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Oklahoma House Bill HB1423

Oklahoma 2023 Regular Session

Oklahoma House Bill HB1423 Compare Versions

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2828 STATE OF OKLAHOMA
2929
3030 1st Session of the 59th Legislature (2023)
3131
3232 HOUSE BILL 1423 By: Hasenbeck
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3838 AS INTRODUCED
3939
4040 An Act relating to Teachers' Retirement System of
4141 Oklahoma; amending 70 O.S. 2021, Section 17 -105,
4242 which relates to retirement eligibility; modifying
4343 required period of employ ment for participation in
4444 retirement benefits; and providing an effective date .
4545
4646
4747
4848 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
4949 SECTION 1. AMENDATORY 70 O.S . 2021, Section 17-105, is
5050 amended to read as follows:
5151 Section 17-105. (1) (a) Any member who has attained age
5252 fifty-five (55) years of age or who has completed thirty (30) years
5353 of creditable service, as defined in Section 17 -101 of this title,
5454 or for any person who initially became a member prior to July 1,
5555 1992, regardless of whether there were breaks in service after July
5656 1, 1992, whose age and number of years of creditable service total
5757 eighty (80) may be retired upon proper application for retireme nt on
5858 forms established by the System and executing a retir ement contract.
5959 Such a retirement date will also apply to any person who became a
6060 member of the sending system as defined in this act, prior to July
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8787 1, 1992, regardless of whether there were break s in service after
8888 July 1, 1992. Any person who became a m ember after June 30, 1992,
8989 but prior to November 1, 2011, whose age and number of years of
9090 creditable service total ninety (90) may be retired upon proper
9191 application for retirement and executing a retirement contract. Any
9292 person who becomes a member on o r after November 1, 2011, who
9393 attains the age of sixty -five (65) years or who reaches a normal
9494 retirement date pursuant to subparagraph (d) of paragraph (24) of
9595 Section 17-101 of this title having attained a minimum age of sixty
9696 (60) years may be retired u pon proper application for retirement and
9797 executing a retirement contract. The application shall be filed on
9898 the form provided by the Board of Trustees for this purpose, not
9999 less than sixty (60) d ays before the date of retirement, provided
100100 that the Executive Director may waive the sixty -day deadline for
101101 good cause shown as defined by the Board.
102102 1. The employer shall provide the System with the
103103 following information for a retiring member, no later
104104 than the fifteenth day of the month of retirement:
105105 last day physically on the job; last day on payroll;
106106 any regular compensation not already reported to the
107107 System; and final unused sick leave balance.
108108 2. Failure to submit this information by the deadline, or
109109 errors in submitted information that result in a
110110 disqualification of retirement eligibility shall be
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137137 the responsibility of the employer. In cases where
138138 the error results in disqualification of retirement
139139 eligibility, it is the employer 's responsibility to
140140 reemploy the member, or retain the member on the
141141 payroll, for the time period required to reach
142142 eligibility, not exceeding two (2) months.
143143 (b) An individual who becomes a member of the Teachers '
144144 Retirement System on or after November 1, 2017, shall be employed by
145145 the public schools, state colleges or universi ties of Oklahoma for a
146146 minimum of seven (7) five (5) years and be a contributing member of
147147 the Teachers' Retirement System of Oklahoma for a minimum of seven
148148 (7) five (5) years to qualify for month ly retirement benefits from
149149 the Teachers' Retirement System of Oklahoma.
150150 (c) Any member with seven (7) five (5) or more years of
151151 Oklahoma teaching service and whose accumulated contributions during
152152 such period have not been withdrawn shall be given an ind efinite
153153 extension of membership beginning with the sixth year following his
154154 or her last contributing membership and shall become eligible to
155155 apply for retirement and be retired upon attaining age fifty-five
156156 (55) years of age.
157157 (2) An unclassified optional member who has retired or who
158158 retires at sixty-two (62) years of age or older or whose retirement
159159 is because of disability shall have his or her minimum retirement
160160 benefits calculated on an average salary of Five Thousand Three
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187187 Hundred Fifty Dollars ($5,35 0.00) or, if a larger monthly allowance
188188 would result, an amount arrived at pursuant to application of the
189189 formula prescribed herein.
