Oklahoma 2024 Regular Session

Oklahoma House Bill HB1805 Compare Versions

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334 BILL NO. 1805 By: Hays of the House
435
536 and
637
7- Murdock and Bullard of the
8-Senate
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38+ Murdock of the Senate
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1543 An Act relating to public retirement systems;
1644 amending 74 O.S. 2021, Sections 902, as amended by
1745 Section 2, Chapter 146, O.S.L. 2 023, 915, 916.3,
1846 919.1, and 920A (74 O.S. Supp. 2023, Section 902),
1947 which relate to the Oklahoma Public Employees
2048 Retirement System definitions, benefit amount, and
2149 contributions; providing for membership by emergency
2250 medical personnel; conforming language ; establishing
2351 employee and employer contributions; updating
2452 statutory language; providing for death benefits; and
2553 providing an effective date.
2654
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29-SUBJECT: Public retirement systems
30-
3157 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
32-
3358 SECTION 1. AMENDATORY 74 O.S. 2021, Section 902, as
3459 amended by Section 2, Chapter 146, O.S.L. 2023 (74 O.S. Supp. 2023,
3560 Section 902), is amended to read as follows:
36-
3761 As used in Section 901 et seq. of this title:
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3962 (1) "System" means the Oklahoma Public Employees Retirement
4063 System as established by Section 901 et seq. of this title and as it
4164 may hereafter be amended;
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4392 (2) "Accumulated contributions " means the sum of all
4493 contributions by a member to the System which shall be credited to
4594 the member’s account;
46- RBH No. 7384
47-ENR. H. B. NO. 1805 Page 2
4895 (3) "Act" means Sections 901 t o 932, inclusive, of this title;
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5096 (4) "Actuarial equivalent " means a deferred income benefit of
5197 equal value to the accumulated deposits or benefits when computed
5298 upon the basis of the actuarial tables in use by the System;
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5499 (5) "Actuarial tables" means the actuarial tables approved and
55100 in use by the Board at any given time;
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57101 (6) "Actuary" means the actuary or firm of actuaries employed
58102 by the Board at any given time;
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60103 (7) "Beneficiary" means any person named by a member to receive
61104 any benefits as provided f or by Section 901 et seq. of this title.
62105 If there is no beneficiary living at time of member employee’s
63106 death, the member’s estate shall be the beneficiary;
64-
65107 (8) "Board" means the Oklahoma Public Employees Retirement
66108 System Board of Trustees;
67-
68109 (9) "Compensation" means all salary and wages, as defined by
69110 the Board of Trustees, including amounts deferred under deferred
70111 compensation agreements ente red into between a member and a
71112 participating employer , but exclusive of. Compensation shall not
72113 mean payment for overtime, payable to a member of the System for
73114 personal services performed for a participating employer but shall
74115 not include, compensation or reimbursement for traveling, or moving
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75143 expenses, or any compensation in excess of the maximum compensation
76144 level, provided:
77-
78145 (a) For compensation for service prior to January 1, 1988,
79146 the maximum compensation level shall be Twenty -five
80147 Thousand Dollars ($25,000.00) per annum.
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82148 For compensation for service on or after January 1,
83149 1988, through June 30, 1994, the maxim um compensation
84150 level shall be Forty Thousand Dollars ($40,000.00) per
85151 annum.
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87152 For compensation for service on or after July 1, 1994,
88153 through June 30, 1995, the maximum compensation level
89154 shall be Fifty Thousand Dollars ($50,000.00) per
90155 annum; for compensat ion for service on or after July
91156 1, 1995, through June 30, 1996, the maximum
92-compensation level shal l be Sixty Thousand Dollars RBH No. 7384
93-ENR. H. B. NO. 1805 Page 3
157+compensation level shall be Sixty Thousand Dollars
94158 ($60,000.00) per annum; for compensation for service
95159 on or after July 1, 1996, through June 30, 1997, the
96160 maximum compensation l evel shall be Seventy Thousand
97161 Dollars ($70,000.00) per annum; and for compensation
98162 for service on or after July 1, 1997, through June 30,
99163 1998, the maximum compensation level shall be Eighty
100164 Thousand Dollars ($80,000.00) per annum. For
101165 compensation for services on or after July 1, 1998,
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102193 there shall be no maximum compensation level for
103194 retirement purposes.
104-
105195 (b) Compensation for retirement purpose s shall include any
106196 amount of elective salary reduction under Section 457
107197 of the Internal Revenue Code of 1986 an d any amount of
108198 nonelective salary reduction under Section 414(h) of
109199 the Internal Revenue Code of 1986.
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111200 (c) Notwithstanding any provision to the contrary, the
112201 compensation taken into account for any employee in
113202 determining the contribution or benefit accru als for
114203 any plan year is limited subject to the annual
115204 compensation limit under Section 401(a)(17) of the
116205 federal Internal Revenue Code.
117-
118206 (d) Current appointed members of the Oklahoma Tax
119207 Commission whose salary is constitutionally limited
120208 and is less than the highest salary allowed by law for
121209 his or her position shall be allowed, within ninety
122210 (90) days from March 21, 2001, to make an election to
123211 use the highest salary allowed by law for the position
124212 to which the member was appointed for the purposes of
125213 making contributions and determination of retirement
126214 benefits. Such election shall be irrevocable and be
127215 in writing. Reappointment to the same o ffice shall
128216 not permit a new election. Members appointed to the
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129244 Oklahoma Tax Commission after the March 21, 2001,
130245 shall make such election, pursuant to this
131246 subparagraph, within ninety (90) days of taking
132247 office;
133-
134248 (10) "Credited service" means the sum of participating service,
135249 prior service and elected service;
136- RBH No. 7384
137-ENR. H. B. NO. 1805 Page 4
138250 (11) "Dependent" means a parent, child, or spouse of a member
139251 who is dependent upon the member for at least one -half (1/2) of the
140252 member’s support;
141-
142253 (12) "Effective date" means the date upon which the System
143254 becomes effective by operation of law;
144-
145255 (13) "Eligible employer" means the state and any county, count y
146256 hospital, city or town, conservation districts, circuit engineering
147257 districts and any public or private trust in which a county, city or
148258 town participates and is the primary beneficiary, is to be an
149259 eligible employer for the purpose of Section 901 et seq . of this
150260 title only, whose employees are covered by Social Security and are
151261 not covered by or eligible for another retirement plan authorized
152262 under the laws of this state which is in operation on the initial
153263 entry date. Emergency medical service district s may join the System
154264 upon proper application to the Board. Provided, affiliation by a
155265 county hospital shall be in the form of a resolution adopted by the
156266 board of control.
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158294 (a) If a class or several classes of employees of any
159295 above-defined employers are covered by Social Security
160296 and are not covered by or eligible for and will not
161297 become eligible for another retirement plan authorized
162298 under the laws of this state, which is in operation on
163299 the effective date, such employer shall be deemed an
164300 eligible employer, but only with respect to that class
165301 or those classes of employees as defined in this
166302 section.
167-
168303 (b) A class or several classes of employees who are
169304 covered by Social Security and are not covered by or
170305 eligible for and will not become eligible for anothe r
171306 retirement plan authorized under the laws of this
172307 state, which is in operation on the effective date,
173308 and when the qualifications for employm ent in such
174309 class or classes are set by state law; and when such
175310 class or classes of employees are employed by a county
176311 or municipal government pursuant to such
177312 qualifications; and when the services provided by such
178313 employees are of such nature that they qualify for
179314 matching by or contributions from state or federal
180315 funds administered by an agency of state government
181316 which qualifies as a participating employer, then the
182-agency of state government administering t he state or RBH No. 7384
183-ENR. H. B. NO. 1805 Page 5
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184345 federal funds shall be deemed an e ligible employer,
185346 but only with respect to that class or those classes
186347 of employees as defined in this subsection ; provided,
187348 that the required contributions to the retirement plan
188349 may be withheld from the contributions of state or
189350 federal funds administered by the state agency and
190351 transmitted to the System on the same basis as the
191352 employee and employer contributions are transmitted
192353 for the direct employees of the state agency. The
193354 retirement or eligibility for retirement under the
194355 provisions of law providi ng pensions for service as a
195356 volunteer firefighter shall not render any person
196357 ineligible for participation in th e benefits provided
197358 for in Section 901 et seq. of this title. An employee
198359 of any public or private trust in which a county, city
199360 or town participates and is the primary beneficiary
200361 shall be deemed to be an eligible employee for the
201362 purpose of Section 901 et seq. of this title only.
202-
203363 (c) All employees of the George Nigh Rehabilitation
204364 Institute who elected to retain membership in the
205365 System, pursuant to Section 913.7 of this title, shall
206366 continue to be eligible employees for the purposes of
207367 Section 901 et seq. of this title. The George Nigh
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208395 Rehabilitation Institute shall be considered a
209396 participating employer only for such employees.
