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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2023)
COMMITTEE SUBSTITUTE
FOR
HOUSE BILL NO. 1805 By: Hays of the House
and
Murdock of the Senate
COMMITTEE SUBSTITUTE
An Act relating to public retirement systems ;
amending 74 O.S. 2021, Sections 90 2, 915, 916.3,
919.1, and 920A, which relate to the Oklahoma Public
Employees Retirement System definitions, benefit
amount, and contributions ; providing for membership
by emergency medical personnel; conforming language;
establishing employee and employer contributions;
updating statutory language; providing for death
benefits; and providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 902, is
amended to read as follows:
Section 902. As used in Section 901 et seq. of this title:
(1) "System" means the Oklahoma Public Employees Retirement
System as established by this act Section 901 et seq. of this title
and as it may hereafter be amended;
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(2) "Accumulated contributions" means the sum of all
contributions by a member to the System which shall be credited to
the member's account;
(3) "Act" means Sections 901 to 932, inclusive, of th is title;
(4) "Actuarial equivalent " means a deferred income be nefit of
equal value to the accumulated deposits or benefits when computed
upon the basis of the actuarial tables in use by the System;
(5) "Actuarial tables" means the actuarial tables appro ved and
in use by the Board at any given time;
(6) "Actuary" means the actuary or firm of actuaries employed
by the Board at any given time;
(7) "Beneficiary" means any person named by a member to receive
any benefits as prov ided for by Section 901 et se q. of this title.
If there is no beneficiary living at time of member employee's
death, the member's estate shall be the beneficiary;
(8) "Board" means the Oklahoma Public Employees Retirement
System Board of Trustees;
(9) "Compensation" means all salary and wages, as defined by
the Board of Trustees, including amou nts deferred under deferred
compensation agreements entered into between a member and a
participating employer, but exclusive of. Compensation shall not
mean payment for overtime, payable to a member of the System for
personal services performed for a par ticipating employer but shall
not include, compensation or reim bursement for traveling, or moving
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expenses, or any compensation in excess of the maximum compensati on
level, provided:
(a) For compensation for service prior to January 1, 1988,
the maximum compensation level shall be Twenty-five
Thousand Dollars ($25,000 .00) per annum.
For compensation for service on or after January 1,
1988, through June 30, 1994, the maximum compensation
level shall be Forty Thousand Dollars ($40,000.00) per
annum.
For compensation for service on or after July 1, 1994,
through June 30, 1995, the maximum compensation level
shall be Fifty Thousand Dol lars ($50,000.00) per
annum; for compensation for service on or a fter July
1, 1995, through June 30, 1996, the maximum
compensation level shall be Sixty Thousand Dollars
($60,000.00) per annum ; for compensation for service
on or after July 1, 1996, through June 30, 1997, the
maximum compensation level shall be Seventy T housand
Dollars ($70,000.00) per annum; and for compensation
for service on or after July 1, 1997, through June 30,
1998, the maximum compensation level shall be Eighty
Thousand Dollars ($80, 000.00) per annum. For
compensation for services on or after Jul y 1, 1998,
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there shall be no maximum compensation level for
retirement purposes.
(b) Compensation for retirement purposes shall include any
amount of elective salary reduction under Section 4 57
of the Internal Revenue Code of 1 986 and any amount of
nonelective salary reduction under Section 414(h) of
the Internal Revenue Code of 1986.
(c) Notwithstanding any provision to the contr ary, the
compensation taken into account for any employee in
determining the contribution or benefit accruals for
any plan year is limited subject to the annual
compensation limit under Section 401(a)(17) of the
federal Internal Revenue Code.
(d) Current appointed members of the O klahoma Tax
Commission whose salary is constitu tionally limited
and is less than the highest salary allo wed by law for
his or her position shall be allowed, within nine ty
(90) days from the effective date of this act March
21, 2001, to make an election to use the highest
salary allowed by law for the position to whic h the
member was appointed for the purpose s of making
contributions and determination of retirement
benefits. Such election shall be irrevocable and be
in writing. Reappointment to t he same office shall
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not permit a new election. Members appointed to th e
Oklahoma Tax Commission after the effective date of
this act March 21, 2001, shall make such election,
pursuant to this subparagraph, within ninety (90) days
of taking office;
(10) "Credited service" means the sum of partic ipating service,
prior service and elected service;
(11) "Dependent" means a parent, child, or spouse of a member
who is dependent upon the member for at least one-half (1/2) of the
member's support;
(12) "Effective date" means the date upon which the Sy stem
becomes effective by operation of law;
(13) "Eligible employer" means the state and any county, county
hospital, city or town, con servation districts, circuit engineering
districts and any public or private trust in wh ich a county, city or
town participates and is the primary beneficiary, is to be an
eligible employer fo r the purpose of this act only, whose employees
are covered by Social Security and are not covered by or eligible
for another retirement plan authorized under the laws of this state
which is in operation on the initial entry da te. Emergency medical
service districts may join the System upon proper application to the
Board. Provided, affiliation by a county hospital shall be in the
form of a resolution a dopted by the board of control.
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(a) If a class or several classes of employ ees of any
above-defined employers are covered by Social Security
and are not covered by or e ligible for and will not
become eligible for another retireme nt plan authorized
under the laws of this state, which is in operation on
the effective date, such emp loyer shall be deemed an
eligible employer, but only with respect to that class
or those classes of employees as defined in this
section.
(b) A class or several classes of employees who are
covered by Social Securi ty and are not covered by or
eligible for and will not become eligible for another
retirement plan authorized under the laws of this
state, which is in operation on the effective date,
and when the qualifications for employ ment in such
class or classes are set by state law; and when such
class or classes of employees are empl oyed by a county
or municipal government pursuant to such
qualifications; and when the services provided by such
employees are of such nature that they qualify for
matching by or contri butions from state or federal
funds administered by an agency of state government
which qualifies as a participating employer, then the
agency of state government administering the state or
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federal funds shall be deemed an eligible employer,
but only with respect to that class or those classes
of employees as defined in this subsection; provided,
that the required contributions to the ret irement plan
may be withheld from the contributions of state or
federal funds administer ed by the state agency and
transmitted to the System on the same basis as t he
employee and employer cont ributions are transmitted
for the direct employees of the state agency. The
retirement or eligibility for retirement under t he
provisions of law provid ing pensions for service as a
volunteer firefighter shall not render any pe rson
ineligible for participa tion in the benefits provided
for in Section 901 et seq. of this title. An employee
of any public or private trust in which a county, city
or town participates and is the primary benef iciary
shall be deemed to be an eligible e mployee for the
purpose of this act Section 901 et seq. of this title
only.
(c) All employees of the George Nigh Rehabilitation
Institute who elected to retain membership in the
System, pursuant to Section 913.7 of this ti tle, shall
continue to be eligible employees for the purposes o f
this act Section 901 et seq. of this title. The
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George Nigh Rehabilitation Institute shall be
considered a participating employer only for such
employees.
