RBH No. 5474
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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 2131 By: George
AS INTRODUCED
An Act relating to retirement; amending 11 O.S. 2021,
Sections 50-109, 50-110, and 50-124, which relate to
the Oklahoma Police Pension an d Retirement System;
modifying how certain sums shall be paid; providing
exception; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 11 O.S. 2021, Section 50 -109, is
amended to read as follows:
Section 50-109. Any municipality particip ating in the System
shall appropriate funds, for the use and benefit of the System, as
provided in the following schedule:
1. Prior to July 1, 1991, a minimum of ten percent (1 0%) of the
actual paid base salary of ea ch member of the System employed by the
municipality;
2. Beginning July 1, 1991, a minimum of ten and one -half
percent (10 1/2%) of the actual paid base salary of each member of
the System employed by the municipali ty; RBH No. 5474
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3. Beginning July 1, 1992, a minimu m of eleven percent (11%) of
the actual paid base salary of each member of the System employed by
the municipality;
4. Beginning July 1, 1993, a minimum of eleven and one -half
percent (11 1/2%) of the actual paid ba se salary of each member of
the System employed by the municipality;
5. Beginning July 1, 1994, a minimum of twelve percent (12%) of
the actual paid base salary of each member of the System employed by
the municipality;
6. Beginning July 1, 1995, a minim um of twelve and one -half
percent (12 1/2%) of the actual paid base salary of e ach member of
the System employed by the municipality; and
7. Beginning July 1, 1996, a minimum of thirteen percent (13%)
of the actual paid base salary of each member of the S ystem employed
by the municipality.
The sum appropriated shall be paid online to the System within
ten (10) days following the payroll period on which the contribution
is based.
The state shall make such appropriation as is necessary to
assure the retirement benefits provided by the article.
SECTION 2. AMENDATORY 11 O.S. 2021, Section 50 -110, is
amended to read as follows: RBH No. 5474
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Section 50-110. A. Each member in the System shall contribute
to the System a minimum of eight percent (8%) of the member's actual
paid base salary.
At the option of the participating municipalit y, the
participating municipality may pay all or any part of the member's
required contribution. The sums contributed shall be paid online to
the System as provided in this article within ten (10) days
following the payroll period on which the contributions are based.
Amounts deducted from the salary of a memb er and not paid to the
System after thirty (30) days from each ending payroll date shall be
subject to a monthly late charge of one and one -half percent (1
1/2%) of the unpaid balance to be paid by the muni cipality to the
System. All funds received by a p articipating municipality for
police retirement purposes shall be forwarded to the State Board for
credit to the Fund.
B. Each municipality shall pick u p under the provisions of
Section 414(h)(2) of the In ternal Revenue Code of 1986 and pay the
contribution which the member is required by law to make to the
System for all compensation earned after December 31, 1988 .
Although the contributions so picked u p are designated as member
contributions, such contri butions shall be treated as contributions
being paid by the municipality in lieu of contributions by the
member in determining tax treatment under the Internal Re venue Code
of 1986 and such picked up con tributions shall not be includable in RBH No. 5474
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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, sha ll not have any option to
choose to receive the contributions so picked up directly and the
picked up contributions must be paid by the municipa lity to the
System.
Member contributions which are picked up shall be treated in the
same manner and to the same extent as member contributions made
prior to the date on which member contributions were pick ed up by
the municipality. Member contributions s o picked up shall be
included in gross salary for purposes of determining benefits and
contributions under the S ystem.
The municipality shall pay the mem ber 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.
SECTION 3. AMENDATORY 11 O.S. 2021, Section 50-124, is
amended to read as fol lows:
Section 50-124. A. Except as otherwise provided by this
section, no portion of any of the funds o f the System shall, either
before or after any order made by the State Board fo r payment to any
person entitled to a pension or allowance, be held, sei zed, taken,
subjected to, or detained, or levied on by virtue of any
garnishment, attachment, execution, injunction, or other order or
decree or any process or proceeding whatever, iss ued out of or by RBH No. 5474
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any court of this state for the payment or satisfaction , in whole or
in part, of any debt, damage, claim, demand or judgment against any
such person entitled to payment, nor shall said payments or any
claim thereto be directly or indirectl y assigned, and any attempt to
assign or transfer the same shall be void . The said funds shall be
held, invested, secured and distributed for the purposes named in
this article, and for no other purpose whatever.
