Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB448 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1		RBH No. 8175
2		-	ENGR. H. A. to ENGR. S. B. NO. 448 Page 1 1
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	3	+	SB448 HFLR Page 1
	4	+	BOLD FACE denotes Committee Amendments. 1
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27		-	ENGROSSED HOUSE AMENDME NT
28		-	TO
29		-	ENGROSSED SENATE BILL NO . 448 By: Montgomery of the Senate
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 59th Legislature (2023)
	34	+
	35	+	COMMITTEE SUBSTITUTE
	36	+	FOR ENGROSSED
	37	+	SENATE BILL NO. 448 By: Montgomery of the Senate
30	38
31	39		and
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33	41		Lepak of the House
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	47	+	COMMITTEE SUBSTITUTE
	48	+
39	49		An Act relating to retirement benefits payment;
40		-	amending 20 O.S. 2021, Section 110 2C, which relates
41		-	to payment to members of the Un iform Retirement
42		-	System for Justices and Judges; conforming language;
43		-	amending 74 O.S. 2021, Section 918, which rela tes to
44		-	payment to members of the Oklahoma Public Employees
45		-	Retirement System; conforming language; and providing
46		-	an effective date.
47		-
48		-
49		-
50		-
51		-
52		-
53		-
54		-
55		-	AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
56		-	and insert:
57		-
58		-
59		-	"An Act relating to retirement benefits payment;
60	50		amending 20 O.S. 2021, Section 110 2C, which relates
61	51		to the Uniform Retirement System for Justices and
62	52		Judges; conforming language; providing that spousal
63	53		consent is not required for certain election;
64	54		amending 74 O.S. 2021, Sections 918 and 935.7, which
65	55		relate to the Oklahoma Public Employees Retirement
66	56		System; conforming language; providing that spousal
67	57		consent is not required for certain election;
68	58		authorizing that certain contributions be used as
69	59		permitted by federal l aw; and providing an effective
70	60		date.
71	61
72	62
73		-	RBH No. 8175
74		-	ENGR. H. A. to ENGR. S. B. NO. 448 Page 2 1
	63	+
	64	+
	65	+	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
	66	+	SECTION 1. AMENDATORY 20 O.S. 2021, Section 1102C, is
	67	+	amended to read as follows:
	68	+	Section 1102C. A. Except as otherwi se provided for in this
	69	+	section and Section 1104.2 of this title, members who join the
	70	+	Uniform Retirement System for Justices and Judges on September 1, RBH No. 8175
	71	+
	72	+	SB448 HFLR Page 2
	73	+	BOLD FACE denotes Committee Amendments. 1
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99		-	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
100		-	SECTION 1. AMENDATORY 20 O.S. 2021, Section 1102C, is
101		-	amended to read as follows:
102		-	Section 1102C. A. Except as otherwi se provided for in this
103		-	section and Section 1104.2 of this title, members who join the
104		-	Uniform Retirement System for Justices and Judges on September 1,
105	98		2005, or thereafter, may elect to have th e retirement benefit paid
106	99		under one of the options provided in this section in lieu of having
107	100		it paid in the form stated in Section 1104 of this title. The
108	101		election of an option must be made prior to the member ’s retirement
109	102		date or to receipt of a benefit after termination of service with a
110	103		vested benefit. A specif ic person must be designated as joint
111	104		annuitant at the time of the election of Option A or B. Election of
112	105		an option is available with respect to the vested benefit. All
113	106		retirement benefits of a married member shall be paid pursuant to
114	107		the Option A plan or Option B plan as provided for in this section
115	108		unless the spouse of a member consents in writing for the unreduced
116	109		benefits to be paid as provided for in S ection 1104 of this title.
117	110		The spouse of the member is not required to consent in writing to
118	111		the election of the Option B plan by the member.
119	112		B. The amount of retirement benefit payable under an option
120	113		shall be based on the age and sex of the member and the age and sex
121		-	of the joint annuitant at the reti rement date, and sha ll be such RBH No. 8175
122		-	ENGR. H. A. to ENGR. S. B. NO. 448 Page 3 1
	114	+	of the joint annuitant at the reti rement date, and sha ll be such
	115	+	amount as to be the actuarial equivalent of the retirement benefit
	116	+	otherwise payable under Section 1104 of this title.