210-
211397 (d) All employees of CompSource Mutual Insurance Company
212398 who retain membership in the Oklahoma Public Employees
213399 Retirement System pursuant to Section 913.9 of this
214400 title shall continue to be eligible employees for the
215401 purposes of the Oklahoma Public Employees Retiremen t
216402 System. CompSource Mutual Insurance Company shall be
217403 considered a participating employer only for such
218404 employees.
219-
220405 (e) All employees of a successor organization, as defined
221406 by Section 5-60.12 of Title 2 of the Oklahoma
222407 Statutes, who retain membership in the Oklahoma Public
223408 Employees Retirement System pursuant to Section 5 -
224409 60.35 of Title 2 of the Oklahoma Statutes s hall
225410 continue to be eligible employees for the purposes of
226411 the Oklahoma Public Employees Retirement System. A
227412 successor organization shall be considered a
228-participating employer only for such emp loyees. RBH No. 7384
229-ENR. H. B. NO. 1805 Page 6
230-
413+participating employer only for such employees.
231414 (f) A participating employer of the Teachers’ Retire ment
232415 System of Oklahoma, who has one or more employees who
233416 have made an election pursuant to enabling legislation
234417 to retain membership in the System as a result of
235418 change in administration, shall be considered a
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236446 participating employer of the Oklahoma Publi c
237447 Employees Retirement System only for such employees;
238-
239448 (14) "Employee" means any officer or employee of a
240449 participating employer, whose employ ment is not seasonal or
241450 temporary and whose employment requires at least one thousand
242451 (1,000) hours of work per y ear and whose salary or wage is equal to
243452 the hourly rate of the monthly minimum wage for state employees.
244453 For those eligible employers outlined in Section 910 of this title,
245454 the rate shall be equal to the hourly rate of the monthly minimum
246455 wage for that employer. Each employer, whose minimum wage is less
247456 than the state’s minimum wage, shall inform the System of the
248457 minimum wage for that employe r. This notification shall be by
249458 resolution of the governing body.
250-
251459 (a) Any employee of the county extension agen ts who is not
252460 currently participating in the Teachers’ Retirement
253461 System of Oklahoma shall be a member of this System.
254-
255462 (b) Eligibility shall not include any employee who is a
256463 contributing member of the United States Civil Service
257464 Retirement System.
258-
259465 (c) It shall be mandatory for an officer, appointee or
260466 employee of the office of district attorney to become
261467 a member of this System if he or she is n ot currently
262468 participating in a county retirement system. Provided
263469 further, that if an officer, appointee or emp loyee of
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264497 the office of district attorney is currently
265498 participating in such county retirement system, he or
266499 she is ineligible for this System as long as he or she
267500 is eligible for such county retirement system. Any
268501 eligible officer, appointee or employee o f the office
269502 of district attorney shall be given credit for prior
270503 service as defined in this section. The provisions
271504 outlined in Section 917 o f this title shall apply to
272505 those employees who have previously withdrawn their
273506 contributions.
274- RBH No. 7384
275-ENR. H. B. NO. 1805 Page 7
276507 (d) Eligibility shall also not include any officer or
277508 employee of the Oklahoma Employment Security
278509 Commission, except for those officers and employees of
279510 the Commission electing to transfer to this System
280511 pursuant to the provisions of Section 910.1 of this
281512 title or any other class of officers or employees
282513 specifically exempted by the laws of this state,
283514 unless there be a consolidation as provided by Section
284515 912 of this title. Employees of the Oklahoma
285516 Employment Security Commission who are ineligible for
286517 enrollment in the Oklahoma Employment Security
287518 Commission Retirement Plan, that was in effect on
288519 January 1, 1964, shall become members of this System.
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289546
290547 (e) Any employee employed by the Legislative Service
291548 Bureau, Senate or House of Representatives for the
292549 full duration of a r egular legislative session shall
293550 be eligible for membership in the System regardless of
294551 classification as a temporary employee and may
295552 participate in the System during the regular
296553 legislative session at the option of the employee.
297554 For purposes of this sub paragraph, the determination
298555 of whether an employee is employed for the full
299556 duration of a regular legislative session shall be
300557 made by the Legislative Service Bureau if such
301558 employee is employed by the Legislative Service
302559 Bureau, the Senate if such employ ee is employed by the
303560 Senate, or by the House of Representatives if such
304561 employee is employed by the House of Representatives.
305562 Each regular legislative session during which the
306563 legislative employee or an employee of the Legislative
307564 Service Bureau particip ates full time shall be counted
308565 as six (6) months of full -time participating service.
309-
310566 (i) Except as otherwise provided by this
311567 subparagraph, once a temporary session employee
312568 makes a choice to participate or not, the choice
313569 shall be binding for all future legislative
314570 sessions during which the employee is employed.
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316598 (ii) Notwithstanding the provisions of division (i) of
317599 this subparagraph, any emplo yee, who is eligible
318600 for membership in the System because of the
319601 provisions of this subparagraph and who was
320-employed by the Senate or House of RBH No. 7384
321-ENR. H. B. NO. 1805 Page 8
602+employed by the Senate or House of
322603 Representatives after January 1, 1989, may file
323604 an election, in a manner specified by the Board,
324605 to participate as a member of the System prior to
325606 September 1, 1989.
326-
327607 (iii) Notwithstanding the provisions of division (i) of
328608 this subparagraph, a temporary legislative
329609 session employee who elected to become a member
330610 of the System may withdraw from the System
331611 effective the day such employee elected to
332612 participate in the System upon written request to
333613 the Board. Any such request mus t be received by
334614 the Board prior to October 1, 1990. All employee
335615 contributions made by the temporary legislative
336616 session employee shall be returned to the
337617 employee without interest within four (4) months
338618 of receipt of the written request.
339-
340619 (iv) A member of the System who did not initially
341620 elect to participate as a member of the System
342621 pursuant to this subparagraph shall be able to
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343649 acquire service performed as a temporary
344650 legislative session employee for periods of
345651 service performed prior to the date upon w hich
346652 the person became a member of the System if:
347-
348653 a. the member files an election with the System
349654 not later than December 31, 2000, to
350655 purchase the prior service; and
351-
352656 b. the member makes payment to the System of
353657 the actuarial cost of the service credit
354658 pursuant to subsection A of Section 913.5 of
355659 this title. The provisions of Section 913.5
356660 of this title shall be applicable to the
357661 purchase of the service credit, including
358662 the provisions for determining service
359663 credit in the event of incomplete payment
360664 due to cessation of payments, death,
361665 termination of employment or retirement, but
362666 the payment may extend for a period not to
363667 exceed ninety-six (96) months;
364- RBH No. 7384
365-ENR. H. B. NO. 1805 Page 9
366668 (15) "Entry date" means the date on which an eligible employer
367669 joins the System. The first entry date p ursuant to Section 901 et
368670 seq. of this title shall be January 1, 1964;
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370698 (16) "Executive Director" means the managing officer of the
371699 System employed by the Board under Section 901 et seq. of this
372700 title;
373-
374701 (17) "Federal Internal Revenue Code " means the federal Internal
375702 Revenue Code of 1954 or 1986, as amended and as applicable to a
376703 governmental plan as in effect on July 1, 1999;
377-
378704 (18) "Final average compensation " means the average annual
379705 compensation, including amounts deferred under deferred compensation
380706 agreements entered into between a member and a participating
381707 employer, up to, but not exceeding the maximum compensation levels
382708 as provided in paragraph (9) of this section received during the
383709 highest three (3) of the last ten (10) years of participating
384710 service immediately preceding retirement or termination of
385711 employment and with respect to members whose first participating
386712 service occurs on or after July 1, 2013, the compensation received
387713 during the highest five (5) of the last ten (10) years of
388714 participating service immediately preceding retirement or
389715 termination of employment. Provided, no member shall retire with a
390716 final average compensation un less the member has made the required
391717 contributions on such compensation, as defined by the Board of
392718 Trustees;
393-
394719 (19) "Fiscal year" means the period commencing July 1 of any
395720 year and ending June 30 of the next year. The fiscal year is the
396721 plan year for purposes of the federal Internal Revenue Code;
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397749 however, the calendar year is the limitation year for purposes of
398750 Section 415 of the federal Internal Revenue Code;
399-
400751 (20) "Fund" means the Oklahoma Public Employees Retirement Fund
401752 as created by Section 901 et se q. of this title;
402-
403753 (21) "Leave of absence" means a period of absence from
404754 employment without pay, authorized and approved by the employer and
405755 acknowledged to the Board, and which after the effective date does
406756 not exceed two (2) years;
407-
408757 (22) "Member" means an eligible employee or elected official
409758 who is in the System and is making the required employee or elected
410-official contribution s, or any former employee or elec ted official RBH No. 7384
411-ENR. H. B. NO. 1805 Page 10
759+official contributions, or any former employee or elected official
412760 who shall have made the required contributions to the System and
413761 shall have not received a refund or withdrawal;
414-
415762 (23) "Military service" means service in the Armed Forces of
416763 the United States by an honorably discharged person during the
417764 following time periods, as reflected on such person’s Defense
418765 Department Form 214, not to exceed five (5) years for combined
419766 participating and/or prior service, as follows:
420-
421767 (a) during the following periods, incl uding the beginning
422768 and ending dates, and only for the periods served,
423769 from:
424-
425770 (i) April 6, 1917, to November 11, 1918, commonly
426771 referred to as World War I,
427772
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428799 (ii) September 16, 1940, to December 7, 1941, as a
429800 member of the 45th Division,
430-
431801 (iii) December 7, 1941, to December 31, 1946, commonly
432802 referred to as World War II,
433-
434803 (iv) June 27, 1950, to January 31, 1955, commonly
435804 referred to as the Korean Conflict or the Korean
436805 War,
437-
438806 (v) February 28, 1961, to May 7, 1975, commonly
439807 referred to as the Vietnam era, except th at:
440-
441808 a. for the period from February 28, 1961, to
442809 August 4, 1964, military service shall only
443810 include service in the Republic of Vietnam
444811 during that period, and
445-
446812 b. for purposes of determining eligibility for
447813 education and training benefits, such period
448814 shall end on December 31, 1976, or
449-
450815 (vi) August 1, 1990, to December 31, 1991, commonly
451816 referred to as the Gulf War, the Persian Gulf
452817 War, or Operation Desert Storm, but excluding any
453818 person who served on active duty for training
454819 only, unless discharged from su ch active duty for
455820 a service-connected disability;
456- RBH No. 7384
457-ENR. H. B. NO. 1805 Page 11
458821 (b) during a period of war or combat military operation
459822 other than a conflict, war or era li sted in
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460850 subparagraph (a) of this paragraph, beginning on the
461851 date of Congressional authorization, Congressional
462852 resolution, or Executive Order of the President of the
463853 United States, for the use of the Armed Forces of the
464854 United States in a war or combat military operation,
465855 if such war or combat military operation lasted for a
466856 period of ninety (90) days or more, for a person who
467857 served, and only for the period served, in the area of
468858 responsibility of the war or combat military
469859 operation, but excluding a pers on who served on active
470860 duty for training only, unless discharged from such
471861 active duty for a service -connected disability, and
472862 provided that the burden of proof of military service
473863 during this period shall be with the member, who must
474864 present appropriate documentation establishing such
475865 service.
