RBH No. 5114
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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 1068 By: West (Josh)
AS INTRODUCED
An Act relating to retirement; amending 74 O.S. 2021,
Sections 902, 915, 916.3, 919.1, and 920A, which
relate to the Oklahoma Public Employees Retirement
System; modifying definition; modifying eligibility
for certain retirement benefits; modifying
eligibility for certain death benefits; modifying
which employees must pay employee contribution;
updating reference; a nd providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 902, is
amended to read as follows:
Section 902. Definitions.
As used in Section 901 et seq. of this title:
(1) "System" means the Oklahoma Public Employees Retirement
System as established by this act and as it may hereafter be
amended;
(2) "Accumulated contributions " means the sum of all
contributions by a member to the System which shal l be credited to
the member's account; RBH No. 5114
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(3) "Act" means Sections 901 to 932, inclusive, of this title;
(4) "Actuarial equivalent " means a deferred income benefit of
equal value to the accumulated deposits o r benefits when computed
upon the basis of the ac tuarial tables in use by the System;
(5) "Actuarial tables" means the actuarial tables approved and
in use by the Board at any given time;
(6) "Actuary" means the actuary or firm of actuaries employed
by the Board at any given time;
(7) "Beneficiary" means any person named by a member to receive
any benefits as provided for by Section 901 et seq. of this title.
If there is no beneficiary living at time of member employee 's
death, the member's estate shall be the beneficiary;
(8) "Board" means the Oklahoma Public Employees Retirement
System Board of Trustees;
(9) "Compensation" means all salary and wages, as defined by
the Board of Trustees, including amounts deferred under deferred
compensation agreement s entered into between a member and a
participating employer, but exclusive of payment for overtime,
payable to a member of the System for personal services performed
for a participating employer but shall not include compensation or
reimbursement for trav eling, or moving expenses, or any compensation
in excess of the maximum compensation level, provided: RBH No. 5114
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(a) For compensation for service prior to January 1, 1988,
the maximum compensation level shall be Twenty -five
Thousand Dollars ($25,000.00) per annum.
For compensation for service on or after January 1,
1988, through June 30, 1994, the maximum compensation
level shall be Forty Thousand Dollars ($40,000.00) per
annum.
For compensation for service on or after July 1, 1994,
through June 30, 1995, the maximum compensation level
shall be Fifty Thousand Dollar s ($50,000.00) per
annum; for compensation for service on or after July
1, 1995, through June 30, 1996, the maximum
compensation level shall be Sixty Thousand Dollars
($60,000.00) per annum; for compensation for service
on or after July 1, 1996, through Ju ne 30, 1997, the
maximum compensation level shall be Seventy Thousand
Dollars ($70,000.00) per annum; and for compensation
for service on or after July 1, 1997, through June 30,
1998, the maximum compensatio n level shall be Eighty
Thousand Dollars ($80,000 .00) per annum. For
compensation for services on or after July 1, 1998,
there shall be no maximum compensation level for
retirement purposes. RBH No. 5114
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(b) Compensation for retirement purposes shall include any
amount of elective salary reduction under Section 457
of the Internal Revenue Code of 1986 and any amount of
nonelective salary reduction under Section 414(h) of
the Internal Revenue Code of 1986.
(c) Notwithstanding any provision to the contrary, the
compensation taken into account for any employee in
determining the contribution or benefit accruals for
any plan year is limited to the annual compensation
limit under Section 401(a)(17) of the federal Internal
Revenue Code.
(d) Current appointed members of the Ok lahoma Tax
Commission whose salary is constitutio nally limited
and is less than the highest salary allowed by law for
his or her position shall be allowed, within ninety
(90) days from the effective date of this act, to make
an election to use the highest salary allowed by law
for the position to which t he member was appointed for
the purposes of making contributions and determination
of retirement benefits. Such election shall be
irrevocable and be in writing. Reappointment to the
same office shall not p ermit a new election. Members
appointed to the Oklahoma Tax Commission after the
effective date of this act shall make such election, RBH No. 5114
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pursuant to this subparagraph, within ninety (90) days
of taking office;
(10) "Credited service" means the sum of partic ipating service,
prior service and elected servic e;
(11) "Dependent" means a parent, child, or spouse of a member
who is dependent upon the member for at least one -half (1/2) of the
member's support;
(12) "Effective date" means the date upon which the Sy stem
becomes effective by operation of law;
(13) "Eligible employer" means the state and any county, county
hospital, city or town, conservation districts, circuit engineering
districts and any public or private trust in which a county, city or
town participates and is the primary beneficiary, is to be an
eligible employer for the purpose of this act only, whose employees
are covered by Social Security and are not covered by or eligible
for another retirement plan authorized under the laws of this state
which is in operation on the initial entry date. E mergency medical
service districts may join the System upon proper application to the
Board. Provided affiliation by a county hospital shall be in the
form of a resolution adopted by the board of control.
(a) If a class or several classes of employees of any
above-defined employers are covered by Social Security
and are not covered by or eligible for and will not
become eligible for another retirement plan authorized RBH No. 5114
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under the laws of this state, which is in operation on
the effective date, such employer s hall be deemed an
eligible employer, but only with respect to that class
or those classes of employees as defined in this
section.
(b) A class or several classes of employees who are
covered by Social Securi ty and are not covered by or
eligible for and wil l not become eligible for another
retirement plan authorized under the laws of this
state, which is in operation on the effective date,
and when the qualifications for employment in such
class or classes are set by state law; and when such
class or classes of employees are employed by a county
or municipal government pursuant to such
qualifications; and when the services provided by such
employees are of such nature that they qualify for
matching by or contri butions from state or federal
funds administered by an agency of state government
which qualifies as a participating employer, then the
agency of state government administering the state or
federal funds shall be deemed an eligible employer,
but only with respect to that class or those classes
of employees as defined in this subsection; provided,
that the required contributions to the retirement plan RBH No. 5114
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may be withheld from the contributions of state or
federal funds administered by the state agency and
transmitted to the System on the same basis as the
employee and employer contributions are transmitted
for the direct employees of the state agency. The
retirement or eligibility for retirement under the
provisions of law providing pensions for service as a
volunteer firefighter shall not render any person
ineligible for participation in the benefits provided
for in Section 901 et seq. of this title. An employee
of any public or private trust in which a county, city
or town participates and is the primary benef iciary
shall be deemed to be an eligible employee for the
purpose of this act only.
(c) All employees of the George Nigh Rehabilitation
Institute who elected to retain membership in the
System, pursuant to Section 913.7 of this title, shall
continue to be eligible employees for the purposes of
this act. The George Nigh Rehabilitation Institute
shall be considered a participating employer only for
such employees.
(d) All employees of CompSource Mutual Insurance Company
who retain membership in the Oklahoma Public Employees
Retirement System pursuant to Se ction 913.9 of this RBH No. 5114
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title shall continue to be eligible employees for the
purposes of the Oklahoma Public Employees Retirement
System. CompSource Mutual Insurance Company shall be
considered a participating employer only for such
employees.
