RBH No. 5691
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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 1391 By: Bashore
AS INTRODUCED
An Act relating to public retirement system s;
amending 62 O.S. 202 2, Section 3103, as last amended
by Section 1, Chapter 306, O.S.L. 2022 (62 O.S. Supp.
2022, Section 3103), which relates to the Oklahoma
Pension Legislation Actuarial Analysis Act; m odifying
definition; amending 74 O.S. 2021, Section 914, which
relates to retirement; modifying period of time
required with respect to post-retirement employment;
providing effective dates; providing for contingent
effective dates based on outcome of approval of the
emergency clause; and declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S 2022, Section 3103 , as last
amended by Section 1, Chapter 306, O.S.L. 2022 (62 O.S. Supp. 2022,
Section 3103v4), is amended to read as follows:
Section 3103 As used in the Oklahoma Pension Legislation
Actuarial Analysis A ct:
1. "Amendment" means any amendment, including a substitute
bill, made to a retirement bill by any committee of the House or
Senate, any conference committee of the House or Senate or by the
House or Senate; RBH No. 5691
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2. "RB number" means that number preceded b y the letters "RB"
assigned to a retirement bill by the respective staffs of the
Oklahoma State Senate and the Oklahoma House of Representatives when
the respective staff office prepares a retirement bill for a member
of the Legislature;
3. "Legislative Actuary" means the firm or ent ity that enters
into a contract with the Legislative Service Bureau pursuant to
Section 452.15 of Title 74 of the Oklahoma Statutes to p rovide the
actuarial services and other duties provided for in the Oklahoma
Pension Legislation Actuarial Analysis Act;
4. "Nonfiscal amendment" means an amendment to a retirement
bill having a fiscal impact, which amendment does not change any
factor of an actuarial investigation specified in subsection A of
Section 3109 of this title;
5. "Nonfiscal retirement bill" mean s a retirement bill:
a. which does not affect the cost or funding factors of a
retirement system,
b. which affects such factors only in a manner which does
not:
(1) grant a benefit increase under the retirement
system affected by the bill,
(2) create an actuarial accrued liability for or
increase the actuarial accrued liability of the
retirement system affected by the bill, or RBH No. 5691
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(3) increase the normal cost of the retirem ent system
affected by the bill,
c. which authorizes the pur chase by an active member of
the retirement system, at the actuarial cost for the
purchase as computed pursuant to the statute in effect
on the effective date of the measure allowing such
purchase, of years of service for pu rposes of reaching
a normal retirement date in the applicable retirement
system, but which cannot be used in order to compute
the number of years of service for purposes of
computing the retirement benefit for the member,
d. which provides for the computat ion of a service-
connected disability retirement benefit for members of
the Oklahoma Law Enforcement Retirement System
pursuant to Section 2 -305 of Title 47 of the Oklahoma
Statutes if the members were unable to complete twenty
(20) years of service as a r esult of the disability,
e. which requires membership in the defined benefit plan
authorized by Section 901 et seq. of Title 74 of the
Oklahoma Statutes for persons whose first elected or
appointed service occurs on or after Nov ember 1, 2018,
if such persons had any prior service in the Oklahoma
Public Employees Retirement System prior to November
1, 2015, RBH No. 5691
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f. which provides for a one -time increase in retirement
benefits if the increase in retirement benefits is not
a permanent increase in the gross annual r etirement
benefit payable to a m ember or beneficiary, occurs
only once pursuant to a single statutory authorization
and does not exceed:
(1) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One
Thousand Dollars ($1,000 .00) and requires that
the benefit may only be provided if the funded
ratio of the affected retirement system would not
be less than sixty percent (60%) but not greater
than eighty percent (80%) af ter the benefit
increase is paid,
(2) the lesser of two per cent (2%) of the gross
annual retirement benefit of the member or One
Thousand Two Hundred Dollars ($1,200.00) and
requires that the benefit may only be provided if
the funded ratio of the affected retirement
system would be greater than eighty percent (80 %)
but not greater than one hund red percent (100%)
after the benefit increase is paid,
(3) the lesser of two percent (2%) of the gross
annual retirement benefit of the member or One RBH No. 5691
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Thousand Four Hundred Dollars ($1,400.00) and
requires that the benefit ma y only be provided if
the funded ratio of the affected retirement
system would be greater than one hundred percent
(100%) after the benefit increase is paid, or
(4) the greater of two percent (2%) of the gross
annual retirement benefit of the volunteer
firefighter or One Hundred Dollars ($100.00) for
persons who retired from the Oklahoma
Firefighters Pension and Retirement System as
volunteer firefighters and who did not retire
from the Oklahoma Fir efighters Pension and
Retirement System as a paid firefight er.