(d) All employees of CompSource Mut ual Insurance Company
who retain membership in the Oklahoma Public Employees
Retirement System pursuant to Section 913.9 of thi s
title shall continue to be eligible employees for the
purposes of the Oklahoma Public Employees Retirement
System. CompSource Mutual Insurance Company shall be
considered a participating employer only for such
employees.
(e) All employees of a successor organization, as defined
by Section 5-60.12 of Title 2 of the Oklahoma
Statutes, who retain membership in the Oklahoma Public
Employees Retirement System pursuant to Section 5-
60.35 of Title 2 of the Oklahoma Statutes shall
continue to be eligible employe es for the purposes of
the Oklahoma Public Employees Retirement System. A
successor organization shall be considered a
participating employer only for such employ ees.
(f) A participating employer of the Teachers ' Retirement
System of Oklahoma, who has one or more employees who
have made an election pursuant to enabling legislation
to retain membership in the System as a result of
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change in administration, shall be considered a
participating employer of the Oklahoma Public
Employees Retirement System only f or such employees;
(14) "Employee" means any officer or employee of a
participating employer, whose employment is not seasonal o r
temporary and whose employment r equires at least one thous and
(1,000) hours of work per year and whose s alary or wage is equa l to
the hourly rate of the monthly minimum wage for state employees.
For those eligible employers outlined in Section 910 of th is title,
the rate shall be equal to the hourly rate of the monthly minimum
wage for that employer. Each employer, whose minim um wage is less
than the state's minimum wage, shall inform the System of the
minimum wage for that employer. This notification shall be by
resolution of the gove rning body.
(a) Any employee of the county extension agents who is not
currently participatin g in the Teachers' Retirement
System of Oklahoma shall be a member of this System.
(b) Eligibility shall not include any employee who is a
contributing member of t he United States Civil Ser vice
Retirement System.
(c) It shall be mandatory for an officer, a ppointee or
employee of the office of district attorney to become
a member of this Syste m if he or she is not currently
participating in a county retirement system . Provided
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further, that if an officer, appointee or employee of
the office of district atto rney is currently
participating in such county retirement system, he or
she is ineligible for this System as long as he or she
is eligible for such county retireme nt system. Any
eligible officer, appointee or employee of the office
of district attorney sh all be given credit for prior
service as defined in this section. The provisions
outlined in Section 917 of this title shall app ly to
those employees who have pre viously withdrawn their
contributions.
(d) Eligibility shall also not in clude any officer or
employee of the Oklahoma Employment Security
Commission, except for those officers and e mployees of
the Commission electing to tr ansfer to this System
pursuant to the provisions of Section 910.1 of this
title or any other class of offi cers or employees
specifically exempted by the laws of this state,
unless there be a consolidation as provide d by Section
912 of this title. Employee s of the Oklahoma
Employment Security Commission who are ine ligible for
enrollment in the Oklahoma Employment Security
Commission Retirement Plan, that was in effect on
January 1, 1964, shall become members of this System.
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(e) Any employee employed by the Legislati ve Service
Bureau, State Senate or House of Representatives for
the full duration of a regular legislative session
shall be eligible for membership in the System
regardless of classification as a temporary employee
and may participate in the System during the regular
legislative session at the option of the employee.
For purposes of this subparagraph, the det ermination
of whether an employee is employed for the full
duration of a regular legislative session shall be
made by the Legislative Service Bureau i f such
employee is employed by the Legislative Service
Bureau, the State Senate if such employee is employ ed
by the State Senate, or by the House of
Representatives if such employee is employed by the
House of Representatives. Each regular legislative
session during which the leg islative employee or an
employee of the Legislative Service Bureau
participates full time shall be counted as six (6)
months of full-time participating service.
(i) Except as otherwise provided by this
subparagraph, once a temporar y session employee
makes a choice to participate or no t, the choice
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shall be binding for all future legisl ative
sessions during which the employee is employed.
(ii) Notwithstanding the provisions of divisio n (i) of
this subparagraph, any employee, who is e ligible
for membership in the System because of the
provisions of this subparagraph and who was
employed by the State Senate or House of
Representatives after January 1, 1989, may file
an election, in a man ner specified by the Board,
to participate as a me mber of the System prior to
September 1, 1989.
(iii) Notwithstanding the provisions of division (i) of
this subparagraph, a temporary legislative
session employee who elected to become a member
of the System may withdraw from the System
effective the day said such employee elected to
participate in the System upon written request to
the Board. Any such request mus t be received by
the Board prior to October 1, 1990. All employee
contributions made by the te mporary legislative
session employee shall be returned to the
employee without interest within four (4) months
of receipt of the written request.
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(iv) A member of the System who did not initially
elect to participate as a member of the System
pursuant to this subparagraph shall be able to
acquire service perfo rmed as a temporary
legislative session employee for periods of
service performed prior to the date upon w hich
the person became a member of the System if:
a. the member files an election with the Syst em
not later than December 31, 2000, to
purchase the prior service; and
b. the member makes payment to the System of
the actuarial cost of the service credit
pursuant to subsection A of Section 913.5 of
this title. The provisions of Section 913.5
of this title shall be applicable to the
purchase of the servic e credit, including
the provisions for determining service
credit in the event of incomplete payment
due to cessation of payments, death,
termination of employment or retirement, but
the payment may extend for a period not to
exceed ninety-six (96) months;
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(15) "Entry date" means the date on which an eligible employer
joins the System. The first entry date p ursuant to Section 901 et
seq. of this title shall be January 1, 1964;
(16) "Executive Director" means the managing officer of the
System employed by the Board under Section 901 et seq. of this
title;
(17) "Federal Internal Revenue Code " means the federal Internal
Revenue Code of 1954 or 1986, as amended and as applicable to a
governmental plan as in effect on July 1, 1999;
(18) "Final average compen sation" means the average annual
compensation, including amounts deferred under deferred compensation
agreements entered into between a member and a participating
employer, up to, but not exceeding the maximum compensation levels
as provided in paragraph ( 9) of this section r eceived during the
highest three (3) of the last ten (10) years of participating
service immediately preceding retirement or termination of
employment and with respect to members wh ose first participating
service occurs on or after July 1, 2013, the compensation received
during the highest five (5) of the last ten (10) years of
participating service immediately preceding retirement or
termination of employment. Provided, no member s hall retire with a
final average compensation unless th e member has made th e required
contributions on such compensation, as defined by the Board of
Trustees;
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(19) "Fiscal year" means the period commencing July 1 of any
year and ending June 30 of the next year. The fiscal year is the
plan year for purposes o f the federal Intern al Revenue Code;
however, the calendar year is the limitation year for purposes of
Section 415 of the federal Internal Revenue Code;
(20) "Fund" means the Oklahoma Public Employees Retirement Fund
as created by Section 901 et seq. of t his title;
(21) "Leave of absence" means a period of absence from
employment without pay, authorized and approved by the employer and
acknowledged to the Board, and which after the effective date does
not exceed two (2) years;
(22) "Member" means an eligible employee or ele cted official
who is in the System and is making the required employee or elected
official contributions, or any former employee or elected official
who shall have made the required contributions to the System and
shall have not receive d a refund or withdr awal;