(e) All employees of a successor organization, as defined
by Section 5-60.12 of Title 2 of the Oklahoma
Statutes, who retain membership in the Oklahoma Public
Employees Retirement System pursuant to Section 5 -
60.35 of Title 2 of the Oklahoma Statutes shall
continue to be eligible employees for the purposes of
the Oklahoma Public Employees Retirement System. A
successor organization shall be considered a
participating employer only for such employees.
(f) A participating employer of the Teachers ' Retirement
System of Oklahoma, who has one or more employees who
have made an election pursuant to enabling legislation
to retain membership in the System as a result of
change in administration, shall be considered a
participating employer of the Oklahoma Public
Employees Retirement System only for such employees;
(14) "Employee" means any officer or employee of a
participating employer, whose employment is not seasonal or
temporary and whose employment requires at least one thous and RBH No. 5114
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(1,000) hours of work per year and whose sala ry or wage is equal to
the hourly rate of the monthly minimum wage for state employees.
For those eligible employers outlined in Section 910 of this title,
the rate shall be equal to the hourly rate of the monthly minimum
wage for that employer. Each emp loyer, whose minimum wage is less
than the state's minimum wage, shall inform the System of the
minimum wage for that employer. This notification shall be by
resolution of the governing body.
(a) Any employee of the county extension agents who is not
currently participating in the Teachers' Retirement
System of Oklahoma shall be a member of this System.
(b) Eligibility shall not include any employee who is a
contributing member of the United States Civil Ser vice
Retirement System.
(c) It shall be mandatory for an officer, appointee or
employee of the office of district attorney to become
a member of this System if he or she is not currently
participating in a county retirement system. Provided
further, that if an officer, appointee or employee of
the office of district attorney is currently
participating in such county retirement system, he or
she is ineligible for this System as long as he or she
is eligible for such county retirement system. Any
eligible officer, appointee or employee of the office RBH No. 5114
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of district attorney shall be given credit for prior
service as defined in this section. The provisions
outlined in Section 917 of this title shall apply to
those employees who have previously withdrawn their
contributions.
(d) Eligibility shall also not inclu de any officer or
employee of the Oklahoma Employment Security
Commission, except for those officers and employees of
the Commission electing to transfer to this System
pursuant to the provisions of Section 910.1 of this
title or any other class of officer s or employees
specifically exempted by the laws of this state,
unless there be a consolidation as provided by Section
912 of this title. Employees of the Oklahoma
Employment Security Commission who are ine ligible for
enrollment in the Employment Security Commission
Retirement Plan, that was in effect on January 1,
1964, shall become members of this System.
(e) Any employee employed by the Legislative Service
Bureau, State Senate or House of Representatives for
the full duration of a regular legislative se ssion
shall be eligible for membership in the System
regardless of classification as a temporary employee
and may participate in the System during the regular RBH No. 5114
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legislative session at the option of the employe e.
For purposes of this subparagraph, the determ ination
of whether an employee is employed for the full
duration of a regular legislative session shall be
made by the Legislative Service Bureau if such
employee is employed by the Legislative Service
Bureau, the State Senate if such employee is employed
by the State Senate, or by the House of
Representatives if such employee is employed by the
House of Representatives. Each regular legislative
session during which the legislative employee or an
employee of the Legislative Service Bureau
participates full time shall be counted as six (6)
months of full-time participating service.
(i) Except as otherwise provided by this
subparagraph, once a temporary session employee
makes a choice to participate or not, the choice
shall be binding for all future legislati ve
sessions during which the employee is employed.
(ii) Notwithstanding the provisions of division (i) of
this subparagraph, any employee, who is eligible
for membership in the System because of the
provisions of this subparagraph and who was
employed by the State Senate or House of RBH No. 5114
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Representatives after January 1, 1989, may file
an election, in a manner specified by the Board,
to participate as a member of the System prior to
September 1, 1989.
(iii) Notwithstanding the provisions of division (i) of
this subparagraph, a temporary legislative
session employee who elected to become a member
of the System may withdraw from the System
effective the day said employee elected to
participate in the System upon writt en request to
the Board. Any such request must b e received by
the Board prior to October 1, 1990. All employee
contributions made by the temporary legislative
session employee shall be returned to the
employee without interest within four (4) months
of receipt of the written request.
(iv) A member of the System who did not initially
elect to participate as a member of the System
pursuant to this subparagraph shall be able to
acquire service performed as a temporary
legislative session employee for periods of
service performed prior to the date upon whic h
the person became a member of the System if: RBH No. 5114
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a. the member files an election with the System
not later than December 31, 2000, to
purchase the prior service; and
b. the member makes payment to the System o f
the actuarial cost of the service credit
pursuant to subsection A of Section 913.5 of
this title. The provisions of Section 913.5
of this title shall be applicable to the
purchase of the service credit, including
the provisions for determining service
credit in the event of incomplete payment
due to cessation of payments, death,
termination of employment or retirement, but
the payment may extend for a period not to
exceed ninety-six (96) months;
(15) "Entry date" means the date on which an eligible empl oyer
joins the System. The first entry date purs uant to Section 901 et
seq. of this title shall be January 1, 1964;
(16) "Executive Director" means the managing officer of the
System employed by the Board under Section 901 et seq. of this
title;
(17) "Federal Internal Revenue Code " means the federal Internal
Revenue Code of 1954 or 1986, as amended and as applicable to a
governmental plan as in effect on July 1, 1999; RBH No. 5114
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(18) "Final average compensation " means the average annual
compensation, including amo unts deferred under deferred compensation
agreements entered into between a member and a participating
employer, up to, but not exceeding the maximum compensation levels
as provided in paragraph (9) of this section received during the
highest three (3) of the last ten (10) years of participating
service immediately preceding retirement or termination of
employment and with respect to members whose first participating
service occurs on or after July 1, 2013, the compensation received
during the highest five (5) of the last ten (10) years of
participating service immediately preceding retirement or
termination of employment. Provided, no member shall retire with a
final average compensation unless the member has made the required
contributions on such compens ation, as defined by the Board of
Trustees;
(19) "Fiscal year" means the period commencing July 1 of any
year and ending June 30 of the next year. The fiscal year is the
plan year for purposes of the federal Internal Revenue Code;
however, the calendar y ear is the limitation year for purposes of
Section 415 of the federal Internal Revenue Code;
(20) "Fund" means the Oklahoma Public Employees Retirement Fund
as created by Section 901 et seq. of this title;
(21) "Leave of absence" means a period of absenc e from
employment without pay, authorized and app roved by the employer and RBH No. 5114
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acknowledged to the Board, and which after the effective date does
not exceed two (2) years;
(22) "Member" means an eligible employee or elected official
who is in the System and i s making the required employee or elected
official contributions, or any former employee or elected official
who shall have made the required contributions to the System and
shall have not received a refund or withdrawal;
(23) "Military service" means service in the Armed Forces of
the United States by an honorably discharged person during the
following time periods, as reflected on such person 's Defense
Department Form 214, not to exceed five (5) years for combined
participating and/or prior service, as f ollows:
(a) during the following periods, includi ng the beginning
and ending dates, and only for the periods served,
from:
(i) April 6, 1917, to November 11, 1918, commonly
referred to as World War I,
(ii) September 16, 1940, to December 7, 1941, as a
member of the 45th Division,
(iii) December 7, 1941, to December 31, 1946, commonly
referred to as World War II,
(iv) June 27, 1950, to January 31, 1955, commonly
referred to as the Korean Conflict or the Korean
War, RBH No. 5114
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(v) February 28, 1961, to May 7, 1975, comm only
referred to as the Vietnam era, except that:
a. for the period from February 28, 1961, to
August 4, 1964, military service shall only
include service in the Republic of Vietnam
during that period, and
b. for purposes of determining eligibility for
education and training benefits, such period
shall end on December 31, 1976, or
(vi) August 1, 1990, to December 31, 1991, commonly
referred to as the Gulf War, the Persian Gulf
War, or Operation Desert Storm, but excluding any
person who served on active dut y for training
only, unless discharged from such active duty for
a service-connected disability;
(b) during a period of war or combat military operation
other than a conflict, war or era listed in
subparagraph (a) of this paragraph, beginning on the
date of Congressional authorization, Congressional
resolution, or Executive Order of the President of the
United States, for the use of the Armed Forces of the
United States in a war or combat military operation,
if such war or combat military operation lasted f or a
period of ninety (90) days or more, for a pe rson who RBH No. 5114
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served, and only for the period served, in the area of
responsibility of the war or combat military
operation, but excluding a person who served on active
duty for training only, unless discharged f rom such
active duty for a service -connected disability, and
provided that the burden of proof of military service
during this period shall be with the member, who must
present appropriate documentation establishing such
service.
