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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 282 By: Howard
AS INTRODUCED
An Act relating to Oklahoma Public Employees
Retirement System; ame nding 62 O.S. 2021, Section
3103, as last amended by Section 1, Chapte r 306,
O.S.L. 2022 (62 O.S. Supp. 2022, Section 3103) , which
relates to definitions; modifying definition of
nonfiscal retirement bill; amending 74 O. S. 2021,
Section 914, which relates to retirement; decreasing
separation period for a retired member to re turn to
work for former employer; updating statutory
language; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 3103, as
last 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 of
Representatives or Senate, any conference committee of the House of
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Representatives or Senate or by the House of Representatives or
Senate;
2. “RB number” means that number pr eceded 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
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 provide d 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 o f
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,
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(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,
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 f or 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 com putation 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 a s 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,
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if such persons had any prior service in the 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
a permanent increase in the gross ann ual 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 percen t (80%)
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but not greater than one hundred 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 benef it may only be provided if
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 voluntee r
firefighter or One Hundred Dollars ($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 fire fighter.
As used in this subp aragraph, “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 disab ility pension standard for
police officers who are members of the Oklahoma Police
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Pension and Retirement System as provi ded by Section 3
of this act 50-115 of 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,
(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, and
(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 Section 50-115 of Title 11 of the Oklahoma
Statutes, or
j. which modifies the period in which a retired member of
the Oklahoma Public Employees Retirement System is
required to wait prior to re-entering employment w ith
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a former employer pursuant to Section 914 of Title 74
of the Oklahoma Statutes.
A nonfiscal retirement bill shall include any retirement bill th at
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
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 a mended 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 genera ted from 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
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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 Retir ement System, the Oklahoma Po lice
Pension and Retirement System, the Oklahoma Law Enf orcement
Retirement System, or a retirement system established after January
1, 2006.
SECTION 2. AMENDATORY 74 O.S. 202 1, Section 914, is
amended to read as follows:
Section 914. A. The normal retirement date for a member of the
Oklahoma Public Employees Retirement System shall be as defined in
Section 902 of this title, provided memb ers employed on or after
January 1, 1983, shall have six (6) or more years of full-time-
equivalent employment with a participating employer before receiving
any retirement benefits or if the member is a legislative session
employee of the Legislature, shal l have three (3) or more years of
full-time-equivalent employment with a participating employer before
receiving any retirement benefits. In no event shall a normal
retirement date for a member be before six (6) months after the
entry date of the particip ating employer by whom he or she is
employed.
B. A member may be employed beyond the normal retirement date
by the appointing authority of the participating employer. However,
the member may not receive retirement pay so lon g as the member
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continues employment under this act Section 901 et seq. of this
title. Any member who has terminated empl oyment with a
participating employer prior to the month immediately preceding said
such member’s normal retirement date must elect a vested benefit
pursuant to Section 917 o f this title before receiving any
retirement benefits.
C. Notice for retirement shall be filed through the retirement
coordinator for the participating employer in such form and manner
as the Oklahoma Public Employees Retirement Sy stem Board of Trustees
shall prescribe; provided, that such notice for retirem ent shall be
filed with the office of the retirement system at least sixty (60)
days prior to the date sele cted for the member’s retirement;
provided further, that the Executive Director may waive the sixty -
day notice for good cause shown as defined by the Board.
1. The participating employer shall provide the Oklahoma Public
Employees Retirement System with the following information for a
retiring member, no later than the fifteenth day of the month of
retirement: last day physically on the job; last day on payroll;
and final unused sick leave balance.
2. Failure to submit this information by the deadline, or
errors in submitted information tha t result in a disqualification of
retirement eligibility shall be the responsibility of the
participating employ er. In cases where the error results in
disqualification of retirement eligibility, it is the participati ng
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employer’s responsibility to reempl oy the member, or retain the
member on the payroll, for time period required to reach
eligibility, not exceeding two (2) months.
D. No retirement benefits shall be payable to any member until
the first day of the mont h following the termination of the mem ber’s
employment with any participating employer. The type of retirement
benefit selected by a member may not b e changed on or after the
effective date of the member’s retirement. Receipt of workers’
compensation benefits shall in no respect disqualify t he retiree for
benefits.