(23) "Military service" means service in the Armed Forces of
the United States by an honorably discharged person during the
following time periods, as reflected on such perso n's Defense
Department Form 214, not to exceed five (5) years for combined
participating and/or prior service, as follows:
(a) during the following periods, incl uding the beginning
and ending dates, and only for the periods served,
from:
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(i) April 6, 1917, to November 11, 1918, commonly
referred to as World Wa r I,
(ii) September 16, 1940, to December 7, 1941, as a
member of the 45th Division,
(iii) December 7, 1941, to December 31, 1946, commonly
referred to as World War II,
(iv) June 27, 1950, to January 3 1, 1955, commonly
referred to as the Korean Conflict or the Korean
War,
(v) February 28, 1961, to May 7, 1975, commonly
referred to as the Vietnam era, except th at:
a. for the period from February 28, 1961, to
August 4, 1964, military service shall only
include service in the Republic of Vietnam
during that period, and
b. for purposes of determining eligibility for
education and training benefits, such period
shall end on December 31, 1976, or
(vi) August 1, 1990, to December 31, 1991, commonly
referred to as the Gulf War, the Persian Gulf
War, or Operation Des ert Storm, but exclu ding any
person who served on active duty for training
only, unless discharged from su ch active duty for
a service-connected disability;
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(b) during a period of war or combat militar y operation
other than a conflict, war or era listed in
subparagraph (a) of this paragraph, beginning on the
date of Congressional authorization, Congressional
resolution, or Executive Order of the President of the
United States, for the use of the Armed F orces of the
United States in a war or combat military operation,
if such war or combat military operation lasted for a
period of ninety (90) days or more, for a person who
served, and only for the period served, in the area of
responsibility of the war or combat military
operation, but excluding a person who served on active
duty for training only, unless discharged from such
active duty for a service -connected disability, and
provided that the burden of proof of military service
during this period shall b e with the member, who must
present appropriate documen tation establishing such
service.
An eligible member under this paragraph shall include only those
persons who shall have served during the times or in the areas
prescribed in this paragraph, and only if such person provides
appropriate documentation in su ch time and manner a s required by the
System to establish such military service prescribed in this
paragraph, or for service pursuant to subdivision a of division (v)
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of subparagraph (a) of this paragr aph those persons who were awarded
service medals, as a uthorized by the Uni ted States Department of
Defense as reflected in the veteran 's Defense Department Form 214,
related to the Vietnam Conflict for service prior to August 5, 1964;
(24) "Normal retirement date" means the date on which a member
may retire with full retirement benefits as provided in Section 901
et seq. of this title, such date being whichever occurs first:
(a) the first day of the month coinciding with or
following a member's:
(1) sixty-second birthday with respect to members
whose first participating service occurs prior to
November 1, 2011, or
(2) sixty-fifth birthday with respect to members
whose first participating service occurs on or
after November 1, 2011, or with respect to
members whose first participating service occurs
on or after November 1, 2011, reaches who reach a
minimum age of sixty (60) years and who also
reaches reach a normal retirement date pursuant
to subparagraph c of this paragraph,
(b) for any person who initially became a member prior to
July 1, 1992, and who does not reach a normal
retirement date pursuant to divi sion (1) of
subparagraph (a) of this paragraph, the first day of
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the month coinciding with or following the date at
which the sum of a member 's age and number of years of
credited service total eighty (80); such a normal
retirement date will also apply to any person who
became a member of the sending system as defined in
Section 901 et seq. of this title, prior to July 1,
1992, regardless of whether there were breaks in
service after July 1, 1992,
(c) for any person who beca me a member after June 30,
1992, but prior to November 1, 20 11, and who does not
reach a normal retirement date pursuant to division
(1) of subparagraph (a) of this paragraph, the first
day of the month coinciding with or following the date
at which the sum of a member's age and number of years
of credited service total ninety (90),
(d) in addition to subparagraphs (a), (b) and (c) of this
paragraph, the first day of the month coinciding with
or following a member 's completion of at least twenty
(20) years of full-time-equivalent employmen t as:
(i) a correctional or probation and parole officer
with the Department of Corrections and at the
time of retirement, the member was a correctional
or probation and parole officer with the
Department of Corrections, or
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(ii) a correctional officer, pro bation and parole
officer or fugitive apprehension agent with th e
Department of Corrections who is in such position
on June 30, 2004, or who is hired af ter June 30,
2004, and who receives a promotion or change in
job classification after June 30, 2004, to
another position in the Dep artment of
Corrections, so long as su ch officer or agent has
at least five (5) years of service as a
correctional officer, pr obation and parole
officer or fugitive apprehension agent with the
Department, has twenty (20) years of full-time-
equivalent employment with the Department and was
employed by the Department at the time of
retirement, or
(iii) a firefighter with the Oklahoma Military
Department of the State of Oklahoma either
employed for the fir st time on or after July 1,
2002, or who was employed p rior to July 1, 2002,
in such position and who makes the election
authorized by division (2) of subparagraph b of
paragraph (9) of subsection A of Section 915 of
this title and at the time of retiremen t, the
member was a firefighter with the Oklahoma
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Military Department of the State of Oklahoma, and
such member has at least twenty (20) years of
credited service upon which the two and one-half
percent (2 1/2%) multiplier will be used in
calculating the retirement benefit, or
(iv) a public safety officer employed by the Grand
River Dam Authority for the first time on or
after July 1, 2016, or
(v) a deputy sheriff or jailer employed by any county
that is a participating employer in the System
for the first time as a deputy sheriff or j ailer
on or after November 1, 2020, or
(vi) licensed emergency medical personnel, as defined
pursuant to Section 1-2503 of Title 63 of the
Oklahoma Statutes, holding a license issued by
the State Department of Health pursuant to
Section 1-2505 of Title 63 of the Oklahoma
Statutes, including emergency medical responders ,
emergency medical technicians, intermediate
emergency medical tech nicians, advanced emergency
medical technicians, and paramedics employed by
any participating employer as a licensed
emergency medical personnel for the first time on
or after the effective date of this act,
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(e) for those fugitive apprehension agents who retire on
or after July 1, 2002, the first day of the month
coinciding with or following a membe r's completion of
at least twenty (20) years of full -time-equivalent
employment as a fugitive appre hension agent with the
Department of Corrections and at the t ime of
retirement, the member was a fugitive apprehension
agent with the Department of Correctio ns, or
(f) for any member who was continuously employed by an
entity or institution within The Okla homa State System
of Higher Education and whose initial emplo yment with
such entity or institution was prior to July 1, 1992,
and who without a break in serv ice of more than thirty
(30) days became employed by an employer participating
in the Oklahoma Publ ic Employees Retirement System,
the first day of the month co inciding with or
following the date at which the sum of the member's
age and number of years of credited service total
eighty (80);
(25) "Participating employer " means an eligible employer who
has agreed to make contributions to the System on behalf of it s
employees;
(26) "Participating service" means the period of employment
after the entry date f or which credit is granted a member;
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(27) "Prior service" means the period of employment of a memb er
by an eligible employer prior to the member's entry date for which
credit is granted a member under Section 901 et seq. of this title;
(28) "Retirant" or "retiree" means a member who has retired
under the System;
(29) "Retirement benefit" means a monthly income with benefits
accruing from the first day of the m onth coinciding with or
following retirement and ending on the last day of the month in