190190 (3) No member shall receive a lesser retirement benefit than he
191191 or she would have received under the law in effect at the time he or
192192 she retired. Any individual under the Teachers ' Retirement System,
193193 who through error in stating the title of the position which he or
194194 she held, may, at the discretion of the Board of Trustees, be
195195 changed from the nonclassified optional group to the classified
196196 group for the purpose of calculating retirement benefits.
197197 Any individual regardless of residence, who has a minimum of ten
198198 (10) years of teaching in Oklahoma schools prior to July 1, 1943, or
199199 who taught in Oklahoma schools prior to 1934 and thereafter taught a
200200 minimum of ten (10) years and who does not qualify under the present
201201 retirement System, or who has a minimum of thirty (30) years of
202202 teaching in Oklahoma schools and has reached seventy (70) years of
203203 age prior to July 1, 1984, and is n ot otherwise eligible to receive
204204 any benefits from the retirement system shall receive a minimum of
205205 One Hundred Fifty Dollars ($150.00) per month in retirement benefits
206206 from the Teachers' Retirement System of Oklahoma plus any general
207207 increase in benefits for annuitants as may be provided hereafter by
208208 the Legislature. Each individual must apply to the Teachers'
209209 Retirement System for such benefit and provide evidence to the
210210 Teachers' Retirement System that the service was actually rendered.
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237237 The surviving spouse of any person who made application for the
238238 benefit provided for by this paragraph during his or her lifetime
239239 but did not receive the benefit may submit an application to the
240240 System for payment of the benefit for those months during the
241241 lifetime of the deceased person that he or she was eligible for but
242242 did not receive the benefit. Upon approval o f the application by
243243 the Board of Trustees, the benefit shall be paid to the surviving
244244 spouse in one lump sum.
245245 (4) The value of each year of prior service i s the total
246246 monthly retirement benefit divided by the number of years of
247247 creditable service.
248248 (5) Upon application of a member who is actively engaged in
249249 teaching in Oklahoma or his or her employer, any member who has been
250250 a contributing member for ten (10 ) years may be retired by the
251251 System subsequent to the execution and filing thereof, on a
252252 disability retirement allowance, provided that it is found by the
253253 Medical Board after medical examination of such member by a duly
254254 qualified physician that such membe r is mentally or physically
255255 incapacitated for further performance of duty, that such incapacity
256256 is likely to be permanent, and that such member should be retired.
257257 The System shall rely on and give full consideration to the
258258 conclusions and recommendations in the certified written report of
259259 the Medical Board of the Teachers ' Retirement System regarding t he
260260 disability application of such member. If the Medical Board does
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287287 not find that a member applying for disability retirement is
288288 mentally or physically inca pacitated for performance of duty or
289289 otherwise eligible for a disability retirement, the applicatio n
290290 shall then be considered by the Board of Trustees. If a member is
291291 determined to be eligible for disability benefits pursuant to the
292292 Social Security System , then such determination shall entitle the
293293 member to the authorized disability retirement allowanc e provided by
294294 law. For members who are not eligible for disability benefits
295295 pursuant to the Social Security System, the Board of Trustees and
296296 the Medical Board shall apply the same standard for which provision
297297 is made in the first two sentences of this su bsection for
298298 determining the eligibility of a person for such disability benefits
299299 in making a determination of eligibility for disability benefits as
300300 authorized by this subsection.
301301 (6) (a) A member who at the time of retirement has been found
302302 to be permanently physically or mentally incapacitated to perform
303303 the necessary duties to continue in his or her current position
304304 shall receive a minimum monthly retire ment payment for life or until
305305 such time as the member may be found to be recovered to the point
306306 where he or she may return to teaching. Any member retired before
307307 July 1, 1992, shall be eligible to receive the monthly retirement
308308 allowance herein provided, but such payment shall not begin until
309309 the first payment due him or her after July 1, 1992, and sh all not
310310 be retroactive. The Board of Trustees is empowered to make such
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337337 rules and regulations as it considers proper to preserve equity in
338338 retirements under this provision, which shall include a provision to
339339 protect the rights of the member 's spouse.