E. If a retiree should be elected or appointed to any position
or office for which com pensation for service is paid from levies or
taxes imposed by the state or any political subdivision there of, the
retiree shall not receive any retirement benefit for any month for
which the retiree serves in such position or office after the
retiree has received compensation in a sum equal to the amount
allowable as wages or earnings by the Social Security Ad ministration
in any calendar year. T his subsection shall not apply to service
rendered by a retiree as a juror, as a witness in any legal
proceeding or action, as an election boa rd judge or clerk, or in any
other office or position of a similar nature, or to an employer that
is not a participating employer. Provided, further, that any
participating employer who is employing such a retiree shall make
proper written notification to the System informing it of the
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beginning date of such retiree ’s employment and the date such
retiree reaches the maximum compensation allowed by this section in
the calendar year. Any retiree returning to work for a
participating employer shall make cont ributions to the System and
the employer shall do likewise. All retirees who have returned to
employment and participation in the System following retirement
shall have post-retirement benefits calculated on one of the
following methods:
1. All service accumulated from date of reemployment shall be
computed based on the benefit f ormula applicable at that time and
the additional benefits shall be added to the previous benefits.
Such additional benefits shall be calculated each year based upon
additional service accrued from July 1 to June 30 of the previous
year and the additional benefit, if any, will be added to th e
retiree’s monthly benefit beginning January 1, 2000, and each
January 1 thereafter. However, the post -retirement service credit
shall be cumulative, beginning with service credit accrued after the
date of retirement, provided that the retiree has not re ceived a
distribution of the post -retirement contributions.
2. Any retiree who returns to employment with a part icipating
employer may elect not to receive any retirement benefits while so
reemployed. If such an elect ion is made and reemployment is for a
minimum period of thirty -six (36) consecutive months, all service
accumulated from date of reemployment shall be participating
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service. For purposes of determining the retirement benefits of
such a member upon the ter mination of such reemployment all
creditable service of the member shall be computed based on the
benefit formula applicable at the time of terminatio n of such
reemployment. Provided, a retiree who became reemployed prior to
July 1, 1982, and who is reemp loyed for a minimum of thirty -six (36)
consecutive months shall have all the creditable service of such
retiree computed based on the benefit formula applicable at the time
of termination of such reemployment if the retiree elects not to
receive retirement benefits prior to such termination o f
reemployment. A retiree who has waived receipt of the monthly
benefit, but is not reemployed for the full thir ty-six (36)
consecutive months, shall upon termination of such reemployment have
only the additional amoun t added to his or her benefit as if t hey
had not waived the benefit as provided in paragraph 1 of this
subsection.
3. All post-retirement additional benefits shall be calculated
using actual hours worked as well as the actual compensation
received and upon which contributions are paid. Post -retirement
service is not subject to the partial year round -up provisions of
subsection C of Section 913 of this title.
4. A retired member who returns to work for a participating
employer pursuant to this section sha ll be bound by the election
made pursuant to paragraph (2) of subsection A of Section 915 of
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this title if the member had made such election prior to retirement.
If the member had not made such election prior to retirement, the
member may do so during the member’s reemployment with a
participating employer pursuant to this section. A Prior to the
effective date of th is act, a retired member may not be rehired by
their former employer, nor may the retired member be permitted to
enter into an employment con tract of any kind with a former
employer, for a period of one (1) year after the retired member
ended his or her employment with the former employer u nless the
retired member waives his or her benefit under paragraph 2 of this
subsection and returns as a b ona fide employee. On or after the
effective date of this act, the period that shall pr ecede the date a
retired member may return to work for his or her former employer
shall be six (6) months following the date that the retired member
ended his or her employment with the former employer.
F. Except as otherwise provided by subsection G of this
section, any member may elect to retire before his or her normal
retirement date on the first day of any month coinciding with or
following the attainment of age fi fty-five (55), provided such
member has completed ten (10) years of participating service, but i n
no event before six (6) months after the entry date. Any member who
shall retire before the normal retirement date shall receive an
annual retirement benefit adjusted in accordance with the following
percentage schedule:
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Percentage of Normal
Age Retirement Benefit
62 100.00%
61 93.33%
60 86.67%
59 80.00%
58 73.33%
57 66.67%
56 63.33%
55 60.00%
G. Any member whose first participating service occurs on or
after November 1, 2011, may elect to retire before his or her normal
retirement date on the first day of any month coinciding with or
following the attainment of age sixty (60), pro vided such member has
completed ten (10) years of participating service, but in no event
before six (6) months after the entry date. Any member who shall
retire before the normal retirement date shall receive an annual
retirement benefit adjusted in accor dance with the following
percentage schedule:
Percentage of Normal
Age Retirement Benefit
65 100.00%
64 93.33%
63 86.67%
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62 80.00%
61 73.33%
60 66.67%
SECTION 3. Section 1 of this act shall become effective October
1, 2023.
SECTION 4. Section 2 of this act shall become effective
November 1, 2023.
59-1-1526 RD 1/11/2023 4:39:44 PM