RBS No. 405 SENATE FLOOR VERSION - SB745 SFLR Page 1 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION February 22, 2021 SENATE BILL NO. 745 By: Weaver An Act relating to law enforcement pension; amending 47 O.S. 2011, Sections 2-305, as last amended by Section 3, Chapter 44, O.S.L. 2018 and 2 -310.2 (47 O.S. Supp. 2020, Section 2-305), which relate to retirement pay and inability to per form duties; modifying retirement provisions for members retiring due to service related disability; provid ing limit for retirement pay for certain persons; providing certification of specified salaries; providing guarantee of benefit amount for certain retired persons; authorizing Board of Trustees to promulgate rules; and updating statutory references. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 47 O.S. 2011, Section 2 -305, as last amended by Section 3, Chapter 44, O.S.L. 2018 (47 O.S. Supp. 2020, Section 2-305), is amended to read as follow s: Section 2-305. A. Except as otherwise provided in this title, at any time after attaining normal retirement date, any member of the Oklahoma Law Enforcement Retirement System upon application for unreduced retirement benefits made and approved, may re tire, and, during the remainder of the member’s lifetime, receive annual retirement pay, payable in equal monthly payments, equal to two and one-half percent (2 1/2%) of the final average salary times years of RBS No. 405 SENATE FLOOR VERSION - SB745 SFLR Page 2 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 credited service. If such retired member is r eemployed by a state agency in a position which is not covered by the System, suc h retired member shall continue to receive in-service distributions from the System. Prior to September 19, 2002, if such retired member was reemployed by a state agency in a position which is covered by the System, such member shall continue to receive i n- service distributions from the System and shall not accrue any further credited service. If such a member is reemployed by a state agency in a position which is covered by the System on or after September 19, 2002, such member ’s monthly retirement payme nts shall be suspended until such member retires and is not reemployed by a state agency in a position which is covered by the System. B. Beginning July 1, 1994, members who retired or were eligible to retire prior to July 1, 1980, or their surviving spou ses shall receive annual retirement pay, payable in equal monthly payments, equal to the greater of their current retirement pay, or two and one-half percent (2 1/2%) of the a ctual paid gross salary being currently paid to a highway patrol officer, at the time each such monthly retirement payment is made, multiplied by the retired member’s years of credited service. C. Except as otherwise provided by this subsection, members o f the System whose salary is set by statute who have retired after completion of the mandatory twenty (20) years of service, and those members with statutory salaries who retire after reaching the RBS No. 405 SENATE FLOOR VERSION - SB745 SFLR Page 3 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 mandatory twenty-year retirement, or those members that had to retire due to a service-connected disability and were unable to complete the mandatory twenty-year retirement pursuant to subsection E of this section, shall receive an annual retirement pay, payable in equal monthly installments, based upon the greate r of either: 1. The top base salary currently paid to the highest nonsupervisory position in the participating agency, at the time each such monthly retirement payment is made, limited to the annual salary limit of the Economic Growth and Tax Relief Recon ciliation Act of 2001, as described in paragraph 9 of Section 2 -300 of this title, multiplied by two and one-half percent (2 1/2%) multiplied by the number of years of credited service and fraction thereof for the following positions: a. Oklahoma Highway Patrolman, b. Communications Dispatcher, c. Capitol Patrolman, d. Lake Patrolman, and e. Oklahoma State Bureau of Investigation - Special Agent or Criminalist; or 2. The member’s final average salary as set forth in paragraph 9 of Section 2-300 of this title, multiplied by two and one-half percent (2 1/2%), and multiplied by the number of years of credited service and fraction thereof. RBS No. 405 SENATE FLOOR VERSION - SB745 SFLR Page 4 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 No member of the System retired prior to July 1, 2002, shall receive a benefit less than the amount the member is receiving as of June 30, 2002. The provisions of paragraph 1 of this subsection shall not be applicable to any member whose first participating service with the System occurs on or after November 1, 2012. D. Other members of the System whose retirement benefit is not otherwise prescribed by this section who have retired after completion of the mandatory twenty (20) years of service, and those members who retire after reaching the mandatory twenty -year retirement, or those members that had to retire due to a service - connected disability and were unable to complete the mandatory twenty-year retirement pursuant to subsection E of this section, shall receive an annual retirement pay, payable in equal monthly payments, based upon the greater of either: 1. The actual average salary currently paid to the highest nonsupervisory position in the particip ating agency, at the time each such monthly payment is made, limited to the annual salary limit of the Economic Growth and Tax Relief Reconciliation Act of 