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Oklahoma OK
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2023 Regular Session
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SB102
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Oklahoma Senate Bill SB102

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Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB102 Compare Versions

Only one version of the bill is available at this time.

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2		RBS No. 382
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53	53		STATE OF OKLAHOMA
54	54
55	55		1st Session of the 59th Legislature (2023)
56	56
57	57		SENATE BILL 102 By: Garvin
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61	61
62	62
63	63		AS INTRODUCED
64	64
65	65		An Act relating to the Oklahoma Police Pension and
66	66		Retirement System; amending 11 O.S . 2021, Sections
67	67		50-101, as amended by Section 2, Ch apter 306, O.S.L.
68	68		2022 (11 O.S. Supp. 2022, Section 50 -101), 50-110,
69	69		and 50-111.1, which relate to definitions, employee
70	70		contributions, and termination of employment;
71	71		modifying definition; increasing minimum employee
72	72		contribution for certain members of System;
73	73		increasing computation of certain monthly benefits ;
74	74		and updating statutory language.
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81	81		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
82	82		SECTION 1. AMENDATORY 11 O.S. 2021, Section 50 -101, as
83	83		amended by Section 2, Chapter 306, O.S.L. 2022 (11 O.S. Supp. 2022,
84	84		Section 50-101), is amended to read as follows:
85	85		Section 50-101. As used in this article:
86	86		1. “System” means the Oklahoma Police Pension and Retirement
87	87		System and all predecessor muni cipal Police Pension and Retirement
88	88		Systems;
89	89		2. “Article” means Article 50 of this title;
90	90		RBS No. 382
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141	141		3. “State Board” means the Oklahoma Police P ension and
142	142		Retirement Board;
143	143		4. “Fund” means the Oklahoma Police Pension and Retirement
144	144		Fund;
145	145		5. “Officer” means any duly appointed and sworn full-time
146	146		officer of the regular police depa rtment of a municipality whose
147	147		duties are to preserve the public pea ce, protect life and property,
148	148		prevent crime, serve warrants, enforce all laws and municipal
149	149		ordinances of this state, a nd any political subdivision thereof, and
150	150		who is authorized to bear arms in the execution of such duties;
151	151		6. “Member” means all eligible officers of a participating
152	152		municipality and any person hired by a participating municipality
153	153		who is undergoing police training to become a permanent police
154	154		officer of the municipality. Effective July 1, 1987, a member does
155	155		not include a “leased employee” as defined under Section 414(n)(2)
156	156		of the Internal Revenue Code of 1986, as amended. Effective July 1,
157	157		1999, any individual who agrees with the participating municipality
158	158		that the individual’s services are to be performed as a leased
159	159		employee or an independent contractor shall not be a member
160	160		regardless of any classification as a common law employee by the
161	161		Internal Revenue Service or any other governmental agency, or any
162	162		court of competent jurisdiction. A member shall include eligible
163	163		commissioned officers of the Oklahoma State Bureau of Narcotics and
164	164		Dangerous Drugs Control, the Oklahoma State Bureau of Investigation,
165	165		RBS No. 382
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216	216		and the Alcoholic Beverage Laws Enforcement Commission who elect to
217	217		participate in the System pursuant to Sect ion 50-111.5 of this
218	218		title;
219	219		7. “Normal retirement date” means the date at which the member
220	220		is eligible to receive the unreduced payments of the m ember’s
221	221		accrued retirement benefit. Such date shall be the first da y of the
222	222		month coinciding with or followin g the date the member comp letes
223	223		twenty (20) years of credited service. If the member’s employment
224	224		continues past the normal retirement date of th e member, the actual
225	225		retirement date of the member shall be the firs t day of the month
226	226		after the member termin ates employment with more than twenty (20)
227	227		years of credited service;
228	228		8. “Credited service” means the period of service used to
229	229		determine the eligibility for and the amount of benefits payable to
230	230		a member. Credited service shall consist of the period dur ing which
231	231		the member participated in the System or the predecessor munic ipal
232	232		systems as an active employee in an eligible membership
233	233		classification, plus any service prior to the establishment of the