	117	+	C. The retirement options are:
	118	+	Option A. Joint and one -half to joint annuitant survivor. A
	119	+	reduced retirement benefit is pa yable to the retiree during h is or
	120	+	her lifetime with one-half (1/2) of that amount continued to the
	121	+	joint annuitant during such joint annuitant’s remaining lifetime, if RBH No. 8175
	122	+
	123	+	SB448 HFLR Page 3
	124	+	BOLD FACE denotes Committee Amendments. 1
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147		-	amount as to be the actuarial equivalent of the retirement benefit
148		-	otherwise payable under Section 1104 of this title.
149		-	C. The retirement options are:
150		-	Option A. Joint and one -half to joint annuit ant survivor. A
151		-	reduced retirement benefit is pa yable to the retiree during h is or
152		-	her lifetime with one-half (1/2) of that amount continued to the
153		-	joint annuitant during such joint annuitant’s remaining lifetime, if
154	149		any, after the death of the retiree. If the named joint annuitant
155	150		dies at any time aft er the member’s retirement date, but before the
156	151		death of the retiree, the retiree shall return to the unreduced
157	152		retirement benefit, including any postretirement post-retirement
158	153		benefit increases, the member would have received had the member not
159	154		selected Option A. The benefit shall be det ermined at the date of
160	155		death of the named joint annuitant. This increase shall become
161	156		effective the first day of the month following the date of death of
162	157		the named joint annuitant, and shall be payable for the retiree ’s
163	158		remaining lifetime. The retiree sh all notify the Uniform Retirement
164	159		System for Justices and Judges of the death of the named joint
165	160		annuitant in writing. In the absence of the written no tice being
166	161		filed by the member notifying the Uniform Retirement Sy stem for
167	162		Justices and Judges of the de ath of the named joint annuitant within
168	163		six (6) months of the date of death, nothing in this subsection
169	164		shall require the Uniform Retirement System for Justices and Judges
170		-	to pay more than six (6) months of retrospecti ve benefits increase. RBH No. 8175
171		-	ENGR. H. A. to ENGR. S. B. NO. 448 Page 4 1
	165	+	to pay more than six (6) months of retrospecti ve benefits increase.
	166	+	Option B. Joint and survivor. A reduced retirement benefit is
	167	+	payable to the retiree during his or her lifetime with that amount
	168	+	continued to the joint annuitant duri ng the joint annuitant ’s
	169	+	remaining lifetime, if any, after the dea th of the retiree. If the
	170	+	named joint annuitant dies at any time after the member’s retirement
	171	+	date, but before the death of the retiree, the retiree shall return
	172	+	to the unreduced retiremen t benefit, including any postretirement RBH No. 8175
	173	+
	174	+	SB448 HFLR Page 4
	175	+	BOLD FACE denotes Committee Amendments. 1
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196		-	Option B. Joint and survivor. A reduced retirement benefit is
197		-	payable to the retiree during his or her lifetime with that amount
198		-	continued to the joint annuitant duri ng the joint annuitan t’s
199		-	remaining lifetime, if any, after the dea th of the retiree. If the
200		-	named joint annuitant dies at any time after the member’s retirement
201		-	date, but before the death of the retiree, the retiree shall return
202		-	to the unreduced retiremen t benefit, including any postretirement
203	200		post-retirement benefit increases, the member would have receive d
204	201		had the member not selected Option B. The benefit shall be
205	202		determined at the date of death of the named joint annuitant. This
206	203		increase shall become effective the first day of the month following
207	204		the date of death of th e named joint annuitant, and shall be payable
208	205		for the retiree’s remaining lifetime. The retiree shall notify the
209	206		Uniform Retirement System for Justices and Judges of the death of
210	207		the named joint annuitant in writing. In the absence of such
211	208		written notice being filed by the member notifyi ng the Uniform
212	209		Retirement System for Justices and Judges of the death of the named
213	210		joint annuitant within six (6) months of the date of death, nothing
214	211		in this subsection shall require the Uniform Retirement System for
215	212		Justices and Judges to pay more than s ix (6) months of retrospective
216	213		benefits increase.