2001, as described in paragraph 9 of Section 2-300 of this title, multiplied by two and one -half percent (2 1/2%), multiplied by the number of years of credited service and fraction thereof for the following positions: RBS No. 405 SENATE FLOOR VERSION - SB745 SFLR Page 5 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 a. Alcoholic Beverage Laws Enforcement Commission - ABLE Commission Agent III, b. Oklahoma State Bureau of Narcotics and Dangerous Drugs Control - Narcotics Agent III, c. Oklahoma Tourism and Recreation Department - Park Ranger II, d. State Board of Pharmacy - Pharmacy Inspector, e. University of Oklahoma - Police Officer, and f. Oklahoma State University - Police Officer; or 2. The other member’s final average salary as set forth in paragraph 9 of Section 2 -300 of this title, multiplied by two and one-half percent (2 1/2%), multiplied by the number of years of credited service and fraction thereof. No member of the System retired prior to July 1, 2002, shall receive a benefit less than the amount the member is receiving as of June 30, 2002. The participating employer must certify to the System in writing the a ctual average gross salary currently paid to the highest nonsupervisory position. The Board of Trustees shall promulgate such rules as are necessary to implement the provisions of this section. The provisions of paragraph 1 of this subsection shall not be applicable to any member whose first participating service with the System occurs on or after May 24, 2013. RBS No. 405 SENATE FLOOR VERSION - SB745 SFLR Page 6 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 E. A member who meets the definition of disability as defined in paragraph 11 of Section 2 -300 of this title by direct reason of the performance of the member’s duties as an officer shall receive a monthly benefit equal to the greater of fifty percent (50%) of final average salary or two : 1. Two and one-half percent (2 1/2%) of final average salary multiplied; 2. Multiplied by the: a. twenty (20) years of credited service, if the member had performed less than twenty (20) year s of credited service, notwithstanding the actual number of years of the member’s credited service. performed by the member prior to the date of disability, or b. the actual number of years of credited service and fraction thereof performed by the member prior to the date of disability, if the member had performed twenty (20) or more years of credited service; 3. Multiplied by the greater of subparagraph a of this paragraph and division 1 of subparagraph b of this paragraph or division 2 of subparagraph b of this paragraph, as applicable: a. the final average salary of the member, as set forth in paragraph 9 of Section 2 -300 of this title, and b. (1) the top base salary current ly paid to the highest nonsupervisory position in the participating RBS No. 405 SENATE FLOOR VERSION - SB745 SFLR Page 7 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 agency of the member whose first participating service with the System occurred before November 1, 2012, at the time each monthly payment is made, limited to the annual salary limit of the Economic Growth and Tax Relief Reconciliation Act of 2001 described in paragraph 9 of Section 2-300 of this title, for the following positions: (a) Oklahoma Highway Patrolman, (b) Communications Dispatcher, (c) Capitol Patrolman, (d) Lake Patrolman, and (e) Oklahoma State Bureau of Investigation - Special Agent or Criminalist, Provided, the participating employer must certify to the System in writing the top base salary currently paid to the highest nonsupervisory position for division 1 of subparagraph b of this paragraph, or (2) the actual average salary currently paid to the highest nonsupervisory position in the participating agency of the member whose first participating service with the System occurred before May 24, 2013, at the time each monthly payment is made, limited to the annual salary limit of the Economic Growth and Tax R elief RBS No. 405 SENATE FLOOR VERSION - SB745 SFLR Page 8 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Reconciliation Act of 2001, described in paragraph 9 of Section 2 -300 of this title, for the following positions: (a) Alcoholic Beverage Laws Enforcement (ABLE) Commission - ABLE Commission Agent III, (b) Oklahoma State Bureau of Narcotics and Dangerous Drugs Control - Narcotics Agent III, (c) Oklahoma Tourism and Recreation Department - Park Ranger II, (d) State Board of Pharmacy - Pharmacy Inspector, (e) University of Oklahoma - Police Officer, and (f) Oklahoma State University - Police Officer, Provided, the participating employer must certify to the System in writing the actual average gross salary currently paid to the highest nonsupervisory position for division 2 of subparagraph b of this paragraph; 4. No member of the System receiving benef its prescribed by this subsection who retired prior to July 1, 2002, shall receive a benefit of less than the amount the member was receiving as of June 30, 2002; 5. The Board of Trustees shall promulgate rules as necessary to implement the provisions of this subsection; and RBS No. 405 SENATE FLOOR VERSION - SB745 SFLR Page 9 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 6. If such member participates in the Oklahoma Law Enforcement Deferred Option Plan pursuant to Section 2 -305.2 of this title, then such member’s disability pension provided pursuant to this subsection shall be reduced to account for such member’s participation in the Oklahoma Law Enforcement Deferred Option Plan. F. A member who meets the definition