340340 (b) A member who has qualified for retirement benefits under
341341 disability retirement shall have the total monthly payment deducted
342342 from his or her accumulated con tributions plus interest earned and
343343 any money remaining in the member 's account after the above
344344 deductions at the death of the member shall be paid in a lump sum to
345345 the beneficiary or to the estate of the member. Provided, if the
346346 deceased disabled member had thirty (30) years or more of creditable
347347 service and the death occurred after June 30, 1981, and death
348348 occurred prior to the disabled member receiving twelve monthly
349349 retirement payments, a surviving spouse may elect to receive the
350350 retirement benefit to which the deceased member would have been
351351 entitled at the time of death under the Option 2 Plan of Retirement
352352 provided for in subsection (8) of this section in lieu of the death
353353 benefit provided for in this subsection and in subsection (12) of
354354 this section.
355355 (c) Once each year the System may require any disabled
356356 annuitant who has not yet attained the ag e of sixty (60) years to
357357 undergo a medical examination, such examination to be made at the
358358 place of residence for the disabled annuitant or other place
359359 mutually agreed upon by a physician or physicians designated by the
360360 System. Should any disabled annuita nt who has not yet attained the
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387387 age of sixty (60) years refuse to submit to at least one medical
388388 examination in any such year by a physician or physicians de signated
389389 by the System his or her allowance may be discontinued until he or
390390 she submits to such exa mination.
391391 (d) Should the Medical Board report and certify to the Board of
392392 Trustees that such disabled annuitant is engaged in or is able to
393393 engage in a gainful occupation paying more than the difference
394394 between his or her retirement allowance and the aver age final
395395 compensation, and should the Board of Trustees concur in such report
396396 then the amount of his or her pension shall be reduced to an amount
397397 which, together with his or her retirement allowance and that amount
398398 earnable by him or her, shall equal the amount of his or her average
399399 final compensation. Should his or her earning capacity be later
400400 increased, the amount of his or her pension may be further modi fied,
401401 provided the new pension shall not exceed that amount of the pension
402402 originally granted nor a n amount, which when added to the amount
403403 earnable by the member, together with his or her annuity, equals the
404404 amount of his or her average final compensation .
405405 (e) Should a disabled annuitant be restored to active service,
406406 his or her disability retirement allowance shall cease and he or she
407407 shall again become a member of the Teachers ' Retirement System and
408408 shall make regular contributions as required under thi s article.
409409 The unused portion of his or her accumulated contributions shall be
410410 reestablished to his or her credit in the Teachers ' Savings Fund.
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437437 Any such prior service certificates on the basis of which his or her
438438 service was computed at the time of his or her retirement shall be
439439 restored to full force and effect.
440440 (7) Should a member before retiremen t under Section 1-101 et
441441 seq. of this title make application for withdrawal duly filed with
442442 the System, not earlier than four (4) months after the date of
443443 termination of such service as a teacher, the contribution standing
444444 to the credit of his or her indiv idual account in the Teachers '
445445 Savings Fund shall be paid to him or her or, in the event of his or
446446 her death before retirement, shall be paid to such person or persons
447447 as he or she shall have nominated by written designation, duly
448448 executed and filed with t he System; provided, however, if there be
449449 no designated beneficiary surviving upon such death, such
450450 contributions shall be paid to his or her administrators, executors,
451451 or assigns, together with interest as hereinafter provided. In lieu
452452 of a lump-sum settlement at the death of the member, the amount of
453453 money the member has on deposit in the Teachers ' Savings Fund and
454454 the money the member has on deposit in the Teachers' Deposit Fund
455455 may be paid in monthly payments to a designated beneficiary, who
456456 must be the spouse, under the Maximum or Option 1 Plan of Retirement
457457 providing the monthly payment shall be not less than Twenty -five
458458 Dollars ($25.00) per month. The monthly payment shall be the
459459 actuarial equivalent of the amount becoming due at the member 's
460460 death based on the sex of the spouse and the age the spouse has
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487487 attained at the last birthday prior to the member 's death. Provided
488488 further, if there be no design ated beneficiary surviving upon such
489489 death, and the contributions standing to the credit of such me mber
490490 do not exceed Two Hundred Dollars ($200.00), no part of such
491491 contributions shall be subject to the payment of any expense of the
492492 last illness or funeral of the deceased member or any expense of
493493 administration of the estate of such deceased and the Sys tem, upon
494494 satisfactory proof of the death of such member and of the name or
495495 names of the person or persons who would be entitled to receive such
496496 contributions under the laws of descent and distribution of the
497497 state, may authorize the payment of accumulated contributions to
498498 such person or persons. A member terminating his or her membership
499499 by withdrawal after June 30, 2003, shall have the interest computed
500500 at a rate of interest determined by the Board of Trustees and paid
501501 to him or her subject to the follow ing schedule:
502502 (a) If termination occurs within sixteen (16) years from the
503503 date membership began, fifty percent (50%) of such interest
504504 accumulations shall b e paid.