217	214		D. If a member who is eligible to retire in accordance with the
218	215		provisions of this section or Section 1104 of this title but is not
219		-	actually retired or is eligible to vest or has elected a vested RBH No. 8175
220		-	ENGR. H. A. to ENGR. S. B. NO. 448 Page 5 1
	216	+	actually retired or is eligible to vest or has elected a vested
	217	+	benefit dies, the member’s spouse may elect to receive benefits as a
	218	+	joint annuitant under Option B, calculated as if the member retired
	219	+	on the date of death, in lieu of receiving the member ’s accumulated
	220	+	contributions. However, n o benefits shall be payable before the
	221	+	date the deceased member would have met the requirements for a
	222	+	normal or early retirement. The provisions of this paragraph shall
	223	+	be applicable to a surviving spouse of a deceased member who died RBH No. 8175
	224	+
	225	+	SB448 HFLR Page 5
	226	+	BOLD FACE denotes Committee Amendments. 1
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245		-	benefit dies, the member’s spouse may elect to receive benefits as a
246		-	joint annuitant under Option B, calculated as if the member retired
247		-	on the date of death, in lieu of receiving th e member’s accumulated
248		-	contributions. However, n o benefits shall be payable before the
249		-	date the deceased member would have met the requirements for a
250		-	normal or early retirement. The provisions of this paragraph shall
251		-	be applicable to a surviving spouse o f a deceased member who died
252	251		prior to the effective date of this act September 1, 2005, but only
253	252		if no benefits or distributions have been previously paid.
254	253		SECTION 2. AMENDATORY 74 O.S. 2021, Section 918, is
255	254		amended to read as follows:
256	255		Section 918. (1) Except as otherwise prov ided for in this
257	256		section and Section 918.1 of this title, a member may elect to have
258	257		the retirement benefit paid under one of the options provided in
259	258		this section in lieu of having it paid in the form stated in Section
260	259		915 of this title. The election of a n option must be made at any
261	260		time prior to retirement or prior to termination of service with a
262	261		vested benefit. A specific person must be designated as joint
263	262		annuitant at the time of election of Option A or B. Election of an
264	263		option is available with resp ect to the vested benefit. Al l
265	264		retirement benefits of a married member shall be paid pursuant to
266	265		the Option A plan or Option B plan as provided for in this section
267	266		unless the spouse of a member consents in writing for the benefits
268		-	to be paid as provided f or in Section 915 of this titl e or pursuant RBH No. 8175
269		-	ENGR. H. A. to ENGR. S. B. NO. 448 Page 6 1
	267	+	to be paid as provided f or in Section 915 of this titl e or pursuant
	268	+	to Option C as provided for in this section. The spouse of the
	269	+	member is not required to consent in writing to the election of the
	270	+	Option B plan by the member.
	271	+	(2) The amount of retirement benefit payable under an option
	272	+	shall be based on the age and sex of the member and the age and sex
	273	+	of the joint annuitant, and shall be such amount as to be the RBH No. 8175
	274	+
	275	+	SB448 HFLR Page 6
	276	+	BOLD FACE denotes Committee Amendments. 1
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294		-	to Option C as provided for in this section. The spouse of the
295		-	member is not required to consent in writing to the election of the
296		-	Option B plan by the member.
297		-	(2) The amount of retirement benefit payable under an option
298		-	shall be based on the age and sex of the member and the age and sex
299		-	of the joint annuitant, and shall be such amount as to be the
300	301		actuarial equivalent of the retirement benefi t otherwise payable
301	302		under Section 915 of this title.
302	303		(3) The retirement options are:
303	304		Option A. Joint and one-half to joint annuitant survivor. A
304	305		reduced retirement benefit is payable to the retiree during his or
305	306		her lifetime with one -half (1/2) of that amount continued to the
306	307		joint annuitant during such joint annuitant ’s remaining lifetime, if
307	308		any, after the death of the retiree. If the named joint annuitant
308	309		dies at any time after the member’s retirement date, but before the
309	310		death of the retiree, the re tiree shall return to the retirement
310	311		benefit, including any post -retirement benefit increases the m ember
311	312		would have received had the member not selected Option A. The
312	313		benefit shall be determined at the date of death of the named joint
313	314		annuitant or July 1, 1994, whichever is later. This increase shall
314	315		become effective the f irst day of the month followi ng the date of
315	316		death of the named joint annuitant or July 1, 1994, whichever is
316	317		later, and shall be payable for the retiree’s remaining lifetime.
317		-	The retiree shall notify the Ok lahoma Public Employees Retirement RBH No. 8175
318		-	ENGR. H. A. to ENGR. S. B. NO. 448 Page 7 1
	318	+	The retiree shall notify the Oklahoma Public Employees Retirement
	319	+	System of the death of the named joint annu itant in writing. In the
	320	+	absence of the written notice being filed by the member notifying
	321	+	the Oklahoma Public Employees Retirement System of the death of t he
	322	+	named joint annuitant within six (6) months of the date of death,
	323	+	nothing in this subsection sha ll require the Oklahoma Public RBH No. 8175
	324	+
	325	+	SB448 HFLR Page 7
	326	+	BOLD FACE denotes Committee Amendments. 1
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343		-	System of the death of the named joint annu itant in writing. In the
344		-	absence of the written notice being filed by the member notifying
345		-	the Oklahoma Public Employees Retirement System of the death of t he
346		-	named joint annuitant within six (6) months of the date of death,
347		-	nothing in this subsection sha ll require the Oklahoma Public
348	351		Employees Retirement System to pay more than six (6) months of
349	352		retrospective benefits increase.