234	234		predecessor municipal systems which was credited under t he
235	235		predecessor municipal s ystems or credited service granted by the
236	236		State Board;
237	237		9. “Participating municipality” means a municipality which is
238	238		making contributions to the System on behalf of its officers. The
239	239		Oklahoma State Bureau of Narcotics and Danger ous Drugs Control, the
240	240		RBS No. 382
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291	291		Oklahoma State Bureau of Investigation, and the A lcoholic Beverage
292	292		Laws Enforcement Commission shall be treated in the same manner as a
293	293		participating municipality only regarding those members who elect to
294	294		participate in the System pu rsuant to Section 50-111.5 of this
295	295		title;
296	296		10. “Permanent total disabili ty” means incapacity due to
297	297		accidental injury or occupational disease, to earn any wages in the
298	298		employment for which the member is physically suited and reasonably
299	299		fitted through educa tion, training or experien ce. Further, the
300	300		member must be declared one hundred percent (100%) impaired as
301	301		defined by the “American Medical Associ ation’s Guides to the
302	302		Evaluation of Permanent Impairment” on the basis of a physical
303	303		medical examination by a physician licensed to prac tice medicine in
304	304		this state, as selected by th e State Board;
305	305		11. “Permanent partial disability” means permanent disability
306	306		which is less than permanent total disability as defined in this
307	307		section. The member must be declared no greater than ninety-nine
308	308		percent (99%) impaired as defined by the “American Medical
309	309		Association’s Guides to the Evaluation of Permanent Impairment” on
310	310		the basis of a physical medical examination by a physician lice nsed
311	311		to practice medicine in this state, a s selected by the State Bo ard;
312	312		12. “Permanent in-line disability” means when a police officer
313	313		serving in any capacity at a regular police department of a
314	314		participating municipality becomes so physically or mentally
315	315		RBS No. 382
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366	366		disabled, as determined by an independent medical examiner,
367	367		psychiatrist, or psychologist selected by the State Board, while in,
368	368		and in consequence of, the performance of authorizing activities
369	369		while on duty as an officer that he or she is unable to perform the
370	370		required duties of a police officer;
371	371		13. “Beneficiary” means a member’s surviving spouse or any
372	372		surviving children, including biological and adopted c hildren, at
373	373		the time of the member’s death. The surviving spouse must have been
374	374		married to the member for the thirty (30) continuous months
375	375		immediately preceding th e member’s death, provided a survivin g
376	376		spouse of a member who died while in, and as a conse quence of, the
377	377		performance of the member’s duty for a participating municipality,
378	378		shall not be subject to the thirty-month marriage requirement for
379	379		survivor benefits. A surviving child of a member shal l be a
380	380		beneficiary until reach ing eighteen (18) years of age or twenty-two
381	381		(22) years of age if the child is enrolled full time and regularly
382	382		attending a public or private school or any institution of higher
383	383		education. Any child adopted by a member after the member’s
384	384		retirement shall be a beneficiary only if the child is adopted by
385	385		the member for the thirty (30) continuous months preceding the
386	386		member’s death. Any child who is adopted by a member after the
387	387		member’s retirement and such member dies accidenta lly or as a
388	388		consequence of the performance of the memb er’s duty as a police
389	389		officer shall not be subject to the thirty-month adoption
390	390		RBS No. 382
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441	441		requirement. This definition of beneficiary shall be in addition to
442	442		any other requirement set forth in this article;
443	443		14. “Executive Director” means the managing officer of th e
444	444		System employed by the State Board;
445	445		15. “Eligible employer” means any municipality with a municipal
446	446		police department;
447	447		16. “Entry date” means the date as of whic h an eligible
448	448		employer joins the Syst em. The first entry date purs uant to this
449	449		article shall be January 1, 1981;
450	450		17. “Final average salary” means the average paid base salary
451	451		of the member for normally scheduled hours over the highest salaried
452	452		thirty (30) consecutive months of the last sixt y (60) months of
453	453		credited service. Effective July 1, 2016, the following shall apply
454	454		in computing final average salary:
455	455		a. only paid base salary on which required contributions
