Oklahoma 2024 Regular Session

Oklahoma House Bill HB2279 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		RBH No. 7827
2		-	HB2279 HFLR Page 1
3		-	BOLD FACE denotes Committee Amendments. 1
	2	+	Req. No. 7827 Page 1 1
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28		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
29		-
30	27		STATE OF OKLAHOMA
31	28
32	29		1st Session of the 59th Legislature (2023)
33	30
34	31		COMMITTEE SUBSTITUTE
35	32		FOR
36		-	HOUSE BILL NO. 2279 By: Echols and Fugate of the
37		-	House
	33	+	HOUSE BILL NO. 2279 By: Echols
38	34
39		-	and
40	35
41		-	~~Montgomery of the Senate~~
	36	+
42	37
43	38
44	39		COMMITTEE SUBSTITUTE
45	40
46	41		An Act relating to public retirement systems;
47	42		amending 62 O.S. 2021, Section 3103, a s amended by
48	43		Section 1, Chapter 306, O. S.L. 2022 (62 O.S. Supp.
49	44		2022, Section 3103), which relates to the Oklahoma
50	45		Pension Legislation Actuarial Analysis Act; modifying
51	46		definitions; providing for retirement benefit
52	47		increase based upon prescribed criteria for certain
53	48		members of the Oklahoma Firefighters Pension and
54	49		Retirement System, the Oklahoma Police Pension and
55	50		Retirement System, the Uniform Retirement System for
56	51		Justices and Judges, the Oklahoma Law Enforcement
57	52		Retirement System, the Teachers' Retirement System of
58	53		Oklahoma and the Oklahoma Public Employees Retirement
59	54		System; prescribing conditions for retirement benefit
60	55		increase; defining terms; providing for method to
61	56		determine amount of benefit increase; providing for
62	57		maximum increase amount; prohibiting retirement
63	58		benefit increase based upon funded ratio of
64	59		retirement system after grant of benefit; authorizing
65	60		grant of benefit increase subject to limitation based
66	61		upon funded ratio; imposing requirement related to
67	62		rate of return on retirement system assets; imposing
68	63		requirement related to duration of retirement;
69	64		prescribing date for effect of benefit increases;
70	65		providing for codification; and providing effective
71	66		dates.
72	67
73	68
74		-	RBH No. 7827
75		-	HB2279 HFLR Page 2
76		-	BOLD FACE denotes Committee Amendments. 1
	69	+
	70	+
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	72	+
	73	+	BE IT ENACTED BY THE PEOPLE OF T HE STATE OF OKLAHOMA: RBH No. 7827
	74	+	Req. No. 7827 Page 2 1
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101		-	BE IT ENACTED BY THE PEOPLE OF T HE STATE OF OKLAHOMA:
102	99		SECTION 1. AMENDATORY 62 O.S. 2021, Section 3103, as
103	100		amended by Section 1, Chapter 306, O.S.L. 2022 (62 O.S. Supp. 2022,
104	101		Section 3103), is amended to read as follows:
105	102		Section 3103. As used in the Oklahoma Pension Legislation
106	103		Actuarial Analysis Act :
107	104		1. "Amendment" means any amendment, including a substitute
108	105		bill, made to a retirement bill b y any committee of th e House or
109	106		Senate, any conference committee of the House or Senate or by the
110	107		House or Senate;
111	108		2. "RB number" means that number preceded by the letters "RB"
112	109		assigned to a retirement bill by the respective staffs of the
113	110		Oklahoma State Senate and the Oklahom a House of Representatives when
114	111		the respective staff office prepares a retirement bill for a member
115	112		of the Legislature;
116	113		3. "Legislative Act uary" means the firm or entity that enters
117	114		into a contract with the Legislative Service Bureau pursuant to
118	115		Section 452.15 of Title 74 of the Oklahoma Statutes to provide the
119	116		actuarial services and other duties provided for in the Oklahoma
120	117		Pension Legislation Actuarial Analysis Act;
121	118		4. "Nonfiscal amendment" means an amendment to a retirement
122	119		bill having a fiscal impact, which amendment does not change any
123	120		factor of an actuarial investigation specified in subsection A of
124		-	Section 3109 of this title; ~~RBH No. 7827~~
125		-	~~HB2279 HFLR~~ ~~Page 3~~
126		-	~~BOLD FACE denotes Committee Amendments.~~ 1
	121	+	Section 3109 of this title;
	122	+	5. "Nonfiscal retirement bill" means a retirement bill: RBH No. 7827