505505 (b) With at least sixteen (16) but less than twenty -one (21)
506506 years of membership, sixty pe rcent (60%) of such interest
507507 accumulations shall be paid.
508508 (c) With at least twenty -one (21) but less than twenty -six (26)
509509 years of membership, seventy -five percent (75%) of such interest
510510 accumulations shall be paid.
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537537 (d) With at least twenty -six (26) years of membership, ninety
538538 percent (90%) of such interest accumulations shall be paid.
539539 In case of death of an active member, the interest shall be
540540 calculated and restored to the member's account and paid to his or
541541 her beneficiary.
542542 (8) (a) In lieu of his or her retirement allowance payable
543543 throughout life for such an amount as determined under this section,
544544 the member may select a retirement allowance for a redu ced amount
545545 payable under any of the following options the present value of
546546 which is the actuarial e quivalent thereof.
547547 (b) A member may select the option under which he or she
548548 desires to retire at the end of the school year in which he or she
549549 attains age seventy (70) years of age and the option shall be
550550 binding and cannot be changed. Provided further that if a memb er
551551 retires before age seventy (70) years of age, no election of an
552552 option shall be effective in case an annuitant dies before the first
553553 payment due under such option has been received.
554554 (c) The first payment of any benefit selected shall be made on
555555 the first day of the month following approval of the retirement by
556556 the System. If the named designated joint annuitant under Option 2
557557 or 3 dies at any time after the member's retirement date, but before
558558 the death of the member, the member shall return to the retirement
559559 benefit, including any post retirement benefit increases the member
560560 would have received had the member not selected Option 2 or 3 of
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587587 this subsection. The benefit shall be determined at the date of
588588 death of the designated joint annuitant. This increase shall b ecome
589589 effective the first day of the month following the date of death of
590590 the designated joint annuitant, and shall be payable for the
591591 member's remaining lifetime. The member shall notify the Teachers '
592592 Retirement System of Oklahoma of the death of the des ignated joint
593593 annuitant in writing. In the absence of the written notice being
594594 filed by the member notifying the Teachers ' Retirement System of
595595 Oklahoma of the death of the designated joint annuitant within six
596596 (6) months of the date of death, nothing in this subsection shall
597597 require the Teachers ' Retirement System of Oklahoma to pay more than
598598 six (6) months of retrospective benefits increase.
599599 Option 1. If he or she dies before he or she has received in
600600 annuity payments the present value of his or her ann uity as it was
601601 at the time of his or her retirement, the balance shall be paid to
602602 his or her legal representatives or to such perso n as he or she
603603 shall nominate by written designation duly acknowledged and filed
604604 with the System at the time of his or her re tirement; or
605605 Option 2. A member takes a reduced retirement allowance for
606606 life. Upon the death of the member the payments shall co ntinue to
607607 the member's designated joint annuitant for the life of the joint
608608 annuitant. The written designation of the joint annuitant must be
609609 duly acknowledged and filed with the System at the time of the
610610 member's retirement and, except as provided in par agraph (e) of this
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637637 subsection, cannot be changed after the effective date of the
638638 member's retirement; or
639639 Option 3. A member receives a reduced retirement allowance for
640640 life. Upon the death of the member one -half (1/2) of the retirement
641641 allowance paid the member shall be continued throughout the life of
642642 the designated joint annuitant. A written designation of a joint
643643 annuitant must be duly acknowledged and filed with the System at the
644644 time of the member's retirement and, except as provided in paragraph
645645 (e) of this subsection, cannot be changed after the effective date
646646 of the member's retirement; or
647647 Option 4. Some other benefit or benefits shall be paid either
648648 to the member or to such joint annuitant as he or she shall
649649 nominate, provided such other benefit or benefits, together with the
650650 reduced retirement allowance, shall be certified by the actuary to
651651 be of equivalent actuarial value to his or her retirement allowance
652652 and shall be approved by the System.
