RBH No. 8002
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SENATE FLOOR VERSION
April 12, 2023
ENGROSSED HOUSE
BILL NO. 2171 By: Hilbert, Fugate, Deck, and
Rosecrants of the House
and
Montgomery and Pemberton of
the Senate
[ public retirement systems - retirement benefit
distribution - codification - effective dates -
emergency ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 3103, as
amended by Section 1, Chapter 306, O.S.L. 2022 (62 O.S. Supp. 2022,
Section 3103), is amended to read as follows :
Section 3103. As used in the Oklahoma Pension Legislation
Actuarial Analysis Act:
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;
2. "RB number" means that number precede d by the letters "RB"
assigned to a retirement bill by the respective staffs of the
Oklahoma State Senate and the Oklahoma House of Representatives when RBH No. 8002
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the respective staff office prepares a retirement bill for a member
of the Legislature;
3. "Legislative Actuary" means the firm or entity that enters
into a contract with the Legislative Service Bureau pursuant to
Section 452.15 of Title 74 of the Oklahoma Statutes to provide 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" means 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
(3) increase the normal cost of the retirement system
affected by the bill, RBH No. 8002
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c. which authorizes the purchase 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 purposes 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 computation 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 result 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 November 1, 2018,
if such persons had any prior service in t he Oklahoma
Public Employees Retirement System prior to November
1, 2015,
f. which provides for a one-time increase in retirement
benefits if the increase in retirement benefits is not RBH No. 8002
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a permanent increase in the gross annual retirement
benefit payable to a member 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%) after the benefit
increase is paid,
(2) the lesser of two percent (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 h undred 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
Thousand Four Hundred Dollars ($1,400.00) and
requires that the benefit may only be provided if RBH No. 8002
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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 Dolla rs ($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 Firefighters Pension and
Retirement System as a paid firefighter.
As used in this subparagr aph, "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 applicable
retirement system,
g. which modifies the disability pension standard for
police officers who are members of the Oklahoma Police
Pension and Retirement System as provi ded by Section 3
50-115 of this act Title 11 of the Oklahoma Statutes,
h. which provides a cost-of-living benefit increase
pursuant to the provisions of:
(1) Section 49-143.7 of Title 11 of the Oklahoma
Statutes, RBH No. 8002
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(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 provides a retirement benefit distr ibution
pursuant to the provisions of this act .
A nonfiscal retirement bill shall include any retirement bill
that has as its sole purpose the appropriation or distribution or
redistribution of monies in some manner to a retirement system for
purposes of reducing the unfunded liability of such system or the
earmarking of a portion of the revenue from a tax to a reti rement
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 RBH No. 8002
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bill as such cost is deter mined 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 cre ates 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 fr om such tax is earmarked
for the benefit of a reti rement system;
8. "Retirement bill having a fiscal impact" means any
retirement bill creating or establishing 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 Oklahoma
Firefighters Pension and Retirement System, the Oklahoma Police
Pension and Retirement System, the Oklahoma Law Enf orcement
Retirement System, or a retirement system established after January
1, 2006.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 49-143.8 of Title 11, unless
there is created a duplication in numbering, reads as follows: RBH No. 8002
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The board of trustees of the Oklahoma Firefi ghters Pension and
Retirement System shall provide a one-time retirement benefit
distribution subject to the following con ditions:
1. The retirement benefit increase may only be provided to a
member of the System w ho has been retired for two (2) or more years
as of the effective date of the benefit increase;
2. The retirement benefit increase for members receiving a
benefit pursuant to Section 49 -106 of Title 11 of the Oklahoma
Statutes shall be One Thousand Five Hundred Dollars ($1,500.00) or
greater but shall not exceed Three Thousand Two Hundred Dollars
($3,200.00). Provided, however, that retir ed members receiving a
benefit pursuant to Section 49 -106 of Title 11 of the Oklahoma
Statutes who are seventy-five (75) years of age or older shall
receive Five Hundred Dollars ($500.00), whi ch shall not be included