	123	+	Req. No. 7827 Page 3 1
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151		-	5. "Nonfiscal retirement bill" means a retirement bill:
152	148		a. which does not affect the cost or funding fa ctors of a
153	149		retirement system,
154	150		b. which affects such factors only in a manner which does
155	151		not:
156	152		(1) grant a benefit increase under the retirement
157	153		system affected by the bill,
158	154		(2) create an actuarial accrued liability for or
159	155		increase the actuarial accrued liab ility of the
160	156		retirement system affected by the bill, or
161	157		(3) increase the normal cost of the retirement system
162	158		affected by the bill,
163	159		c. which authorizes the purch ase by an active member of
164	160		the retirement system, at the actuarial cost for the
165	161		purchase as computed pursuant to the statute in effect
166	162		on the effective date of the measure allowing such
167	163		purchase, of years of service for purposes of reaching
168	164		a normal retirement date in the applicable retirement
169	165		system, but which cannot be used in order to compute
170	166		the number of years of s ervice for purposes of
171	167		computing the retirement benefit for the member,
172	168		d. which provides for the computation of a service -
173	169		connected disability retirement benefit for members of
174		-	the Oklahoma Law Enforcement Retirement System ~~RBH No. 7827~~
175		-	~~HB2279 HFLR~~ ~~Page 4~~
176		-	~~BOLD FACE denotes Committee Amendments.~~ 1
	170	+	the Oklahoma Law Enforcement Retirement System
	171	+	pursuant to Section 2-305 of Title 47 of the Oklahoma RBH No. 7827
	172	+	Req. No. 7827 Page 4 1
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201		-	pursuant to Section 2-305 of Title 47 of the Oklahoma
202	197		Statutes if the members were unable to complete twenty
203	198		(20) years of service as a result of the disability,
204	199		e. which requires membership in the defined benefit plan
205	200		authorized by Section 901 et seq. of Title 74 o f the
206	201		Oklahoma Statutes for persons whose first elected or
207	202		appointed service occurs on or after November 1, 2018,
208	203		if such persons had any prior service in the Ok lahoma
209	204		Public Employees Retirement System prior to November
210	205		1, 2015,
211	206		f. which provides for a on e-time increase in retirement
212	207		benefits if the increase in retirement benefits is not
213	208		a permanent increase in the gross annual retirement
214	209		benefit payable to a mem ber or beneficiary, occurs
215	210		only once pursuant to a single statutory authorization
216	211		and does not exceed:
217	212		(1) the lesser of two percent (2%) of the gross
218	213		annual retirement benefit of the member or One
219	214		Thousand Dollars ($1,000.00) and requires that
220	215		the benefit may only be provided if the funded
221	216		ratio of the affected retirement system would not
222	217		be less than sixty percent (60 %) but not greater
223	218		than eighty percent (80%) after the benefit
224	219		increase is paid, RBH No. 7827
225		-	HB2279 HFLR Page 5
226		-	BOLD FACE denotes Committee Amendments. 1
	220	+	Req. No. 7827 Page 5 1
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251	245		(2) the lesser of two percent (2%) of the gross
252	246		annual retirement benefit of the member or One
253	247		Thousand Two Hundred Dollars ($1,200.00) and
254	248		requires that the benefit may only be provided if
255	249		the funded ratio of the affected retirement
256	250		system would be greater than eighty percent (80%)
257	251		but not greater than one hundre d percent (100%)
258	252		after the benefit increase is paid,
259	253		(3) the lesser of two percent (2%) of the gross
260	254		annual retirement benefit of the member or One
261	255		Thousand Four Hundred Dollars ($1,400.00) and
262	256		requires that the benefit may only be provided if
263	257		the funded ratio of the affected retirement
264	258		system would be greater than one hundred percent
265	259		(100%) after the benefit increase i s paid, or
266	260		(4) the greater of two percent (2%) of the gross
267	261		annual retirement benefit of the volunteer