which death occurs or the actuarial equivalent thereof paid in such
manner as specified by the member pursu ant to Section 901 et seq. of
this title or as otherwise allo wed to be paid at the discretion of
the Board;
(30) "Retirement coordinator" means the individual designated
by each participating employer through whom System transactions and
communication shall be directed;
(31) "Social Security" means the old-age survivors and
disability section of the Federal federal Social Security Act;
(32) "Total disability" means a physical or mental disability
accepted for disability benefits by the Federal federal Social
Security System;
(33) "Service-connected disability benefits " means military
service benefits which are for a s ervice-connected disability rated
at twenty percent (20%) or more by the Veterans Administration or
the Armed Forces of the United States;
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(34) "Elected official" means a person elected to a state
office in the legislative or executive branch of state gov ernment or
a person elected to a county office for a definite number of years
and shall include an individual who is appointed to fill the
unexpired term of an elected state official;
(35) "Elected service" means the period of service as an
elected official;
(36) "Limitation year" means the year used in applying the
limitations of Section 415 of the Internal Revenue Code of 1986,
which year shall be the calendar year; and
(37) "Public safety officers of the Grand River Dam Authority"
means those persons hired by the Grand River Dam Authority o n or
after the effective date of this act March 21, 2001, who are
certified by the Council on Law E nforcement Education and Training
or an equivalent certifying entity for law enfor cement personnel
training and who perform law enforcement functions as part of their
regularly assigned duties and responsib ilities on a full-time basis.
With respect to any public safety officer hired by the Grand River
Dam Authority on or after the effective date of this act March 21,
2001, any earned benefits or credits toward retirement benefits from
previous participation within the Okl ahoma Public Employees
Retirement System or the Oklahoma Law Enforcement Retirement System
shall remain within that s ystem.
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SECTION 2. AMENDATORY 74 O.S. 2021, Section 915, is
amended to read as follows:
Section 915. A. (1) Except as otherwise provided in this
subsection and as provided for elected officials in Section 913.4 of
this title, any member who shall retire on or a fter the member's
normal retirement date shall be entitled to receive an annual
retirement benefit equal t o two percent (2%) of the member 's final
average compensation as determined pursuant to paragraph (18) of
Section 902 of this title, multiplied by the number of years of
credited service that has been credited to the member in accordance
with the provisions of Section 913 of this title othe r than years
credited pursuant to paragraph (2) of this subsection.
(2) Effective January 1, 2004, except as other wise provided for
elected officials in Section 913.4 of this title and except for
those members making con tributions pursuant to paragraphs ( c), (d),
(e) and, (f), (g), and (h) of subsection (1) of Section 919.1 of
this title, any member who shall retire s hall be entitled to receive
an annual retirement benefit equal to two and one-half percent (2
1/2%) of the member's final average compensatio n as determined
pursuant to paragraph (18) of Section 902 of this title, multiplie d
by the number of full years of participating service after January
1, 2004, that have been credited to the member in accordance with
the provisions of Section 913 of this t itle and only for those full
years of participating service for which contribution s have been
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made pursuant to para graph (g) of subsection (1) of Secti on 919.1 of
this title. The two and one-half percent (2 1/2%) multipl ier shall
not apply to purchased se rvice, purchased or granted military
service or transferred service. In order to receive the two and
one-half percent (2 1/2%) multiplier in computing retirement
benefits, an active member shall make an irrevocable writt en
election to pay the contribution s pursuant to paragraph (g) of
subsection (1) of Section 919.1 of this title. The two and one-half
percent (2 1/2%) multiplier pursuant to this paragr aph shall not
apply to additional years of service credit attributed t o sick leave
pursuant to paragraph 7 of subsection B of Section 913 of this title
and fractional years pursuant to su bsection C of Section 913 of this
title and shall be attributable onl y to the participating service
credited after the election of the memb er.
(3) The minimum final average compensation for any person who
becomes a member of the Oklahoma Public Employees Retirement System
on or after July 1, 1995 and who had:
a. and who had twenty (20) or more years of credited
service within the System as of the membe r's
retirement date shal l be no less than Thirteen
Thousand Eight Hundred Dollars ($13,800.00) per annum,
b. and who had at least fifteen (15 ) but not more than
nineteen (19) years of credited service within the
System as of the member's retirement date sh all be no
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less than Six Thousand Nine Hundred Dollars
($6,900.00) per annum, or
c. and who had less than fifteen (15) years of credited
service within the System as of the member 's
retirement date shall not be eligible for any minimum
amount of final average compensation and the member's
final average compensation shall be the final average
compensation as defined by paragraph (18) of Section
902 of this title.
(4) Provided, further , any member who has elected a vested
benefit pursuant to Section 917 of this title shall be entitl ed to
receive benefits as outlined in this section except the percent
factor and the member's maximum compensation le vel in effect the
date the member's employment was terminated with a participating
employer shall be applicable.
(5) Any member who is a c orrectional officer or a probation and
parole officer employed by the Department o f Corrections at the time
of retirement and who retires on or before June 3 0, 2000, shall be
entitled to receive an annual retirement benefit equal to tw o and
one-half percent (2 1/2%) of the final average compensation of the
member not to exceed Twenty -five Thousand Dollars ($25,000.00) an d
two percent (2%) of the final average salary in excess of Twenty-
five Thousand Dollars ($25,000.00) but not exceedin g the maximum
compensation level as provided in paragraph (9) of Section 902 of
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this title, multiplied by the number of years of service a s a
correctional officer or a probation and parole officer; provided,
any years accrued prior to July 1, 1990, as a co rrectional officer
or a probation and parole officer by a member who is employed as a
correctional officer or a probation and parole offic er on July 1,
1990, shall be calculated for retirement purposes at two and one-
quarter percent (2 1/4%) of the final a verage compensation o f the
member not to exceed Twenty-five Thousand Dollars ($25,000.00) and
two percent (2%) of the final average salary in excess of Twenty-
five Thousand Dollars ($25,000.00) but not exceeding the maximum
compensation level as provided i n paragraph (9) of Se ction 902 of
this title, multiplied by the number of years of such service and
any years in excess of twenty (20) yea rs as such an officer or years
credited to the member in accordance with the provisions of Section
913 of this title shall be calculated fo r retirement purposes at two
percent (2%) of the final average compensation of the member
multiplied by the number of years of such service. Any person who
contributes to the System as a correctional officer or a probation
and parole officer as provided i n paragraph (b) or (c) of subsection
(1) of Section 919.1 of this title, on or bef ore June 30, 2000, but
who does not make such contributions after June 30, 2000, and who
does not qualify for normal retirement under subparagraph (c) of
paragraph (24) of Se ction 902 of this title shall have retirement
benefits for each year of full -time-equivalent participating service
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as a correctional or a probation and parol e officer after July 1,
1990, computed on two and one-half percent (2 1/2%) of the final
average compensation based upon those years as a correctional
officer or a probation and par ole officer. Provided, further, an y
fugitive apprehension agent shall be e ntitled to receive benefits as
outlined in this act Section 901 et seq. of this title for service
as a fugitive apprehension agent prior to July 1, 2002, only upon
payment to the System of the employee contributions which would have
been paid if such fugit ive apprehension agent had been covered by
this section prior to the effective date of this act July 1, 2002,
plus interest of not to exceed ten percent (10%) as d etermined by
the Oklahoma Public Employees Retire ment Board of Trustees. The
Department of Corrections may make the employee contribution and
interest payment on behalf of such member.