476-
477866 An eligible member under this paragraph shall include only those
478867 persons who shall have served during the times or in the areas
479868 prescribed in this paragraph, and only if such person provides
480869 appropriate documentatio n in such time and manner as required by the
481870 System to establish such military service prescribed in this
482871 paragraph, or for service pursuant to subdivision a of division (v)
483872 of subparagraph (a) of this paragraph those persons who were awarded
484873 service medals, as authorized by the United States Department of
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485901 Defense as reflected in the veteran’s Defense Department Form 214,
486902 related to the Vietnam Conflict for service prior to August 5, 1964;
487-
488903 (24) "Normal retirement date " means the date on which a member
489904 may retire with full retirement benefits as provided in Section 901
490905 et seq. of this title, such date being whichever occurs first:
491-
492906 (a) the first day of the month coinciding with or
493907 following a member’s:
494-
495908 (1) sixty-second birthday with respect to members
496909 whose first participating service occurs prior to
497910 November 1, 2011, or
498-
499911 (2) sixty-fifth birthday with respect to members
500912 whose first participating service occurs on or
501913 after November 1, 2011, or with respect to
502-members whose first participating service occurs RBH No. 7384
503-ENR. H. B. NO. 1805 Page 12
914+members whose first participating service occurs
504915 on or after November 1, 2011, who reach a minimum
505916 age of sixty (60) years and who also reach a
506917 normal retirement date pursuant to subparagraph c
507918 of this paragraph,
508-
509919 (b) for any person who initially became a member prior to
510920 July 1, 1992, and who does not reach a normal
511921 retirement date pursuant to division (1) of
512922 subparagraph (a) of this paragraph, the first day of
513923 the month coinciding with or following the date at
514924 which the sum of a member’s age and number of years of
925+
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515952 credited service total eighty (80); such a no rmal
516953 retirement date will also apply to any person who
517954 became a member of the sending system as defined in
518955 Section 901 et seq. of this title, prior to July 1,
519956 1992, regardless of whether there were breaks in
520957 service after July 1, 1992,
521-
522958 (c) for any person who became a member after June 30,
523959 1992, but prior to November 1, 2011, and who does not
524960 reach a normal retirement date pursuant to division
525961 (1) of subparagraph (a) of this paragraph, the first
526962 day of the month coinciding with or following the date
527963 at which the sum of a member’s age and number of years
528964 of credited service total ninety (90),
529-
530965 (d) in addition to subparag raphs (a), (b) and (c) of this
531966 paragraph, the first day of the month coinciding with
532967 or following a member’s completion of at least twenty
533968 (20) years of full-time-equivalent employment as:
534-
535969 (i) a correctional or probation and parole officer
536970 with the Department of Corrections and at the
537971 time of retirement, the member was a correctional
538972 or probation and parole officer with the
539973 Department of Correcti ons,
540-
541974 (ii) a correctional officer, probation and parole
542975 officer or fugitive apprehension agent with the
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5431003 Department of Corrections who is in such position
5441004 on June 30, 2004, or who is hired after June 30,
5451005 2004, and who receives a promotion or change in
5461006 job classification after June 30, 2004, to
5471007 another position in the Department of
548-Corrections, so long as such officer or agent has RBH No. 7384
549-ENR. H. B. NO. 1805 Page 13
1008+Corrections, so long as such officer o r agent has
5501009 at least five (5) years of service as a
5511010 correctional officer, probation and parole
5521011 officer or fugitive apprehension agent with the
5531012 Department, has twenty (20) years of full -time-
5541013 equivalent employment with the Department and was
5551014 employed by the Department at the time of
5561015 retirement,
557-
5581016 (iii) a firefighter with the Military Department of the
5591017 State of Oklahoma either employed for the first
5601018 time on or after July 1, 2002, or who was
5611019 employed prior to July 1, 2002, in such position
5621020 and who makes the elect ion authorized by division
5631021 (2) of subparagraph b of paragraph (9) of
5641022 subsection A of Section 915 of this title and at
5651023 the time of retirement, t he member was a
5661024 firefighter with the Military Department of the
5671025 State of Oklahoma, and such member has at least
5681026 twenty (20) years of credited service upon which
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5691054 the two and one-half percent (2 1/2%) multiplier
5701055 will be used in calculating the retirement
5711056 benefit,
572-
5731057 (iv) a public safety officer employed by the Grand
5741058 River Dam Authority for the first time on or
5751059 after July 1, 2016, or
576-
5771060 (v) a deputy sheriff or jailer employed by any county
5781061 that is a participating employer in the System
5791062 for the first time as a deputy sheriff or jailer
5801063 on or after November 1, 2020, or
581-
5821064 (vi) licensed emergency medical personnel, as defined
5831065 pursuant to Section 1-2503 of Title 63 of the
5841066 Oklahoma Statutes, holding a license issued by
5851067 the State Department of Health pursuant to
5861068 Section 1-2505 of Title 63 of the Oklahoma
5871069 Statutes, including emergency medical responders,
5881070 emergency medical technicians, int ermediate
5891071 emergency medical technicians, advanced emergency
5901072 medical technicians, and paramedics employed by
5911073 any participating employer as a lic ensed
5921074 emergency medical personnel for the first time on
5931075 or after the effective date of this act,
594- RBH No. 7384
595-ENR. H. B. NO. 1805 Page 14
5961076 (e) for those fugitive apprehension agents who retire on
5971077 or after July 1, 2002, the first day of the month
1078+
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5981105 coinciding with or following a member’s completion of
5991106 at least twenty (20) years of full -time-equivalent
6001107 employment as a fugitive apprehension agent with the
6011108 Department of Corrections and at the time of
6021109 retirement, the member was a fugitive apprehension
6031110 agent with the Department of Corrections, or
604-
6051111 (f) for any member who was continuously employed by an
6061112 entity or institution within The Oklahoma State System
6071113 of Higher Education and whose initial employment with
6081114 such entity or institution was prior to July 1, 1992,
6091115 and who without a break in service of more than thirty
6101116 (30) days became employed by an employer participating
6111117 in the Oklahoma Public Employees Retirement System ,
6121118 the first day of the month coinciding with or
6131119 following the date at which the sum of the member’s
6141120 age and number of years of credited service total
6151121 eighty (80);
616-
6171122 (25) "Participating employer " means an eligible employer who
6181123 has agreed to make contribution s to the System on behalf of its
6191124 employees;
620-
6211125 (26) "Participating service " means the period of employment
6221126 after the entry date for which credit is granted a member.
6231127 Provided, on or after the effective date of this act, military
6241128 service credit purchased und er Section 913.8 of this title shall
1129+
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6251156 only be considered "participating service " if such service is
6261157 immediately preceded by a period of employme nt with a participating
6271158 employer and followed by a return to service as an employee with the
6281159 same or another part icipating employer within ninety (90) days
6291160 immediately following discharge from such military service;
630-
6311161 (27) "Prior service" means the period of employment of a member
6321162 by an eligible employer prior to the member’s entry date for which
6331163 credit is granted a m ember under Section 901 et seq. of this title.