268	262		firefighter or One Hundred Dollars ($ 100.00) for
269	263		persons who retired from the Oklahoma
270	264		Firefighters Pension and Retirement System as
271	265		volunteer firefighte rs and who did not retire
272	266		from the Oklahoma Firefighters Pension and
273	267		Retirement System as a paid firefighter. RBH No. 7827
274		-	HB2279 HFLR Page 6
275		-	BOLD FACE denotes Committee Amendments. 1
	268	+	Req. No. 7827 Page 6 1
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300	293		As used in this subparagraph, "funded ratio" means the
301	294		figure derived by dividing the actua rial value of
302	295		assets of the applicable retirement syste m by the
303	296		actuarial accrued liability of the applicable
304	297		retirement system,
305	298		g. which modifies the disability pension standard for
306	299		police officers who are members of the Oklahoma Police
307	300		Pension and Retirement System as provided by Section 3
308	301		of this act,
309	302		h. which provides a cost-of-living benefit increase
310	303		pursuant to the provisions of:
311	304		(1) Section 49-143.7 of Title 11 of the Oklahoma
312	305		Statutes,
313	306		(2) Section 50-136.9 of Title 11 of the Oklahoma
314	307		Statutes,
315	308		(3) Section 1104K of Title 20 of the Oklahoma
316	309		Statutes,
317	310		(4) Section 2-305.12 of Title 47 of the Oklahoma
318	311		Statutes,
319	312		(5) Section 17-116.22 of Title 70 of the Oklahoma
320	313		Statutes,
321	314		(6) Section 930.11 of Tit le 74 of the Oklahoma
322	315		Statutes, or RBH No. 7827
323		-	HB2279 HFLR Page 7
324		-	BOLD FACE denotes Committee Amendments. 1
	316	+	Req. No. 7827 Page 7 1
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349	341		i. which modifies the comp utation of the line-of-duty
350	342		disability benefit pursuant to the provisions of this
351	343		act, or
352	344		j. which authorizes the boards of trustees for the public
353	345		retirement systems as described in Sections 2 t hrough
354	346		7 of this act to provide retirement benefit increas es
355	347		according to the requirements and limitations of those
356	348		sections.
357	349		A nonfiscal retirement bill shall include any retirement bill that
358	350		has as its sole purpose the appropriation or distribution or
359	351		redistribution of monies in some manner to a retirement syst em for
360	352		purposes of reducing the unfunded liability of such system or the
361	353		earmarking of a portion of the revenue from a tax to a retirement
362	354		system or increasing the percentage of the revenue earmarke d from a
363	355		tax to a retirement system;
364	356		6. "Reduction-in-cost amendment" means an amendment to a
365	357		retirement bill havin g a fiscal impact which reduces the cost of the
366	358		bill as such cost is determined by the actuarial investigation for
367	359		the bill prepared pursuan t to Section 3109 of this title;
368	360		7. "Retirement bill" mea ns any bill or joint resolution
369	361		introduced or any bill or joint resolution amended by a member of
370	362		the Oklahoma Legislature which creates or amends any law directly
371	363		affecting a retirement system. A retirement bill shall not mean a
372	364		bill or resolution that i mpacts the revenue of any state tax in RBH No. 7827
373		-	HB2279 HFLR Page 8
374		-	BOLD FACE denotes Committee Amendments. 1
	365	+	Req. No. 7827 Page 8 1
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399	390		which a portion of the revenue generated from such tax is earmarked
400	391		for the benefit of a retirement system;
401	392		8. "Retirement bill having a fiscal impact" means any
402	393		retirement bill creating or establishing a retirement system and any
403	394		other retirement bill other than a nonfisca l retirement bill; and
404	395		9. "Retirement system" means the Teachers' Retirement System of
405	396		Oklahoma, the Oklahoma Public Employees Retirement S ystem, the
406	397		Uniform Retirement System for Justices and Judg es, the Oklahoma
407	398		Firefighters Pension and Retirement Syste m, the Oklahoma Police
408	399		Pension and Retirement System, the Oklahoma Law Enforcement
409	400		Retirement System, or a retirement system established aft er January
410	401		1, 2006.
