or municipality may exceed the a mount of
10961096 contribution required by this section.
10971097 The provisions of this section shall supersede any ci ty charter
10981098 provision in direct conflict with this section.
10991099 D. If a federally recognized Native American tribe authorizes
11001100 one or more of its employees to b ecome a participating member of the
11011101 System pursuant to the provisions of this act, the tribe shall make
11021102 the employer contributions required by the provisions of this
11031103 section. If the tribe ceases to make t he required employer
11041104 contributions, the employee sh all cease participation in the System
11051105 and no service credit shall be provided to the member for any per iod
11061106 of time with respect to which the required employer contributions
11071107 are not paid.
11081108 E. Not later than ninety (90) days after the end of the first
11091109 plan year during which the tribal firefighters have been members of
11101110 the System, the System shall cause to be performed an actuarial RBH No. 9495
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11371137 analysis of the normal cost of providing benefits t o those members
11381138 compared to the other members of the System. If the actuary
11391139 determines that the normal cost for providing benefits to this
11401140 population is greater than the normal cost for the other members of
11411141 the System, the recommendation for increases in employer
11421142 contribution rates or employee contribution rates or both such rates
11431143 shall be communicated by the Board of Trustees to the Governor, the
11441144 Speaker of the Oklahoma House of Rep resentatives and the President
11451145 Pro Tempore of the Oklahoma State Senate no t later than December 1.
11461146 F. The normal cost analysis and report from the Syste m as
11471147 described by subsection E of this section shall be repeated each
11481148 year unless the actuary for the S ystem determines, for any
11491149 applicable period, that no modifications to the employer
11501150 contribution rate or the employee contribution rate or both such
11511151 rates would be required in the plan year beginning on the next
11521152 ensuing July 1 date in order for the normal c ost of the tribal
11531153 employee members of the System to be equalized with the normal cost
11541154 of the other members of the System.
11551155 SECTION 6. Section 1 of this act shall become effective
11561156 October 1, 2022.
11571157 SECTION 7. Sections 2 through 5 of this act shall become
11581158 effective November 1, 2022.
11591159
11601160 58-2-9495 CMA 12/21/21
11611161
11621162 THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
11631163 2512 E. 71
11641164 st
11651165 Street , Suite D ∙ Tulsa, Oklahoma 74136 (918) 492-9658 ∙ (918) 492- 9659
11661166
11671167
11681168
11691169
11701170 January 13, 2022
11711171
11721172
11731173
11741174 Representative May
11751175 Room 300.4
11761176
11771177
11781178 Re: RBH No. 9495
11791179
11801180
11811181 RBH No. 9495 would Native American Tribes to become participating
11821182 employers in Oklahoma F irefighters Pension and Retirement System.
11831183 The firefighters employed by the Native American tribes will become
11841184 participants in the Oklahoma Firefighters Pension and Retirement
11851185 System.
11861186
11871187 This bill amends the definition of a nonfiscal bill in OPLAAA to
11881188 allow the participation of firefighters employed by the Native
11891189 American tribes in the Oklahoma Firefighters Pension and Retirement
11901190 System.
11911191
11921192
11931193 This bill is a non fiscal bill under OPLAAA because of the change in
11941194 definition of OPLAAA nonfiscal bill .
11951195
11961196 I am a member of the American Academy of Actuaries and meet the
11971197 Qualification Standards of the American Academy of Actuaries to
11981198 render the actuarial opinion herein.
11991199
12001200
12011201 Thomas E. Cummins
12021202
12031203 Thomas E. Cummins, MAAA
12041204
12051205