An eligible member under t his paragraph shall include only those
persons who shall have served during the times or in the areas
prescribed in this paragraph, and only if such person provides
appropriate documentation in such time and manner as required by the
System to establish su ch military service prescribed in this
paragraph, or for service pursuant to subdivision a of division (v)
of subparagraph (a) of this paragraph those persons who were awarded
service medals, as authorized by the United States Department of
Defense as reflected in the veteran 's Defense Department Form 21 4,
related to the Vietnam Conflict for service prior to August 5, 1964;
(24) "Normal retirement date " means the date on which a member
may retire with full retirement benefits as provided in Section 901
et seq. of this title, such date being whichever occ urs first:
(a) the first day of the month coinciding with or
following a member's: RBH No. 5114
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(1) sixty-second birthday with respect to members
whose first participating service occurs prior to
November 1, 2011, or
(2) sixty-fifth birthday with respect to members
whose first participating service occurs on or
after November 1, 2011, or with respect to
members whose first participating service occurs
on or after November 1, 2011, reaches a minimum
age of sixty (60) years and who also reaches a
normal retirement date pu rsuant to subparagraph c
of this paragraph,
(b) for any person who initially became a member prior to
July 1, 1992, and who does not reach a normal
retirement date pursuant to division (1) of
subparagraph (a) of this paragraph, the first day of
the month coinciding with or following the date at
which the sum of a member 's age and number of years of
credited service total eighty (80); such a normal
retirement date will also apply to any person who
became a member of the sending system as defined in
Section 901 et seq. of this title, prior to July 1,
1992, regardless of whether there were breaks in
service after July 1, 1992, RBH No. 5114
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(c) for any person who became a member after June 30,
1992, but prior to November 1, 20 11, and who does not
reach a normal retirement da te pursuant to division
(1) of subparagraph (a) of this paragraph, the first
day of the month coinciding with or following the date
at which the sum of a member 's age and number of years
of credited service total ninety (90),
(d) in addition to subparagrap hs (a), (b) and (c) of this
paragraph, the first day of the month coinciding with
or following a member 's completion of at least twenty
(20) years of full-time-equivalent employment as:
(i) a correctional or probation and parole officer
with the Department of Corrections and at the
time of retirement, the member was a correctional
or probation and parole officer with the
Department of Corrections, or
(ii) a correctional officer, probation and parole
officer or fugitive apprehension agent with the
Department of Corrections who is in such position
on June 30, 2004, or who is hired after June 30,
2004, and who receives a promotion or change in
job classification after June 30, 2004, to
another position in the Dep artment of
Corrections, so long as such officer o r agent has RBH No. 5114
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at least five (5) years of service as a
correctional officer, probation and parole
officer or fugitive apprehension agent with the
Department, has twenty (20) years of full -time-
equivalent employment with the Department and was
employed by the Department at the time of
retirement, or
(iii) a firefighter with the Oklahoma Military
Department either employed for the first time on
or after July 1, 2002, or who was employed prior
to July 1, 2002, in s uch position and who makes
the election authorize d by division (2) of
subparagraph b of paragraph (9) of subsection A
of Section 915 of this title and at the time of
retirement, the member was a firefighter with the
Oklahoma Military Department, and such m ember has
at least twenty (20) years of credited service
upon which the two and one-half percent (2 1/2%)
multiplier will be used in calculating the
retirement benefit, or
(iv) a public safety officer employed by the Grand
River Dam Authority for the first time on or July
1, 2016, or RBH No. 5114
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(v) a deputy sheriff or jailer employed by any county
that is a participating employer in the System
for the first time as a deputy sheriff or jailer
on or after November 1, 2020, or
(vi) beginning November 1, 2024, a deputy sheriff or
jailer employed by any county that is a
participating employer in the System for the
first time as a deputy sheriff or jailer before
November 1, 2020, including those who make the
election authorized by division (2) of
subparagraph b of paragraph 10 of subsection A of
Section 915 of this title, and at the time of
retirement, if the member was a deputy sheriff or
jailer employed by the participating county, and
such member has at least twenty (20) years of
credited service upon which the two and one -half
percent (2 1/2%) multiplier will be used in
calculating the retirement benefit,
(e) for those fugitive apprehension agents who retire on
or after July 1, 2002, the first day of the month
coinciding with or following a member 's completion of
at least twenty (20) years of full -time-equivalent
employment as a fugitive apprehension agent with the
Department of Corrections and at the t ime of RBH No. 5114
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retirement, the member was a fugitive apprehension
agent with the Department of Corrections, or
(f) for any member who was continuously employed by an
entity or institution within The Oklahoma State System
of Higher Education and whose initial emplo yment with
such entity or institution was prior to July 1, 1992,
and who without a break in service of more than thirty
(30) days became employed by an employer participati ng
in the Oklahoma Public Employees Retirement System,
the first day of the month co inciding with or
following the date at which the sum of the member 's
age and number of years of credited service total
eighty (80);
(25) "Participating employer " means an eligible employer who
has agreed to make contributions to the System on behalf of it s
employees;
(26) "Participating service " means the period of employment
after the entry date for which credit is granted a member;
(27) "Prior service" means the period of employment of a member
by an eligible employer prior to the member 's entry date for which
credit is granted a member under Section 901 et seq. of this title;
(28) "Retirant" or "retiree" means a member who has retired
under the System; RBH No. 5114
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(29) "Retirement benefit" means a monthly income with benefits
accruing from the first day of the m onth coinciding with or
following retirement and ending on the last day of the month in
which death occurs or the actuarial equivalent thereof paid in such
manner as specified by the member pursuant to Section 901 et seq. of
this title or as otherwise allo wed to be paid at the discretion of
the Board;
(30) "Retirement coordinator " means the individual designated
by each participating employer through whom System transaction s and
communication shall be directed;
(31) "Social Security" means the old-age survivors and
disability section of the Federal Social Security Act;
(32) "Total disability" means a physical or mental disability
accepted for disability benefits by the Fed eral Social Security
System;
(33) "Service-connected disability benefits " means military
service benefits which are for a service -connected disability rated
at twenty percent (20%) or more by the Veterans Administration or
the Armed Forces of the United S tates;
(34) "Elected official" means a person elected to a state
office in the legislative or executive branch of state government or
a person elected to a county office for a definite number of years
and shall include an individual who is appointed to fi ll the
unexpired term of an elected state official; RBH No. 5114
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(35) "Elected service" means the period of service as an
elected official;
(36) "Limitation year" means the year used in applying the
limitations of Section 415 of the Internal Revenue Code of 1986,
which year shall be the calendar year; and
(37) "Public safety officers of the Grand River Dam Authority"
means those persons hired by the Grand River Dam Authority on or
after the effective date of this act who are certified by the
Council on Law Enforceme nt Education and Training or an equivalent
certifying entity for law enforcement per sonnel training and who
perform law enforcement functions as part of their regularly
assigned duties and responsibilities on a full -time basis. With
respect to any public safety officer hired by the Grand River Dam
Authority on or after the effective date of this act, any earned
benefits or credits toward retirement benefits from previous
participation within the Oklahoma Public Employees Retirement System
or the Oklahoma Law Enforcement Retirement System shall remain
within that system.