411	402		SECTION 2. NEW LAW A new section of law to be codified
412	403		in the Oklahoma Statutes as Section 49-143.8 of Title 11, unless
413	404		there is created a duplication in numberi ng, reads as follows:
414	405		A. As used in this section:
415	406		1. "Beneficiary" means either a retired member of the
416	407		retirement system or the survivor or o ther designated beneficiary of
417	408		a retired member of the system;
418	409		2. "CPI-W" means the measure of inflation published by the
419	410		United States Bureau of Labor Statistics for Urban Wage Earners and
420	411		Clerical Workers;
421	412		3. "Funded ratio" means the figure derived b y dividing the
422	413		actuarial value of retirement system assets by the act uarial accrued RBH No. 7827
423		-	HB2279 HFLR Page 9
424		-	BOLD FACE denotes Committee Amendments. 1
	414	+	Req. No. 7827 Page 9 1
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449	439		liability amount of the retirement system using the information
450	440		reported to the retirement system by its actuary in the annual
451	441		valuation and which is computed as of a day certain; and
452	442		4. "Retirement system" means the Oklahoma Firefigh ters Pension
453	443		and Retirement System.
454	444		B. The board of trustees of the Oklahoma Firefighters Pension
455	445		and Retirement System shall grant a retirement benefit increase to
456	446		the retired members of the system or their beneficiaries according
457	447		to the requirements of this section.
458	448		C. The benefit incr ease may only be implemented if the Consumer
459	449		Price Index-Wage and Clerical Workers (CPI-W) for the calendar year
460	450		preceding the year during which the benefit increase is to be
461	451		granted reflects a positive rate of incre ase, but the retirement
462	452		benefit increase shall not exceed four percent (4.0%).
463	453		D. The funded ratio of the retirement system must be at least
464	454		seventy-five percent (75%) after the benefit increase is provided to
465	455		the eligible retirees or beneficiaries. If the grant of a
466	456		retirement benefit increase b ased on the full amount of the increase
467	457		in CPI-W for the applicable year would cause the retirement system
468	458		funded ratio to be less than the figure prescribed by this section,
469	459		the board of trustees shall provide a retirement benefit increase in
470	460		such lesser amount as possible without causing a re duction of the
471	461		funded ratio for the system to be less than the amount prescribed by
472	462		this section. RBH No. 7827
473		-	HB2279 HFLR Page 10
474		-	BOLD FACE denotes Committee Amendments. 1
	463	+	Req. No. 7827 Page 10 1
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499	488		E. For the plan year ending June 30 or July 1, as applicable,
500	489		immediately prior to the effective date of the retirement benefit
501	490		increase otherwise authorized by this section, the rate of return
502	491		for the retirement system assets must have been equal to or in
503	492		excess of the actuarial assumption for the rate of return on system
504	493		assets in effect at the beginning of such plan year.
505	494		F. Only those persons who have been retired for at l east one
506	495		(1) year prior to the effective date of the retirement benefit
507	496		increase shall be eligible for the benefit increase .
508	497		G. If otherwise authorized pursuant to the provisions of this
509	498		section, the retirement benefit increase shall b e effective July 1
510	499		each year.