6341164 Provided, on or after the effective date of this act, "prior
6351165 service" shall also include servic e purchased under Section 913.8 of
6361166 this title which does not meet the requirements of paragraph 26 of
6371167 this section;
638-
6391168 (28) "Retirant" or "retiree" means a member who has retired
640-under the System; RBH No. 7384
641-ENR. H. B. NO. 1805 Page 15
642-
1169+under the System;
6431170 (29) "Retirement benefit" means a monthly income with benefits
6441171 accruing from the first day of the month coinciding with or
6451172 following retirement and ending on the last day of the month in
6461173 which death occurs or the actuarial equivalent thereof paid in such
6471174 manner as specified by the member pursuant to Section 901 et seq. of
6481175 this title or as otherwise allowed to be paid at the discretion of
6491176 the Board;
650-
6511177 (30) "Retirement coordinat or" means the individual designated
6521178 by each participating employer through whom System transactions and
6531179 communication shall be directed;
6541180
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6551207 (31) "Social Security" means the old-age survivors and
6561208 disability section of the federal Social Security Act;
657-
6581209 (32) "Total disability" means a physical or mental disability
6591210 accepted for disability benefits by the federal Social Security
6601211 System;
661-
6621212 (33) "Service-connected disability benefits " means military
6631213 service benefits which are for a service -connected disability rated
6641214 at twenty percent (20%) or more by the Veterans Administration or
6651215 the Armed Forces of the United States;
666-
6671216 (34) "Elected official" means a person elected to a state
6681217 office in the legislative or executive branch of state government or
6691218 a person elected to a c ounty office for a definite number of years
6701219 and shall include an individual who is appointed to fill the
6711220 unexpired term of an elected state off icial;
672-
6731221 (35) "Elected service" means the period of service as an
6741222 elected official;
675-
6761223 (36) "Limitation year" means the year used in applying the
6771224 limitations of Section 415 of the Internal Revenue Code of 1986,
6781225 which year shall be the calendar year; and
679-
6801226 (37) "Public safety officers of the Grand River Dam Authority "
6811227 means those persons hired by the Grand River Dam Autho rity on or
6821228 after March 21, 2001, who are certified by the Council on Law
6831229 Enforcement Education and Training or an equivalent certifying
6841230 entity for law enforcement personnel training and who perform law
1231+
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6851258 enforcement functions as part of their regularly assig ned duties and
686-responsibilities on a full-time basis. With respect to any public RBH No. 7384
687-ENR. H. B. NO. 1805 Page 16
1259+responsibilities on a full -time basis. With respect to any public
6881260 safety officer hired by the Grand River Dam Authority on or after
6891261 March 21, 2001, any earned benefits or credits toward retirement
6901262 benefits from previous participation within the Oklahoma Public
6911263 Employees Retirement System or the Oklahoma Law Enforcement
6921264 Retirement System shall remain within that system.
693-
6941265 SECTION 2. AMENDATORY 74 O.S. 2021, Section 915, is
6951266 amended to read as follows:
696-
6971267 Section 915. A. (1) Except as otherwise provided in this
6981268 subsection and as provided for elected officials in Section 913.4 of
6991269 this title, any member who shall retire on or after the member's
7001270 normal retirement date shall be entitled to receive an annual
7011271 retirement benefit equal to two percent (2%) of the member's final
7021272 average compensation as determined pursuant to paragraph (18) of
7031273 Section 902 of this title, mu ltiplied by the number of years of
7041274 credited service that has been credited to the member in accordance
7051275 with the provisions of Section 913 of this title other than years
7061276 credited pursuant to paragraph (2) of this subsection.
707-
7081277 (2) Effective January 1, 2004, except as otherwise provided for
7091278 elected officials in Section 913.4 of this title and except for
7101279 those members making contributions pursuant to paragraphs (c), (d),
7111280 (e) and, (f), (g), and (h) of subsection (1) of Section 919.1 of
7121281 this title, any member who shall retire shall be entitled to receive
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7131309 an annual retirement benefit equal to two and one -half percent (2
7141310 1/2%) of the member's final average compensation as determined
7151311 pursuant to paragraph (18) of Section 902 of this title, multiplied
7161312 by the number of full years of participating service after January
7171313 1, 2004, that have been credited to the member in accordance w ith
7181314 the provisions of Section 913 of this title and only for those full
7191315 years of participating service for which contributions have been
7201316 made pursuant to paragraph (g) of subsection (1) of Section 919.1 of
7211317 this title. The two and one -half percent (2 1/2%) multiplier shall
7221318 not apply to purchased service, purchased or granted military
7231319 service or transferred service. In order to receive the two and
7241320 one-half percent (2 1/2%) multiplier in computing retirement
7251321 benefits, an active member shall make an irrevocab le written
7261322 election to pay the contributions pursuant to paragraph (g) of
7271323 subsection (1) of Section 919.1 of this title. The two and one -half
7281324 percent (2 1/2%) multiplier pursuant to this paragraph shall not
7291325 apply to additional years of service credit attr ibuted to sick leave
7301326 pursuant to paragraph 7 of subsection B of Section 913 of this title
731-and fractional years pur suant to subsection C of Section 913 of this RBH No. 7384
732-ENR. H. B. NO. 1805 Page 17
1327+and fractional years pursuant to subsection C of Section 913 of this
7331328 title and shall be attributable only to the participating service
7341329 credited after the election of the member.
735-
7361330 (3) The minimum final average compensation for any person who
7371331 becomes a member of the Oklahoma Public Employees Retirement System
7381332 on or after July 1, 1995 , and who had:
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7391359
7401360 a. and who had twenty (20) or more years of credited
7411361 service within the Sy stem as of the member's
7421362 retirement date shall be no less than Thirteen
7431363 Thousand Eight Hundred Dollars ($13,800.00) per annum,
744-
7451364 b. and who had at least fifteen (15) but not more than
7461365 nineteen (19) years of credited service within the
7471366 System as of the member' s retirement date shall be no
7481367 less than Six Thousand Nine Hundred Dollars
7491368 ($6,900.00) per annum, or
750-
7511369 c. and who had less than fifteen (15) years of credited
7521370 service within the System as of the member's
7531371 retirement date shall not be eligible for any minimum
7541372 amount of final average compensation and the member's
7551373 final average compensation shall be the final average
7561374 compensation as defined by paragraph (18) of Section
7571375 902 of this title.
758-
7591376 (4) Provided, further, any member who has elected a vested
7601377 benefit pursuant to Section 917 of this title shall be entitled to
7611378 receive benefits as outlined in this section except the percent
7621379 factor and the member's maxim um compensation level in effect the
7631380 date the member's employment was terminated with a participating
7641381 employer shall be applicable.
765-
7661382 (5) Any member who is a correctional officer or a probation and
7671383 parole officer employed by the Department of Corrections at the time
1384+
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7681411 of retirement and who retires on or before June 30, 2000, shall be
7691412 entitled to receive an annual retirem ent benefit equal to two and
7701413 one-half percent (2 1/2%) of the final average compensation of the
7711414 member not to exceed Twenty -five Thousand Dollars ($25,000.00) and
7721415 two percent (2%) of the final average salary in excess of Twenty -
7731416 five Thousand Dollars ($25,0 00.00) but not exceeding the maximum
7741417 compensation level as provided in paragraph (9) of Section 902 of
7751418 this title, multiplied by the number of years of service as a
7761419 correctional officer or a probation and parole officer; provided,
777-any years accrued prior to July 1, 1990, a s a correctional officer RBH No. 7384
778-ENR. H. B. NO. 1805 Page 18
1420+any years accrued prior t o July 1, 1990, as a correctional officer
7791421 or a probation and parole officer by a member who is employed as a
7801422 correctional officer or a probatio n and parole officer on July 1,
7811423 1990, shall be calculated for retirement purposes at two and one -
7821424 quarter percent (2 1/4%) of the final average compensation of the
7831425 member not to exceed Twenty -five Thousand Dollars ($25,000.00) and
7841426 two percent (2%) of the final average salary in excess of Twenty -
7851427 five Thousand Dollars ($25,000.00) but not exceeding the maximum
7861428 compensation level as provided in paragraph (9) of Section 902 of
7871429 this title, multiplied by the number of years of such service and
7881430 any years in excess of twenty (20) years as such an officer or years
7891431 credited to the member in accordance with the provisions of Sect ion
7901432 913 of this title shall be calculated for retirement purposes at two
7911433 percent (2%) of the final average compensation of the member
7921434 multiplied by the number of years of such service. Any person who
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7931462 contributes to the System as a correctional officer or a probation
7941463 and parole officer as provided in paragraph (b) or (c) of subsection
7951464 (1) of Section 919.1 of this title, on or before June 30, 2000 , but
7961465 who does not make such contributions after June 30, 2000, and who
7971466 does not qualify for normal retirement un der subparagraph (c) of
7981467 paragraph (24) of Section 902 of this title shall have retirement
7991468 benefits for each year of full -time-equivalent participating service
8001469 as a correctional or a probation and parole officer after July 1,
8011470 1990, computed on two and one -half percent (2 1/2%) of the final
8021471 average compensation based upon those years as a correctional
8031472 officer or a probation and parole officer. Pro vided, further, any
8041473 fugitive apprehension agent shall be entitled to receive benefits as
8051474 outlined in this act Section 901 et seq. of this title for service
8061475 as a fugitive apprehension agent prior to July 1, 2002, only upon
8071476 payment to the System of the employee contributions which would have
8081477 been paid if such fugitive apprehension agent had been covered by
8091478 this section prior to the effective date of this act July 1, 2002,
8101479 plus interest of not to exceed ten percent (10%) as determined by
8111480 the Oklahoma Public Employees Retirement Board of Trustees. The
8121481 Department of Corrections may make the employee contribution and
8131482 interest payment on behalf of such member.