of disability as defined in paragraph 11 of Section 2 -300 of this title and whose disability is by means of personal and traumatic injur y of a catastrophic nature and in the line of duty, shall receive a monthly benefit equal to: 1. Two and one-half percent (2 1/2%); 2. Multiplied by: a. twenty (20) years of se rvice, regardless of the actual number of years of credited service performed by the member prior to the date of disability, if the member had performed less than twenty (20) years of service, or b. the actual number of years of serv ice performed by the member if the member had performed twenty (20) or more years of service; 3. Multiplied by a final average salary equal to: a. the salary which the member would have received pursuant to statutory salary schedules in effect upon the date of the disability fo r twenty (20) years of RBS No. 405 SENATE FLOOR VERSION - SB745 SFLR Page 10 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 service prior to disability. The final average salary for a member who performed less than twenty (20) years of service prior to disability shall be computed assuming that the member was paid the highest salar y allowable pursuant to the law in effect at the time of the member’s disability based upon twenty (20) years of service and with an assumption that the member was eligible for any and all increases in pay based upon rank during the entire period. If the salary of a member is not prescribed by a specific salary schedule upon the date of the member ’s disability, the final average salary for the member shall be computed by the member’s actual final average salary or the highest median salary amount for a mem ber whose salary was prescribed by a specific salary schedule upon the date of the member’s disability, whichever final average salary amount would be greater, or b. the actual final average salary of the member if the member had performed twenty (20) or m ore years of service prior to disability. If such member participates in the Oklahoma Law Enforcement Deferred Option Plan pursuant to Section 2 -305.2 of this title, such member’s disability pension provided pursuant to this subsection shall be adjusted as provided in Section 2 -305.2 of this title to RBS No. 405 SENATE FLOOR VERSION - SB745 SFLR Page 11 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 account for such member’s participation in the Oklahoma La w Enforcement Deferred Option Plan. G. A member who meets the definition of disability as defined in Section 2-300 of this title and whose disability o ccurred prior to the member’s normal retirement date but after completing three (3) years of vesting ser vice and not by reason of the performance of the member’s duties or as a result of the member ’s willful negligence shall receive a monthly benefit equal to two and one-half percent (2 1/2%) of final average salary multiplied by the number of years of the member’s credited service. H. Payment of a disability pension shall commence as of the first day of the month coinciding or next following the date of retirement and shall con tinue as long as the member meets the definition of total and permanent disabilit y provided in this section. I. For the purpose of determining the member ’s disability under subsection E, F or G of this section, the member shall be r equired by the Board to be examined by a minimum of two recognized physicians selected by the Board to d etermine the extent of the member’s injury or illness. The examining physicians shall furnish the Board a detailed written report of the injury or illn ess of the examined member establishing the extent of disability and the possibilities of the disabled m ember being returned to his or her regular duties or an alternate occupation or service covered by the RBS No. 405 SENATE FLOOR VERSION - SB745 SFLR Page 12 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 System after a normal recuperation period. The B oard shall require all retired disabled members who have not attained their normal retirement date to su bmit to a physical examination once each year for a minimum of three (3) years following retirement. The Board shall select a minimum of two physicians to examine the retired members and pay for their services from the fund. Any retired disabled member found no longer disabled by the examining physicians to perform the occupation of the member or an alternate occupation or service covered by the System shall be required to re turn to duty and complete twenty (20) years of service as provided in subsection A of this section, or forfeit all his or her rights and claims under Section 2-300 et seq. of this title. J. The disability benefit under this section shall be for the lifetime of the member unless such member is found no longer disabled pursuant to subse ction I of this section. Such member shall not be entitled to the retirement benefit pursuant to subsection A of this section unless such member return s to active duty and is eligible for a retirement benefit as provided in subsection A of this section. K. At the postoffer, preemployment physical examination required under paragraph 6 of Section 2 -300 of this title, the physician selected by the Board s hall determine the exte nt to which a new member is disabled. If a member is determined to be partially disabled, the physician shall assign a percentage of disability to RBS No. 405 SENATE FLOOR VERSION - SB745 SFLR Page 13 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 such partial disability. If such member then becomes entitled to a disability benefit under either