653653 (d) Provided that Option 2 and Option 3 shall not b e available
654654 if the member's expected benefit is less than fifty percent (50%) of
655655 the lump-sum actuarial equivalent and the de signated joint annuitant
656656 is not the spouse of the member.
657657 (e) A member who chose the maximum retirement benefit plan at
658658 the time of retirement may make a one-time election to choose either
659659 Option 2 or 3 and name the member 's spouse as designated joint
660660 annuitant if the member marries after making the initial election.
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687687 Such an election shall be made within one (1) year of the date of
688688 marriage. The member shall provide proof of a member 's good health
689689 before the System will permit a change to either Option 2 or 3 and
690690 the naming of a designated joint annuitant. A medical examination
691691 conducted by a licensed physician is required for purp oses of
692692 determining good health. Such examination must be approved by the
693693 Medical Board. The member shall be required to pr ovide proof of age
694694 for the new joint annuitant. The System shall adjust the monthly
695695 benefit to the actuarially equivalent amount b ased on the new
696696 designated joint annuitant 's age. The Board of Trustees shall
697697 promulgate rules to implement the provisions o f this subsection.
698698 (f) A member who retires after the effective date of this act
699699 and has selected a retirement allowance for a red uced amount payable
700700 under one of the options provided for in this subsection may make a
701701 one-time irrevocable election to sele ct a different option within
702702 sixty (60) days of the member 's retirement date. The beneficiary or
703703 joint annuitant designated by the member at the time of retirement
704704 shall not be changed if the member makes the election provided for
705705 in this paragraph.
706706 (g) Any individual who is eligible to be a beneficiary or joint
707707 annuitant of a member under this subsection, and who is also a
708708 beneficiary of a trust created under the Oklahoma Discretionary and
709709 Special Needs Trust Act, Section 175.81 et seq. of Title 60 of th e
710710 Oklahoma Statutes, or a comparable Trust Act created under the laws
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737737 of another state, hereinafter collectively referred to as "Trust
738738 Acts", may be a beneficiary or joint annuitant under this subsection
739739 by having the trustee of the trust established for t he benefit of
740740 that individual named as the legal beneficiary or joint annuitant
741741 under this subsection. The age of that beneficiary shall be used
742742 for calculating any benefit payable to the trust under this
743743 subsection. The beneficiary of such a trust shall be treated as the
744744 beneficiary or joint annuitant under this subsection except that
745745 payments of any benefits due under this subsect ion shall be payable
746746 to the lawfully appointed trustee of the trust. The obligation of
747747 the System to pay the beneficiary or joint annuitant under this
748748 subsection shall be satisfied by payment to the trustee whom the
749749 System, in good faith, believes to be t he lawfully appointed
750750 trustee. Any conflict between the statutes creating and governing
751751 the Teachers' Retirement System in S ection 17-101 et seq. of this
752752 title and the provisions of any Trust Act referred to above shall be
753753 resolved in favor of the statute s governing the System. If an
754754 eligible beneficiary or joint annuitant is named at the time of
755755 retirement, and becomes a bene ficiary of a trust under one of the
756756 Trust Acts described herein after that time, the System will
757757 acknowledge the trust as the benef iciary upon the submission of
758758 adequate documentation of the existence of the trust. All other
759759 provisions of this subsection shall apply to these subsequently
760760 created trusts.
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787787 (h) The Board of Trustees of the System may recognize other
788788 trusts set up for th e benefit of individuals otherwise eligible to
789789 be named as a beneficiary or joint annuitant under this subsection
790790 by administrative rule if it can be done without undue additional
791791 administrative expense of the System.
792792 (9) The governing board of any "public school", as that term is
793793 defined in Section 17 -101 of this title, is hereby authorized and
794794 empowered to pay additional reti rement allowances or compensation to
795795 any person who was in the employ of such public school for not less
796796 than seven (7) five (5) school years preceding the date of his or
797797 her retirement. Payments so made shall be a proper charge against
798798 the current appropriation o r appropriations of any such public
799799 school for salaries for the fiscal year in which such payments are
800800 made. Such payments shall be made in regular monthly installments
801801 in such amounts as the governing board of any such public school, in
802802 its judgment, shall determine to be reasonable and appropriate in
803803 view of the length and type of service rendered by any such person
804804 to such public school by which such person was employed at the time
805805 of retirement. All such additional payments shall be uniform, based
806806 upon the length of service and the type of services performed, to
807807 persons formerly employed by such public school who have re tired or
808808 been retired in accordance with the provisions of Section 17 -101 et
809809 seq. of this title.
