Oklahoma 2023 Regular Session

Oklahoma House Bill HB2131 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	An Act
2		-	ENROLLED HOUSE
	1	+	RBH No. 5474
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3	34		BILL NO. 2131 By: George and McDugle of the
4	35		House
5	36
6	37		and
7	38
8	39		Jett of the Senate
9		-
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15	45		An Act relating to retirement; amending 11 O.S. 202 1,
16	46		Sections 50-109, 50-110, and 50-124, which relate to
17	47		the Oklahoma Police Pension and Retirement System;
18	48		modifying how certain sums shall be paid; providing
19	49		exception; and providing an effective date .
20	50
21	51
22	52
23		-	~~SUBJECT: Retirement~~
	53	+
24	54
25	55		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
26		-
27	56		SECTION 1. AMENDATORY 11 O.S. 2021, Section 50-109, is
28	57		amended to read as follows:
29		-
30	58		Section 50-109. Any municipality particip ating in the System
31	59		shall appropriate funds, for the use and benefit of the System, as
32	60		provided in the following schedule:
33		-
34	61		1. Prior to July 1, 1991, a minimum of ten percent (10%) of the
35	62		actual paid base salary of each member of the System employed by the
36		-	municipality;
	63	+	municipality; RBH No. 5474
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37	90
38	91		2. Beginning July 1, 1991, a minimum of ten and one -half
39	92		percent (10 1/2%) of the actual paid base salary of each member of
40	93		the System employed by the municipality;
41		-
42	94		3. Beginning July 1, 1992, a minimum of eleven percent (11%) of
43	95		the actual paid base salary of each member of the System employed by
44	96		the municipality;
45		-	RBH No. 5474
46		-	ENR. H. B. NO. 2131 Page 2
47	97		4. Beginning July 1, 1993, a minimum of eleven and one -half
48	98		percent (11 1/2%) of the actual paid base salary of each me mber of
49	99		the System employed by the municipality;
50		-
51	100		5. Beginning July 1, 1994, a minimum of twelve percent (12%) of
52	101		the actual paid base salary of each m ember of the System employed by
53	102		the municipality;
54		-
55	103		6. Beginning July 1, 1995, a minimum of twelve and one -half
56	104		percent (12 1/2%) of the actual paid base salary of e ach member of
57	105		the System employed by the municipality; and
58		-
59	106		7. Beginning July 1, 1996, a min imum of thirteen percent (13%)
60	107		of the actual paid base salary of each member of the System employed
61	108		by the municipality.
62		-
63	109		The sum appropriated shall be paid online to the System within
64	110		ten (10) days following the payroll period on which the contribution
65	111		is based.
	112	+	The state shall make such appropriation as is necessary to
	113	+	assure the retirement benefits provided by the article. RBH No. 5474
66	114
67		-	The state shall make such appropriation as is necessary to
68		-	assure the retirement benefits provided by the article.
	115	+	SENATE FLOOR VERSION - HB2131 SFLR Page 3
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69	140
70	141		SECTION 2. AMENDATORY 11 O.S. 2021, Section 50 -110, is
71	142		amended to read as follows:
72		-
73	143		Section 50-110. A. Each member in the System shall contribute
74	144		to the System a minimum of eight percent (8%) of the member's actual
75	145		paid base salary.
76		-
77	146		At the option of the participating municipalit y, the
78	147		participating municipality may pay all or any part of the member's
79	148		required contribution. The sums contributed shall be paid online to
80	149		the System as provided in this article within ten (10) days
81	150		following the payroll period on which the contributions are based.
82	151		Amounts deducted from the salary of a memb er and not paid to the
83	152		System after thirty (30) days from each ending payroll date s hall be
84	153		subject to a monthly late charge of one and one-half percent (1
85	154		1/2%) of the unpaid balance to be paid by the muni cipality to the
86	155		System. All funds received by a p articipating municipality f or
87	156		police retirement purposes shall be forwarded to the S tate Board for
88	157		credit to the Fund.
89		-
90	158		B. Each municipality shall pick up under the provisions of
91		-	Section 414(h)(2) of the In ternal Revenue Code of 1986 and pay the RBH No. 5474
92		-	ENR. H. B. NO. 2131 Page 3
	159	+	Section 414(h)(2) of the In ternal Revenue Code of 1986 and pay the
93	160		contribution which the member is requ ired by law to make to the
94	161		System for all compensation ea rned after December 31, 1988.