As used in this subparagraph , "funded ratio" means the
figure derived by dividing the actuarial value of
assets of the applicable retirement system by the
actuarial accrued liability of the app licable
retirement system,
g. which modifies the disability pension standard for
police officers who are members of the Oklahoma Police
Pension and Retirement System as provided by Section 3
of this act,
h. which provides a cost -of-living benefit increase
pursuant to the provisions of: RBH No. 5691
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(1) Section 49-143.7 of Title 11 of the Oklahoma
Statutes,
(2) Section 50-136.9 of Title 11 of the Oklahoma
Statutes,
(3) Section 1104K of Title 20 of the Oklahoma
Statutes,
(4) Section 2-305.12 of Title 47 of the Oklahoma
Statutes,
(5) Section 17-116.22 of Title 70 of the Oklahoma
Statutes,
(6) Section 930.11 of Title 74 of the Oklahoma
Statutes, or
i. which modifies the computation of the line -of-duty
disability benefit pursuant to the provisions of this
act, or
j. which modifies the provisions related to post -
retirement employment for the Oklahoma Public
Employees Retirement System as provided by Section 2
of this act.
A nonfiscal retirement bill shall include any retirement bill that
has as its sole purpose the appropriatio n or distribution or
redistribution of monies in some manne r to a retirement system for
purposes of reducing the unfunded liability of such system or the
earmarking of a portion of the revenue fr om a tax to a retirement RBH No. 5691
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system or increasing the percentage of the revenue earmarked from a
tax to a retirement system;
6. "Reduction-in-cost amendment" means an amendment to a
retirement bill having a fiscal impact which reduces the cost of the
bill as such cost is determined by the actuarial investigation for
the bill prepared pursuant to Section 3109 of this title;
7. "Retirement bill" means any bill or joint resolution
introduced or any bill or joint resolution amended by a member of
the Oklahoma Legislature which creates or amends any law directly
affecting a retirement system. A retirement bill shall not mean a
bill or resolution that impacts the revenue of any state tax in
which a portion of the revenue generated from such tax is earmarked
for the benefit of a retirement system;
8. "Retirement bill having a fiscal impact" means any
retirement bill creating or esta blishing a retirement system and any
other retirement bill other than a nonfiscal retirement bill; and
9. "Retirement system" means the Teachers' Retirement System of
Oklahoma, the Oklahoma Public Employees Retirement System, the
Uniform Retirement System for Justices and Judges, the Ok lahoma
Firefighters Pension and Retirement System, the Oklahoma Police
Pension and Retirement System, the Oklahoma Law Enforcement
Retirement System, or a retirement system established after January
1, 2006. RBH No. 5691
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SECTION 2. AMENDATORY 74 O.S. 2021, Section 914, is
amended to read as follows:
Section 914. A. The normal retirement date for a member of the
Oklahoma Public Employees Retirem ent System shall be as defined in
Section 902 of this title, provided members employed on or after
January 1, 1983, shall have six (6) or m ore years of full-time-
equivalent employment with a participating employer before receiving
any retirement benefits o r if the member is a legislative session
employee of the Legislature, shall have three (3) or more yea rs of
full-time-equivalent employment with a participating employer before
receiving any retirement benefits. In no event shall a normal
retirement date for a member be before six (6) months after the
entry date of the participating employer by whom he or she is
employed.