subsecti on E or subsection G of this section, the benefit payable shall be reduced by the percentage which such member was determined to be disabled at the postoffer, preemployment physical unless the Board makes a determination that the initially determined perce ntage of disability at the preemployment physical examination is unrelated to the reason for the disability currently sought pursuant to subsection E or subsection G of this section. Upon employment, the member shall disclose to the Board any disability p ayments received from any source. The amount of disability to be paid to any mem ber cannot exceed one hundred percent (100%) disability from all sources. The provisions of this subsection shall apply only to members whose effective date of membership is on or after July 1, 2000. L. In addition to the pension provided for under subse ction F of this section, if said the member has one or more children under the age of eighteen (18) years or under the age of twenty -two (22) years if the child is enrolled fu ll time in and is regularly attending a public or private school or any instituti on of higher education, Four Hundred Dollars ($400.00) a month shall be paid from said the Fund for the support of each surviving child to the member or person having the care and custody of such children until each child reaches the age of eighteen (18) y ears or reaches the age of twenty-two (22) years if the child is enrolled full time in and is RBS No. 405 SENATE FLOOR VERSION - SB745 SFLR Page 14 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 regularly attending a public or private school or any inst itution of higher education. M. Notwithstanding any other provisions in Section 2 -300 through 2-315 of this title, in order to be eligible to receive disability benefits, a member who meets the definition of disability as defined in paragraph 11 of Sectio n 2-300 of this title shall file the member’s completed application for disability benefits with the System before such member’s date of termination from service and provide such additional information that the System ’s rules require within six (6) months of the System’s receipt of such application. If the member’s completed application for disability benef its is not filed with the System before the member ’s date of termination from service or such additional information as is required under the System’s rules is not provided wi thin six (6) months of the System’s receipt of such application, such member shall be eligible only for such other benefits as are available to members of the System and shall not be eligible to receive any disability benefits. For good cause shown, the Board of Trustees may waive the requirement that the disability application be fil ed before the member’s date of termination from service. In no event shall a member be eligible to receive any disability benefit if the member ’s completed application is filed more than six (6) months after the member’s date of termination from service. RBS No. 405 SENATE FLOOR VERSION - SB745 SFLR Page 15 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 N. If the requirements of Section 2-305.1C of this title are satisfied, a member who, by reason of disability or attainment of normal retirement date o r age, is separated fro m service as a public safety officer with the member ’s participating employer may elect to have payment made directly to the provider for qualified health insurance premiums by deduction from his or her monthly disability benefit or monthly retirement paym ent, after December 31, 2006, in accordance with Section 402(1) of the Internal R evenue Code of 1986, as amended. SECTION 2. AMENDATORY 47 O.S. 2011, Section 2 -310.2, is amended to read as follows: Section 2-310.2. Whenever any m ember of the Oklahoma Law Enforcement Retirement System currently working in a po sition identified by paragraph 6 of Section 2 -300 of Title 47 of the Oklahoma Statutes this title who is enrolled in the Oklahoma Law Enforcement Retirement System is unable t o perform the member’s duties because of sickness or temporary disability caused or sustained while in the discharge of the member ’s duty as such member, notwithstanding the provisions of Section 840 -2.21 of Title 74 of the Oklahoma Statutes or the provisi ons of Sections 11 and 12 of Title 85 Title 85A of the Oklahoma Statutes, the mem ber may be placed on administrative leave with pay by the employing agency for a period of ninety (90) days with the employing agency having the option of extending the leave period for up to an additional ninety RBS No. 405 SENATE FLOOR VERSION - SB745 SFLR Page 16 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 (90) days, not to exceed a total of one hun dred eighty (180) days. The member’s salary and benefits shall continue to be paid by the employing agency without any decrease or disruption of said the salary and benefits. If the recovery period is longer than one hundred eighty (180) days, the member shall use sick leave, annual leave or other authorized leave. Should a member receiving a salary under this section be eligible to receive and should the salary of the member under this section exceed any temporary disability benefit paid to the member u nder Section 1 et seq. of Title 85 85A of the Oklahoma Statutes, the member shall transfer such temporary disability benefits under Section 1 et seq. of Title 85 85A of the Oklahoma Statutes to the employing agency while the member is sick or temporarily disabled. COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE February 22, 2021 - DO PASS