SECTION 2. AMENDATORY 74 O.S. 2021, Section 915, is
amended to read as follows:
Section 915. Amount of retirement benefit.
A. (1) Except as otherwise provided in this subsection and as
provided for elected officials in Section 913.4 of this title, any
member who shall retire on or after the member 's normal retirement RBH No. 5114
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date shall be entitled to receive an annual retirement benefit equal
to two percent (2%) of the member's final average compensation as
determined pursuant to paragraph (18) of Section 902 of this title,
multiplied by the number of years of credited service that has been
credited to the member in accordance with the provisions of Section
913 of this title other than years credited pursuant to paragraph
(2) of this subsection.
(2) Effective January 1, 2004, except as otherwise provided for
elected officials in Section 913.4 of this title and except for
those members making contributions pursu ant to paragraphs (c), (d),
(e) and (f) of subsection (1) of Section 919.1 of this title, any
member who shall retire shall be entitled to receive an annual
retirement benefit equal to tw o and one-half percent (2 1/2%) of the
member's final average compens ation as determined pursuant to
paragraph (18) of Section 902 of this title, multiplied by the
number of full years of participating service after January 1, 2004,
that have been credited to the member in accordance with the
provisions of Section 913 of th is title and only for those full
years of participating service for which contributions have been
made pursuant to paragraph (g) of subsection (1) of Section 919.1 of
this title. The two and one-half percent (2 1/2%) multiplier shall
not apply to purchase d service, purchased or granted military
service or transferred service. In order to receive the two and
one-half percent (2 1/2%) multiplier in computing retirement RBH No. 5114
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benefits, an active member shall make an irrevocable written
election to pay the contribu tions pursuant to paragraph (g) of
subsection (1) of Section 919.1 of this title. The two and one -half
percent (2 1/2%) multiplier pursuant to this paragraph shall not
apply to additional years of service credit attributed to sick leave
pursuant to paragraph 7 of subsection B of Section 913 of this title
and fractional years pursuant to subsection C of Section 913 of this
title and shall be attributable only to the participating service
credited after the election of the member.
(3) The minimum final aver age compensation for any person who
becomes a member of the System on or after July 1, 1995:
a. and who had twenty (20) or more years of credited
service within the System as of the membe r's
retirement date shall be no less than Thirteen
Thousand Eight Hundred Dollars ($13,800.00) per annum,
b. and who had at least fifteen (15) but not more than
nineteen (19) years of credited service within the
System as of the member 's retirement date sh all be no
less than Six Thousand Nine Hundred Dollars
($6,900.00) per annum,
c. and who had less than fifteen (15) years of credited
service within the System as of the member 's
retirement date shall not be eligible for any minimum
amount of final average compensation and the member 's RBH No. 5114
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final average compensation shall be the final average
compensation as defined by paragraph (18) of Section
902 of this title.
(4) Provided, further, any member who has elected a vested
benefit pursuant to Section 917 of this title shall be entitled to
receive benefits as outlined in this secti on except the percent
factor and the member's maximum compensation level in effect the
date the member's employment was terminated with a participating
employer shall be applicable.
(5) Any member who is a correctional officer or a probation and
parole officer employed by the Department of Corrections at the time
of retirement and who retires on or before June 30, 2000, shall be
entitled to receive an annual retirement benefit equal to tw o and
one-half percent (2 1/2%) of the final average compensation of the
member not to exceed Twenty-five Thousand Dollars ($25,000.00) and
two percent (2%) of the final average salary in excess of Twenty -
five Thousand Dollars ($25,000.00) but not exceedin g the maximum
compensation level as provided in paragraph (9) of Sect ion 902 of
this title, multiplied by the number of years of service as a
correctional officer or a probation and parole officer; provided,
any years accrued prior to July 1, 1990, as a co rrectional officer
or a probation and parole officer by a member who is employed as a
correctional officer or a probation and parole officer on July 1,
1990, shall be calculated for retirement purposes at two and one - RBH No. 5114
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quarter percent (2 1/4%) of the final a verage compensation of the
member not to exceed Twenty -five Thousand Dollars ($25,000.00) and
two percent (2%) of the final average salary in excess of Twenty -
five Thousand Dollars ($25,000.00) but not exceeding the maximum
compensation level as provided i n paragraph (9) of Section 902 of
this title, multiplied by the numbe r of years of such service and
any years in excess of twenty (20) years as such an officer or years
credited to the member in accordance with the provisions of Section
913 of this title shall be calculated for retirement purposes at two
percent (2%) of the final average compensation of the member
multiplied by the number of years of such service. Any person who
contributes to the System as a correctional officer or a probation
and parole officer as provided in paragraph (b) or (c) of subsection
(1) of Section 919.1 of this title, on or before June 30, 2000, but
who does not make such contributions after June 30, 2000, and who
does not qualify for normal retirement under subparagraph (c) of
paragraph (24) of Section 902 of this title shall have retirement
benefits for each year of full-time-equivalent participating service
as a correctional or a probation and parole officer after July 1,
1990, computed on two and one -half percent (2 1/2%) of the final
average compensation based upon those years as a correctio nal
officer or a probation and parole officer. Provided, further, any
fugitive apprehension agent shall be entitled to receive benefits as
outlined in this act for service as a fugitive apprehension agent RBH No. 5114
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prior to July 1, 2002, only upon payment to the Sy stem of the
employee contributions which would have been paid if such fugitive
apprehension agent had been covered by this section prior to the
effective date of this act, plus interest o f not to exceed ten
percent (10%) as determined by the Board. The De partment of
Corrections may make the employee contribution and interest payment
on behalf of such member.