(6) Any member who is a correctional officer, a probation and
parole officer or a fugitive apprehension agent employed by the
Department of Corrections at the tim e of retirement and who retires
on or after July 1, 2002, shall be entitled to receive an annual
retirement benefit equal to two and one-half percent (2 1/2%) of the
final average compensation of the member, but not exceeding the
maximum compensation level as provided in paragraph (18) of Section
902 of this title, multiplied by the number of years of s ervice as a
correctional officer, a probation and parole officer or a fugit ive
apprehension agent, and any years in excess of twenty (20) years as
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such an officer or agent, or years credited to the member in
accordance with the provisions of Section 913 of this title, shall
be calculated for retirement purposes at two percent (2% ) of the
final average compensation of the member multiplied by the number of
years of such service. For purposes of this paragraph, "final
average compensation " shall be determined by computing the average
annual salary, in the manner prescribed by parag raph (18) of Section
902 of this title, for the highest three (3) years of the las t ten
(10) years of participating service immediately preceding retirement
or termination of employ ment for all years of service performed by
such member, both for years of s ervice performed as a correctional
officer, probation and parole officer or fugiti ve apprehension
agent, not in excess of twenty (20) years, and for years of service
performed in excess of twenty (20) years, whether as a correctional
officer, probation and parole officer, fugitive apprehension agent
or other position unless the computat ion of benefits would result in
a lower retirement benefit amount than if final average compensatio n
were to be computed as otherwise provided by this paragraph. "Final
average compensation" Final average compensati on shall be determined
by computing the average annual salary for the highest five (5) of
the last ten (10) years of participating service immediately
preceding retirement or termination of employment, with re spect to
members whose first participating service occurs on or after July 1,
2013.
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(7) Any member who is a correctional officer, a probation and
parole officer or a fugitive apprehensi on agent who has at least
five (5) years of service as a correctional officer, a probation and
parole officer or a fugitive apprehension age nt who is in such
position on June 30, 2004, or who is hired after June 30, 2004, in
such position, and who receives a promotion or change in job
classification after June 30, 2004, to a nother position in the
Department of Corrections, and who is employed by the Department of
Corrections at the time of retirement and who retires on or after
July 1, 2004, shall be entitl ed to receive an annual retirement
benefit equal to two and one -half percent (2 1/2%) of the final
average compensation of the member, but n ot exceeding the maximum
compensation level as provided in paragraph (18) of Section 902 of
this title, multiplied b y the number of years of service with the
Department of Corrections an d any years in excess of twenty (20)
years with the Department or year s credited to the member in
accordance with the provisions of Section 913 of this title, shall
be calculated for ret irement purposes at two percent (2%) of the
final average compensation of the member multiplied by the number of
years of such service. For purposes of this paragraph, "final
average compensation" shall be determined by computing the average
annual salary, in the manner prescribed by paragraph (18) of Section
902 of this title, for the highest three (3) years of the last ten
(10) years of participating service immediately preceding retirement
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or termination of employment for all years of service performed by
such member with the Department. "Final average compensation " Final
average compensation shall be determined by c omputing the average
annual salary for the highest five (5) of the last ten (10) years of
participating service immediately preceding retir ement or
termination of employment, with respect to members w hose first
participating service occurs on or after July 1, 2013.
(8) Any person who contribute d to the System as a correctional
officer, a probation and parole officer or a fugitive apprehensio n
agent as provided in paragraph (b) or (c) of subsection (1) of
Section 919.1 of this title, and who retires under normal retirement
or early retirement on or after January 1, 2004, under paragraph
(24) of Section 902 of this title, and any public safety officer
described by paragraph (37) of Section 902 of this ti tle hired on or
after the effective date of this act July 1, 2016, by the Grand
River Dam Authority and who retires on or after the effective date
of this act July 1, 2016, shall have retirement benefits for each
year of full-time-equivalent participating service as a correcti onal
officer, a probation and parol e officer or a fugitive apprehension
agent, or Grand River Dam public safety officer computed on two and
one-half percent (2 1/2%) of the f inal average compensation based
upon those years as a correctional officer, a prob ation and parole
officer, a fugitive apprehension agent or a Grand River D am public
safety officer. For purposes of this paragraph, "final average
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compensation" shall be determined by computing the average annual
salary, in the manner prescribed by paragr aph (18) of Section 902 of
this title, for the highest three (3) years of the last ten (10)
years of participating service immediately preceding retirement or
termination of employment for all years of service performed by such
member, both for years of se rvice performed as a correctional
officer, probation and parole officer or fugitive apprehension
agent, or years of service performed as a Grand River Dam public
safety officer, not in excess of twenty (20) years, and for years of
service performed in exce ss of twenty (20) years, whether as a
correctional officer, probation and parole officer, fugitive
apprehension agent, Grand River Dam public safety officer, or other
position unless the computation of benefits would result in a lower
retirement benefit am ount than if final average compensa tion were to
be computed as otherwise p rovided by this paragraph. "Final average
compensation" Final average compensation shall be determined by
computing the average annual salary for the highest five (5) of the
last ten (10) years of participating ser vice immediately preceding
retirement or termination of employment, with respect to members
whose first participating service occurs on or af ter July 1, 2013,
or with respect to Grand River Dam public safety officers whose
first participating service occur s on or after the effective date of
this act July 1, 2016.