in the benefit amount limitation, in addition to the retirement
benefit increase to be calculated pursuant to paragraph 4 o f this
section. The retirement benefit increase for members receiving a
benefit pursuant to Section 49 -101 of Title 11 of the Oklahoma
Statutes shall be One Hundred Fifty Dollars ($15 0.00);
3. The retirement benefit increase shall not be a modification
of the final average compensation used in order to compute the
retirement benefit of the member; and
4. The retirement benefit increa se may only be computed by
using the then-applicable gross annual retirement benefi t for the RBH No. 8002
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member divided by the whole number twelve (12). The resulting
amount may be paid to the retired member in addition to the
retirement benefits otherwise payable to the member.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 50-136.10 of Title 11, unless
there is created a duplication in numberi ng, reads as follows:
The board of trustees of the Oklaho ma Police Pension and
Retirement System shall provide a one-time retirement benefit
distribution subject to the following conditions:
1. The retirement benef it increase may only be provided to a
member of the System who has been r etired for two (2) or more years
as of the effective date of the be nefit increase;
2. The retirement benefit increase shall be One Thousand Five
Hundred Dollars ($1,500.00) or greater but shall not exceed Three
Thousand Two Hundred Dollars ($3,200.00). Provided, however, that
retired members who are seventy -five (75) years of age or older
shall receive Five Hundred Dollars ($500.00), which shall not be
included in the benefit amount limitation, in addition to the
retirement benefit increase to be calculat ed pursuant to paragraph 4
of this section;
3. The retirement benefit increase shall not be a modification
of the final average compensation used in order to compute the
retirement benefit of the member; and RBH No. 8002
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4. The retirement benefit increase may only be computed by
using the then-applicable gross annual retirement benefit for the
member divided by the whole n umber twelve (12). The resulting
amount may be paid to the retired member in addition to the
retirement benefits otherwise payable to the member.
SECTION 4. NEW LAW A new section of law to b e codified
in the Oklahoma Statutes as Se ction 1104L of Title 20, unless there
is created a duplication in numbering , reads as follows:
The board of trustees of the Uniform Retirement System for
Justices and Judges shall provide a one-time retirement benefit
distribution subject to the following conditions:
1. The retirement benefit increase may only be provided to a
member of the System who has been retired for two (2) or more years
as of the effective date of the benefit increase;
2. The retirement benefit increase shall be One Thousand Five
Hundred Dollars ($1,500.00) or greater but shall not exceed Three
Thousand Two Hundred Dollars ($3,200.00). Provided, however, that
retired members who are seventy-five (75) years of age or older
shall receive Five Hundred Dollars ($500.00), which shall no t be
included in the benefit am ount limitation, in addition to the
retirement benefit increase to be calculated purs uant to paragraph 4
of this section; RBH No. 8002
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3. The retirement benefit increase shall not be a modification
of the final average compensation used in order to compute the
retirement benefit of the member ; and
4. The retirement benefit increase may only be computed by
using the then-applicable gross annual retirement benefit for the
member divided by the whole number twelve (12). The resulting
amount may be paid to the retired me mber in addition to the
retirement benefits otherwise payable to the member.
SECTION 5. NEW LAW A new section of law t o be codified
in the Oklahoma Statutes as Section 2-305.13 of Title 47, unless
there is created a duplication in n umbering, reads as follows:
The board of trustees of the Oklahoma Law Enforcement Retirement
System shall provide a one-time retirement benefit distribution
subject to the following co nditions:
1. The retirement benefit incr ease may only be provided to a
member of the System who has been retired for two (2) or more years
as of the effective date of the benefit increase ;
2. The retirement benefit increase shall be One Thousand Five
Hundred Dollars ($1,500.00) or greater but shall not exceed Three
Thousand Two Hundred Dollars ($3,200.00). Provided, however, that
retired members who are sev enty-five (75) years of age or o lder
shall receive Five Hundred Dollars ($500.00), which shall not be
included in the benefit amount limitat ion, in addition to the RBH No. 8002
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retirement benefit increase to be calculated pursua nt to paragraph 4
of this section;
3. The retirement benefit increase shall not be a modification
of the final average compensation used in order to compute the
retirement benefit of the member; and
4. The retirement benefit increase may only be computed by
using the then-applicable gross annual retirement benefit f or the
member divided by the whole number twelve (12). The resulting
amount may be paid to the retired member in addi tion to the
retirement benefits otherwise payable to the member.