814-
8151483 (6) Any member who is a correctional officer, a probation and
8161484 parole officer or a fugitive apprehension agent employed by the
8171485 Department of Corrections at the time of retirement and who retires
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8181513 on or after July 1, 200 2, shall be entitled to receive an annual
8191514 retirement benefit equal to two and one -half percent (2 1/2%) of the
8201515 final average compensation of th e member, but not exceeding the
8211516 maximum compensation level as provided in paragraph (18) of Section
8221517 902 of this title, multiplied by the number of years of service as a
823-correctional officer, a probation and parole officer or a fugitive RBH No. 7384
824-ENR. H. B. NO. 1805 Page 19
1518+correctional officer, a probation and parole officer or a fugitive
8251519 apprehension agent, and any years in excess of twenty (20) years as
8261520 such an officer or agent, or years credited to the member in
8271521 accordance with the provisions of Section 913 of this title, shall
8281522 be calculated for retirement purposes at two percent (2%) of the
8291523 final average compensation of the member multiplied by the number of
8301524 years of such service. For purposes of this paragraph, "final
8311525 average compensation " shall be determined by computing the average
8321526 annual salary, in the manner prescribed by paragraph (18) of Section
8331527 902 of this title, for the highest three (3) years of the last ten
8341528 (10) years of participating service immediately p receding retirement
8351529 or termination of employment for all years of service performed by
8361530 such member, both for years of service performed as a co rrectional
8371531 officer, probation and parole officer or fugitive apprehension
8381532 agent, not in excess of twenty (20) yea rs, and for years of service
8391533 performed in excess of twenty (20) years, whether as a correctional
8401534 officer, probation and parole officer, fugitive apprehension agent
8411535 or other position unless the computation of benefits would result in
8421536 a lower retirement bene fit amount than if final average compensation
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8431564 were to be computed as otherwise provided by this paragraph. "Final
8441565 average compensation " Final average compensation shall be determined
8451566 by computing the average annual salary for the highest five (5) of
8461567 the last ten (10) years of participating service immediately
8471568 preceding retirement or termination of employment, with respect to
8481569 members whose first participating service occurs on or after July 1,
8491570 2013.
850-
8511571 (7) Any member who is a correctional officer, a probation and
8521572 parole officer or a fugitive apprehension agent who has at least
8531573 five (5) years of service as a correctional officer, a probation and
8541574 parole officer or a fugitive apprehension agent who is in such
8551575 position on June 30, 2004, or who is hired after June 30, 2004, in
8561576 such position, and who receives a promotion or change in job
8571577 classification after June 30, 2004, to another position in the
8581578 Department of Corrections, and who is employed by the Department of
8591579 Corrections at the time of retirement and who retir es on or after
8601580 July 1, 2004, shall be entitled to receive an annual retirement
8611581 benefit equal to two and one -half percent (2 1/2%) of the final
8621582 average compensation of the member, but not exceeding the maximum
8631583 compensation level as provided in paragraph (18 ) of Section 902 of
8641584 this title, multiplied by the number of years of service with the
8651585 Department of Corrections and any years in excess of twenty (20)
8661586 years with the Department or years credited to the member in
8671587 accordance with the provisions of Section 91 3 of this title, shall
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8681615 be calculated for retirement purposes at two percent (2%) of the
869-final average compensation of the member multiplied by the number of RBH No. 7384
870-ENR. H. B. NO. 1805 Page 20
1616+final average compensation of the member multiplied by the number of
8711617 years of such service. For purposes of this paragraph, "final
8721618 average compensation " shall be determined by computing the average
8731619 annual salary, in the manner prescribed by paragraph (18) of Section
8741620 902 of this title, for the highest three (3) years of the last ten
8751621 (10) years of participating service immediately preceding retirement
8761622 or termination of em ployment for all years of service performed by
8771623 such member with the Department. "Final average compensation " Final
8781624 average compensation shall be determined by computing the average
8791625 annual salary for the highest five (5) of the last ten (10) years of
8801626 participating service immediately preceding retirement or
8811627 termination of employment, with respect to members whose first
8821628 participating service occurs on or after July 1, 2013.
883-
8841629 (8) Any person who contributed to the System as a correctional
8851630 officer, a probation and parole officer or a fugitive apprehension
8861631 agent as provided in paragraph (b) or (c) of subsection (1) of
8871632 Section 919.1 of this title, and w ho retires under normal retirement
8881633 or early retirement on or after January 1, 2004, under paragraph
8891634 (24) of Section 902 of this title, and any public safety officer
8901635 described by paragraph (37) of Section 902 of this title hired on or
8911636 after the effective date of this act July 1, 2016, by the Grand
8921637 River Dam Authority and who retires on or after the effective date
8931638 of this act July 1, 2016, shall have retirement benefits for each
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8941666 year of full-time-equivalent participating service as a correctional
8951667 officer, a probation and parole officer or a fugitive apprehension
8961668 agent, or Grand River Dam public safety officer computed o n two and
8971669 one-half percent (2 1/2%) of the final average compensation based
8981670 upon those years as a correctional officer, a probation and parole
8991671 officer, a fugitive apprehension agent or a Grand River Dam public
9001672 safety officer. For purposes of this paragrap h, "final average
9011673 compensation" shall be determined by computing the average annual
9021674 salary, in the manner prescribed by paragraph (18) of Secti on 902 of
9031675 this title, for the highest three (3) years of the last ten (10)
9041676 years of participating service immedia tely preceding retirement or
9051677 termination of employment for all years of service performed by such
9061678 member, both for years of service performed as a correctional
9071679 officer, probation and parole officer or fugitive apprehension
9081680 agent, or years of service perfor med as a Grand River Dam public
9091681 safety officer, not in excess of twenty (20) years, and for years of
9101682 service performed in excess of twenty (20) years, whether as a
9111683 correctional officer, probation and parole officer, fugitive
9121684 apprehension agent, Grand River Dam public safety officer, or other
9131685 position unless the computation of benefits would result in a lower
9141686 retirement benefit amount than if final average compensation were to
915-be computed as otherwise p rovided by this paragraph. "Final average RBH No. 7384
916-ENR. H. B. NO. 1805 Page 21
1687+be computed as otherwise provided by this paragraph. "Final average
9171688 compensation" Final average compensation shall be determined by
9181689 computing the average annual salary for the highest five (5) of the
1690+
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9191717 last ten (10) years of p articipating service immediately preceding
9201718 retirement or termination of employment, with respect to members
9211719 whose first participating service occurs on or after July 1, 2013,
9221720 or with respect to Grand River Dam public safety officers whose
9231721 first participating service occurs on or after the effective date of
9241722 this act July 1, 2016.
925-
9261723 (9) Any member who is:
927-
9281724 a. initially on or after July 1, 2002, employed as a
9291725 firefighter for the Oklahoma Military Department of
9301726 the State of Oklahoma and who retires on or after th e
9311727 member's normal retirement date shall be entitled to
9321728 receive an annual retirement benefit equal to two and
9331729 one-half percent (2 1/2%) of the final average
9341730 compensation of the member multiplied by the number of
9351731 years of service in such service,
936-
9371732 b. (1) a firefighter who performs firefighting services
9381733 for the Oklahoma Military Department of the State
9391734 of Oklahoma prior to July 1, 2002, and who makes
9401735 an election in writing on a form prescribed for
9411736 this purpose by the System not later than
9421737 December 31, 2002, sha ll be entitled to receive a
9431738 retirement benefit based upon two and one -half
9441739 percent (2 1/2%) of the final average
9451740 compensation of the member multiplied by the
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9461768 number of years of service as a firefighter with
9471769 the Oklahoma Military Department of the State of
9481770 Oklahoma on or after July 1, 2002. The election
9491771 authorized by this subdivision shall be
9501772 irrevocable once the ele ction is filed with the
9511773 System,
952-
9531774 (2) a firefighter who performs firefighting services
9541775 for the Oklahoma Military Department of the State
9551776 of Oklahoma prior to July 1, 2002, and who makes
9561777 the election in division (1) of this subparagraph
9571778 may also make an elect ion in writing on a form
9581779 prescribed for this purpose by the System not
9591780 later than December 31, 2002, to receive a
9601781 retirement benefit based upon two and one -half
961-percent (2 1/2%) of the final average RBH No. 7384
962-ENR. H. B. NO. 1805 Page 22
1782+percent (2 1/2%) of the final average
9631783 compensation of the member multiplied by the
9641784 number of years of service as a firefighter with
9651785 the Oklahoma Military Department of the State of
9661786 Oklahoma prior to July 1, 2002. The election
9671787 authorized by this subdivision shall be
9681788 irrevocable once the election is filed with the
9691789 System. Retirement benefits shall b e calculated
9701790 based upon the two and one -half percent (2 1/2%)
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9711818 multiplier upon payment being made pursuant to