(6) Any member who is a correctional officer, a probation and
parole officer or a fugitive apprehension agent employed by the
Department of Correctio ns at the time of retirement and who retires
on or after July 1, 2002, shall be entitled to receive an annual
retirement benefit equal to two and one -half percent (2 1/2%) of the
final average compensation of the member, but not exceeding the
maximum compensation level as provided in paragraph (18) of Section
902 of this title, multiplied by the number of years of service as a
correctional officer, a probation and parole officer or a fugit ive
apprehension agent, and any years in excess of twenty (20) years as
such an officer or agent, or years credited to the member in
accordance with the provisions of Section 913 of this title, shall
be calculated for retirement purposes at two percent (2% ) of the
final average compensation of the member multiplied by the n umber of
years of such service. For purposes of this paragraph, "final
average compensation " shall be determined by computing the average
annual salary, in the manner prescribed by parag raph (18) of Section RBH No. 5114
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902 of this title, for the highest three (3) yea rs of the last ten
(10) years of participating service immediately preceding retirement
or termination of employment for all years of service performed by
such member, both for years of s ervice performed as a correctional
officer, probation and parole offi cer or fugitive apprehension
agent, not in excess of twenty (20) years, and for years of service
performed in excess of twenty (20) years, whether as a correctional
officer, probation and parole officer, fugitive apprehension agent
or other position unless the computation of benefits would result in
a lower retirement benefit amount than if final average compensation
were to be computed as otherwise provided by this paragraph. "Final
average compensation" shall be determined by computing the average
annual salary for the highest five (5) of the last ten (10) years of
participating service immediately preceding retirement or
termination of employment, with respect to members whose first
participating service occurs on or after July 1, 2013.
(7) Any member who is a correctional officer, a probation and
parole officer or a fugitive apprehension agent who has at least
five (5) years of service as a correctional officer, a probation and
parole officer or a fugitive apprehension agent who is in such
position on June 30, 2004, or who is hired after June 30, 2004, in
such position, and who receives a promotion or change in job
classification after June 30, 2004, to another position in the
Department of Corrections, and who is employed by the Department of RBH No. 5114
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Corrections at the time of retirement and who retires on or after
July 1, 2004, shall be entitled to receive an annual retirement
benefit equal to two and one -half percent (2 1/2%) of the final
average compensation of the member, but not exceeding the maximum
compensation level as provided in paragraph (18) of Section 902 of
this title, multiplied by the number of years of service with the
Department of Corrections and any years in excess of twenty (20)
years with the Department or years credited to the member in
accordance with the provisions of Section 913 of this title, shall
be calculated for retirement purposes at two percent (2%) of the
final average compensation of the member multiplied by the number of
years of such service. For purposes of this paragraph, "final
average compensation" shall be determined by computing the average
annual salary, in the manner prescribed by paragraph (18) of Section
902 of this title, for the highest three (3) y ears of the last ten
(10) years of participating service immediately preceding retirement
or termination of employment for all years of service performed by
such member with the Department. "Final average compensation " shall
be determined by computing the average annual salary for the highest
five (5) of the last ten (10) years of participating service
immediately preceding retirement or termination of employment, with
respect to members whose first participating service occurs on or
after July 1, 2013. RBH No. 5114
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(8) Any person who contributed to the System as a correctional
officer, a probation and parole officer or a fugitive apprehension
agent as provided in paragraph (b) or (c) of subsection (1) of
Section 919.1 of this title, and who retires under normal retire ment
or early retirement on or after January 1, 2004, under paragraph
(24) of Section 902 of this title, and any public safety officer
described by paragraph (37) of Section 902 of this title hired on or
after the effective date of this act by the Grand Ri ver Dam
Authority and who retires on or after the effective date of t his
act, shall have retirement benefits for each year of full -time-
equivalent participating service as a correctional officer, a
probation and parole officer or a fugitive apprehension ag ent, or
Grand River Dam public safety officer computed on two and one -half
percent (2 1/2%) of the final average compensation based upon those
years as a correctional officer, a probation and parole officer, a
fugitive apprehension agent or a Grand River D am public safety
officer. For purposes of this paragraph, "final average
compensation" shall be determined by computing the average annual
salary, in the manner prescribed by paragraph (18) of Section 902 of
this title, for the highest three (3) years of the last ten (10)
years of participating service immediately precedin g retirement or
termination of employment for all years of service performed by such
member, both for years of service performed as a correctional
officer, probation and parole officer or fugitive apprehension RBH No. 5114
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agent, or years of service performed as a Gran d River Dam public
safety officer, not in excess of twenty (20) years, and for years of
service performed in excess of twenty (20) years, whether as a
correctional officer, probation and parole officer, fugitive
apprehension agent, Grand River Dam public s afety officer, or other
position unless the computation of benefits would result in a lower
retirement benefit amount than if final average compensation were to
be computed as otherwise p rovided by this paragraph. "Final average
compensation" shall be determined by computing the average annual
salary for the highest five (5) of the last ten (10) years of
participating service immediately preceding retirement or
termination of employment, with respect to members whose first
participating service occurs on o r after July 1, 2013, or with
respect to Grand River Dam public safety officers whose first
participating service occurs on or after the effective date of this
act.
(9) Any member who is :
a. initially on or after July 1, 2002, employed as a
firefighter for the Oklahoma Military Department and
who retires on or after the member 's normal retirement
date shall be entitled to receive an annual retirement
benefit equal to two and one -half percent (2 1/2%) of
the final average compensation of the member RBH No. 5114
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multiplied by the number of years of service in such
service,
b. (1) a firefighter who performs firefighting services
for the Oklahoma Military Department prior to
July 1, 2002, and who makes an election in
writing on a form prescribed for this purpose by
the System not later than December 31, 2002,
shall be entitled to receive a retirement benefit
based upon two and one -half percent (2 1/2%) of
the final average compensation of the member
multiplied by the number of years of service as a
firefighter with the Oklah oma Military Department
on or after July 1, 2002. The election
authorized by this subdivision shall be
irrevocable once the election is filed with the
System,
(2) a firefighter who perfo rms firefighting services
for the Oklahoma Military Department prior to
July 1, 2002, and who makes the election in
division (1) of this subparagraph may also make
an election in writing on a form prescribed for
this purpose by the System not later than
December 31, 2002, to receive a retirement
benefit based upon two and o ne-half percent (2 RBH No. 5114
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1/2%) of the final average compensation of the
member multiplied by the number of years of
service as a firefighter with the Oklahoma
Military Department prior to July 1, 2002. The
election authorized by this subdivision shall be
irrevocable once the election is filed with the
System. Retirement benefits shall be calculated
based upon the two and one -half percent (2 1/2%)
multiplier upon payment being made pursuant to
Section 913.5 of this title.