456	456		have been made shall be used in computing a member’s
457	457		final average salary,
458	458		b. for purposes of determining th e normal disability
459	459		benefit only, final average salary shall be based on
460	460		the member’s total service if less than thirty (30)
461	461		months,
462	462		c. in addition to other applicable limitations, and
463	463		notwithstanding any other provision to th e contrary,
464	464		for plan years beginning on or after July 1, 2002, the
465	465		RBS No. 382
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516	516		annual compensation of each “Noneligible Member” taken
517	517		into account under the System shall not exceed the
518	518		Economic Growth and Tax Relief Reconciliation Act of
519	519		2001 (EGTRRA) annual compensat ion limit. The EGTRRA
520	520		annual compensation limit is Tw o Hundred Thousand
521	521		Dollars ($200,000.00), as adjusted by the Commissioner
522	522		for increases in the cost of living in accordance with
523	523		Section 401(a)(17)(B) of the Interna l Revenue Code of
524	524		1986, as amended. The annual compensation limit in
525	525		effect for a calendar year applies to any period, not
526	526		exceeding twelve (12) months, over which compensation
527	527		is determined (“determination period”) beginning in
528	528		such calendar year. If a determination period
529	529		consists of fewer than twelve (12) months, the EGTRRA
530	530		annual compensation limit will be multiplied by a
531	531		fraction, the numerator of which is the number of
532	532		months in the determination period, and the
533	533		denominator of which is twelve (12). For purposes of
534	534		this section, a “Noneligible Member” is any member who
535	535		first became a member during a plan year commencing on
536	536		or after July 1, 1996,
537	537		d. for plan years beginning on or after July 1, 2002, any
538	538		reference in the System to the annual compensati on
539	539		limit under Section 401(a)(17) of the Internal Revenue
540	540		RBS No. 382
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591	591		Code of 1986, as amended, shall m ean the EGTRRA annual
592	592		compensation limit set forth in this provision, and
593	593		e. effective January 1, 2008, back pay, within the
594	594		meaning of Section 1.415(c)-2(g)(8) of the Income Tax
595	595		Regulations, shall be t reated as paid base salary for
596	596		the limitation year to which the back pay relates to
597	597		the extent the back pay represents wages and
598	598		compensation that would otherwise be included in this
599	599		definition;
600	600		18. “Accrued retirement benefit” means, for benefits computed
601	601		prior to the effective date of this act , two and one-half percent (2
602	602		1/2%) of the member’s final average salary multiplied b y the
603	603		member’s years of credited service not to exceed thirty (30) years.
604	604		For a member who retires on or after the effective date of this act ,
605	605		“accrued retirement benefit ” shall mean three percent (3%) of the
606	606		member’s final average salary multiplied by the member’s years of
607	607		credited service not to exceed thirty (30) years ;
608	608		19. “Normal disability benefit” means:
609	609		a. for benefits computed prior to the effective date of
610	610		this act, the greater of:
611	611		a. (1) two and one-half percent (2 1/2%) of the
612	612		member’s final average salary multiplied by
613	613		twenty (20) years, notwithstanding the years of
614	614		actual credited service, or
615	615		RBS No. 382
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617	617		Req. No. 382 Page 9 1
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666	666		b. (2) two and one-half percent (2 1/2%) of the
667	667		member’s final average salary multiplied by the
668	668		years of credited service of the member, not to
669	669		exceed thirty (30) years, if the officer has mor e
670	670		than twenty (20) years of credited service,
671	671		b. for benefits computed on or after the effective date
672	672		of this act, the greater of:
673	673		(1) three percent (3%) of the member’s final average
674	674		salary multiplied by twenty (20) years,
675	675		notwithstanding the years of ac tual credited
676	676		service, or
677	677		(2) three percent (3%) of the member ’s final average
678	678		salary multiplied by the years of credited
679	679		service of the member, not to exceed thirty (30)
680	680		years, if the officer has more than twenty (20)
681	681		years of credited service;
682	682		20. “Limitation year” means the year used in applying the
683	683		limitations of Section 415 of the Internal Revenue Code o f 1986, as
684	684		amended, which year shall be the calendar year;
685	685		21. “Paid base salary” means, effective July 1, 2016, any
686	686		compensation described in subparagraph a of this paragraph that is
687	687		not described in subparagraph b of this paragraph.