95	162		Although the contributions so picked up are designated as member
96	163		contributions, such contri butions shall be treated as contributions
97		-	being paid by the municipality in l ieu of contributions by the
	164	+	being paid by the municipality in l ieu of contributions by the RBH No. 5474
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	166	+	SENATE FLOOR VERSION - HB2131 SFLR Page 4
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98	192		member in determining tax tre atment under the Internal Revenue Code
99	193		of 1986 and such picked up contributions shall not be includable in
100	194		the gross income of the member until such amounts are distributed or
101	195		made available to the m ember or the beneficiary of the member. The
102	196		member, by the terms of this System, shall not have any opti on to
103	197		choose to receive the contributions so picked up directly and the
104	198		picked up contributions must be paid by the municipa lity to the
105	199		System.
106		-
107	200		Member contributions which are picked up shall be treated in the
108	201		same manner and to the same extent as member contributions made
109	202		prior to the date on which member contributions were pick ed up by
110	203		the municipality. Member contributions s o picked up shall be
111	204		included in gross salary for purposes of determining benefits a nd
112	205		contributions under the System.
113		-
114	206		The municipality shall pay the member contributions from the
115	207		same source of funds used in paying salary to the member, by
116	208		effecting an equal cash reduction in gross salary of the member.
117		-
118	209		SECTION 3. AMENDATORY 11 O.S. 2021, Section 50-124, is
119	210		amended to read as follows:
120		-
121	211		Section 50-124. A. Except as otherwise provided by this
122	212		section, no portion of any of the funds o f the System shall, eithe r
123	213		before or after any order made by the State Board fo r payment to any
124	214		person entitled to a pension or al lowance, be held, seized, taken,
125		-	subjected to, or detained, or levied on by virtue of any
	215	+	subjected to, or detained, or levied on by virtue of any RBH No. 5474
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126	243		garnishment, attachment, execution, injunction, or other orde r or
127	244		decree or any process or proceeding whatever, iss ued out of or by
128	245		any court of this state for the pa yment or satisfaction, in whole or
129	246		in part, of any debt, damage, claim, demand or judgment against any
130	247		such person entitled to payment, nor shall said payments or any
131	248		claim thereto be directly or indirectl y assigned, and any attempt to
132	249		assign or transfer t he same shall be void. The said funds shall be
133	250		held, invested, secured and distributed for the purposes named in
134	251		this article, and for no other purpos e whatever.
135		-	RBH No. 5474
136		-	ENR. H. B. NO. 2131 Page 4
137	252		B. 1. The provisions of subsection A of this section shall not
138	253		apply to a qualified domestic order as provided pursuant to this
139	254		subsection.
140		-
141	255		2. The term "qualified domestic order " means an order issued by
142	256		a district court of this state pursua nt to the domestic relation
143	257		laws of the State of Oklah oma which relates to the provision of
144	258		marital property rights to a spouse or former spouse of a member or
145	259		provision of support for a minor child or children and which creates
146	260		or recognizes the existence of the right of an alternate payee, or
147	261		assigns to an alternate payee the right, to receive a portion of the
148	262		benefits payable with respect to a member of the System.
149		-
150	263		3. For purposes of the payment of marital property, to qualify
151	264		as an alternate payee, a s pouse or former spouse must have been
152		-	married to the related member for a period of not less than thirty
	265	+	married to the related member for a period of not less than thirty RBH No. 5474
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153	293		(30) continuous months immediately preceding the commencement of the
154	294		proceedings from which the qualified domestic order issue s.
155		-
156	295		4. A qualified domest ic order is valid and binding on the State
157	296		Board and the related member only if it meets the requirements of
158	297		this subsection.
159		-
160	298		5. A qualified domestic order shall clearly specify:
161		-
162	299		a. the name and last-known mailing address (if any) of
163	300		the member and the na me and mailing address of the
164	301		alternate payee covered by the order,
165		-
166	302		b. the amount or percentage of the me mber's benefits to
167	303		be paid by the System to the alternate payee,
168		-
169	304		c. the number of payments or period to which such order
170	305		applies,
171		-
172	306		d. the characterization of the benefit as to marital
173	307		property rights or chi ld support, and
174		-
175	308		e. each plan to which such order applies.
176		-
177	309		6. A qualified domestic order meets the requirements of this
178	310		subsection only if such order:
179		-	RBH No. 5474
180		-	ENR. H. B. NO. 2131 Page 5
181	311		a. does not require the Sy stem to provide any type or
182	312		form of benefit, or any option not otherwise provid ed
183	313		under state law as relates to the System,
	314	+	b. does not require the System to provide increased
	315	+	benefits, and RBH No. 5474
184	316
185		-	b. does not require the Sys tem to provide increased
186		-	benefits, and
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187	342
188	343		c. does not require the payment of benefits to an
189	344		alternate payee which are required to be paid to
190	345		another alternate payee pursuant to another or der
191	346		previously determined to be a qualified domestic order
192	347		or an order recognized by the System as a valid order
193	348		prior to the effective date of this act.