350	353		Option B. Joint and survivor. A reduced retirement benefit is
351	354		payable to the retiree during his or her lifetime with that amoun t
352	355		continued to the joint annuitant during the joint annuitant’s
353	356		remaining lifetime, if any, after the death of the retiree. If the
354	357		named joint annuitant die s at any time after the member ’s retirement
355	358		date, but before the death of the retiree, the retiree shall return
356	359		to the retirement benefit, including any post retirement post-
357	360		retirement benefit increases the member would have received had the
358	361		member not selected Option B. The benefit shall be determined at
359	362		the date of death of the named joint annuitant or Ju ly 1, 1994,
360	363		whichever is later. This increase shall become effective the first
361	364		day of the month following the date of death of the named joint
362	365		annuitant or July 1, 1994, whichever is later, and shall be payable
363	366		for the retiree’s remaining lifetime. The r etiree shall notify the
364	367		Oklahoma Public Employees Retirement System of the death of the
365	368		named joint annuitant in writing. In the absence of such writte n
366		-	notice being filed by the member notifying the Oklahoma Public RBH No. 8175
367		-	ENGR. H. A. to ENGR. S. B. NO. 448 Page 8 1
	369	+	notice being filed by the member notifying the Oklahoma Public
	370	+	Employees Retirement System of the deat h of the named joint
	371	+	annuitant within six (6) months of the date of death, nothing in
	372	+	this subsection shall require the Oklahoma Public Employees
	373	+	Retirement System to pay more than six (6) months of retrospective
	374	+	benefits increase. RBH No. 8175
	375	+
	376	+	SB448 HFLR Page 8
	377	+	BOLD FACE denotes Committee Amendments. 1
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391	401
392		-	Employees Retirement System of the deat h of the named joint
393		-	annuitant within six (6) months of the date of death, nothing in
394		-	this subsection shall require the Oklahoma Public Employees
395		-	Retirement System to pay mo re than six (6) months of retrospective
396		-	benefits increase.
397	402		Option C. Life with ten (10) years certain. A reduced
398	403		retirement benefit is payable to the retiree during his or her
399	404		lifetime and if the retiree dies within the ten -year certain period,
400	405		measured from the commencement of retirement benefits paym ents, such
401	406		payments will be contin ued to the beneficiary during the balance of
402	407		the ten-year certain period. If the retiree dies within the ten-
403	408		year certain period, and there are no livi ng designated
404	409		beneficiaries, the person responsible for the estate of the retiree
405	410		may elect for the esta te to be paid the benefits for the remainder
406	411		of the term or to receive the present value of the remaining benefit
407	412		payments according to rules adopted by the Board of Trustees of the
408	413		System. If the retiree predeceases a de signated beneficiary within
409	414		the ten-year certain period, and the beneficiary dies after the
410	415		beneficiary has begun to receive benefits, the person responsible
411	416		for the estate of the benefi ciary may elect for the estate to be
412	417		paid the benefits for the remaind er of the term or to receive the
413	418		present value of the remaining benefit payments according to rules
414		-	adopted by the Board of Trustees of the System. RBH No. 8175
415		-	ENGR. H. A. to ENGR. S. B. NO. 448 Page 9 1
	419	+	adopted by the Board of Trustees of the System.
	420	+	(4) If the selection of a joint annui tant would violate the
	421	+	distribution requirements contained in Section 918.1 of this title,
	422	+	such selection will not be permitted.
	423	+	(5) If a member who is eligible to retire in accordance with
	424	+	the provisions of Section 914 of this title but is not actually
	425	+	retired or is eligible to vest or has elected a vested benefit dies, RBH No. 8175
	426	+
	427	+	SB448 HFLR Page 9
	428	+	BOLD FACE denotes Committee Amendments. 1
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439	452
440		-	(4) If the selection of a joint annui tant would violate th e
441		-	distribution requirements contained in Section 918.1 of this title,
442		-	such selection will not be permitted.