688	688		a. Paid base salary shall include only:
689	689		RBS No. 382
690	690
691	691		Req. No. 382 Page 10 1
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700	700		10
701	701		11
702	702		12
703	703		13
704	704		14
705	705		15
706	706		16
707	707		17
708	708		18
709	709		19
710	710		20
711	711		21
712	712		22
713	713		23
714	714		24
715	715		1
716	716		2
717	717		3
718	718		4
719	719		5
720	720		6
721	721		7
722	722		8
723	723		9
724	724		10
725	725		11
726	726		12
727	727		13
728	728		14
729	729		15
730	730		16
731	731		17
732	732		18
733	733		19
734	734		20
735	735		21
736	736		22
737	737		23
738	738		24
739	739
740	740		(1) normal compensation paid on a regularly scheduled
741	741		pay period including, but not limited to, regular
742	742		pay for holidays, paid time off, vacation or
743	743		annual leave, sick leave or compensatory time in
744	744		lieu of overtime, any lump sum payment paid in
745	745		lieu of a normal wage increase, provided such
746	746		lump sum payment is retroactively applied over
747	747		the prior twelve-month period ending with the
748	748		payment date, compensation for bomb squad pay,
749	749		education pay, incentive pay, K-9 pay,
750	750		negotiation pay, shift differential, sniper pay,
751	751		SWAT team pay, emergency response team pay, any
752	752		other special unit pay, and any incremental
753	753		increase in compensation which is not included by
754	754		the employer in a member’s regular base pay for
755	755		salary increase purposes but is paid by the
756	756		employer to the member for group health benefits
757	757		based on an arrangement with a par ticipating
758	758		municipality that was in place on December 31,
759	759		2015, so long as the arrangement continues
760	760		uninterrupted for a member employed by a
761	761		participating municipality on June 30, 2016, who
762	762		has not since terminated employment and been
763	763		rehired by such part icipating municipality,
764	764		RBS No. 382
765	765
766	766		Req. No. 382 Page 11 1
767	767		2
768	768		3
769	769		4
770	770		5
771	771		6
772	772		7
773	773		8
774	774		9
775	775		10
776	776		11
777	777		12
778	778		13
779	779		14
780	780		15
781	781		16
782	782		17
783	783		18
784	784		19
785	785		20
786	786		21
787	787		22
788	788		23
789	789		24
790	790		1
791	791		2
792	792		3
793	793		4
794	794		5
795	795		6
796	796		7
797	797		8
798	798		9
799	799		10
800	800		11
801	801		12
802	802		13
803	803		14
804	804		15
805	805		16
806	806		17
807	807		18
808	808		19
809	809		20
810	810		21
811	811		22
812	812		23
813	813		24
814	814
815	815		(2) any amount of elective salary reduction under
816	816		Section 125 of the Internal Revenue Code of 1986,
817	817		as amended, that would have been treated as paid
818	818		base salary but for the salary deferral reduction
819	819		agreement,
820	820		(3) any amount of elective salary reduction not
821	821		includable in the gross income of the member
822	822		under Section 132(f)(4) of the Internal Revenue
823	823		Code of 1986, as amended, that would have been
824	824		treated as paid base salary but for the salary
825	825		deferral reduction agreement,
826	826		(4) any amount of elective salary reduction under
827	827		Section 457 of the Internal Revenue Code of 1986,
828	828		as amended, that would have been treated as paid
829	829		base salary but for the salary d eferral reduction
830	830		agreement,
831	831		(5) any amount of elective salary reduction under
832	832		Section 401(k) of the Internal Revenue Code of
833	833		1986, as amended, that would have been treated as
834	834		paid base salary but for the salary deferral
835	835		reduction agreement,
836	836		(6) any amount of nonelective salary reduction under
837	837		Section 414(h) of the Internal Revenue Code of
838	838		1986, as amended,
839	839		RBS No. 382
840	840
841	841		Req. No. 382 Page 12 1
842	842		2
843	843		3