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836836 The governing board of any such publi c school may adopt rules
837837 and regulations of general application outlining the terms and
838838 conditions under which such additi onal retirement benefits shall be
839839 paid, and all decisions of such board shall be final.
840840 (10) In addition to the teachers ' retirement herein provided,
841841 teachers may voluntarily avail themselves of the Federal Social
842842 Security Program upon a district basis.
843843 (11) Upon the death of an in-service member, the System shall
844844 pay to the designated beneficiary of the member or, if there is no
845845 designated beneficiary or if the designated beneficiary predeceases
846846 the member, to the estate of the member, the sum of Eightee n
847847 Thousand Dollars ($18,000.00) as a death benefit. Provided, if the
848848 deceased member had ten (10) year s or more of creditable service ,
849849 the member's designated beneficiary may elect to receive the
850850 retirement benefit to which the deceased member would have been
851851 entitled at the time of death under the Option 2 plan of retirement
852852 in lieu of the death benefit provided for in this subsection.
853853 Provided further, the option provided in this subsection is only
854854 available when the member has designated one individual as the
855855 designated beneficiary. The beneficiary or beneficiaries of death
856856 benefits in the amount not to exceed Eighteen Thousand Doll ars
857857 ($18,000.00), but exclusive of any retirement benefit received by an
858858 electing beneficiary based upon creditable servic e performed by the
859859 deceased member, which are provided pursuant to this subsection may
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886886 elect to disclaim such death benefits in which case such benefits
887887 will be transferred to a person licensed as a funeral director or to
888888 a lawfully recognized business ent ity licensed as required by law to
889889 provide funeral services for the deceased member. The qualified
890890 disclaimer must be in writing and will be an irrevocable and an
891891 unqualified refusal to accept all or a portion of the death benefit.
892892 It must be received by the transferor no more than nine (9) months
893893 after the later of the day the transfer creating the interest in the
894894 disclaiming person i s made or the day the disclaiming person attains
895895 age twenty-one (21) years of age. The interest in the death
896896 benefits must pass without direction by the disclaiming person to
897897 another person.
898898 (12) Upon the death of a retired member who has contributed to
899899 the System, the retirement system shall pay to the designated
900900 beneficiary of the member or, if there is no designated bene ficiary
901901 or if the designated beneficiary predeceases the member, to the
902902 estate of the member, the sum of Five Thousand Dollars ($5,000.00)
903903 as a death benefit. The beneficiary or beneficiaries of benefits
904904 provided pursuant to this subsection may elect to d isclaim such
905905 death benefits in which case such benefits will be transferred to a
906906 person licensed as a funeral director or to a lawfully recognized
907907 business entity licensed as required by law to provide funeral
908908 services for the deceased member. The qualifi ed disclaimer must be
909909 in writing and will be an irrevocable and an unqualified refusal to
910910 RBH No. 5173
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936936 accept all or a portion of the death benefit. It must be received
937937 by the transferor no more than nine (9) months after the later of
938938 the day the transfer creating the interest in the disclaiming person
939939 is made or the day the disclaiming person attains age twenty-one
940940 (21) years of age. The interest in the death benefits must pass
941941 without direction by the disclaiming person to another person. The
942942 benefit payable pursua nt to this subsection shall be deemed, for
943943 purposes of federal income taxation, as life insurance proceeds and
944944 not as a death benefit if the Internal Revenue Se rvice approves this
945945 provision pursuant to a private letter ruling request which shall be
946946 submitted by the Board of Trustees of the System for that purpose.
947947 (13) Upon the death of a member who dies leaving no living
948948 beneficiary or having designated his or her estate as beneficiary,
949949 the System may pay any applicable death benefit, unpaid
950950 contributions, or unpaid benefit which may be subject to probate, in
951951 an amount of Twenty-five Thousand Dollars ($25,000.00) or less,
952952 without the intervention of the probate court or probate procedure
953953 pursuant to Section 1 et seq. of Title 58 of the Oklahoma Statutes.