511	500		SECTION 3. NEW LAW A new section of law to be codified
512	501		in the Oklahoma Statutes as Sect ion 50-136.10 of Title 11, unless
513	502		there is created a duplication in numbering, reads as follo ws:
514	503		A. As used in this section:
515	504		1. "Beneficiary" means either a retired member of the
516	505		retirement system or the survivor or o ther designated beneficiary of
517	506		a retired member of the system;
518	507		2. "CPI-W" means the measure of inflation published by the
519	508		United States Bureau of Labor Statistics for Urban Wage Earners and
520	509		Clerical Workers;
521	510		3. "Funded ratio" means the figure derived b y dividing the
522	511		actuarial value of retirement system assets by the act uarial accrued RBH No. 7827
523		-	HB2279 HFLR Page 11
524		-	BOLD FACE denotes Committee Amendments. 1
	512	+	Req. No. 7827 Page 11 1
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549	537		liability amount of the retirement system using the information
550	538		reported to the retirement system by its actuary in the annual
551	539		valuation and which is computed as of a day certain; and
552	540		4. "Retirement system" means the Oklahoma Police Pension and
553	541		Retirement System.
554	542		B. The board of trustees of the Oklahoma Police Pension and
555	543		Retirement System shall grant a retirement benefit increase to the
556	544		retired members of the system or their beneficiaries according to
557	545		the requirements of this section.
558	546		C. The benefit incr ease may only be implemented if the Consumer
559	547		Price Index-Wage Earners and Clerical Workers ( CPI-W) for the
560	548		calendar year preceding the year during which the benefit increase
561	549		is to be granted reflects a positive rate of increase, but the
562	550		retirement benefit increase shall not exceed four percent (4.0%).
563	551		D. The funded ratio of the retirement system must be at least
564	552		ninety percent (90%) after the benefit increase is provided to the
565	553		eligible retirees or beneficiaries. If the grant of a retirement
566	554		benefit increase based on the full amount of the increase in CPI-W
567	555		for the applicable year would cause the retirement system funded
568	556		ratio to be less than the figure prescribed by this section, the
569	557		board of trustees shall provide a retirement benefit increase in
570	558		such lesser amount as possible without causing a reduct ion of the
571	559		funded ratio for the system to be less than the amount prescribed by
572	560		this section. RBH No. 7827
573		-	HB2279 HFLR Page 12
574		-	BOLD FACE denotes Committee Amendments. 1
	561	+	Req. No. 7827 Page 12 1
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599	586		E. For the plan year ending June 30 or July 1, as applic able,
600	587		immediately prior to the effective date of the retirement benefit
601	588		increase otherwise authorized by this section, the rate of return
602	589		for the retirement system assets must have been equal to or in
603	590		excess of the actuarial assumption for the rate of return on system
604	591		assets in effect at the beginning of such plan year.
605	592		F. Only those persons who have been r etired for at least one
606	593		(1) year prior to the effective date of the retirement benefit
607	594		increase shall be eligible for the benefit increase.
608	595		G. If otherwise authorized pursuant to the provisions of this
609	596		section, the retirement benefit increase shall b e effective July 1
610	597		each year.
611	598		SECTION 4. NEW LAW A new section of law to be codified
612	599		in the Oklahoma Statutes as Section 1104L of Title 20, unless there
613	600		is created a duplication in numbering, reads as follows:
614	601		A. As used in this section:
615	602		1. "Beneficiary" means either a retired member of the
616	603		retirement system or the survivor or o ther designated beneficiary of
617	604		a retired member of the system;
618	605		2. "CPI-W" means the measure of inflation published by the
619	606		United States Bureau of Labor Statistics for Urban Wage Earners and
620	607		Clerical Workers;
621	608		3. "Funded ratio" means the figure derived b y dividing the
622	609		actuarial value of retirement system assets by the act uarial accrued RBH No. 7827
623		-	HB2279 HFLR Page 13
624		-	BOLD FACE denotes Committee Amendments. 1
	610	+	Req. No. 7827 Page 13 1
625	611		2
626	612		3
627	613		4
628	614		5
629	615		6
630	616		7
631	617		8
632	618		9
633	619		10
634	620		11
635	621		12
636	622		13
637	623		14
638	624		15
639	625		16
640	626		17
641	627		18
642	628		19
643	629		20
644	630		21
645	631		22
646	632		23
647	633		24
648	634
649	635		liability amount of the retirement system using the information
650	636		reported to the retirement system by its actuary in the annual
651	637		valuation and which is computed as of a day certain; and
652	638		4. "Retirement system" means the Uniform Retirement Sys tem for
653	639		Justices and Judges.