844	844		4
845	845		5
846	846		6
847	847		7
848	848		8
849	849		9
850	850		10
851	851		11
852	852		12
853	853		13
854	854		14
855	855		15
856	856		16
857	857		17
858	858		18
859	859		19
860	860		20
861	861		21
862	862		22
863	863		23
864	864		24
865	865		1
866	866		2
867	867		3
868	868		4
869	869		5
870	870		6
871	871		7
872	872		8
873	873		9
874	874		10
875	875		11
876	876		12
877	877		13
878	878		14
879	879		15
880	880		16
881	881		17
882	882		18
883	883		19
884	884		20
885	885		21
886	886		22
887	887		23
888	888		24
889	889
890	890		(7) educational allowances paid to obtain training
891	891		certification or pursue an advanced degree,
892	892		(8) longevity payments made to members based upon a
893	893		standardized plan which recognizes length of
894	894		service to the participating municipality,
895	895		(9) paid base salary shall also include base salary,
896	896		as described in divisions (1) through (8) of this
897	897		subparagraph, for services, but paid by the later
898	898		of two and one-half (2 1/2) months after a
899	899		member’s severance from employment or the end of
900	900		the calendar year that includes the date the
901	901		member terminated employment, if it is a payment
902	902		that, absent a severance from employment, would
903	903		have been paid to the member while the mem ber
904	904		continued in employment with the participating
905	905		municipality,
906	906		(10) any payments not described in divisions (1)
907	907		through (9) of this subparagraph shall not be
908	908		considered paid base salary if paid after
909	909		severance from employment, even if they are paid
910	910		by the later of two and one-half (2 1/2) months
911	911		after the date of severance from employment o r
912	912		the end of the calendar year that includes the
913	913		date of severance from employment, except
914	914		RBS No. 382
915	915
916	916		Req. No. 382 Page 13 1
917	917		2
918	918		3
919	919		4
920	920		5
921	921		6
922	922		7
923	923		8
924	924		9
925	925		10
926	926		11
927	927		12
928	928		13
929	929		14
930	930		15
931	931		16
932	932		17
933	933		18
934	934		19
935	935		20
936	936		21
937	937		22
938	938		23
939	939		24
940	940		1
941	941		2
942	942		3
943	943		4
944	944		5
945	945		6
946	946		7
947	947		8
948	948		9
949	949		10
950	950		11
951	951		12
952	952		13
953	953		14
954	954		15
955	955		16
956	956		17
957	957		18
958	958		19
959	959		20
960	960		21
961	961		22
962	962		23
963	963		24
964	964
965	965		payments to an individual who does not currently
966	966		perform services for the par ticipating
967	967		municipality by reason of qualified military
968	968		service within the meaning of Se ction 414(u)(5)
969	969		of the Internal Revenue Code of 1986, as amended,
970	970		to the extent these payments do not exceed the
971	971		amounts the individual would have received if the
972	972		individual had continued to perform services for
973	973		the participating municipality rather than
974	974		entering qualified military service,
975	975		(11) back pay, within the meaning of Section 1.415(c)-
976	976		2(g)(8) of the Income Tax Regulations, shall be
977	977		treated as paid base salary fo r the limitation
978	978		year to which the back pay relates to the extent
979	979		the back pay represent s wages and compensation
980	980		that would otherwise be included in this
981	981		definition, and
982	982		(12) paid base salary shall also include differential
983	983		wage payments under Section 414( u)(12) of the
984	984		Internal Revenue Code of 1986, as amended.
985	985		b. Notwithstanding anything to the contrary in this
986	986		section, paid base salary shall not include any:
987	987		(1) fringe benefits, reimbursements, or increases in
988	988		compensation due to reimbursements to the ext ent
989	989		RBS No. 382
990	990
991	991		Req. No. 382 Page 14 1
992	992		2
993	993		3
994	994		4
995	995		5
996	996		6