(9) Any member who is:
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a. initially on or after July 1, 200 2, employed as a
firefighter for the Oklahoma Military Department of
the State of Oklahoma and who retires on or after the
member's normal retirement date shall be entitled to
receive an annual retirement benefit equal to two and
one-half percent (2 1/2%) of the final average
compensation of the member multiplied by the number of
years of service in such ser vice,
b. (1) a firefighter who perf orms firefighting services
for the Oklahoma Military Department of the State
of Oklahoma prior to July 1, 2002, and who makes
an election in writing on a form prescribed for
this purpose by the System not later than
December 31, 2002, shall be entitled to receive a
retirement benefit based upon two and one-half
percent (2 1/2%) of the final average
compensation of the member multipl ied by the
number of years of service as a firefighter with
the Oklahoma Military Department of the State of
Oklahoma on or after July 1, 2002. The election
authorized by this subdivision shall be
irrevocable once the election is filed with the
System,
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(2) a firefighter who performs firefighting services
for the Oklahoma Military Department of the State
of Oklahoma prior to July 1, 2002, and who makes
the election in division (1) of this subparagraph
may also make an election in writing o n a form
prescribed for this purpose by the System not
later than December 31, 2002, to receive a
retirement benefit based upon two and one -half
percent (2 1/2%) of the final average
compensation of the member multiplied by the
number of years of service a s a firefighter with
the Oklahoma Military Department of the State of
Oklahoma prior to July 1, 2002. The election
authorized by this subdivision shall be
irrevocable once the election is filed with the
System. Retirement benefits shall be calculated
based upon the two and one -half percent (2 1/2%)
multiplier upon payment being made pursuant to
Section 913.5 of this title.
(10) Any person who contributes to the System as a deputy
sheriff or county jailer as provided in paragraph (f) of subsection
(1) of Section 919.1 of this tit le, and who retires under normal
retirement or early retirement unde r division (v) of subparagraph
(d) of paragraph (24) of Section 902 of this title, shall hav e
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retirement benefits for each year of full-time-equivalent
participating service as a deputy sh eriff or county jailer computed
on two and one-half percent (2 1/2%) of the final average
compensation based upon those years as a deputy sheriff or county
jailer, and any years in excess of twenty (20) years as a deputy
sheriff or county jailer, or years credited to the member in
accordance with the provisions of Section 913 of this title, shall
be calculated for retirement purposes at two percent (2%) of the
final average compensation of the member multiplied by the number of
years of such service. For p urposes of this paragraph, "final
average compensation" shall be determined by computing the average
annual salary, in the manner prescribed by paragraph (18) o f Section
902 of this title, both for years of service performed as a deputy
sheriff or county jailer not in excess of twenty (20) years, and for
years of service performed in excess of twenty (20) years, whether
as a deputy sheriff or county jailer.
(11) Any person who contributes t o the System as an emergency
medical service personnel as provided in paragraph (h) of subsection
(1) of Section 919.1 of this title, and who retires under normal
retirement or early retirement under division (vii) of subparagr aph
(d) of paragraph (24) of Section 902 of this title, shall have
retirement benefits for each year of full-time-equivalent
participating service as an emergency medical service personnel
computed on two and one -half percent (2 1/2%) of the final average
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compensation based upon those years as an emergency medical service
personnel. Any years of full-time-equivalent participating service
in excess of twenty (20) years as an emergency medical personnel, or
years credited to the member in accor dance with the provisions of
Section 913 of this title, shall be calculated for retirement
purposes at two percent (2%) of the final average compensation of
the member multiplied by the number of years of such service. For
the purposes of this paragraph, "final average compensation" shall
be determined by computing the average annual salary, in the manner
prescribed by paragraph 18 of Section 902 of this title, both for
years of service performed as an emergency medical personnel no t in
excess of twenty (20) years, and for years of service performed in
excess of twenty (20) years, as an emergency medical service
personnel.
(12) Upon death of a retiree, there shall be paid to his or her
beneficiary an amount equal to the excess, if a ny, of his or her
accumulated contribu tions over the sum of all retirement benefit
payments made.
(12) (13) Such annual retirement benefits shall be paid in
equal monthly installments, except that the Board may provide for
the payment of retirement benefi ts which total less than Two Hundred
Forty Dollars ($240.00) a year on other than a monthly basis.
(13) (14) Pursuant to the rules established by the Board, a
retiree receiving monthly benefits from the System may authorize
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warrant deductions for any prod ucts currently offered to active
state employees through the Employees Benefits Council Oklahoma
Employees Insurance and Benefits Board , provided that product is
offered to state retirees as a group and has a minimum participation
of five hundred state retirees. The System has no responsibili ty
for the marketing, enrolling or administration of such products, but
shall retain a processing fee of two percent (2%) of the gross
deductions for the products. Retirement benefit deductions shall be
made for membership dues for any statewide associati on for which
payroll deductions are authorized pursuant to subsection B of
Section 34.70 of Title 62 of the Oklahoma Statutes for retired
members of any state -supported retirement system, upon proper
authorization given by the member to the board from whic h the member
or beneficiary is currently receiving retirement benefits.
B. A member shall be considered disabled if such member
qualifies for the payment of Social Security disability benefits, or
the payment of benefits pursuant to the Railroad Retiremen t Act of
1974, Section 231 et seq. of Title 45 of the United States Code, and
shall be eligible for benefits hereunder upon proof of such
disability, provided such m ember is an active regularly scheduled
employee with a participating employer at the time o f injury or
inception of illness or disease resulting in subsequent
certification of eligibility for Social Security disability benefits
by reason of such injury, il lness or disease, providing such
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disability is certified by the Social Security Administrat ion within
one (1) year after the last date physically on the job and after
completion of at least eight (8) years of participating service or
combined prior and par ticipating service or resulting in subsequent
certification of eligibility of disability by the Railroad
Retirement Board providing such certification is made by the
Railroad Retirement Board within one (1) year after the last date
physically on the job an d after completion of at least eight (8)
years of participating service or combined prior a nd participating
service. The member shall submit to the Retirement System the
Social Security Award Notice or the Railroad Retirement Award Notice
certifying the date of entitlement for disability benefits, as
issued by the Social Security Administration , Department of Health
and Human Services or the Railroad Retirement Board. Disability
benefits shall become effective on the date of entitlement as
established by the Social Security Administration or the Railroad
Retirement Board, but not before the fir st day of the month
following removal from the payroll, whichever is later, a nd final
approval by the Retirement System. Benefits shall be based upon
length of service and compensation as of the date of disability,
without actuarial reduction because of c ommencement prior to the
normal retirement date. The only optional form of b enefit payment
available for disability benefits is Option A as provided for in
Section 918 of this title. Option A must be elected in accordance
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with the provisions of Section 9 18 of this title. Benefit payments
shall cease upon the member 's recovery from disability prior to the
normal retirement date. Future benefits, if any, shall be pa id
based upon length of service and compensation as of the date of
disability. In the even t that disability ceases and the member
returns to employment within the Syst em credited service to the date
of disability shall be restored, and future benefits sha ll be
determined accordingly.
C. A member who incurred a disability pursuant to subsection B
of this section on or after July 1, 1999, and who has retired from
the System with an early retirement benefit pending certification
from the Social Security Admi nistration or the Railroad Retirement
Board shall receive a retirement benefit not less tha n the
disability retirement benefit provided by subsection B of this
section once the System receives a Social Security Award Notice or a
Railroad Retirement Award N otice pursuant to subsection B of this
section and a completed Application for Disability B enefits
application for disability benefits. In addition, such member shall
receive the difference , if any, between the early retirement benefit
and the disability benefit from the date the Social Security
Administration or the Railroad Retirement Board e stablishes
disability entitlement.