B. A member may be employed beyond the normal retirement date
by the appointing authority of the participating employer. However,
the member may not receive retirement pay so long as the member
continues employment under this act. Any member who has terminated
employment with a participating employer prior to the month
immediately preceding said member 's normal retirement date must
elect a vested benefit pursuant to Section 917 of thi s title before
receiving any retirement benefits.
C. Notice for retirement shall be filed through the retirement
coordinator for the participating employer in such form and manner RBH No. 5691
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as the Board shall prescri be; provided, that such notice for
retirement shall be filed with the office of the retirement system
at least sixty (60) days prior to the date selected for the member's
retirement; provided further, that the Executive Director may waive
the sixty-day notice for good cause shown as defined by the Board.
1. The participating employer shall provide the Sys tem with the
following information fo r a retiring member, no later than the
fifteenth day of the month of retirement: last day physically on
the job; last day on payroll; and final unused sick leave bal ance.
2. Failure to submit this information by the d eadline, or
errors in submitted infor mation that result in a disqualification of
retirement eligibility shall be the responsibility of the
participating employer. In cases where the error results in
disqualification of retirement eligibility, it is the pa rticipating
employer's responsibility to reemploy the member, or retain the
member on the payroll, for time period required to reach
eligibility, not exce eding two (2) months.
D. No retirement benefits shall be payable to any member until
the first day of the month following the termination of the member's
employment with any participating employer. The type of retirement
benefit selected by a member may not be changed on or after the
effective date of the member's retirement. Receipt of workers'
compensation benefits shall in no respect di squalify the retiree for
benefits. RBH No. 5691
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E. If a retiree should be elected or appointed to any position
or office for which compensation for service is paid from levies or
taxes imposed by the state or any political subdivis ion thereof, the
retiree shall not receive any retirement benefit for any month for
which the retiree serves in such position or office after the
retiree has received compensation in a sum equal to the amount
allowable as wages or earnings by the Social S ecurity Administration
in any calendar year. This subsection shall not apply to service
rendered by a retiree as a juror, as a witness in any legal
proceeding or action, as an election board judge or cl erk, or in any
other office or position of a similar nature, or to an employer that
is not a participating employer. Provided, further, that any
participating employer who is employing such a retiree shall make
proper written notification to the System in forming it of the
beginning date of such retiree's employment and the date such
retiree reaches the maximum compensation allowed by this section in
the calendar year. Any retiree returning to work for a
participating employer shall make contributions to t he System and
the employer shall do likewise. All re tirees who have returned to
employment and participation in the System following retirement
shall have post-retirement benefits calculated on one of the
following methods:
1. All service accumulated fro m date of reemployment shall be
computed based on the benefit formula applicable at that t ime and RBH No. 5691
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the additional benefits shall be added to the previous benefits.
Such additional benefits shall be calculate d each year based upon
additional service accrued from July 1 to June 30 of the previous
year and the additional benefit, if any, will be a dded to the
retiree's monthly benefit beginning January 1, 2000, and each
January 1 thereafter. However, the post -retirement service credit
shall be cumulative, begi nning with service credit accrued after the
date of retirement, provided that the retiree has not received a
distribution of the post-retirement contributions.
2. Any retiree who returns to employment with a participating
employer may elect not to receive any retirement benefits while so
reemployed. If such an election is made and reemploymen t is for a
minimum period of thirty-six (36) consecutive months, all service
accumulated from date of reemployment sh all be participating
service. For purposes of de termining the retirement benefits of
such a member upon the termination of such reemployme nt all
creditable service of the member shall be computed based on the
benefit formula applicable at the time of term ination of such
reemployment. Provided, a retire e who became reemployed prior to
July 1, 1982, and wh o is reemployed for a minimum of thir ty-six (36)
consecutive months shall have all the creditable service of such
retiree computed based on the benefit fo rmula applicable at the time
of termination of su ch reemployment if the retiree elects not to
receive retirement benefits prior to such ter mination of RBH No. 5691
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reemployment. A retiree who has waived receipt of the monthly
benefit, but is not reemployed for the ful l thirty-six (36)
consecutive months, shall upon termination of such reemployment have
only the additional amount added to his or her benef it as if they
had not waived the benefit as provided in paragraph 1 of this
subsection.