997	997		7
998	998		8
999	999		9
1000	1000		10
1001	1001		11
1002	1002		12
1003	1003		13
1004	1004		14
1005	1005		15
1006	1006		16
1007	1007		17
1008	1008		18
1009	1009		19
1010	1010		20
1011	1011		21
1012	1012		22
1013	1013		23
1014	1014		24
1015	1015		1
1016	1016		2
1017	1017		3
1018	1018		4
1019	1019		5
1020	1020		6
1021	1021		7
1022	1022		8
1023	1023		9
1024	1024		10
1025	1025		11
1026	1026		12
1027	1027		13
1028	1028		14
1029	1029		15
1030	1030		16
1031	1031		17
1032	1032		18
1033	1033		19
1034	1034		20
1035	1035		21
1036	1036		22
1037	1037		23
1038	1038		24
1039	1039
1040	1040		not specifically included above in subparagraph a
1041	1041		of this paragraph,
1042	1042		(2) incremental increase in compensation which is not
1043	1043		included by the employer in a member’s regular
1044	1044		base pay for salary increase purposes but is paid
1045	1045		by the employer to the member fo r group health
1046	1046		benefits not otherwise included above in division
1047	1047		(1) of subparagraph a o f this paragraph,
1048	1048		(3) insurance benefits, including any reimbursements
1049	1049		thereof, or insurance proceeds of any type not
1050	1050		otherwise included above in division (1) of
1051	1051		subparagraph a of this paragraph,
1052	1052		(4) bonuses, including signing bonuses, lump -sum
1053	1053		payments or stipends made to the member not
1054	1054		otherwise included above in division (1) of
1055	1055		subparagraph a of this paragraph,
1056	1056		(5) overtime compensation,
1057	1057		(6) payments whether prior to or upon termination of
1058	1058		employment for accumulated unused vacation or
1059	1059		unused annual leave, accumulated unused sick
1060	1060		leave, or accumulated unused paid time off or
1061	1061		other unused leave,
1062	1062		(7) payments made in error to a member,
1063	1063		RBS No. 382
1064	1064
1065	1065		Req. No. 382 Page 15 1
1066	1066		2
1067	1067		3
1068	1068		4
1069	1069		5
1070	1070		6
1071	1071		7
1072	1072		8
1073	1073		9
1074	1074		10
1075	1075		11
1076	1076		12
1077	1077		13
1078	1078		14
1079	1079		15
1080	1080		16
1081	1081		17
1082	1082		18
1083	1083		19
1084	1084		20
1085	1085		21
1086	1086		22
1087	1087		23
1088	1088		24
1089	1089		1
1090	1090		2
1091	1091		3
1092	1092		4
1093	1093		5
1094	1094		6
1095	1095		7
1096	1096		8
1097	1097		9
1098	1098		10
1099	1099		11
1100	1100		12
1101	1101		13
1102	1102		14
1103	1103		15
1104	1104		16
1105	1105		17
1106	1106		18
1107	1107		19
1108	1108		20
1109	1109		21
1110	1110		22
1111	1111		23
1112	1112		24
1113	1113
1114	1114		(8) payments made by the participati ng municipality
1115	1115		for services rendered by the member, which
1116	1116		services are not part of the member’s job duties
1117	1117		and responsibilities of his or her job position
1118	1118		with the participating m unicipality,
1119	1119		(9) severance pay,
1120	1120		(10) unemployment payments, and
1121	1121		(11) uniform and equipment allowances; and
1122	1122		22. “Actuarial equivalent” means equality in value of th e
1123	1123		aggregate amounts expected to be received based on interest rate and
1124	1124		mortality assumption s set by the State Board, in a manner that
1125	1125		precludes employer discretion, and based upon recommendations from
1126	1126		independent professional advisors, and which shall be p ublished
1127	1127		annually in the actuarial report.
1128	1128		SECTION 2. AMENDATORY 11 O.S. 2021, Section 50 -110, is
1129	1129		amended to read as follows:
1130	1130		Section 50-110. A. Each member in the Oklahoma Police Pension
1131	1131		and Retirement System prior to the effecti ve date of this act shall
1132	1132		contribute to the System a minimum of eight percent (8%) of the
1133	1133		member’s actual paid base salary . On or after the effective date of
1134	1134		this act, each member shall contribute to the System a minimum of
1135	1135		nine percent (9%).