443		-	(5) If a member who is eligible to retire in accordance with
444		-	the provisions of Section 914 of this title but is not actually
445		-	retired or is eligible to vest or has elected a vested benefit dies,
446	453		the member’s spouse may elect to rec eive benefits as a joint
447	454		annuitant under Option B calculated as if the member retired on the
448	455		date of death, in lieu of receiving the member ’s accumulated
449	456		contributions. However, no benefits shall be payable before the
450	457		date the deceased member would have m et the requirements for a
451	458		normal or early retirement. The provisions of this paragraph shall
452	459		be applicable to a surviving spouse of a deceased member w ho died
453	460		prior to the effective date of this act July 1, 2002, but only if no
454	461		benefits or distributions h ave been previously paid.
455	462		(6) Benefits payable to a joint annuitant shall accrue from the
456	463		first day of the month following the death of a member or ret iree
457	464		and, in the case of Option A and Option B, shall end on the last day
458	465		of the month in which the join t annuitant dies.
459	466		SECTION 3. AMENDATORY 74 O.S. 2021, Section 935.7, is
460	467		amended to read as follows:
461	468		Section 935.7 A. Participating employees shall at all times be
462	469		vested at one hundred percent ( 100%) of their accounts containing
463		-	solely their employee contributions, and the gains or losses on RBH No. 8175
464		-	ENGR. H. A. to ENGR. S. B. NO. 448 Page 10 1
	470	+	solely their employee contributions, and the gains or losses on
	471	+	these contributions. Pa rticipating employees will have investment
	472	+	discretion over thes e accounts within the available options offered
	473	+	by the Board.
	474	+	B. Participating employees shall be vested with respe ct to the
	475	+	employer matching amounts, and the gains or losses on these funds,
	476	+	deposited into their defined contribution system account or acc ounts RBH No. 8175
	477	+
	478	+	SB448 HFLR Page 10
	479	+	BOLD FACE denotes Committee Amendments. 1
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489		-	these contributions. Pa rticipating employees will have investment
490		-	discretion over thes e accounts within the available options offered
491		-	by the Board.
492		-	B. Participating employees shall be vested with respe ct to the
493		-	employer matching amounts, and the gains or losses on these funds,
494		-	deposited into their defined contribution system account or acc ounts
495	504		according to the following schedule based on years of participat ing
496	505		service:
497	506		Year 1 20%
498	507		Year 2 40%
499	508		Year 3 60%
500	509		Year 4 80%
501	510		Year 5 and thereafter 100%
502	511		C. Participating employees will ha ve investment discretion over
503	512		all employer contributions.
504	513		D. For purposes of determining a participating employee's right
505	514		to withdraw employer matching contributions and any inve stment gains
506	515		upon such employer contribution matching amounts, the vesting
507	516		percentages apply at the end of each full year of service as
508	517		described in subsection B of this section.
509	518		E. For participating employees who do not select any investment
510	519		options, the OPERS Board will establish default investment options
511	520		for the contributions received from participating employees and
512		-	default investment op tions for matching em ployer contributions. RBH No. 8175
513		-	ENGR. H. A. to ENGR. S. B. NO. 448 Page 11 1
	521	+	default investment op tions for matching employer contributions.
	522	+	F. To the extent that part icipants leave employment and have
	523	+	not vested in all of the employer contributions, the nonvested
	524	+	employer contributions, i ncluding any gains or losses, shall be
	525	+	immediately forfeited to the 401(a) plan and may be used to offset
	526	+	costs of administering the plan or as permitted by federal law .
	527	+	Upon reemployment with an employer and satisfying the eligibility RBH No. 8175
	528	+
	529	+	SB448 HFLR Page 11
	530	+	BOLD FACE denotes Committee Amendments. 1
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538		-	F. To the extent that part icipants leave employment and have
539		-	not vested in all of the employer contributions, the nonvested
540		-	employer contributions, i ncluding any gains or losses, shall be
541		-	immediately forfeited to the 401(a) plan and may be used to offset
542		-	costs of administering the plan or as permitted by federal law .
543		-	Upon reemployment with an employer and satisfying the eligibility
544	555		requirements to become a participant , the reemployed participant
545	556		shall receive credit for previous service and be vested at the same
546	557		percentage the participant was vested when service was previously
547	558		terminated. However, under no circumstances shall the participant
548	559		be entitled to any previou sly forfeited employer contributions.
549		-	SECTION 4. This act shall become effe ctive November 1, 2023."
550		-	Passed the House of Representatives the 25th day of April, 2023.
	560	+	SECTION 4. This act shall become effe ctive November 1, 2023.
