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Oklahoma House Bill HB2167

Oklahoma 2024 Regular Session

Oklahoma House Bill HB2167 Compare Versions

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2727 STATE OF OKLAHOMA
2828
2929 1st Session of the 59th Legislature (2023)
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3131 HOUSE BILL 2167 By: Ford
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3737 AS INTRODUCED
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3939 An Act relating to the Oklahoma Law Enforcement
4040 Retirement System; amending 47 O.S. 2021, Section 2 -
4141 305, which relates to retirement pay; modifying
4242 benefit calculations for certain members; providing
4343 an effective date; and declaring an emergen cy.
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5151 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
5252 SECTION 1. AMENDATORY 47 O.S. 2021, Section 2 -305, as
5353 amended by Section 2, Chapter 255, O.S.L. 2022 (47 O.S. Supp. 2022,
5454 Section 2-305), is amended to read as follows:
5555 Section 2-305.
5656 A. Except as otherwise provided in this title, at any time
5757 after attaining normal retirement date, any member of the Oklahoma
5858 Law Enforcement Retirement System upon appli cation for unreduced
5959 retirement benefits made and approved, may retire, and, during the
6060 remainder of the member 's lifetime, receive annual retirement pay,
6161 payable in equal monthly payments, equal to two and one-half percent
6262 (2 1/2%) of the final average sa lary times years of credited RBH No. 5826
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8888 service. If such retired member is reemployed by a state agency in
8989 a position which is not covered by the System, such retired member
9090 shall continue to receive in -service distributions from the System.
9191 Prior to September 19, 2002, if such retired member was r eemployed
9292 by a state agency in a position which is covered by the System, such
9393 member shall continue to receive in -service distributions from the
9494 System and shall not a ccrue any further credited service. If such a
9595 member is reemployed by a state agency in a position which is
9696 covered by the System on or after September 19, 2002, such member 's
9797 monthly retirement payments shall be suspended until such member
9898 retires and is not reemployed by a state agency in a position which
9999 is covered by the System.
100100 B. Beginning July 1, 1994, members who retired or were eligible
101101 to retire prior to July 1, 1980, or their surviving spouses shall
102102 receive annual retirement pay, payable in equ al monthly payments,
103103 equal to the greater of their cur rent retirement pay, or two and
104104 one-half percent (2 1/2%) of the actual paid gross salary being
105105 currently paid to a highway patrol officer, at the time each such
106106 monthly retirement payment is made, mult iplied by the retired
107107 member's years of credited servi ce.
108108 C. Except as otherwise provid ed by this subsection, members of
109109 the System whose salary is set by statute who have retired after
110110 completion of the mandatory twenty (20) years of service, and those
111111 members with statutory salaries who retire after reachi ng the RBH No. 5826
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137137 mandatory twenty-year retirement shall receive an annual retirement
138138 pay, payable in equal monthly installments, based upon the greater
139139 of either:
140140 1. The top base salary currently paid to the hig hest
141141 nonsupervisory position in the participating agen cy at the time each
142142 such monthly retirement payment is made, limited to the annual
143143 salary limit of the Economic Growth and Tax Relief Reconciliation
144144 Act of 2001, as described in paragraph 9 of Section 2 -300 of this
145145 title, multiplied by two and one -half percent (2 1/2%) multiplied by
146146 the number of years of credited service and fraction thereof for the
147147 following positions:
148148 a. Oklahoma Highway Patrolman,
149149 b. Communications Dispatcher,
150150 c. Capitol Patrolman,
151151 d. Lake Patrolman, and
152152 e. Oklahoma State Bureau of Inve stigation - Special Agent
153153 or Criminalist; or
154154 2. The member's final average salary as set forth in paragraph
155155 9 of Section 2-300 of this title, multiplied by two and one -half
156156 percent (2 1/2%), and multip lied by the number of years of credited
157157 service and fraction thereof.