9721819 Section 913.5 of this title.
973-
9741820 (10) Any person who contributes to the System as a deputy
9751821 sheriff or county jailer as provided in paragraph (f) of su bsection
9761822 (1) of Section 919.1 of this title, and who retires under normal
9771823 retirement or early retirement under division (v) of subparagraph
9781824 (d) of paragraph (24) of Section 902 of this title, shall have
9791825 retirement benefits for each year of full -time-equivalent
9801826 participating service as a deputy sheriff or county jailer computed
9811827 on two and one-half percent (2 1/2%) of the final average
9821828 compensation based upon those years as a deputy sheriff or county
9831829 jailer, and any years in excess of twenty (20) years as a d eputy
9841830 sheriff or county jailer, or years credited to the member in
9851831 accordance with the provisions of Section 913 of this title, shall
9861832 be calculated for retirement purposes at two percent (2%) of the
9871833 final average compensation of the member multiplied by th e number of
9881834 years of such service. For purposes of this paragraph, "final
9891835 average compensation " shall be determined by computing the average
9901836 annual salary, in the manner prescribed by paragraph (18) of Section
9911837 902 of this title, both for years of service performed as a deputy
9921838 sheriff or county jailer not in excess of twenty (20) years, and for
9931839 years of service performed in excess of twenty (20) years, whether
9941840 as a deputy sheriff or county jailer.
9951841
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9961868 (11) Any person who contributes to the System as an emergen cy
9971869 medical service personnel as provided in paragraph (h) of subsection
9981870 (1) of Section 919.1 of this title, and who retires under normal
9991871 retirement or early retirement under division (vii) of subparagraph
10001872 (d) of paragraph (24) of Section 902 of this title, shall have
10011873 retirement benefits for each year of full -time-equivalent
10021874 participating service as an emergency medical service personnel
10031875 computed on two and one-half percent (2 1/2%) of the final average
10041876 compensation based upon those years as an emergency med ical service
10051877 personnel. Any years of full -time-equivalent participating service
10061878 in excess of twenty (20) years as an emergency medical personnel, or
1007-years credited to the member in accor dance with the provisions of RBH No. 7384
1008-ENR. H. B. NO. 1805 Page 23
1879+years credited to the member in accordance with the provisions of
10091880 Section 913 of this title, shall be calc ulated for retirement
10101881 purposes at two percent (2%) of the final average compensation of
10111882 the member multiplied by the number of years of such se rvice. For
10121883 the purposes of this paragraph, "final average compensation " shall
10131884 be determined by computing the ave rage annual salary, in the manner
10141885 prescribed by paragraph 18 of Section 902 of this title, both for
10151886 years of service performed as an emergency medical personnel not in
10161887 excess of twenty (20) years, and for years of service performed in
10171888 excess of twenty (20) years, as an emergency medical service
10181889 personnel.
1019-
10201890 (12) Upon death of a retiree, there shall be paid to his or her
10211891 beneficiary an amount equal to the excess, if any, of his or her
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10221919 accumulated contributions over the sum of all retirement benefit
10231920 payments made.
1024-
10251921 (12) (13) Such annual retirement benefits shall be paid in
10261922 equal monthly installments, except that the Board may provide for
10271923 the payment of retirement benefits which total less than Two Hundred
10281924 Forty Dollars ($240.00) a year on other than a monthly b asis.
1029-
10301925 (13) (14) Pursuant to the rules established by the Board, a
10311926 retiree receiving monthly benefits from the System may authorize
10321927 warrant deductions for any products currently offered to active
10331928 state employees through the Employees Benefits Council Oklahoma
10341929 Employees Insurance and Benefits Board , provided that product is
10351930 offered to state retirees as a group and has a minimum participation
10361931 of five hundred state retirees. The System has no responsibility
10371932 for the marketing, enrolling or administration of su ch products, but
10381933 shall retain a processing fee of two percent (2%) of the gross
10391934 deductions for the products. Retirement benefit deductions sha ll be
10401935 made for membership dues for any statewide association for which
10411936 payroll deductions are authorized pursuant to subsection B of
10421937 Section 34.70 of Title 62 of the Oklahoma Statutes for retired
10431938 members of any state -supported retirement system, upon proper
10441939 authorization given by the member to the board from which the member
10451940 or beneficiary is currently receiving reti rement benefits.
1046-
10471941 B. A member shall be considered disabled if such member
10481942 qualifies for the payment of Social Security disability benefits, or
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10491970 the payment of benefits pursuant to the Railroad Retirement Act of
10501971 1974, Section 231 et seq. of Title 45 of the U nited States Code, and
10511972 shall be eligible for benefits hereunder upon proof of such
10521973 disability, provided such member is an active regularly scheduled
1053-employee with a participating employer at the time o f injury or RBH No. 7384
1054-ENR. H. B. NO. 1805 Page 24
1974+employee with a participating employer at the time of injury or
10551975 inception of illness or disease resulting i n subsequent
10561976 certification of eligibility for Social Security disability benefits
10571977 by reason of such injury, illness or disease, providing such
10581978 disability is certified by the Social Security Administration within
10591979 one (1) year after the last date physically on the job and after
10601980 completion of at least eight (8) years of participating service or
10611981 combined prior and participating service or resulting in subsequent
10621982 certification of eligibility of disability by the Railroad
10631983 Retirement Board providing such certifica tion is made by the
10641984 Railroad Retirement Board within one (1) year after the last date
10651985 physically on the job and after completion of at least ei ght (8)
10661986 years of participating service or combined prior and participating
10671987 service. The member shall submit to t he Retirement System the
10681988 Social Security Award Notice or the Railroad Retirement Award Notice
10691989 certifying the date of entitlement for disability benefits, as
10701990 issued by the Social Security Administration, Department of Health
10711991 and Human Services or the Railro ad Retirement Board. Disability
10721992 benefits shall become effective on the date of entitlement as
10731993 established by the Social Security Administratio n or the Railroad
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10742021 Retirement Board, but not before the first day of the month
10752022 following removal from the payroll, whichever is later, and final
10762023 approval by the Retirement System. Benefits shall be based upon
10772024 length of service and compensation as of the date of disability,
10782025 without actuarial reduction because of commencement prior to the
10792026 normal retirement date. The o nly optional form of benefit payment
10802027 available for disability benefits is Option A as provided for in
10812028 Section 918 of this title. Option A must be elected in accordance
10822029 with the provisions of Section 918 of this title. Benefit payments
10832030 shall cease upon the member's recovery from disability prior to the
10842031 normal retirement date. Future benefits, if any, shall be paid
10852032 based upon length of service and compensation as of the date of
10862033 disability. In the event that disability ceases and the member
10872034 returns to employment within the System credited service to the date
10882035 of disability shall be restored, and future benefits shall be
10892036 determined accordingly.
1090-
10912037 C. A member who incurred a disability pursuant to subsection B
10922038 of this section on or after July 1, 1999, and who ha s retired from
10932039 the System with an early retirement benefit pending certification
10942040 from the Social Security Administration or the Railroad Retirement
10952041 Board shall receive a retirement benefit not less than the
10962042 disability retirement benefit provided by subsect ion B of this
10972043 section once the System receives a Social Security Award Notice or a
10982044 Railroad Retirement Award Notice pursuant to subsection B of this
1099-section and a completed Application for Disability B enefits RBH No. 7384
1100-ENR. H. B. NO. 1805 Page 25
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2072+section and a completed Application for Disability Benefits
11012073 application for disability benefits . In addition, such member shall
11022074 receive the difference, if any, between the early retirement benefit
11032075 and the disability benefit from the date the Social Security
11042076 Administration or the Railroad Retirement Board establishes
11052077 disability entitlement.
1106-
11072078 D. Any actively par ticipating member of the System on or after
11082079 July 1, 1998, except for those employees provided in subparagraph
11092080 (e) of paragraph (14) of Section 902 of this title, whose employment
11102081 is less than full-time, shall have his or her final average
11112082 compensation calculated on an annualized basis using his or her
11122083 hourly wage subject to the maximum compensation limits; provided,
11132084 however, any such member whose first participating service occurred
11142085 before July 1, 2013, and who has at least three (3) years of full -
11152086 time employment during the last ten (10) years immediately preceding
11162087 termination or retirement shall not be eligible for the
11172088 annualization provisions co ntained herein; and provided further, any
11182089 such member whose first participating service occurred on or after
11192090 July 1, 2013, and who has at least five (5) years of full -time
11202091 employment during the last ten (10) years immediately preceding
11212092 termination or retirement shall not be eligible for the
11222093 annualization provisions contained herein. The Board of Trustees
11232094 shall promulgate such administrative rules as are necessary to
11242095 implement the provisions of this subsection.