551	561
552		-
553		-
554		-
555		-
556		-	Presiding Officer of the House of
557		-	Representatives
558		-
559		-
560		-	Passed the Senate the ____ day of _______ ___, 2023.
561		-
562		-
563		-
564		-
565		-
566		-	Presiding Officer of the Senate
567		-
568		-
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594		-	ENGROSSED SENATE
595		-	BILL NO. 448 By: Montgomery of the Senate
596		-
597		-	and
598		-
599		-	Lepak of the House
600		-
601		-
602		-
603		-
604		-	An Act relating to retirement benefits payment;
605		-	amending 20 O.S. 2021, Section 110 2C, which relates
606		-	to payment to members of the Unif orm Retirement
607		-	System for Justices and Judges; conforming language;
608		-	amending 74 O.S. 2021, Section 918, which rela tes to
609		-	payment to members of the Oklahoma Public Employees
610		-	Retirement System; conforming language; and providing
611		-	an effective date.
612		-
613		-
614		-
615		-
616		-	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
617		-	SECTION 5. AMENDATORY 20 O.S. 2021, Section 1102C, is
618		-	amended to read as follows:
619		-	Section 1102C. A. Except as otherwi se provided for in this
620		-	section and Section 1104.2 of t his title, members wh o join the
621		-	Uniform Retirement System for Justices and Judges on September 1,
622		-	2005, or thereafter, may elect to have th e retirement benefit paid
623		-	under one of the options provided in this section in lieu of having
624		-	it paid in the form sta ted in Section 1104 o f this title. The
625		-	election of an option must be made prior to the member ’s retirement
626		-	date or to receipt of a benefit after termination of service with a
627		-	vested benefit. A specif ic person must be designated as joint
628		-	annuitant at the time of the election of Option A or B. Election of
629		-
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654		-
655		-	an option is available with respect to the vested benefit. All
656		-	retirement benefits of a married member shall be paid pursuant to
657		-	the Option A plan or Option B plan as provided for in this section
658		-	unless the spouse of a membe r consents in writing for the unreduced
659		-	benefits to be paid as provided for in Section 1104 of this title.
660		-	The spouse of the member is not required to consent in writing to
661		-	the election of the Option B plan by t he member.
662		-	B. The amount of retirement bene fit payable under an option
663		-	shall be based on the age and sex of the member and the age and sex
664		-	of the joint annuitant at the reti rement date, and shall be such
665		-	amount as to be the actuarial equivalent of the ret irement benefit
666		-	otherwise payable under Sect ion 1104 of this title.
667		-	C. The retirement options are:
668		-	Option A. Joint and one -half to joint annuitant survivor. A
669		-	reduced retirement benefit is payable to the retiree during h is or
670		-	her lifetime with one -half (1/2) of that amount c ontinued to the
671		-	joint annuitant during such joint annuitant ’s remaining lifetime, if
672		-	any, after the death of the retiree. If the named joint annuitant
673		-	dies at any time after the member ’s retirement date, but before the
674		-	death of the retiree, the retiree sh all return to the unre duced
675		-	retirement benefit, including any postretirement post-retirement
676		-	benefit increases, the member would have received had the member not
677		-	selected Option A. The benefit shall be det ermined at the date of
678		-	death of the named joint annuitant. This increase shall become
679		-
680		-	ENGR. S. B. NO. 448 Page 3 1
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704		-
705		-	effective the first day of the month following the date of death of
706		-	the named joint annuitant, and shall be payable for the retiree ’s
707		-	remaining lifetime. The retiree sh all notify the Uniform Retirement
708		-	System for Justices and Judges of the death of the named joint
709		-	annuitant in writing. In the absence of the written notice being
710		-	filed by the member notifying the Uniform Retirement Sy stem for
711		-	Justices and Judges of the de ath of the named joint annuitant within
712		-	six (6) months of the date of death, nothing in this subsection
713		-	shall require the Uniform Retirement System for Justices and Judges
714		-	to pay more than six (6) months of retrospecti ve benefits increase.