3. All post-retirement additional benefits shall be calculated
using actual hours worked as well as the actual compensation
received and upon which contributions are p aid. Post-retirement
service is not subject to the partial year round -up provisions of
subsection C of Section 913 o f this title.
4. A retired member who returns to work for a participating
employer pursuant to this s ection shall be bound by the election
made pursuant to paragraph (2) of subsection A of Section 915 of
this title if the member had made such election pri or to retirement.
If the member had not made suc h election prior to retirement, the
member may do so during the member's reemployment with a
participating employer pursuant to this section. A retired member
may not be rehired by their former employer, no r may the retired
member be permitted to enter in to an employment contract of any kind
with a former employer, for a period of one (1) year six (6) months
after the retired member ended his or her employment with the former
employer unless the retired memb er waives his or her benefit under
paragraph 2 of this subsection and returns as a bona fide employee. RBH No. 5691
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F. Except as otherwise provided by subsection G of this
section, any member may elect to retire before his or her normal
retirement date on the first da y of any month coinciding with or
following the attainment of age fifty-five (55), provided such
member has completed ten (10) years of participating service, but in
no event before six (6) months after the entry date. Any member who
shall retire before t he normal retirement date shall receive an
annual retirement benefit adjusted in accordance with the f ollowing
percentage schedule:
Percentage of Normal
Age Retirement Benefit
62 100.00%
61 93.33%
60 86.67%
59 80.00%
58 73.33%
57 66.67%
56 63.33%
55 60.00%
G. Any member whose first participating serv ice occurs on or
after November 1, 2011, may elect to retire before his or her normal
retirement date on the firs t day of any month coinciding with or
following the attainment of age sixty (60), provided suc h member has
completed ten (10) years of particip ating service, but in no event RBH No. 5691
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before six (6) months after the entry date. Any member who shall
retire before the normal retirement date shall receive an annual
retirement benefit adjusted in accordance wit h the following
percentage schedule:
Percentage of Normal
Age Retirement Benefit
65 100.00%
64 93.33%
63 86.67%
62 80.00%
61 73.33%
60 66.67%
SECTION 3. If the Emergency Clause is not approved pursuan t to
the requirements of the Oklahoma Constitutio n as part of this
measure, the effective date of Section 1 of this act shall be
October 1, 2023.
SECTION 4. If the Emergency Clause is not approved pursuant to
the requirements of the Okla homa Constitution as part of this
measure, the effective date of Section 2 of this act shall be
November 1, 2023.
SECTION 5. Except as otherwise provided by Se ction 3 of this
act, Section 1 of this act shall become effective immediately up on
signature by the Governor or as otherwise provid ed by Section 58 of
Article V of the Oklahoma Constitution. RBH No. 5691
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SECTION 6. Except as otherwise provided by Secti on 4 of this
act, Section 2 of this act shall become effective July 1, 202 3.
SECTION 7. It being immediately neces sary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effe ct and
be in full force from and after its passage a nd approval.
59-1-5691 CMA 12/16/22
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
2512 E. 71
st
Street , Suite D ∙ Tulsa, O klahoma 74136
(918) 492-9658 ∙ (918) 492- 9659
December 29, 2022
Representative Steve Bashore
Room 248.2
Re: RHB No. 5691
RBH No. 5691 allows OPERS retired participants to return to
employment after being retired for at least 6 months and continue
receive retirement benefits. Current law requires 1 year.
This bill modifies OPLAAA definition of a non fiscal bill to include
the above change.
RBH No. 5691 is a nonfiscal bill as define d by OPLAAA because of the
change in definition .
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 opinio n herein.
Thomas E. Cummins
Thomas E. Cummins, MAAA