654	640		B. The board of trustees of the Uniform Retirement System for
655	641		Justices and Judges shall grant a retirement benefit increase to the
656	642		retired members of the system or their beneficiaries according to
657	643		the requirements of this section.
658	644		C. The benefit increase may only be implemented if the Consumer
659	645		Price Index-Wage and Clerical Workers (CPI-W) for the calendar year
660	646		preceding the year during which the benefit increase is to be
661	647		granted reflects a positive rate of incre ase, but the retirement
662	648		benefit increase shall not exceed four percent (4.0%).
663	649		D. The funded ratio of the retire ment system must be at least
664	650		ninety percent (90%) after the benefit increase is provided to the
665	651		eligible retirees or beneficiaries. If the grant of a retirement
666	652		benefit increase based on the full amount of the increase in CPI-W
667	653		for the applicable year would cause the retirement system funded
668	654		ratio to be less than the figure prescribed by this section, the
669	655		board of trustees shall provide a retirement benefit increas e in
670	656		such lesser amount as possible without causing a reduction of the
671	657		funded ratio for the system to be less than the amount prescribed by
672	658		this section. RBH No. 7827
673		-	HB2279 HFLR Page 14
674		-	BOLD FACE denotes Committee Amendments. 1
	659	+	Req. No. 7827 Page 14 1
675	660		2
676	661		3
677	662		4
678	663		5
679	664		6
680	665		7
681	666		8
682	667		9
683	668		10
684	669		11
685	670		12
686	671		13
687	672		14
688	673		15
689	674		16
690	675		17
691	676		18
692	677		19
693	678		20
694	679		21
695	680		22
696	681		23
697	682		24
698	683
699	684		E. For the plan year ending June 30 or July 1, as applic able,
700	685		immediately prior to the effective date of the retirement benefit
701	686		increase otherwise authorized by this section , the rate of return
702	687		for the retirement system assets must have been equal to or in
703	688		excess of the actuarial assumption for the rate of return on system
704	689		assets in effect at the beginnin g of such plan year.
705	690		F. Only those persons who have been retired for at l east one
706	691		(1) year prior to the effective date of the retirement benefit
707	692		increase shall be eligible for the benefit increase.
708	693		G. If otherwise authorized pursuant to the provisions of this
709	694		section, the retirement benefit increase shall b e effective July 1
710	695		each year.
711	696		SECTION 5. NEW LAW A new section of law to be codified
712	697		in the Oklahoma Statutes as Section 2-305.13 of Title 47, unless
713	698		there is created a duplicati on in numbering, reads as follows:
714	699		A. As used in this section:
715	700		1. "Beneficiary" means either a retired member of the
716	701		retirement system or the survivor or other designated beneficiary of
717	702		a retired member of the system;
718	703		2. "CPI-W" means the measure of inflation published by the
719	704		United States Bureau of Labor Statistics for Urban Wage Earners and
720	705		Clerical Workers;
721	706		3. "Funded ratio" means the figure derived by dividing the
722	707		actuarial value of retirement system assets by the act uarial accrued RBH No. 7827
723		-	HB2279 HFLR Page 15
724		-	BOLD FACE denotes Committee Amendments. 1
	708	+	Req. No. 7827 Page 15 1
725	709		2
726	710		3
727	711		4
728	712		5
729	713		6
730	714		7
731	715		8
732	716		9
733	717		10
734	718		11
735	719		12
736	720		13
737	721		14
738	722		15
739	723		16
740	724		17
741	725		18
742	726		19
743	727		20
744	728		21
745	729		22
746	730		23
747	731		24
748	732
749	733		liability amount of the retirement system using the information
750	734		reported to the retirement system by its actuar y in the annual
751	735		valuation and which is computed as of a day certain; and
752	736		4. "Retirement system" means the Oklahoma Law Enforcement
753	737		Retirement System.