954954 (a) Before any applicable probate procedure may be waived, the
955955 System must be in receipt of the member 's proof of death and the
956956 following documents from those p ersons claiming to be the legal
957957 heirs of the deceased member:
958958 1. The member's valid last will an d testament, trust
959959 documents or affidavit that a will does not exist;
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986986 2. An affidavit or affidavits of heirship which must
987987 state:
988988 a. the names and signatures of all claiming heirs to
989989 the deceased member's estate including the
990990 claiming heirs' names, relationship to the
991991 deceased, current addresses, tax I.D. numbers if
992992 known and current telephone numbers,
993993 b. a statement or statements by the claiming heirs
994994 that no application or petition for the
995995 appointment of a personal representative is
996996 pending or has been gr anted in any jurisdiction,
997997 c. a description of the personal property claimed,
998998 (i.e., death benefit or unpaid contributions or
999999 both) together with a statement th at such
10001000 personal property is subject to probate,
10011001 d. a statement by each individual claiming heir
10021002 identifying the amount of personal property that
10031003 the heir is claiming from the System, and that
10041004 the heir has been notified of, is aware of and
10051005 consents to the identified claims of all the
10061006 other claiming heirs of the deceased member
10071007 pending with the System ;
10081008 3. A written agreement or agreements signed by all
10091009 claiming heirs of the deceased member which provides
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10361036 that the claiming heirs release, discharge and hold
10371037 harmless the System from any and all liability,
10381038 obligations and costs which it may incur as a resu lt
10391039 of making a payment to any of the deceased member 's
10401040 heirs;
10411041 4. A corroborating affidavit from an individual other
10421042 than a claiming heir, who was familiar with the
10431043 affairs of the deceased member;
10441044 5. Proof that all debts of the deceased member, including
10451045 payment of last sickness, hospital, medical, death,
10461046 funeral and burial expenses have been paid or provided
10471047 for.
10481048 (b) The Executive Director of the System shall re tain complete
10491049 discretion in determining which requests for probate waiver may be
10501050 granted or denied, for any reason. Should the System have any
10511051 question as to the validity of any document presented by the
10521052 claiming heirs, or as to any statement or assertion contained
10531053 therein, the probate requirement provided for in Section 1 et seq.
10541054 of Title 58 of the Oklahoma Statutes shall not be waived.
10551055 (c) After paying any death benefits or unpaid contributions to
10561056 any claiming heirs as provided pursuant to this subsecti on, the
10571057 System is discharged and released from any and all liability,
10581058 obligation and costs to th e same extent as if the System had dealt
10591059 with a personal representative of the deceased member. The System
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10861086 is not required to inquire into the truth of any mat ter specified in
10871087 this subsection or into the payment of any estate tax liability.
10881088 (14) Upon the death of a retired member, the benefit payment
10891089 for the month in which the retired member died, if not previously
10901090 paid, shall be made to the joint annuitant if still living, to the
10911091 beneficiary of the member if the joint annuitant is deceased, or to
10921092 the member's estate if there is no surviving joint annuitant or
10931093 beneficiary. Such benefit payment shall be made in an amount equal
10941094 to a full monthly benefit payment r egardless of the day of the month
10951095 in which the retired member died.
10961096 SECTION 2. This act shall become effective November 1, 2023.
10971097
10981098 59-1-5173 EK 11/07/22
10991099
11001100 THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
11011101 2512 E. 71
11021102 st
11031103 Street , Suite D ∙ Tulsa, Oklahoma 74136
11041104 (918) 492-9658 ∙ (918) 492- 9659
11051105
11061106
11071107
11081108
11091109 January 6, 2023
11101110
11111111
11121112
11131113 Representative Toni Hasenbeck
11141114 Room 244
11151115
11161116
11171117 Re: RBH No. 5173
11181118
11191119
11201120 RBH No. 5173 reduces the length of service to be vested to 5 years
11211121 from 7 years for OTRS participants entering the system after
11221122 10/31/2017.
11231123
11241124
11251125 Participants who entered prior to 11/01/2017 the length of service
11261126 was already 5 years.
11271127
11281128 RBH No. 5173 is a fiscal bill as defined by OPLAAA.
11291129
11301130
11311131
11321132 I am a member of the American Academ y of Actuaries and meet the
11331133 Qualification Standards of the American Academy of Actuaries to
11341134 render the actuarial opinion herein.
11351135
11361136
11371137 Thomas E. Cummins
11381138
11391139 Thomas E. Cummins, MAAA
11401140
11411141
11421142
11431143
11441144