1136	1136		At the option of the participatin g municipality, the
1137	1137		participating municipality may pay all or any part of the member ’s
1138	1138		RBS No. 382
1139	1139
1140	1140		Req. No. 382 Page 16 1
1141	1141		2
1142	1142		3
1143	1143		4
1144	1144		5
1145	1145		6
1146	1146		7
1147	1147		8
1148	1148		9
1149	1149		10
1150	1150		11
1151	1151		12
1152	1152		13
1153	1153		14
1154	1154		15
1155	1155		16
1156	1156		17
1157	1157		18
1158	1158		19
1159	1159		20
1160	1160		21
1161	1161		22
1162	1162		23
1163	1163		24
1164	1164		1
1165	1165		2
1166	1166		3
1167	1167		4
1168	1168		5
1169	1169		6
1170	1170		7
1171	1171		8
1172	1172		9
1173	1173		10
1174	1174		11
1175	1175		12
1176	1176		13
1177	1177		14
1178	1178		15
1179	1179		16
1180	1180		17
1181	1181		18
1182	1182		19
1183	1183		20
1184	1184		21
1185	1185		22
1186	1186		23
1187	1187		24
1188	1188
1189	1189		required contribution. The sums contributed shall be paid to th e
1190	1190		System as provided in this article within ten (10) days f ollowing
1191	1191		the payroll period on which the contr ibutions are based. Amounts
1192	1192		deducted from the salary of a member and not paid to the System
1193	1193		after thirty (30) days from each ending payroll date shall be
1194	1194		subject to a monthly late charge of one and one-half percent (1
1195	1195		1/2%) of the unpaid balance to be pai d by the municipality to the
1196	1196		System. All funds received by a participating municipality for
1197	1197		police retirement purposes shall be forwarded to the State Board for
1198	1198		credit to the Fund.
1199	1199		B. Each municipality shall pick up under the provisi ons of
1200	1200		Section 414(h)(2) of the Internal Revenue Code of 1986 and pay the
1201	1201		contribution which the member is required by law to make to the
1202	1202		System for all compensation earned after December 31, 1988.
1203	1203		Although the contributions so pi cked up are designated as member
1204	1204		contributions, such contributions shall be treated as contributions
1205	1205		being paid by the municipality in lieu of contributions by the
1206	1206		member in determining tax treatme nt under the Internal Revenue Code
1207	1207		of 1986 and such picked up contributions shall no t be includable in
1208	1208		the gross income of the member until such amounts are distributed or
1209	1209		made available to the member or the beneficiary of the member. The
1210	1210		member, by the terms of this System, shall not have any option to
1211	1211		choose to receive the contribution s so picked up direct ly and the
1212	1212		RBS No. 382
1213	1213
1214	1214		Req. No. 382 Page 17 1
1215	1215		2
1216	1216		3
1217	1217		4
1218	1218		5
1219	1219		6
1220	1220		7
1221	1221		8
1222	1222		9
1223	1223		10
1224	1224		11
1225	1225		12
1226	1226		13
1227	1227		14
1228	1228		15
1229	1229		16
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1231	1231		18
1232	1232		19
1233	1233		20
1234	1234		21
1235	1235		22
1236	1236		23
1237	1237		24
1238	1238		1
1239	1239		2
1240	1240		3
1241	1241		4
1242	1242		5
1243	1243		6
1244	1244		7
1245	1245		8
1246	1246		9
1247	1247		10
1248	1248		11
1249	1249		12
1250	1250		13
1251	1251		14
1252	1252		15
1253	1253		16
1254	1254		17
1255	1255		18
1256	1256		19
1257	1257		20
1258	1258		21
1259	1259		22
1260	1260		23
1261	1261		24
1262	1262
1263	1263		picked up contributions must be paid by the municipality to the
1264	1264		System.
1265	1265		Member contributions which are picked up shall be treated in the
1266	1266		same manner and to the same extent as member contributions mad e
1267	1267		prior to the date on wh ich member contributi ons were picked up by
1268	1268		the municipality. Member contributions so picked up shall be
1269	1269		included in gross salary for purposes of determining benefits and
1270	1270		contributions under the System.
1271	1271		The municipality shall pay t he member contributions f rom the
1272	1272		same source of funds used in paying salary to the member, by
1273	1273		effecting an equal cash reduction in gross salary of the member.
