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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
ENGROSSED SENATE
BILL NO. 447 By: Montgomery of the Senate
and
Lepak of the House
An Act relating to Oklahoma Public Employ ees
Retirement System; amending 74 O.S. 2021, Sec tion
917, which relates to payment of vested benefits;
updating statutory language; making language gender
neutral; providing that payment under certain
circumstances shall not reinstate membership in
System; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 917, is
amended to read as follows:
Section 917. (1) Upon termination of employmen t with a
participating employer, not followed by em ployment with such
participating employ er, or another participating employer, within
four (4) calendar mo nths, the member shall be paid an amount equal
to the amount of money he or she has paid into the Sy stem upon the
filing of the proper application with the System. Payment of these
accumulated contributions may be made in less than four (4) calendar
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months only in the event that a member is not eligible to elect a
vested benefit pursuant to this section and said the member is
terminally ill, as evidence d by a physician’s certification that the
member is not expected to live beyond four (4) months.
(2) If such member has completed eight (8) years of credited
service at date of termination or if the membe r is a legislative
session employee of the Legislat ure or if the employee is a session
employee employed by the Legislative Service Bureau, four (4) years
of credited service at date of termination, he or she may elect a
vested benefit in lieu of receiving his or her accumulated
contributions. The amount of the vested benefit shall commence at
the normal retirement date and shall be paid monthly during the
lifetime of the retirant with the last payment made on the last day
of the month in which death occur s.
(3) Upon death before the normal or early retir ement date of a
member who has elected a vested benefit, his or her accumulated
contributions shall be paid to his or her beneficiary unless the
spouse of the deceased member elects monthly benefits as pro vided
for in Section 918 of this title.
(4) Upon death after the normal or early retirement date of a
retirant who elected a vested benefit without an option, the excess,
if any, of his or her accumulated contributions over the sum of all
payments of the vested benefit made to da te of death shall be paid
to his or her beneficiary.
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(5) If a former employee, who meet s the eligibility
requirements for membership, returns to employment after the
expiration of four (4) calendar months following the termination of
his or her employment and the employee has with drawn his or her
accumulated contributions, he or she may pay to the System the sum
of the accumulated con tributions he or she has withdrawn plus
interest of not to exceed ten per cent (10%), as determined by the
Board, and shall receive the same benefits a s if he or she had never
withdrawn his or her contributions. No member shall be permitted to
take advantage of the payback for restoration of creditable service
more than one time. If a membe r, who has elected a vested benefit,
or a reemployed member, wh o has not withdrawn the member ’s
contributions, again becomes an employee of a participating
employer, the period of absence sh all not be counted as a break in
service; however, the period of a bsence shall not be credited.
(6) Prior to January 1, 1991, me mbers, who at the time of
employment were ineligible for membe rship into the System due to
their age, shall receive benefits fo r the period of ineligibility if
the employer and employee contrib utions are paid to the System for
that ineligible period. No i nterest shall be paid on a payback of
this type. However, eff ective January 1, 1991, to receive benefits,
the member shall pay the amount determined by the Board pursuant to
Section 913.5 of this title.
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(7) When any error in cal culation or participation coverage to
a prior or current employee exists, it shall be th e responsibility
of the participating employer which made the err or to pay the amount
determined by the Board pursuant to Section 913. 5 of this title.
This obligation of the participating emplo yer to pay the amount due
pursuant to this section shall be co nsidered a current obligation of
the employer until the amount is paid in full, regardless of the
dates of the periods of service. Payment made pursuant to this
paragraph shall not reinstate th e membership of a former member of
the system who withdrew his or her employee contributions pursuant
to paragraph (1) of this section.
(8) Upon application to the Board and payment as determined by
the Board, a member of the Sys tem may receive service cr edit for
those years of service that the member was eligible t o receive
service credit from the Teachers ’ Retirement System of Oklah oma. To
receive the service credit, the member shall pay the amount
determined by the Board pursu ant to Section 913.5 of th is title.
(9) Upon the death of a retired member, the benefit payment for
the month in which the retired member died, if not previo usly paid,
shall be made to the beneficiary of the member or to the membe r’s
estate if there is no beneficiary. Such benefi t payment shall be
made in an amount equal to a full monthly b enefit payment regardless
of the day of the month in which the retired member died.
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(10) Subject to the provisions of Sections 918 and 918.1 o f
this title, if there ar e two or more beneficiarie s designated by the
member, upon the member ’s death, the System shall pay any applicable
benefits to any of the beneficiaries that h ave completed all
required paperwork regardless of whether or not all ben eficiaries
have completed such paperwork.
SECTION 2. This act shall become effective November 1, 2023.
COMMITTEE REPORT BY: COMMITTEE ON BANKING, FINANCIAL SERVICES AND
PENSIONS, dated 04/03/2023 - DO PASS.