B. 1. The provisions of subsection A of this section shall not
apply to a qualified domestic order as provided p ursuant to this
subsection.
2. The term "qualified domestic order " means an order issued by
a district court of this state pursuant to the domestic relation
laws of the State of Oklah oma which relates to the provis ion of
marital property rights to a spous e or former spouse of a member or
provision of support for a minor child or children and which creates
or recognizes the existence of the right of an alternate payee, or
assigns to an alternate payee the right, to r eceive a portion of the
benefits payable with respect to a member of the System.
3. For purposes of the payment of marital property, to qualify
as an alternate payee, a spouse or former spouse must have been
married to the related member for a period of n ot less than thirty
(30) continuous month s immediately preceding the commencement of the
proceedings from which the qualified domestic order issue s. RBH No. 5474
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4. A qualified domestic order is valid and binding on the State
Board and the related member only if it me ets the requirements of
this subsection.
5. A qualified domestic order shall clearly specify:
a. the name and last-known mailing address (if any) of
the member and the name and mailing address of the
alternate payee covered by the order,
b. the amount or percentage of the member 's benefits to
be paid by the System to the alternate payee,
c. the number of payments or period to which such order
applies,
d. the characterization of the benefit as to marital
property rights or chi ld support, and
e. each plan to which such order applies.
6. A qualified domestic order meets the requirements of this
subsection only if such order:
a. does not require the Sy stem to provide any type or
form of benefit, or any option not otherwise provid ed
under state law as relates t o the System,
b. does not require the Sys tem to provide increased
benefits, and
c. does not require the payment of benefits to an
alternate payee which are required to be paid to
another alternate payee pursuant to another or der RBH No. 5474
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previously determined to be a qualified domestic order
or an order recognized by the System as a valid order
prior to the effective date of this act.
7. A qualified domesti c order shall not require payment of
benefits to an alternate payee prior to th e actual retirement date
of the related member.
8. The obligation of th e System to pay an alternate payee
pursuant to a qualified domestic order shall cease upon the death of
the related member.
9. This subsection shall not be subject to the provisions o f
the Employee Retirement Incom e Security Act of 1974 (ERISA), 29
U.S.C.A. Section 1001, et seq., as amended from time to time, or
rules and regulations promulgated thereunder, and court cases
interpreting said act.
10. The Oklahoma Police Pension and Ret irement Board shall
promulgate such rules as are necessary to implement the provisions
of this subsection.
11. An alternate payee who has acquired beneficiary rights
pursuant to a valid qualified domestic order must fully comply with
all provisions of the rules promulgated by the State Board pursuant
to this subsection in ord er to continue receiving his or her
benefit.
C. Notwithstanding any other provision of law to the contra ry,
effective August 5, 1997, the State Board may approve any offset of RBH No. 5474
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a member's benefit to pay a judgment o r settlement against the
member for a crime involving the System or for a breach of the
member's fiduciary duty to the System, provided such offse t is in
accordance with the requirements of Section 401(a)(13) of the
Internal Revenue Code of 1986, as amende d.
D. The provision of subsection A of this section shall not
apply to a Child Support Enforcement Division order for a support
arrearage pursuant to Section 240.23 of Title 56 o f the Oklahoma
Statutes and current child supp ort payments made pursuant to a valid
court order.
SECTION 4. This act shall become effective November 1, 2023.
59-1-5474 CMA 12/13/22
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
2512 E. 71
st
Street , Suite D ∙ Tulsa, Oklahoma 74136
(918) 492-9658 ∙ (918) 492- 9659
December 29, 2022
Representative John George
Room 504
Re: RHB No. 5474
RBH No. 5474 requires municipal and participants contributions to
Police Pension and Retirement System be remitted online .
RBH No. 5474 is a nonfiscal 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