194		-
195	349		7. A qualified domesti c order shall not require payment of
196	350		benefits to an alternate payee prior to th e actual retirement date
197	351		of the related member.
198		-
199	352		8. The obligation of the System to pay an alternate payee
200	353		pursuant to a qualified domestic order shall cease upon the death of
201	354		the related member.
202		-
203	355		9. This subsection shall not be subject to the provisions o f
204	356		the Employee Retirement Income Security Act of 19 74 (ERISA), 29
205	357		U.S.C.A. Section 1001, et seq., as amended from time to time, or
206	358		rules and regulations promulgated thereunder, and court cases
207	359		interpreting said act.
208		-
209	360		10. The Oklahoma Police Pension and Ret irement Board shall
210	361		promulgate such rules as are ne cessary to implement the provisions
211	362		of this subsection.
212		-
213	363		11. An alternate payee who has acquired beneficiary rights
214	364		pursuant to a valid qualified domes tic order must fully comply with
215		-	all provisions of the rules promulgated by the State Board pursuant
	365	+	all provisions of the rules promulgated by the State Board pursuant RBH No. 5474
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216	393		to this subsection in order to continue receiving his or her
217	394		benefit.
218		-
219	395		C. Notwithstanding any other provision of law to the contra ry,
220	396		effective August 5, 1 997, the State Board may approve any offset of
221	397		a member's benefit to pay a judgment or settlement against the
222	398		member for a crime involving the System or for a breach of the
223	399		member's fiduciary duty to the System, provided such offse t is in
224	400		accordance with the requirements of Section 401(a)(13) of the
225		-	Internal Revenue Code of 1986, as amende d. RBH No. 5474
226		-	ENR. H. B. NO. 2131 Page 6
227		-
228		-	D. The provisions of subsection A of this section shall not
	401	+	Internal Revenue Code of 1986, as amended.
	402	+	D. The provision of subsection A of this section shall not
229	403		apply to a Child Support Enforcement Division order for a support
230	404		arrearage pursuant to Section 240.23 of Ti tle 56 of the Oklahoma
231	405		Statutes and current child supp ort payments made pursuant to a valid
232	406		court order.
233		-
234	407		SECTION 4. This act shall become effective November 1, 2023.
235		-	RBH No. 5474
236		-	ENR. H. B. NO. 2131 Page 7
237		-	Passed the House of Representatives the 20th day of March, 2023.
238		-
239		-
240		-
241		-
242		-	Presiding Officer of the House
243		-	of Representatives
244		-
245		-
246		-
247		-	Passed the Senate the 18th day of April, 2023.
248		-
249		-
250		-
251		-
252		-	Presiding Officer of the Senate
253		-
254		-
255		-
256		-	OFFICE OF THE GOVERNOR
257		-	Received by the Office of the Governor this ____________________
258		-	day of ___________________, 20_______, at _______ o'clock _______ M.
259		-	By: _________________________________
260		-	Approved by the Governor of the State of Oklahoma this _____ ____
261		-	day of ___________________, 20_______, at _______ o'clock _______ M.
262		-
263		-
264		-	_________________________________
265		-	Governor of the State of Oklahoma
266		-
267		-	OFFICE OF THE SECRETARY OF STATE
268		-	Received by the Office of the Secretary of State this __________
269		-	day of ___________________, 20_______, at _______ o'clock _______ M.
270		-	By: _________________________________
271		-
272		-	THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
273		-	2512 E. 71
274		-	st
275		-	Street , Suite D ∙ Tulsa, Oklahoma 74136
276		-	(918) 492-9658 ∙ (918) 492- 9659
277		-
278		-
279		-
280		-
281		-	December 29, 2022
282		-
283		-
284		-
285		-	Representative John George
286		-	Room 504
287		-
288		-
289		-
290		-	Re: RHB No. 5474
291		-
292		-
293		-
294		-	RBH No. 5474 requires municipal and participants contributions to
295		-	Police Pension and Retirement System be remitted online .
296		-
297		-
298		-	RBH No. 5474 is a nonfiscal bill as defined by OPLAAA.
299		-
300		-	I am a member of the American Academy of Actuaries and meet the
301		-	Qualification Standards of the American Academy of Actuaries to
302		-	render the actuarial opinion herein.
303		-
304		-
305		-	Thomas E. Cummins
306		-
307		-	Thomas E. Cummins, MAAA
308		-
309		-
310		-
	408	+	COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE
	409	+	April 4, 2023 - DO PASS