158158 No member of the System retired prior to July 1, 2002, shall
159159 receive a benefit less than the amount the member is receiving as of
160160 June 30, 2002. RBH No. 5826
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186186 The provisions of paragraph 1 of this sub section shall not be
187187 applicable to any member whose fi rst participating service with the
188188 System occurs on or after November 1, 2012, except for include those
189189 members who died in the performance of their duties pursuant to
190190 Section 2-306 of this title.
191191 D. Other members of the System whose retirement benefit is not
192192 otherwise prescribed by this section who have retired after
193193 completion of the mandatory twenty (20) years of serv ice, and those
194194 members who retire after reaching the mandatory twenty -year
195195 retirement shall receive an annual retirement pay, payable in equal
196196 monthly payments, based upon the greater of either:
197197 1. The actual average salary currently paid to the highest
198198 nonsupervisory position in the part icipating agency at the time each
199199 such monthly payment is made, limited to the annual salary limit of
200200 the Economic Growth and Tax Relief Reconciliation Act of 20 01, as
201201 described in paragraph 9 of Section 2-300 of this title, multiplied
202202 by two and one-half percent (2 1/2%), multiplied by the number of
203203 years of credited service and fraction thereof for the following
204204 positions:
205205 a. Alcoholic Beverage Laws Enforcement Commission - ABLE
206206 Commission Agent III,
207207 b. Oklahoma State Bureau of Narcotics and Dangerous Dru gs
208208 Control - Narcotics Agent III, RBH No. 5826
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234234 c. Oklahoma Tourism and Recreation Department - Park
235235 Ranger II,
236236 d. State Board of Pharmacy - Pharmacy Inspector,
237237 e. University of Oklahoma - Police Officer, and
238238 f. Oklahoma State Universit y - Police Officer; or
239239 2. The other member's final average salary as set forth in
240240 paragraph 9 of Section 2-300 of this title, multiplied by two and
241241 one-half percent (2 1/2%), multiplied b y the number of years of
242242 credited service and fraction thereof.
243243 No member of the System retired prior to July 1, 2002, shall
244244 receive a benefit less than the amount the member is receiving as of
245245 June 30, 2002. The participating employer must certify to th e
246246 System in writing the actual average gross salary currently paid to
247247 the highest nonsupervisory positi on. The Board of Trustees shall
248248 promulgate such rules as are necessary to implement the provisions
249249 of this section.
250250 The provisions of paragraph 1 of th is subsection shall not be
251251 applicable to any member whose first partic ipating service with the
252252 System occurs on or after May 24, 2013, except for include those
253253 members who died in the performance of their duties pursuant to
254254 Section 2-306 of this title.
255255 E. A member who meets the definition of disability as defined
256256 in paragraph 11 of Section 2 -300 of this title by direct reason of RBH No. 5826
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282282 the performance of the member's duties as an officer shall receive a
283283 monthly benefit equal to:
284284 1. Two and one-half percent (2 1/2%);
285285 2. Multiplied by:
286286 a. twenty (20) years of credited service, if the member
287287 had performed less than twenty (20) years of credited
288288 service, notwithstanding the actual number of years of
289289 credited service performed by the member prior to the
290290 date of disability, or
291291 b. the actual number of years of credited service and
292292 fraction thereof performed by the member prior to the
293293 date of disability, if the member had performed twenty
294294 (20) or more years of credited service;
295295 3. Multiplied by the greater of subparagraph a of this
296296 paragraph and division 1 of subparagraph b of this paragraph or
297297 division 2 of subparagraph b of this paragraph, as applic able:
298298 a. the final average salary of the member, as set forth
299299 in paragraph 9 of Section 2-300 of this title, and
300300 b. (1) the top base salary cur rently paid to the highest
301301 nonsupervisory position in the participating
302302 agency of the member at the time each monthly
303303 payment is made, limited to the annual salary
304304 limit of the Economic Growth and Tax Relief
305305 Reconciliation Act of 2001 described in paragraph RBH No. 5826
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331331 9 of Section 2-300 of this title, for the