(10) Any person who contributes to the System as a deputy
sheriff or county jailer as provided in paragraph (f) of subsection
(1) of Section 919.1 of this title, and who was:
a. employed by a participating employer in the System
for the first time as a deputy sheriff or jail er on
or after November 1, 2020, and who retires under
normal retirement or early retirement unde r division
(v) of subparagraph (d) of paragraph (24) of Section
902 of this title, shall have retirement benefits for
each year of full-time-equivalent participating
service as a deputy sheriff or county jailer computed
on two and one-half percent (2 1/2%) of the final
average compensation based upon those years as a
deputy sheriff or county jailer, and any years in RBH No. 5114
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excess of twenty (20) years as a deputy sheriff or
county jailer, or years credited to the member in
accordance with the provisions of Section 913 of this
title, shall be calculated for retirement purposes at
two percent (2%) of the final average compensation of
the member multiplied by the number of years of such
service, or
b. (1) employed by a participating employer in the
System for the first time as a deputy sheriff or
county jailer before November 1, 2020, and who
retires under the normal retirement or early
retirement under division (vi) of subparagraph
(d) of paragraph (24) of Section 902 of this
title, shall be entitled to receive a retirement
benefit based on two and one -half percent (2
1/2%) of the final average compensation of the
member multiplied based on the number of years of
service as a deputy sheriff or county jailer with
any county participating in the System on or
after November 1, 2024 ,
(2) employed by a participating employer in the
System for the first time as a deputy sheriff or
county jailer before November 1, 2020, and who
retires under the normal retirement or early RBH No. 5114
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retirement under division (vi) of subparagraph
(d) of paragraph (24) of Section 902 of this
title, and who makes an election in writing not
later than July 1, 2025, on a form prescribed for
this purpose by the System , shall be entitled to
a retirement benefit based upon two and one-half
percent (2 1/2%) of the final average
compensation of the member multiplied by the
number of years of service prior to November 1,
2024, as a deputy sheriff or county jailer
employed by any county that i s a participating
employer in the System. The election authorized
by this subparagraph shall b e irrevocable once
the election is filed with the System.
Retirement benefits shall be calculated based
upon the two and one -half percent (2 1/2%)
multiplier upon payment being made pursuant to
Section 913.5 of this title . Any person
otherwise qualifying under this subparagraph , but
who is not employed as a deputy sheriff or county
jailer on November 1, 2024, and who is reemployed
as a deputy sheriff or county jail er with a
county that is a participating employer in the
System after November 1, 2024, shall have six (6) RBH No. 5114
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months from the initial date of reemployment to
make the election authorized in this
subparagraph.
c. For purposes of this paragraph (10), "final average
compensation" shall be determined by computing the
average annual salary, in the manner prescribed by
paragraph (18) of Section 902 of this title, both for
years of service performed as a deputy sheriff or
county jailer not in excess of twenty (20) years, and
for years of service performed in excess of twenty
(20) years, whether as a deputy sheriff or county
jailer.
(11) Upon death of a retiree, there shall be paid to his or her
beneficiary an amount equal to the excess, if any, of his or her
accumulated contributions over the sum of all retirement benefit
payments made.
(12) Such annual retirement benefits shall be paid in equal
monthly installments, except that the Board may provide for the
payment of retirement benefits which total less than Two Hundred
Forty Dollars ($240.00) a year on other than a monthly basis.
(13) Pursuant to the rules established by the Board, a retiree
receiving monthly benefits from the System may authorize warrant
deductions for any products currently offered to active s tate
employees through the Employees Benefits Council, provided that RBH No. 5114
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product is offered to state retirees as a group and has a minimum
participation of five hundred state retirees. The System has no
responsibility for the marketing, enrolling or administr ation of
such products, but shall retain a processing fee of two percent (2%)
of the gross deductions for the products. Retirement benefit
deductions shall be made for membership dues for any statewide
association for which payroll deductions are authoriz ed pursuant to
subsection B of Section 34.70 of Title 62 of the Oklahoma Statutes
for retired members of any state -supported retirement system, upon
proper authorization given by the member to the board from which the
member or beneficiary is currently rec eiving retirement benefits.
B. A member shall be considered disabled if such member
qualifies for the payment of Social Security disability benefits, or
the payment of benefits pursuant to the Railroad Retirement Act of
1974, Section 231 et seq. of Title 45 of the United States Code, and
shall be eligible for benefits hereunder upon proof of such
disability, provided such member is an active regularly scheduled
employee with a participating employer at the time of injury or
inception of illness or disease resulting in subsequent
certification of eligibility for Social Security disability benefits
by reason of such injury, illness or disease, providing such
disability is certified by the Social Security Administration within
one (1) year after the last date physically on the job and after
completion of at least eight (8) years of participating service or RBH No. 5114
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combined prior and participating service or resulting in subsequent
certification of eligibility of disability by the Railroad
Retirement Board providing suc h certification is made by the
Railroad Retirement Board within one (1) year after the last date
physically on the job and after completion of at least eight (8)
years of participating service or combined prior and participating
service. The member shall submit to the Retirement System the
Social Security Award Notice or the Railroad Retirement Award Notice
certifying the date of entitlement for disability benefits, as
issued by the Social Security Administration, Department of Health
and Human Services or the Railroad Retirement Board. Disability
benefits shall become effective on the date of entitlement as
established by the Social Security Administration or the Railroad
Retirement Board, but not before the first day of the month
following removal from t he payroll, whichever is later, and final
approval by the Retirement System. Benefits shall be based upon
length of service and compensation as of the date of disability,
without actuarial reduction because of commencement prior to the
normal retirement date. The only optional form of benefit payment
available for disability benefits is Option A as provided for in
Section 918 of this title. Option A must be elected in accordance
with the provisions of Section 918 of this title. Benefit payments
shall cease upon the member's recovery from disability prior to the
normal retirement date. Future benefits, if any, shall be paid RBH No. 5114
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based upon length of service and compensation as of the date of
disability. In the event that disability ceases and the member
returns to employment within the System credited service to the date
of disability shall be restored, and future benefits shall be
determined accordingly.
C. A member who incurred a disability pursuant to subsection B
of this section on or after July 1, 1999, and who has retired from
the System with an early retirement benefit pending certification
from the Social Security Administration or the Railroad Retirement
Board shall receive a retirement benefit not less than the
disability retirement benefit provided by subsection B of this
section once the System receives a Social Security Award Notice or a
Railroad Retirement Award Notice pursuant to subsection B of this
section and a completed Application for Disability Benefits. In
addition, such member shall rec eive the difference, if any, between
the early retirement benefit and the disability benefit from the
date the Social Security Administration or the Railroad Retirement
Board establishes disability entitlement.