D. Any actively participating member of the System on or after
July 1, 1998, except for those employees provided in subparagraph
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(e) of paragraph (14) of Section 902 of this tit le, whose employment
is less than full-time, shall have his or her final average
compensation calculated on an annualized basis using his or h er
hourly wage subject to the maximum compensation limits; provide d,
however, any such member whose first particip ating service occurred
before July 1, 2013, and who has at least three (3) years of full-
time employment during the last ten (10) years immedi ately preceding
termination or retirement shall not be eligible fo r the
annualization provisions contained herein; and provided further, any
such member whose first participating service occurred on or after
July 1, 2013, and who has at least five (5) year s of full-time
employment during the last ten (10) years immediate ly preceding
termination or retirement shall not be eligible for the
annualization provisio ns contained herein. The Board of Trustees
shall promulgate such administrative rules as are neces sary to
implement the provisions of this subsection.
SECTION 3. AMENDATORY 74 O.S. 2021, Section 916.3, is
amended to read as follows:
Section 916.3 A. 1. Notwithstanding the provisions of
Sections 901 through 932 of this title , a monthly pension, as
provided in subsection B of this section, shall be paid on behalf of
any member who is a correctional officer or probation and parole
officer of the Department of Corrections and who is killed or
mortally wounded on or after January 1, 2000, during the performance
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of the member's duties for the Department or any employee of the
Department of Corrections who is killed or mortally wounded after
June 30, 2004, during the performance of the member 's duties for the
Department.
2. The monthly pension described in this section shall be paid
on behalf of any member first hired by any county that is a
participating employer in the System as a de puty sheriff or jailer
on or after November 1, 2020, and who is killed or mortally wounded
during the performance of the member's duties as a deputy sheriff or
jailer.
3. The monthly pension described in this section shall be paid
on behalf of a licensed emergency medical personnel h ired by any
participating employer for the fir st time as a licensed em ergency
medical personnel on or after the effective date of this act, and
who is killed or mortally wounded during the per formance of the
member's duties as an emergency medical personnel.
B. The monthly benefit shall be equal to:
1. Two and one-half percent (2 1/2%);
2. Multiplied by twenty (20) years of service, regardless of
the actual number of years of credited service performed by the
member prior to death, if the member had perf ormed less than twenty
(20) years of credited s ervice, or the actual n umber of years of
credited service of the member if greater than twenty (20) y ears;
3. Multiplied by the member 's final average compensation; and
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4. Divided by 12.
C. The pension prov ided for in subsection A of this section
shall be paid:
1. Except as provided in subsection D of this section, to the
surviving spouse for life; or
2. If there is no surviving spouse or upon the death of the
surviving spouse:
a. to the surviving child or children of said member or
legal guardian of such child or children f or such time
as such child or children are under the age of
eighteen (18) years, or
b. to the surviving child or children between the age of
eighteen (18) and twenty-two (22) years if th e child
is enrolled full time in and is regular ly attending a
public or private school or any institution of higher
education.
D. No surviving spou se shall receive benefits from this
section, Section 49-113 of Title 11 of t he Oklahoma Statutes,
Section 50-117 of Title 11 of the Oklahoma Statutes, or S ection 2-
306 of Title 47 of the Oklahoma Statutes as the surviving spouse of
more than one member of the Oklahoma Firefighters Pension and
Retirement System, the Oklahoma Police Pension and Retirement
System, the Oklahoma Law Enforcement Retirement System, or the
Oklahoma Public Employees Retirement System. The surviving spouse
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of more than one member sh all elect which member's benefits he or
she will receive.
E. In addition to the pension above provided for, if said
member leaves one or more children und er the age of eighteen (18)
years or under the age of twenty-two (22) years if the child is
enrolled full-time in and is regularly attending a public or private
school or any institution of higher education, F our Hundred Dollars
($400.00) a month shall be paid to the surviving s pouse or to the
person having the care and custody of such children if there i s no
surviving spouse or if the surviving spouse dies and until each
child reaches the age of eighteen (18) years or reaches the age of
twenty-two (22) years if the child is enro lled full-time in and is
regularly attending a public or private school or any institution of
higher education.
F. The pension benefit provided in this s ection shall be made
prospectively only from the effective date of this act July 1, 2000.
The benefits shall be payable beginning the later of the first day
of the month following the date that such employee was killed or
dies from a mortal wound, as provide d in this section, or the
effective date of this act July 1, 2000.
G. The Board of Trustees of the Oklahoma Public Employees
Retirement System shall promulgate such rules as ar e necessary to
implement the provisions of this section.
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SECTION 4. AMENDATORY 74 O.S. 2021, Section 919.1, is
amended to read as follows:
Section 919.1 (1) Employee contributions to the Oklahoma
Public Employees Retirement System shall be:
(a) for employees except a s otherwise provided in
paragraphs (b), (c), (d), (e), (f) and, (g), and (h)
of this subsection: beginning Ju ly 1, 2006, and
thereafter, three and one-half percent (3.5%) of
allowable annual compensation;,
(b) for correctional officers and probation a nd parole
officers employed by the Departmen t of Corrections:
beginning July 1, 1998, and thereafter, and for
correctional officers or probati on and parole officers
who are in such position on June 30, 2004, or who are
hired after June 30, 2004, and who r eceive a promotion
or change in job classifi cation after June 30, 2004,
to another position in the Department of C orrections,
so long as such officers have at least five (5) years
of service as a correctional office r or probation and
parole officer, eight percent (8%) of allowable
compensation as provided in paragraph (9) of Se ction
902 of this title;,
(c) for fugitive apprehension agents who are employed with
the Department of Corrections on or after July 1,
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2002, and for fugitive apprehension agents who ar e in
such position on June 30, 2004, or who are hired after
June 30, 2004, and who receive a promotion or change
in job classification after J une 30, 2004, to another
position in the Department of Corrections, so l ong as
such agents have at least five (5) years of service as
a fugitive apprehension agent, eight percent (8%) of
allowable compensation as provided in pa ragraph (9) of
Section 902 of this title;,
(d) for firefighters of the Oklahoma Military Department
of the State of Oklahoma first employed beginning July
1, 2002, and thereafter, and such firefighters who
performed service prior to July 1, 2002, for the
Oklahoma Military Department of the State of Oklahoma
and who make the election authorize d by division (1)
of subparagraph b of paragraph (9) of subsection A of
Section 915 of this title who perform service on or
after July 1, 2002, in such capacity, eight percent
(8%) of allowable co mpensation as provided in
subsection paragraph (9) of Section 902 of this
title;,
(e) for all public safety officers of the Grand River Dam
Authority as defined by paragraph (37) of Secti on 902
of this title, eight percent (8%) of allowable
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compensation as provided in paragraph (9) of Section
902 of this title;,
(f) for deputy sheriffs and county jailers employed by any
county that is a participating employer i n the System
for the first time as a deputy sheriff or jailer on or
after November 1, 2020, eight p ercent (8%) of
allowable compensation as provided in paragrap h (9) of
Section 902 of this title; and,
(g) for licensed emergency medical personnel employed by
any participating employer as a licensed emergency
medical personnel for the first time on or after the
effective date of this act, eight percent (8%) of
allowable compensation as provided in paragraph ( 9) of
Section 902 of this title, and
(h) for all employees except those who mak e contributions
pursuant to paragraphs (b), (c), (d), (e) and, (f),
and (g) of this subsection who make an irrevocable
written election pursuant to paragraph (2) of
subsection A of Section 915 of this title: six and
forty-one one-hundredths percent (6.41%) of allowable
annual compensation.