332332 following positions:
333333 (a) Oklahoma Highway Patrolman,
334334 (b) Communications Dispatcher,
335335 (c) Capitol Patrolman,
336336 (d) Lake Patrolman, and
337337 (e) Oklahoma State Bureau of Investigation -
338338 Special Agent or Criminalist,
339339 Provided, the participating employe r must certify to the System
340340 in writing the top base s alary currently paid to the highes t
341341 nonsupervisory position for division (1) of subparagraph b of this
342342 paragraph, or
343343 (2) the actual average salary currently paid to the
344344 highest nonsupervisory position in the
345345 participating agency of the membe r at the time
346346 each monthly payment is made, limited to the
347347 annual salary limit of the Economic Growth and
348348 Tax Relief Reconciliatio n Act of 2001, described
349349 in paragraph 9 of Section 2 -300 of this title,
350350 for the following positio ns:
351351 (a) Alcoholic Beverage Laws Enforcement (ABLE)
352352 Commission - ABLE Commission Agent III, RBH No. 5826
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378378 (b) Oklahoma State Bureau of Narcotics and
379379 Dangerous Drugs Control - Narcotics Agent
380380 III,
381381 (c) Oklahoma Tourism and Recreation Depar tment -
382382 Park Ranger II,
383383 (d) State Board of Pharmacy - Pharmacy
384384 Inspector,
385385 (e) University of Oklahoma - Police Officer, and
386386 (f) Oklahoma State University - Police Officer,
387387 Provided, the participating employer must certify to the System
388388 in writing the actual average gross salary currently pa id to the
389389 highest nonsupervisory position for division (2) of subparagraph b
390390 of this paragraph;
391391 4. No member of the System receiving benefits prescribed by
392392 this subsection who retired prior to July 1, 2002, shall receive a
393393 benefit of less than the amount th e member was receiving as of June
394394 30, 2002;
395395 5. The Board of Trustees shall promulgate rules as necessary to
396396 implement the provisions of this subsection ; and
397397 6. If such member participates in the Oklahoma Law Enforcement
398398 Deferred Option Plan pursuant to S ection 2-305.2 of this title, then
399399 such member's disability pension provided pursuant to this
400400 subsection shall be reduced to account for such member 's
401401 participation in the Oklahoma Law Enforcement Deferred Option Plan. RBH No. 5826
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427427 F. A member who meets the definition of disability as defined
428428 in paragraph 11 of Section 2 -300 of this title and whose disability
429429 is by means of personal and traumatic injury of a catastro phic
430430 nature and in the line of duty, shall receive a monthly benefit
431431 equal to:
432432 1. Two and one-half percent (2 1/2%);
433433 2. Multiplied by:
434434 a. twenty (20) years of service, regardless of the actual
435435 number of years of credited service performed by the
436436 member prior to the date of disability, if the member
437437 had performed less than twenty (20) years of service,
438438 or
439439 b. the actual number of years of service performed by th e
440440 member if the member had performed twenty (20) or more
441441 years of service;
442442 3. Multiplied by a final average salary equal to:
443443 a. the salary which the member would have received
444444 pursuant to statutory sa lary schedules in effect upon
445445 the date of the disabilit y for twenty (20) years of
446446 service prior to disability. The final average salary
447447 for a member who performed less than twenty (20) years
448448 of service prior to disability shall be computed
449449 assuming that the member was paid the highest salary
450450 allowable pursuant to the law in effect at the time of RBH No. 5826
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476476 the member's disability based upon twenty (20) years
477477 of service and with an assumption that the member was
478478 eligible for any and a ll increases in pay based upon
479479 rank during the entire period. If the salary of a
480480 member is not prescribed by a specific salary schedule
481481 upon the date of the member's disability, the fin al
482482 average salary for the member shall be computed by the
483483 member's actual final average salary or the hi ghest
484484 median salary amount for a member whose salary wa s
485485 prescribed by a specific salary schedule upon the date
486486 of the member's disability, whichever fi nal average
487487 salary amount would be greater, or
488488 b. the actual final ave rage salary of the member if the
489489 member had performed twenty (20) or more years of
490490 service prior to disability.