D. Any actively participating member of the System on or after
July 1, 1998, except for those employees provided in subparagraph
(e) of paragraph (14) of Section 902 of this title, whose employment
is less than full-time, shall have his or her final average
compensation calculated on an annualized b asis using his or her
hourly wage subject to the maximum compensation limits; provided, RBH No. 5114
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however, any such member whose first participating service occurred
before July 1, 2013, and who has at least three (3) years of full -
time employment during the last te n (10) years immediately preceding
termination or retirement shall not be eligible for the
annualization provisions contained herein; and provided further, any
such member whose first participating service occurred on or after
July 1, 2013, and who has at least five (5) years of full-time
employment during the last ten (10) years immediately preceding
termination or retirement shall not be eligible for the
annualization provisions contained herein. The Board of Trustees
shall promulgate such administrative rules as are necessary to
implement the provisions of this subsection.
SECTION 3. AMENDATORY 74 O.S. 2021, Section 916.3, is
amended to read as follows:
Section 916.3 Pension benefit on behalf of correctional,
probation and parole officers killed in the line of duty - Dependent
children and education.
A. Notwithstanding the provisions of Sections 901 through 932
of this title, a monthly pension, as provide d in subsection B of
this section, shall be paid on behalf of any member who is a:
correctional 1. Correctional officer or probation and parole
officer of the Department of Corrections and who is killed or
mortally wounded on or after January 1, 2000, during the performanc e
of the member's duties for the Departmen t or any employee of the RBH No. 5114
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Department of Corrections who is killed or mortally wounded after
June 30, 2004, during the performance of the member 's duties for the
Department. The monthly pension described in this sec tion shall be
paid on behalf of any membe r first hired by any county that is a
participating employer in the System as a deputy ;
2. Deputy sheriff or county jailer first hired on or after
November 1, 2020, by any county that is a participating member in
the System, and who is killed or mortally w ounded during the
performance of the member's duties as a deputy sheriff or jailer .;
and
3. Deputy sheriff or county jailer first hired before November
1, 2020, by any county that is a participating employer in the
System, and who is killed or mortally wo unded during the performan ce
of the member's duties for the participating county on or after
November 1, 2024.
B. The monthly benefit shall be equal to:
1. Two and one-half percent (2 1/2%);
2. Multiplied by twenty (20) years of service, regardless of
the actual number of years of credited service performed by the
member prior to death, if the member had performed less than twenty
(20) years of credited service, or the actual number of years of
credited service of the member if greater than twenty (20) y ears;
3. Multiplied by th e member's final average compensation; and
4. Divided by 12. RBH No. 5114
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C. The pension provided for in subsection A of this section
shall be paid:
1. Except as provided in subsection D of this section, to the
surviving spouse for life; or
2. If there is no surviv ing spouse or upon the death of the
surviving spouse:
a. to the surviving child or children of said member or
legal guardian of such child or children for such time
as such child or children are under the age of
eighteen (18) years, or
b. to the surviving child or children between the age of
eighteen (18) and twenty-two (22) years if the child
is enrolled full time in and is regularly attending a
public or private school or any institution of higher
education.
D. No surviving spou se shall receive benefits from this
section, Section 49-113 of Title 11 of t he Oklahoma Statutes,
Section 50-117 of Title 11 of the Oklahoma Statutes, or Section 2 -
306 of Title 47 of the Oklahoma Statutes as the surviving spouse of
more than one member of the Oklahoma Firefighters Pension and
Retirement System, the Oklahoma Police Pension and Retirement
System, the Oklahoma Law Enforcement Retirement System, or the
Oklahoma Public Employees Retirement System. The surviving spouse RBH No. 5114
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of more than one member sh all elect which member's benefits he or
she will receive.
E. In addition to the pension above provided for, if said
member leaves 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 full-time in and is regula rly attending a public or private
school or any institution of higher education, Four Hundred Dollars
($400.00) a month shall be paid to the surviving spouse or to the
person having the care and custody of such children if there i s no
surviving spouse or i f the surviving spouse dies and until each
child reaches the age of eighteen (18) years or reaches the age of
twenty-two (22) years if the child is enrolled full -time in and is
regularly attending a public or private school or any institution of
higher education.
F. The pension benefit provided in this s ection shall be made
prospectively only from the effective date of this act. The
benefits shall be payable beginning the later of the first day of
the month following the date tha t such employee was killed or dies
from a mortal wound, as provided in this section, or the effective
date of this act.
G. The Board of the Oklahoma Public Employees Retirement System
shall promulgate such rules as are necessary to implement the
provisions of this section. RBH No. 5114
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SECTION 4. AMENDATORY 74 O.S. 2021, Section 919.1, is
amended to read as follows:
Section 919.1 Employee contribution – Rate – Deduction –
Remittance - Picked up contributions – Refund.
(1) Employee contributions to the System shall be :
(a) for employees except as otherwise provided in
paragraphs (b), (c), (d), (e), (f) and (g) of this
subsection: beginning July 1, 2006, and thereafter,
three and one-half percent (3.5%) of allowable annual
compensation;
(b) for correctional officers an d probation and parole
officers employed by the Department of Corrections:
beginning July 1, 1998, and thereafter, and for
correctional officers or probation and parole officers
who are in such position on June 30, 2004, or who are
hired after June 30, 20 04, and who receive a promotion
or change in job classification after June 30, 2004,
to another position in the Department of Corrections,
so long as such officers have at least five (5) years
of service as a correct ional officer or probation and
parole officer, eight percent (8%) of allowable
compensation as provided in paragraph (9) of Section
902 of this title; RBH No. 5114
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(c) for fugitive apprehension agents who are employed with
the Department of Corrections on or after July 1,
2002, and for fugitive apprehension agents who are in
such position on June 30, 2004, or who are hired after
June 30, 2004, and who receive a promotion or change
in job classification after June 30, 2004, to another
position in the Department of Correc tions, so long as
such agents have at le ast five (5) years of service as
a fugitive apprehension agent, eight percent (8%) of
allowable compensation as provided in paragraph (9) of
Section 902 of this title;
(d) for firefighters of the Oklahoma Military De partment
first employed beginning July 1 , 2002, and thereafter,
and such firefighters who performed service prior to
July 1, 2002, for the Okla homa Military Department and
who make the election authorized by division (1) of
subparagraph b of paragraph (9) of subsection A of
Section 915 of this t itle who perform service on or
after July 1, 2002, in such capacity, eight percent
(8%) of allowable co mpensation as provided in
subsection (9) of Section 902 of this title;
(e) for all public safety officers of the Grand River Dam
Authority as defined by paragraph (37) of Section 902
of this title, eight percent (8%) of allowable RBH No. 5114
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compensation as provided i n paragraph (9) of Section
902 of this title;
(f) for deputy sheriffs and county jailers employed by any
county that is a participating employer in the S ystem
for the first time as a deputy sheriff or jailer on or
after November 1, 2020, or beginning November 1, 2024,
those deputy sheriffs and coun ty jailers employed b y
any county that is a participating employer in the
System for the first time as a deput y sheriff or
county jailer before November 1, 2020, eight percent
(8%) of allowable compensation as provided in
paragraph (9) of Section 902 of this title; and
(g) for all employees except those who make contribution s
pursuant to paragraphs (b), (c), (d), (e) and (f) of
this subsection who make an irrevocable written
election pursuant to paragraph (2) of subsection A of
Section 915 of this title: six and forty -one one-
hundredths percent (6.41%) of allowable annual
compensation.