The contributions required by parag raphs (b), (c), (e), and (f),
(g), and (h) of this subsection shall be made b y a member for not
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more than twenty (20) years and thereafter shall be as provided in
paragraph (a) of this subsection.
(2) Contributions shall be deducted by each state agency b y the
participating employer for such benefits as the Board is authorized
to administer as provided for by law. Employee and employer
contributions shall be remitted monthly, or as the Board may
otherwise provide, to the Executive Director for deposit in the
Oklahoma Public Employees Retirement Fund.
(3) Each participating employ er shall pick up under the
provisions of Section 414(h)(2) of the Interna l Revenue Code of 1986
and pay the contribution which the me mber is required by law to make
to the System for all compensation earned after December 31, 1988.
Although the contributi ons so picked up are designated as member
contributions, such contributio ns shall be treated as contributions
being paid by the parti cipating employer in lieu of contributions by
the member in determining tax treatment under the Internal Revenue
Code of 1986 and such picked up contributions shall not be
includable in the gross income of the member until such amounts are
distributed or made available to the member or the beneficiary of
the member. The member, by the terms of this System, shall not have
any option to choose to receive the contributions so picked up
directly and the picked up contributions must be paid by the
participating employer to the System.
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Member contributions which are picked up shall be treated in the
same manner and to the same exten t as member contributions made
prior to the date on which member contribu tions were picked up by
the participating employer. Member contributions so picked up shall
be included in gross salary for purposes of determining benefits and
contributions under t he System.
The participating employer shall pay the member contributions
from the same source of funds used in paying salary to the m ember,
by effecting an equal cash reduction in gross salary of the member.
(4) By September 1, 1989, the System shall refu nd the
accumulated employee contributions of any member who elects to
retain the member's membership in the Teachers' Retirement System of
Oklahoma, in accordance with Section 17 -104 of Title 70 of the
Oklahoma Statutes, to such member. Upon the refund of the
accumulated employee contributions referred to in this subsection,
all benefits and rights accrued to such member are terminated .
SECTION 5. AMENDATORY 74 O.S. 2021, Section 920A, is
amended to read as follows:
Section 920A. A. Any county, county hospital, city or town,
conservation district, ci rcuit engineering district or any public or
private trust in which a county, city or town participates an d is
the primary beneficiary, which is a participating employer and any
eligible employee shall contribute to the Oklahoma Public Employees
Retirement System. The total employer and employee contributions
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shall be based on the allowable annual compensation as defined in
paragraph (9) of Section 902 of this title. Except as provided f or
in this section, the employer shal l not pay for the employee any of
the employee contribution to the System.
B. For the fiscal year ending June 30, 2005, the total employer
and employee contributions shall equal thirteen and one-half percent
(13 1/2%) of the allowable monthly compensation of each member;
provided, however, each participating employer listed in this
section may set the amount of the employer and employee cont ribution
to equal thirteen and one-half percent (13 1/2%) of the allowable
monthly compensation of each member for co mpensation as provided in
paragraph (9) of Section 902 of this title; provided, the employer
contribution shall not exceed ten percent (10% ) and the employee
contribution shall not exceed eight and one-half percent (8 1/2%).
C. The total employer and empl oyee contributions for fiscal
years following the fiscal year ending June 30, 2005, shall be as
follows:
July 1, 2005 – June 30, 2006 15%
July 1, 2006 – June 30, 2007 16%
July 1, 2007 – June 30, 2008 17%
July 1, 2008 – June 30, 2009 18%
July 1, 2009 – June 30, 2010 19%
July 1, 2010 – June 30, 2011 and
each fiscal year thereafter 20%
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Such employee and employer contributions shall be based upon the
allowable monthly compensation of each member for compensation as
provided in paragraph (9) of Section 902 of th is title. The maximum
employer contribution of ten percent (10%) in subsection B of this
section shall increase by one and one -half percent (1.5%) beginning
in the fiscal year ending June 30, 2006, and one percent (1%) for
each fiscal year thereafter unti l it reaches sixteen and one -half
percent (16.5%). For such years, the employee contribution shall
not exceed eight and one -half percent (8 1/2%). Notwithstanding any
other provisions of this section to the contrary, for those members
described in division (v), or (vi) of subparagraph (d) of p aragraph
(24) of Section 902 of this title, the county participating employer
shall contribute sixteen and one-half percent (16 1/2%) and the
employee shall contribute eight percent (8%) for a total of twenty -
four and one-half percent (24 1/2%).
D. For members who make the election pursuant to paragraph (2)
of subsection A of Section 915 of this t itle, the employee
contribution shall increase by two and ninety-one one-hundredths
percent (2.91%). Such employee contribution increase shall be paid
by the employee.
E. Each participating employer pursuant to the provisions of
this section may pick up under the provisions of Section 414(h)(2)
of the Internal Revenue Code of 1986 and pay the contribution which
the member is required by law to make to the System for all
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compensation earned after December 31, 1989. Although the
contributions so picked up are designated as member contributions,
such contributions shall be treat ed as contributions being paid by
the participating employer in lieu of contributions by the member in
determining tax treatment under the Internal Revenue Code of 1986
and such picked up contributions shall not be includable in the
gross income of the mem ber until such amounts are distributed or
made available to the member or the beneficiary of the member. The
member, by the terms of this System, shall not have any option to
choose to receive the contributions so picked up directly and the
picked up contributions must be paid by the participatin g employer
to the System.
F. Member contributi ons which are picked up shall be treated in
the same manner and to the same extent as member c ontributions made
prior to the date on which member contributions were pi cked up by
the participating employer. Me mber contributions so picked up shall
be included in gross salary for purposes of determining benefits and
contributions under the System.
G. The participating employer shall pay the member
contributions from the same source of funds used in paying salary to
the member, by effecting an equal cash redu ction in gross salary of
the member.
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SECTION 6. This act shall become effective November 1, 2024.
COMMITTEE REPORT BY: COMMITTEE ON BANKING, FINANCIAL SERVICES AND
PENSIONS, dated 02/28/2024 - DO PASS, As Amended and Coauthored.