491491 If such member participates in the Oklahoma Law Enforcement
492492 Deferred Option Plan pursuant to Section 2-305.2 of this title, such
493493 member's disability pension provided pursuant to this subsection
494494 shall be adjusted as provided in Sectio n 2-305.2 of this title to
495495 account for such member's participation in the Oklahoma Law
496496 Enforcement Deferred Option Plan.
497497 G. A member who meets the definition of disab ility as defined
498498 in Section 2-300 of this title and whose disability occurred prior
499499 to the member's normal retirement date but after completing three RBH No. 5826
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525525 (3) years of vesting service and no t by reason of the performance of
526526 the member's duties or as a result of the member's willful
527527 negligence shall receive a monthly benefit equal to two and one -half
528528 percent (2 1/2%) of final average salary multiplied by the number of
529529 years of the member's credited service.
530530 H. Payment of a disability pension shall commence as of the
531531 first day of the month coinci ding or next following the date of
532532 retirement and shall continue as long as the member meets the
533533 definition of total and permanent disability provided in this
534534 section.
535535 I. For the purpose of determining the member 's disability under
536536 subsection E, F or G of this section, the member shall be required
537537 by the Board to be examined by a minimum of two recognized
538538 physicians selected by the Board to determine th e extent of the
539539 member's injury or illness. The examining physicians s hall furnish
540540 the Board a detailed written report of the injury or illness of the
541541 examined member establishing the extent of disability and the
542542 possibilities of the disabled member being returned to his or her
543543 regular duties or an alternate occupation or se rvice covered by the
544544 System after a normal recuperation period. The Board shall require
545545 all retired disabled members who have not attained their normal
546546 retirement date to submit to a p hysical examination once each year
547547 for a minimum of three (3) years fol lowing retirement. The Board
548548 shall select a minimum of two physicians to examine the ret ired RBH No. 5826
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574574 members and pay for their services from the fund. Any retired
575575 disabled member found no lon ger disabled by the examining physicians
576576 to perform the occupation of t he member or an alternate occupati on
577577 or service covered by the System shall be required t o return to duty
578578 and complete twenty (20) years of service as provided in subsection
579579 A of this section, or forfeit all his or her rights and claims under
580580 Section 2-300 et seq. of this title.
581581 J. The disability benefit under this section shall be for the
582582 lifetime of the member unless such member is found no longer
583583 disabled pursuant to subsection I of this section. Such member
584584 shall not be entitled to the retirement bene fit pursuant to
585585 subsection A of this section unless such member returns to active
586586 duty and is eligible for a retirement benefit as provided in
587587 subsection A of this section.
588588 K. At the postoffer, preemployment physical examination
589589 required under paragraph 6 of Section 2-300 of this title, t he
590590 physician selected by the Board shall determine the extent to which
591591 a new member is disabled. If a member is determined to be partially
592592 disabled, the physician shall assign a percentage of disability to
593593 such partial disability. If such member then bec omes entitled to a
594594 disability benefit under either subs ection E or subsection G of this
595595 section, the benefit payable shall be reduced by the percentage
596596 which such member was determined to be disabled at the postoffer,
597597 preemployment physical unless the Boar d makes a determination that RBH No. 5826
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623623 the initially determined p ercentage of disability at the
624624 preemployment physical examination is unrelated to the reason for
625625 the disability currently sought pursuant to subsection E or
626626 subsection G of this section. Upon employment, the member shall
627627 disclose to the Board any disabili ty payments received from any
628628 source. The amount of disability to be paid to any member cannot
629629 exceed one hundred percent (100%) disability from all sources . The
630630 provisions of this subsection shall a pply only to members whose
631631 effective date of membership is on or after July 1, 2000.