715		-	Option B. Joint and survivor. A reduced retirement benefit is
716		-	payable to the retiree during his or her lifetime with that amount
717		-	continued to the joint annuitant during the joint annuitant ’s
718		-	remaining lifetime, if any, after the dea th of the retiree. If the
719		-	named joint annuitant dies at any time after the member’s retirement
720		-	date, but before the death of the retiree, the retiree shall return
721		-	to the unreduced retirement benefit, including any postretirement
722		-	post-retirement benefit increases, the mem ber would have receive d
723		-	had the member not select ed Option B. The benefi t shall be
724		-	determined at the date of death of the named joint annuitant. This
725		-	increase shall become effective the first day of the month following
726		-	the date of death of the named join t annuitant, and shall be payable
727		-	for the retiree’s remaining lifetime. The retiree shall notify the
728		-	Uniform Retirement System for Justices and Judges of the death of
729		-
730		-	ENGR. S. B. NO. 448 Page 4 1
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754		-
755		-	the named joint annuitant in writing. In the absence of such
756		-	written notice being filed by the member notifyi ng the Uniform
757		-	Retirement System for Justices and J udges of the death of the named
758		-	joint annuitant within six (6) months of the date of death, nothing
759		-	in this subsection shall require the Uniform Retirement System for
760		-	Justices and Judges to pay more than s ix (6) months of retrospect ive
761		-	benefits increase.
762		-	D. If a member who is eligible to retire in accordance with the
763		-	provisions of this section or Section 1104 of this title but is not
764		-	actually retired or is eligible to vest or has elec ted a vested
765		-	benefit dies, the member’s spouse may elect to receive benef its as a
766		-	joint annuitant under Option B, calculated as if the member retired
767		-	on the date of death, in lieu of receiving the member ’s accumulated
768		-	contributions. However, no benefits s hall be payable before the
769		-	date the deceased memb er would have met the re quirements for a
770		-	normal or early retirement. The provisions of this paragraph shall
771		-	be applicable to a surviving spouse of a deceased member who died
772		-	prior to the effective date of t his act September 1, 2005, but only
773		-	if no benefits or distributions have been previously paid.
774		-	SECTION 6. AMENDATORY 74 O.S. 2021, Section 918, is
775		-	amended to read as follows:
776		-	Section 918. (1) Except as otherwise provided for in this
777		-	section and Section 918.1 of this title, a me mber may elect to have
778		-	the retirement benefit paid under one of the options provided in
779		-
780		-	ENGR. S. B. NO. 448 Page 5 1
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804		-
805		-	this section in lieu of having it paid in the form stated in Section
806		-	915 of this title. The election of an option must be made at any
807		-	time prior to retirement or prior to termination of service with a
808		-	vested benefit. A specific person must be designated as joint
809		-	annuitant at the time of election of Option A or B. Election of an
810		-	option is available with respect to the vested benefit. Al l
811		-	retirement benefits of a marri ed member shall be paid pursuant to
812		-	the Option A plan or Option B plan as provided for in this section
813		-	unless the spouse of a member consents in writing for the benefits
814		-	to be paid as provided for in Section 915 of this titl e or pursuant
815		-	to Option C as provided for in this section. The spouse of the
816		-	member is not required to consent in writing to the election of the
817		-	Option B plan by the member.
818		-	(2) The amount of retirement benefit payable under an option
819		-	shall be based on the age and sex of the member and the age and sex
820		-	of the joint annuitant, and shall be such amount as to be the
821		-	actuarial equivalent of the retirement benefit otherwise payable
822		-	under Section 915 of this title.
823		-	(3) The retirement options are:
824		-	Option A. Joint and one-half to joint annuita nt survivor. A
825		-	reduced retirement benefit is payable to the retiree during his or
826		-	her lifetime with one -half (1/2) of that amount continued to the
827		-	joint annuitant during such joint annuitant ’s remaining lifetime, if
828		-	any, after the death of the retiree. I f the named joint annuitant
829		-
830		-	ENGR. S. B. NO. 448 Page 6 1
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854		-
855		-	dies at any time after the member’s retirement date, but before the
856		-	death of the retiree, the retiree shall return to the retirement
857		-	benefit, including any post -retirement benefit increases the m ember
858		-	would have received had the member not selected Option A. The
859		-	benefit shall be determined at the date of death of the named joint
860		-	annuitant or July 1, 1994, whichever is later. This increase shall
861		-	become effective the first day of the month followi ng the date of
862		-	death of the named joint annuitant or July 1, 1994, whichever is
863		-	later, and shall be payable for the retiree ’s remaining lifetime.
864		-	The retiree shall notify the Oklahoma Public Employees Retirement
865		-	System of the death of the named joint annu itant in writing. In the
866		-	absence of the written notice being filed by the member notifying
867		-	the Oklahoma Public Employees Retirement System of the death of the
868		-	named joint annuitant within six (6) months of the date of death,
869		-	nothing in this subsection sha ll require the Oklahoma Public
870		-	Employees Retirement System to pay more than six (6) months of
871		-	retrospective benefits increase.