The contributions required b y paragraphs (b), (c), (e), and (f)
of this subsection shall be made b y a member for not more than
twenty (20) years and thereafter shall be as provided in paragraph
(a) of this subsection. RBH No. 5114
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(2) Contributions shall b e deducted by each state agency by the
participating employer for such benefits as the Board is authorized
to administer as provided for by law. Employee and employer
contributions shall be remitted monthly, or as the Board may
otherwise provide, to the E xecutive Director for deposit in the
Oklahoma Public Employees Retirement Fund.
(3) Each participating employ er shall pick up under the
provisions of Section 414(h)(2) of the Internal Revenue Code of 1986
and pay the contribution which the member is requi red by law to make
to the System for all compensation earned after December 31, 1988.
Although the contributi ons so picked up are designated as member
contributions, such contributions shall be treated as contributions
being paid by the participating empl oyer in lieu of contributions by
the member in determining tax treatment under the Internal Revenue
Code of 1986 and such picked up contributions shall not be
includable in the gross income of the member until such amounts are
distributed or made available to the member or the beneficiary of
the member. The member, by the terms of this System, shall not have
any option to choose to receive the contributions so picked up
directly and the picked up contributions must be paid by the
participating employer to the System.
Member contributions which a re picked up shall be treated in the
same manner and to the same exten t as member contributions made
prior to the date on which member contributions were picked up by RBH No. 5114
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the participating employer. Member contributions so picked up shall
be included in gross salary for purposes of determining benefits and
contributions under t he System.
The participating employer shall pay the member contributions
from the same source of funds used in paying salary to the member,
by effecting an equal cash reduction in gross salary of the member.
(4) By September 1, 1989, the System shall refu nd the
accumulated employee contributions of any member who elects to
retain the member's membership in the Teachers ' Retirement System of
Oklahoma, in accordance with Section 17 -104 of Title 70 of the
Oklahoma Statutes, to such member. Upon the refund of the
accumulated employee contributions referred to in this subsection,
all benefits and rights accrued to such member are terminated.
SECTION 5. AMENDATORY 74 O.S. 2021, Section 920A, is
amended to read as follows:
Section 920A. Counties and municipalities - Employer and
employee contributions.
A. Any county, county hospital, city or town, conservation
district, circuit engineering district or any public or pr ivate
trust in which a county, city or town participates an d is the
primary beneficiary, which is a participating employer and any
eligible employee shall contribute to the System. The total
employer and employee contributions shall be based on the allowa ble
annual compensation as defined in paragraph (9) of Sect ion 902 of RBH No. 5114
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this title. Except as provided for in this section, the employer
shall not pay for the employee any of the employee contribution to
the System.
B. For the fiscal year ending June 30, 2 005, the total employer
and employee contributions shall eq ual thirteen and one -half percent
(13 1/2%) of the allowable monthly compensation of each member;
provided, however, each participating employer listed in this
section may set the amount of the emp loyer and employee contribution
to equal thirteen and one -half percent (13 1/2%) of the allowable
monthly compensation of each member for compensation as provided in
paragraph (9) of Section 902 of this title; provided, the employer
contribution shall not exceed ten percent (10%) and the employee
contribution shall not exceed eight and one -half percent (8 1/2%).
C. The total employer and employee contributions for fiscal
years following the fiscal year e nding June 30, 2005, shall be as
follows:
July 1, 2005 – June 30, 2006 15%
July 1, 2006 – June 30, 2007 16%
July 1, 2007 – June 30, 2008 17%
July 1, 2008 – June 30, 2009 18%
July 1, 2009 – June 30, 2010 19%
July 1, 2010 – June 30, 2011 and
each fiscal year thereafter 20% RBH No. 5114
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Such employee and employer contributi ons shall be based upon the
allowable monthly compensation of each member for compensation as
provided in paragraph (9) of Section 902 of this title. The maximum
employer contribution of ten percent (10 %) in subsection B of this
section shall increase by one and one-half percent (1.5%) beginning
in the fiscal year ending June 30, 2006, and one percent (1%) for
each fiscal year thereafter until it reaches sixteen and one -half
percent (16.5%). For such ye ars, the employee contribution shall
not exceed eight and one-half percent (8 1/2%). Notwithstanding any
other provisions of this section to the contrary, for those members
described in division (v) and (vi) of subparagraph (d) of paragraph
(24) of Section 902 of this title, the county shall contribute
sixteen and one-half percent (16 1/2%) and the employee shall
contribute eight percent (8%) for a total of twenty -four and one-
half percent (24 1/2%).
D. For members who make the election pursuant to paragr aph (2)
of subsection A of Section 915 of this title, the employee
contribution shall increase by two and ninety -one one-hundredths
percent (2.91%). Such employee contribution increase shall be paid
by the employee.
E. Each participating employer pursuan t to the provisions of
this section may pick up under the provisions of Section 414(h)(2)
of the Internal Revenue Code of 1986 and pay the contribution which
the member is required by law to make to the System for all RBH No. 5114
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compensation earned after December 31, 1989. Although the
contributions so picked up are d esignated as member contributions,
such contributions shall be treat ed as contributions being paid by
the participating employer in lieu of contributions by the member in
determining tax treatment under the Internal Revenue Code of 1986
and such picked up contributions shall not be includable in the
gross income of the mem ber until such amounts are distributed or
made available to the member or the beneficiary of the member. The
member, by the terms of t his System, shall not have any option to
choose to receive the contributions so picked up directly and the
picked up contributions must be paid by the participating employer
to the System.
F. Member contributions which are picked up shall be treated in
the same manner and to the same extent as member contri butions made
prior to the date on which member contributions were pi cked up by
the participating employer. Member contributions so picked up shall
be included in gross salary for purposes of determining benefits and
contributions under the System.
G. The participating employer shall pay the member
contributions from the same source of funds used in paying salary to
the member, by effecting an equal cash reduction in gross salary of
the member. RBH No. 5114
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SECTION 6. This act shall become effective November 1, 2024.
59-1-5114 CMA 11/29/22
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
2512 E. 71
st
Street , Suite D ∙ Tulsa, Oklahoma 74136
(918) 492-9658 ∙ (918) 492- 9659
January 5, 2023
Representative Josh West
Room 205
Re: RHB No. 5114
RBH No. 5114 provides hazardous duty style benefit for deputy
sheriffs for counties participating in OPERS. The per year
multiplier is increased to 2.5% from 2.0%. The deputy sheriff’s
contribution is 8% of comprnsation.
RBH No. 5114 is a fiscal bill as defined by OPLAAA.
I am a member of the American Academy of Actuaries and meet the
Qualification Standards of the American Academy of Actuaries to
render the actuarial opinion herein.
Thomas E. Cummins
Thomas E. Cummins, MAAA