632632 L. In addition to the pension provided for under subsection F
633633 of this section, if the member has one or more children under the
634634 age of eighteen (18) years or under the ag e of twenty-two (22) years
635635 if the child is enrolled ful l time in and is regularly attending a
636636 public or private school or any institution of higher edu cation,
637637 Four Hundred Dollars ($400.00) a month shall be paid from the F und
638638 for the support of each surviv ing child to the member or person
639639 having the care and c ustody of such children until each child
640640 reaches the age of eighteen (18) years or reaches the a ge of twenty-
641641 two (22) years if the child is enrolled full time in and i s
642642 regularly attending a public or private school or any institution of
643643 higher education.
644644 M. Notwithstanding any other provisions in Section 2-300
645645 through 2-315 of this title, in order to be eligible to receive
646646 disability benefits, a member who meets the d efinition of disability RBH No. 5826
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672672 as defined in paragraph 11 of Section 2-300 of this title shall f ile
673673 the member's completed application for disability benefits with the
674674 System before such membe r's date of termination from service and
675675 provide such additional inform ation that the System's rules require
676676 within six (6) months of the System 's receipt of such application.
677677 If the member's completed application for disability benefits is not
678678 filed with the System before the member's date of termination from
679679 service or such additional information as is req uired under the
680680 System's rules is not provided within s ix (6) months of the System's
681681 receipt of such application, such member shall be eligible only fo r
682682 such other benefits as are available to members of the System and
683683 shall not be eligible to receive any disability benefits. For good
684684 cause shown, the Board o f Trustees may waive the requirement that
685685 the disability application be filed before the member 's date of
686686 termination from service. In no event shall a member be elig ible to
687687 receive any disability ben efit if the member's completed application
688688 is filed more than six (6) months after the member's date of
689689 termination from service.
690690 N. If the requirements of Section 2-305.1C of this title are
691691 satisfied, a member who, by re ason of disability or attainment o f
692692 normal retirement date or age, is separated from serv ice as a public
693693 safety officer with the member's participating employer may elect to
694694 have payment made directly to the provider for qualified health
695695 insurance premiums by deduction from his or her mont hly disability RBH No. 5826
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721721 benefit or monthly retirement payment, a fter December 31, 2006, in
722722 accordance with Section 402(1) of the Internal Revenue Code of 1986,
723723 as amended.
724724 SECTION 2. This act shall become effective July 1, 2023.
725725 SECTION 3. It being immediately necessary for the preservation
726726 of the public peace, health or safety, an emergency is hereby
727727 declared to exist, by reason whereof thi s act shall take effect and
728728 be in full force from and after its passage and approval.
729729
730730 59-1-5826 CMA 12/07/22
731731
732732 THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
733733 2512 E. 71
734734 st
735735 Street , Suite D ∙ Tulsa , Oklahoma 74136
736736 (918) 492-9658 ∙ (918) 492- 9659
737737
738738
739739
740740
741741
742742 January 3, 2023
743743
744744
745745
746746 Representative Russ Ford
747747 Room 300
748748
749749
750750
751751 Re: RHB No. 5826
752752
753753
754754 RBH No. 5826 provides for those participants who entered OLERS after
755755 November 1, 2012 to have th eir benefit determined by using the
756756 greater of the compensation of the highest non supervisory position
757757 of their employing agency and their highest average compensation.
758758 Currently benefits are based on the highest average compensa tion.
759759
760760
761761
762762 RBH No. 5826 is a fiscal bill as defined by OPLAAA.
763763
764764 I am a member of the American Academy of Actuaries and meet the
765765 Qualification Standards of the American Academy of Actuaries to
766766 render the actuarial opinion herein.
767767
768768
769769 Thomas E. Cummins
770770
771771 Thomas E. Cummins, MAAA
772772
773773