872		-	Option B. Joint and survivor. A reduced retirement benefit is
873		-	payable to the retiree during his or her lifetime with that amoun t
874		-	continued to the joint annuitan t during the joint annuitant’s
875		-	remaining lifetime, if any, after the death of the retiree. If the
876		-	named joint annuitant dies at any time after the member ’s retirement
877		-	date, but before the death of the retiree, the retiree shall return
878		-	to the retirement be nefit, including any post retirement post-
879		-
880		-	ENGR. S. B. NO. 448 Page 7 1
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904		-
905		-	retirement benefit increases the member would have received had the
906		-	member not selected Option B. The benefit shall be determined at
907		-	the date of death of the named joint annuitant or Ju ly 1, 1994,
908		-	whichever is later. This increase shal l become effective the first
909		-	day of the month following the date of death of the named joint
910		-	annuitant or July 1, 1994, whichever is later, and shall be payable
911		-	for the retiree’s remaining lifetime. The r etiree shall notify the
912		-	Oklahoma Public Employees R etirement System of the death of the
913		-	named joint annuitant in writing. In the absence of such written
914		-	notice being filed by the member notifying the Oklahoma Public
915		-	Employees Retirement System of the deat h of the named joint
916		-	annuitant within six (6) month s of the date of death, nothing in
917		-	this subsection shall require the Oklahoma Public Employees
918		-	Retirement System to pay more than six (6) months of retrospective
919		-	benefits increase.
920		-	Option C. Life with ten (10) years certain. A reduced
921		-	retirement benefit is payable to the retiree during his or her
922		-	lifetime and if the retiree dies within the ten -year certain period,
923		-	measured from the commencement of retirement benefits payments, such
924		-	payments will be contin ued to the beneficiary during the balance of
925		-	the ten-year certain period. If the retiree dies within the ten-
926		-	year certain period, and there are no living designated
927		-	beneficiaries, the person responsible for the estate of the retiree
928		-	may elect for the esta te to be paid the benefits for the remainder
929		-
930		-	ENGR. S. B. NO. 448 Page 8 1
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954		-
955		-	of the term or to receive the present value of the remaining benefit
956		-	payments according to rules adopted by the Board of Trustees of the
957		-	System. If the retiree predeceases a designated beneficiary within
958		-	the ten-year certain period, and the beneficiary dies aft er the
959		-	beneficiary has begun to receive benefits, the person responsible
960		-	for the estate of the beneficiary may elect for the estate to be
961		-	paid the benefits for the remainder of the term or to receive the
962		-	present value of the remaining benefit payments acco rding to rules
963		-	adopted by the Board of Trustees of the System.
964		-	(4) If the selection of a joint annuitant would violate the
965		-	distribution requirements contained in Section 918.1 of this title,
966		-	such selection will not be permitted.
967		-	(5) If a member who is el igible to retire in accordance with
968		-	the provisions of Section 914 of this title but is not actually
969		-	retired or is eligible to vest or has elected a vested benefit dies,
970		-	the member’s spouse may elect to rec eive benefits as a joint
971		-	annuitant under Option B c alculated as if the member retired on the
972		-	date of death, in lieu of receiving the member ’s accumulated
973		-	contributions. However, no benefits shall be payable before the
974		-	date the deceased member would have m et the requirements for a
975		-	normal or early retiremen t. The provisions of this paragraph shall
976		-	be applicable to a surviving spouse of a deceased member who died
977		-	prior to the effective date of this act July 1, 2002, but only if no
978		-	benefits or distributions h ave been previously paid .
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980		-	ENGR. S. B. NO. 448 Page 9 1
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1005		-	(6) Benefits payable to a joint annuitant sha ll accrue from the
1006		-	first day of the month following the death of a member or retiree
1007		-	and, in the case of Option A and Option B, shall end on the last day
1008		-	of the month in which the join t annuitant dies.
1009		-	SECTION 7. This act shall become effe ctive November 1, 2023.
1010		-	Passed the Senate the 14th day of March, 2023.
1011		-
1012		-
1013		-
1014		-	Presiding Officer of the Senate
1015		-
1016		-
1017		-	Passed the House of Representatives the ____ day of __________,
1018		-	2023.
1019		-
1020		-
1021		-
1022		-	Presiding Officer of the House
1023		-	of Representatives
1024		-
1025		-
	562	+	COMMITTEE REPORT BY: COMMITTEE ON BANKING, FI NANCIAL SERVICES AND
	563	+	PENSIONS, dated 04/11/2023 - DO PASS, As Amended.