1274	1274		SECTION 3. AMENDATORY 11 O.S. 2021, Section 50-111.1, is
1275	1275		amended to read as follows:
1276	1276		Section 50-111.1. A. A member who terminates service b efore
1277	1277		normal retirement date , other than by death or disability shall,
1278	1278		upon application filed with the State Board, be refunded from the
1279	1279		Fund an amount equal to the accumulated contribut ions the member has
1280	1280		made to the Fund, but excluding any interest or an y amount
1281	1281		contributed by the municipality or state . If a member withdraws the
1282	1282		member’s accumulated contributions, such member s hall not have any
1283	1283		recourse against the System for any type of additional benefits
1284	1284		including, but not limited to, disability benef its. If a member has
1285	1285		completed ten (10) years of credited service at the date of
1286	1286		RBS No. 382
1287	1287
1288	1288		Req. No. 382 Page 18 1
1289	1289		2
1290	1290		3
1291	1291		4
1292	1292		5
1293	1293		6
1294	1294		7
1295	1295		8
1296	1296		9
1297	1297		10
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1300	1300		13
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1314	1314		3
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1316	1316		5
1317	1317		6
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1319	1319		8
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1322	1322		11
1323	1323		12
1324	1324		13
1325	1325		14
1326	1326		15
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1328	1328		17
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1332	1332		21
1333	1333		22
1334	1334		23
1335	1335		24
1336	1336
1337	1337		termination, the member may elect a vested be nefit in lieu of
1338	1338		receiving the member’s accumulated contrib utions.
1339	1339		If the member who has completed ten (10) or more years of
1340	1340		credited service elects the vest ed benefit, the member shall be
1341	1341		entitled to a monthly retirement annuity commencing on the date the
1342	1342		member reaches fifty (50) years of age or the date the mem ber would
1343	1343		have had twenty (20) years of credited service had the membe r’s
1344	1344		employment continued uni nterrupted, whichever is later . The annual
1345	1345		amount of such retirement annuity shall be equal to two and one-half
1346	1346		percent (2 1/2%) of the annualized final aver age salary multiplied
1347	1347		by the number of years of credited service. For a monthly
1348	1348		retirement annuity commencing on or after the effective date of this
1349	1349		act, the annual amount of such retirement annui ty shall be equal to
1350	1350		three percent (3%) of the annualized fi nal average salary multi plied
1351	1351		by the number of years of credited service.
1352	1352		If a terminated member has elected a vested benefit and
1353	1353		subsequently returns to work as a police officer of a participatin g
1354	1354		municipality, their vested benefit will be set aside and p rior
1355	1355		credited service will be reinstated.
1356	1356		B. If a member who terminates emplo yment and elects a vested
1357	1357		benefit dies prior to being eligible to receive benefits, the
1358	1358		member’s beneficiary shall be entitled to the member’s normal
1359	1359		monthly accrued retirement b enefits on the date the deceased member
1360	1360		would have been eligible to receive th e benefit.
1361	1361		RBS No. 382
1362	1362
1363	1363		Req. No. 382 Page 19 1
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1412	1412		C. Whenever a member has terminated or hereafter terminates
1413	1413		covered employment and has withdrawn or hereaf ter withdraws the
1414	1414		member’s accumulated contributions and has rejoined or hereafter
1415	1415		rejoins the System, the member, upon proper application and approval
1416	1416		by the Board, may pay to the System the sum of the accumulated
1417	1417		contributions the member has withdrawn or hereafter withdraws plus
1418	1418		ten percent (10%) annual interest from the date of withdra wal and
1419	1419		shall receive the same benefits as if the memb er had never withdrawn
1420	1420		the contributions. A lump-sum payment for repayment of any amounts
1421	1421		received because of a membe r’s prior termination may be repaid by
1422	1422		trustee-to-trustee transfers of non-Roth funds from a Section 403(b)
1423	1423		annuity, an eligible Section 4 57(b) plan, and/or a Section 401(a)
1424	1424		qualified plan. Those members who at the time of termination of
1425	1425		employment could not withdraw any of their accumulated contributions
1426	1426		shall receive credited service f or the time employed as an officer
1427	1427		prior to any such termination upon proper application and approval
1428	1428		by the Board. To receive credit for such service, all required
1429	1429		contributions and interest shall be paid within ninety (90) days o f
1430	1430		Board approval of the application. The provisions of this
1431	1431		subsection shall not apply to any member who is receiving benefits
1432	1432		from the System as of July 1, 1987.
1433	1433		D. If an active member dies and does not leave a surviving
1434	1434		beneficiary under paragraph 13 o f Section 50-101 of this title, the
1435	1435		accumulated contributions made to the Syst em by the member shall be
1436	1436		RBS No. 382
1437	1437
1438	1438		Req. No. 382 Page 20 1
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1487	1487		paid to the member’s estate or, if properly designated by the
1488	1488		member, a trust.
1489	1489
1490	1490		59-1-382 RD 1/3/2023 9:13:31 AM