11252096
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11262123 SECTION 3. AMENDATORY 74 O.S. 2021, Section 916.3, is
11272124 amended to read as follows:
1128-
11292125 Section 916.3 A. 1. Notwithstanding the provisio ns of
11302126 Sections 901 through 932 of this title, a monthly pension, as
11312127 provided in subsection B of this section, shall be paid on behalf of
11322128 any member who is a correctional officer or probation and parole
11332129 officer of the Department of Corrections and who is ki lled or
11342130 mortally wounded on or after January 1, 2000, during the performance
11352131 of the member's duties for the Department or any employee of the
11362132 Department of Corrections who is killed or mortally wounded after
11372133 June 30, 2004, during the performance of the mem ber's duties for the
11382134 Department.
1139-
11402135 2. The monthly pension described in this section shall be paid
11412136 on behalf of any member first hired by any county that is a
11422137 participating employer in the System as a deputy sheriff or jailer
11432138 on or after November 1, 2020, an d who is killed or mortally wounded
11442139 during the performance of the member's duties as a deputy sheriff or
1145-jailer. RBH No. 7384
1146-ENR. H. B. NO. 1805 Page 26
1147-
2140+jailer.
11482141 3. The monthly pension descri bed in this section shall be paid
11492142 on behalf of a licensed emergency medical personnel hired by any
11502143 participating employer for the first time as a licensed emergency
11512144 medical personnel on or after the effective date of this act, and
11522145 who is killed or mortally wounded during the performance of the
11532146 member's duties as an emergency medical personnel.
11542147
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11552174 B. The monthly benefit shall be equal to:
1156-
11572175 1. Two and one-half percent (2 1/2%);
1158-
11592176 2. Multiplied by twenty (20) years of service, regardless of
11602177 the actual number of y ears of credited service performed by the
11612178 member prior to death, if the member had performed less than twenty
11622179 (20) years of credited service, or the actual number of years of
11632180 credited service of the member if greater than twenty (20) years;
1164-
11652181 3. Multiplied by the member's final average compensation; and
1166-
11672182 4. Divided by 12.
1168-
11692183 C. The pension provided for in subsection A o f this section
11702184 shall be paid:
1171-
11722185 1. Except as provided in subsection D of this section, to the
11732186 surviving spouse for life; or
1174-
11752187 2. If there is no s urviving spouse or upon the death of the
11762188 surviving spouse:
1177-
11782189 a. to the surviving child or children of said member o r
11792190 legal guardian of such child or children for such time
11802191 as such child or children are under the age of
11812192 eighteen (18) years, or
1182-
11832193 b. to the surviving child or children between the age of
11842194 eighteen (18) and twenty -two (22) years if the child
11852195 is enrolled full time in and is regularly attending a
11862196 public or private school or any institution of higher
11872197 education.
11882198
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11892225 D. No surviving spouse shall receive bene fits from this
11902226 section, Section 49-113 of Title 11 of the Oklahoma Statutes,
1191-Section 50-117 of Title 11 of the Oklahoma Statutes, or Section 2- RBH No. 7384
1192-ENR. H. B. NO. 1805 Page 27
2227+Section 50-117 of Title 11 of the Ok lahoma Statutes, or Section 2 -
11932228 306 of Title 47 of the Oklahoma Statutes as the surviving spouse of
11942229 more than one member of the Oklahoma Firefighters Pension and
11952230 Retirement System, the Oklahoma Police Pension and Retirement
11962231 System, the Oklahoma Law Enforceme nt Retirement System, or the
11972232 Oklahoma Public Employees Retirement System. The surviving spouse
11982233 of more than one member shall elect which membe r's benefits he or
11992234 she will receive.
1200-
12012235 E. In addition to the pension above provided for, if said
12022236 member leaves one or more children under the age of eighteen (18)
12032237 years or under the age of twenty -two (22) years if the child is
12042238 enrolled full-time in and is regularly attending a public or private
12052239 school or any institution of higher education, Four Hundred Dollars
12062240 ($400.00) a month shall be paid to the surviving spouse or to the
12072241 person having the care and custody of such children if there is no
12082242 surviving spouse or if the surviving spouse dies and until each
12092243 child reaches the age of eighteen (18) years or reaches the age o f
12102244 twenty-two (22) years if the child is enrolled full -time in and is
12112245 regularly attending a public or private school or any institution of
12122246 higher education.
1213-
12142247 F. The pension benefit provided in this section shall be made
12152248 prospectively only from the effective date of this act July 1, 2000.
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12162276 The benefits shall be payable beginning the later of the first day
12172277 of the month following the date that such e mployee was killed or
12182278 dies from a mortal wound, as provided in this section, or the
12192279 effective date of this act July 1, 2000.
1220-
12212280 G. The Board of Trustees of the Oklahoma Public Employees
12222281 Retirement System shall promulgate such rules as are necessary to
12232282 implement the provisions of this section.
1224-
12252283 SECTION 4. AMENDATORY 74 O.S. 2021, Section 919.1, is
12262284 amended to read as follows:
1227-
12282285 Section 919.1 (1) Employee contributions to the Oklahoma
12292286 Public Employees Retirement System shall be:
1230-
12312287 (a) for employees except as otherwise provided in
12322288 paragraphs (b), (c), (d), (e), (f) and, (g), and (h)
12332289 of this subsection: beginning July 1, 2006, and
12342290 thereafter, three and one -half percent (3.5%) of
12352291 allowable annual compensation ;,
1236- RBH No. 7384
1237-ENR. H. B. NO. 1805 Page 28
12382292 (b) for correctional officers and probation and parole
12392293 officers employed by the Department of Corrections:
12402294 beginning July 1, 1998, and thereaft er, and for
12412295 correctional officers or probation and parole officers
12422296 who are in such position on June 30, 2004, or who are
12432297 hired after June 30, 2 004, and who receive a promotion
12442298 or change in job classification after June 30, 2004,
12452299 to another position in the Department of Corrections,
2300+
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12462327 so long as such officers have at least five (5) years
12472328 of service as a correctional officer or probation and
12482329 parole officer, eight percent (8%) of allowable
12492330 compensation as provided in paragraph (9) of Section
12502331 902 of this title;,
1251-
12522332 (c) for fugitive apprehension agents who are employed with
12532333 the Department of Corrections on or after July 1,
12542334 2002, and for fugitive apprehensio n agents who are in
12552335 such position on June 30, 2004, or who are hired after
12562336 June 30, 2004, and who receive a promo tion or change
12572337 in job classification after June 30, 2004, to another
12582338 position in the Department of Corrections, so long as
12592339 such agents have at least five (5) years of service as
12602340 a fugitive apprehension agent, eight percent (8%) of
12612341 allowable compensation as provided in paragraph (9) of
12622342 Section 902 of this title ;,
1263-
12642343 (d) for firefighters of the Oklahoma Military Department
12652344 of the State of Oklahoma first employed beginning July
12662345 1, 2002, and thereafter, and such firefighters who
12672346 performed service prior to July 1, 2002, for the
12682347 Oklahoma Military Department of the State of Oklahoma
12692348 and who make the election authorized by division (1)
12702349 of subparagraph b of paragraph (9) of subsection A of
12712350 Section 915 of this title who perform service on or
2351+
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12722378 after July 1, 2002, in such c apacity, eight percent
12732379 (8%) of allowable compensation as provided in
12742380 subsection paragraph (9) of Section 902 of this
12752381 title;,
1276-
12772382 (e) for all public safety officers of the Grand River Dam
12782383 Authority as defined by paragraph (37) of Section 902
12792384 of this title, eight percent (8%) of allowable
12802385 compensation as provided in paragraph (9) of Section
12812386 902 of this title;,
1282- RBH No. 7384
1283-ENR. H. B. NO. 1805 Page 29
12842387 (f) for deputy sheriffs and county jailers employed by any
12852388 county that is a participating employer in the System
12862389 for the first time as a deputy sheriff or jailer on or
12872390 after November 1, 2020, eight percent (8%) of
12882391 allowable compensation as provided in paragraph (9) of
12892392 Section 902 of this title ; and,
1290-
12912393 (g) for licensed emergency medical personnel employed by
12922394 any participating employer as a licensed emergency
12932395 medical personnel for the first time on or after the
12942396 effective date of this act, eight percent (8%) of
12952397 allowable compensation as provided in paragraph (9) of
12962398 Section 902 of this title, and
1297-
12982399 (h) for all employees except those who make contributions
12992400 pursuant to paragraphs (b), (c), (d), (e) and, (f),
13002401 and (g) of this subsection who make an irrevocable
2402+
2403+SENATE FLOOR VERSION - HB1805 SFLR Page 48
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13012429 written election pursuant to paragraph (2) of
13022430 subsection A of Section 915 of this title: six and
13032431 forty-one one-hundredths percent (6.41%) of allowable
13042432 annual compensation.