SECTION 6. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as S ection 17-116.23 of Title 70, unless
there is created a duplication in numbering, r eads as follows:
The board of trustees of the Teachers' Retirement System of
Oklahoma shall provide a one-time retirement benefit distribution
subject to the following con ditions:
1. The retirement benefit increase may only be provided to a
member of the System who has been retired for two (2) or more years
as of the effective d ate of the benefit increase;
2. The retirement benefit increase shall be One Thousand Five
Hundred Dollars ($1,500.00) or greater but shall not exceed Three
Thousand Two Hundred Dollars ($3,200.00). Provided, however, that
retired members who are seventy -five (75) years of age or older
shall receive Five Hundred Dollars ($500.00), which shall not be RBH No. 8002
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included in the benefit amount limitation, in addition to the
retirement benefit in crease to be calculated pursua nt to paragraph 4
of this section;
3. The retirement benefit increase shall not be a modification
of the final average compensation used in or der to compute the
retirement benefit of t he member; and
4. The retirement benefit increase may only be computed by
using the then-applicable gross annual retirement benefit for the
member divided by the whole number twelve (12). The resulting
amount may be paid to the retired member in addition to the
retirement benefits otherwise payable to the member.
SECTION 7. NEW LAW A new sectio n of law to be codified
in the Oklahoma Statutes as Section 930.12 of Title 74, unless there
is created a duplication in numbering, reads as follows:
The board of trustees of the Oklahoma Public Employees
Retirement System shall provide a one-time retirement benefit
distribution subject to the following conditions:
1. The retirement benefit increase m ay only be provided to a
member of the System who has been retired for two (2) or more years
as of the effective date of the benefit increase ;
2. The retirement benefit increase shall be One Thousand Five
Hundred Dollars ($1,500.00) or greater but shall not exceed Three
Thousand Two Hundred Dolla rs ($3,200.00). Provided, however, that
retired members who are sevent y-five (75) years of age or older RBH No. 8002
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shall receive Five Hundred Dollars ($500.00), which shall not be
included in the benefit amount limitation, i n addition to the
retirement benefit incre ase to be calculated pursuant to paragrap h 4
of this section;
3. The retirement benefit increase shall not be a modification
of the final average compensation used in order to compute the
retirement benefit of the member; and
4. The retirement benefit in crease may only be computed by
using the then-applicable gross annual retirement benefit for the
member divided by the whole number twelve (12). The resulting
amount may be paid to the ret ired member in addition to the
retirement benefits otherwise payabl e to the member.
SECTION 8. If the Emergency Clause is not approved pursuant to
the requirements of the Oklahoma Constitution as part of this
measure, the effective date of Section 1 of this act sh all be
October 1, 2023.
SECTION 9. If the Emergency Clause is not approved pursuant to
the requirements of the Oklahoma Constitution as part of this
measure, the effective date of Sections 2 through 7 of this act
shall be November 1, 2023.
SECTION 10. Except as otherwise provided by Section 8 of this
act, Section 1 of this act shall become effective immediately upon
signature by the Governor or as otherwise provided by Section 58 of
Article V of the Oklahoma Constitution. RBH No. 8002
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SECTION 11. Except as otherwise provided by Section 9 of this
act, Sections 2 through 7 of this act shall become effective July 1,
2023.
SECTION 12. It being immediately necessary for the preservation
of the public peace, heal th or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage an d approval.
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
April 12, 2023 - DO PASS