1305-
13062433 The contributions required by paragraphs (b), (c), (e), and (f),
13072434 (g), and (h) of this subsection shall be made by a member for not
13082435 more than twenty (20) years and thereafter shall be as provided in
13092436 paragraph (a) of this subsection.
1310-
13112437 (2) Contributions shall be deducted by each state agency by the
13122438 participating employer for such benefits as the Board is authorized
13132439 to administer as provided for by law. Employee and employer
13142440 contributions shall be remitted monthly, or as the Board may
13152441 otherwise provide, to the Executive Director for deposit in the
13162442 Oklahoma Public Employees Retirement Fund.
1317-
13182443 (3) Each participating employer shall pick up under the
13192444 provisions of Section 414(h)(2) of the Internal Revenue Code of 1986
13202445 and pay the contribution which the memb er is required by law to make
13212446 to the System for all compensation earned after December 31, 1988.
13222447 Although the contributions so picked up are d esignated as member
13232448 contributions, such contributions shall be treated as contributions
13242449 being paid by the partici pating employer in lieu of contributions by
13252450 the member in determining tax treatment under the Internal Revenue
13262451 Code of 1986 and such picked up contributions shall not be
13272452 includable in the gross income of the member until such amounts are
1328-distributed or made available to the member or the beneficiary of RBH No. 7384
1329-ENR. H. B. NO. 1805 Page 30
2453+
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2480+distributed or made available to the member or the beneficiary of
13302481 the member. The member, by the terms of this System, shall not have
13312482 any option to choose to re ceive the contributions so picked up
13322483 directly and the picked up contributions must be paid by the
13332484 participating employer to the System.
1334-
13352485 Member contributions which are picked up shall be treated in the
13362486 same manner and to the same extent as member contributions made
13372487 prior to the date on which member contributions were picked up by
13382488 the participating employer. Member co ntributions so picked up shall
13392489 be included in gross salary for purposes of determining benefits and
13402490 contributions under the System.
1341-
13422491 The participating employer shall pay the member contributions
13432492 from the same source of funds used in paying salary to the mem ber,
13442493 by effecting an equal cash reduction in gross salary of the member.
1345-
13462494 (4) By September 1, 1989, the System shall refund the
13472495 accumulated employee contributions of any member who elects to
13482496 retain the member's membership in the Teachers' Retirement System of
13492497 Oklahoma, in accordance with Section 17 -104 of Title 70 of the
13502498 Oklahoma Statutes, to such member. Upon the refund of the
13512499 accumulated employee contributions referred to in this subsection,
13522500 all benefits and rights accrued to such member are terminated.
1353-
13542501 SECTION 5. AMENDATORY 74 O.S. 2021, Section 920A, is
13552502 amended to read as follows:
2503+
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13562529
13572530 Section 920A. A. Any county, county hospital, city or town,
13582531 conservation district, circuit engineering district or any public or
13592532 private trust in which a county, city or town participates and is
13602533 the primary beneficiary, which is a participating employer and any
13612534 eligible employee shall cont ribute to the Oklahoma Public Employees
13622535 Retirement System. The total employer and employee contributions
13632536 shall be based on the allowable annual compensation as defined in
13642537 paragraph (9) of Section 902 of this title. Except as provided for
13652538 in this section, the employer shall not pay for the employee any of
13662539 the employee contribution to the System.
1367-
13682540 B. For the fiscal y ear ending June 30, 2005, the total employer
13692541 and employee contributions shall equal thirteen and one -half percent
13702542 (13 1/2%) of the allowable mo nthly compensation of each member;
13712543 provided, however, each participating employer listed in this
13722544 section may set the amount of the employer and employee contribution
13732545 to equal thirteen and one -half percent (13 1/2%) of the allowable
1374-monthly compensation of each member for co mpensation as provided in RBH No. 7384
1375-ENR. H. B. NO. 1805 Page 31
2546+monthly compensation of each member for compensation as provided in
13762547 paragraph (9) of Section 902 of this title; provided, the employer
13772548 contribution shall not exceed ten percent (10%) and the employee
13782549 contribution shall not exceed eight and one -half percent (8 1/2%).
1379-
13802550 C. The total employer and employee contributions for fiscal
13812551 years following the fiscal year ending June 30, 2005, shall be as
13822552 follows:
1383-
13842553 July 1, 2005 – June 30, 2006 15%
13852554
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13862581 July 1, 2006 – June 30, 2007 16%
1387-
13882582 July 1, 2007 – June 30, 2008 17%
1389-
13902583 July 1, 2008 – June 30, 2009 18%
1391-
13922584 July 1, 2009 – June 30, 2010 19%
1393-
13942585 July 1, 2010 – June 30, 2011 and
13952586 each fiscal year thereafter 20%
1396-
13972587 Such employee and employer contributions shall be based upon the
13982588 allowable monthly compensation of each member for compensation as
13992589 provided in paragraph (9) of Section 902 of this title. The maximum
14002590 employer contribution of ten percent (10%) in subsection B of this
14012591 section shall increase by one and one -half percent (1.5%) beginning
14022592 in the fiscal year ending June 30, 2006, and one percent (1%) for
14032593 each fiscal year thereafter until it reaches sixteen and one -half
14042594 percent (16.5%). For such years, the employee contribution s hall
14052595 not exceed eight and one -half percent (8 1/2%). Notwithstanding any
14062596 other provisions of this section to the contrary, for those members
14072597 described in division (v) , or (vi) of subparagraph (d) of paragraph
14082598 (24) of Section 902 of this title, the county participating employer
14092599 shall contribute sixteen and one -half percent (16 1/2%) and the
14102600 employee shall contribute eight percent (8%) for a total of twenty -
14112601 four and one-half percent (24 1/2%).
1412-
14132602 D. For members who make the election pursuant to paragraph (2)
14142603 of subsection A of Section 915 of this title, the employee
14152604 contribution shall increase by two and ninety -one one-hundredths
2605+
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14162632 percent (2.91%). Su ch employee contribution increase shall be paid
14172633 by the employee.
1418-
14192634 E. Each participating employer pursuant to the provisions of
1420-this section may pick up under the provisions of Section 414(h)(2) RBH No. 7384
1421-ENR. H. B. NO. 1805 Page 32
2635+this section may pick up under the provisions of Section 414(h)(2)
14222636 of the Internal Revenue Code of 1986 and pay the contribution which
14232637 the member is required by law to make to the System for all
14242638 compensation earned after December 31, 1989. A lthough the
14252639 contributions so picked up are designated as member contributions,
14262640 such contributions shall be treated as contributions being paid by
14272641 the participating employer in lieu of contributions by the member in
14282642 determining tax treatment under the Inter nal Revenue Code of 1986
14292643 and such picked up contributions shall not be includable in the
14302644 gross income of the member until such amounts are distributed or
14312645 made available to the member or the beneficiary of the member. The
14322646 member, by the terms of this Syste m, shall not have any option to
14332647 choose to receive the contributions so picked up directly and the
14342648 picked up contributions must be paid by the p articipating employer
14352649 to the System.
1436-
14372650 F. Member contributions which are picked up shall be treated in
14382651 the same manner and to the same extent as member contributions made
14392652 prior to the date on which member contributions were picked up by
14402653 the participating employer. Member contributions so picked up shall
14412654 be included in gross salary for purposes of determining benefits and
14422655 contributions under the System.
14432656
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14442683 G. The participating employer shall pay the member
14452684 contributions from the same source of funds used in pa ying salary to
14462685 the member, by effecting an equal cash reduction in gross salary of
14472686 the member.
1448-
14492687 SECTION 6. This act shall become effective November 1, 2024.
1450- RBH No. 7384
1451-ENR. H. B. NO. 1805 Page 33
1452-Passed the House of Representatives the 12th day of March, 2024.
1453-
1454-
1455-
1456-
1457- Presiding Officer of the House
1458- of Representatives
1459-
1460-
1461-
1462-Passed the Senate the 23rd day of April, 2024.
1463-
1464-
1465-
1466-
1467- Presiding Officer of the Senate
1468-
1469-
1470-OFFICE OF THE GOVERNOR
1471-Received by the Office of the Governor this ____________________
1472-day of ___________________, 20_______, at _______ o'clock _______ M.
1473-By: _________________________________
1474-Approved by the Governor of the State of Oklahoma this _____ ____
1475-day of ___________________, 20_______, at __ _____ o'clock _______ M.
1476-
1477-
1478- _________________________________
1479- Governor of the State of Oklahoma
1480-
1481-OFFICE OF THE SECRETARY OF STATE
1482-Received by the Office of the Secretary of State this __________
1483-day of ___________________, 20_______, at _______ o'clock __ _____ M.
1484-By: _________________________________
1485-
1486-
2688+COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE
2689+March 26, 2024 - DO PASS