754	738		B. The board of trustees of the Oklahoma Law Enforcement
755	739		Retirement System shall grant a retirement benefit increase to the
756	740		retired members of the system or their beneficiaries according to
757	741		the requirements of this section.
758	742		C. The benefit increase may only be implemented if the Consumer
759	743		Price Index-Wage and Clerical Workers ( CPI-W) for the calendar year
760	744		preceding the year during which the benefit increase is to be
761	745		granted reflects a positive rate of incre ase, but the retirement
762	746		benefit increase shall not exceed four percent (4.0%).
763	747		D. The funded ratio of the retirement system must be at least
764	748		ninety percent (90%) after the benefit increase is provide d to the
765	749		eligible retirees or beneficiaries. If the grant of a retirement
766	750		benefit increase based on the full amount of the increase in CPI-W
767	751		for the applicable year would cause the retirement system funded
768	752		ratio to be less than the figure prescribed by this section, the
769	753		board of trustees shall provide a retirement benefit increase in
770	754		such lesser amount as possible without causing a reduction of the
771	755		funded ratio for the system to be less than the amount prescribed by
772	756		this section. RBH No. 7827
773		-	HB2279 HFLR Page 16
774		-	BOLD FACE denotes Committee Amendments. 1
	757	+	Req. No. 7827 Page 16 1
775	758		2
776	759		3
777	760		4
778	761		5
779	762		6
780	763		7
781	764		8
782	765		9
783	766		10
784	767		11
785	768		12
786	769		13
787	770		14
788	771		15
789	772		16
790	773		17
791	774		18
792	775		19
793	776		20
794	777		21
795	778		22
796	779		23
797	780		24
798	781
799	782		E. For the plan year ending June 30 or July 1, as applicable,
800	783		immediately prior to the effective date of the retirement benefit
801	784		increase otherwise authorized by this section , the rate of return
802	785		for the retirement system assets must have been equal to or in
803	786		excess of the actuarial assumption for the rate of return on system
804	787		assets in effect at the beginning of such plan year.
805	788		F. Only those persons who have been retired for at l east one
806	789		(1) year prior to the effective date of the retirement benefit
807	790		increase shall be eligible for the benefit increase.
808	791		G. If otherwise authorized pursuant to the provisions of this
809	792		section, the retirement benefit increase shall be effective July 1
810	793		each year.
811	794		SECTION 6. NEW LAW A new section of law to be codified
812	795		in the Oklahoma Statutes as Section 17-116.23 of Title 70, unless
813	796		there is created a duplication in numbering, reads as follows:
814	797		A. As used in this section:
815	798		1. "Beneficiary" means either a retired member of the
816	799		retirement system or the survivor or other designated beneficiary of
817	800		a retired member of the system;
818	801		2. "CPI-W" means the measure of inflation published by the
819	802		United States Bureau of Labor Statistics for Urban Wage Earners and
820	803		Clerical Workers;
821	804		3. "Funded ratio" means the figure derived by dividing the
822	805		actuarial value of retirement system assets by the act uarial accrued RBH No. 7827
823		-	HB2279 HFLR Page 17
824		-	BOLD FACE denotes Committee Amendments. 1
	806	+	Req. No. 7827 Page 17 1
825	807		2
826	808		3
827	809		4
828	810		5
829	811		6
830	812		7
831	813		8
832	814		9
833	815		10
834	816		11
835	817		12
836	818		13
837	819		14
838	820		15
839	821		16
840	822		17
841	823		18
842	824		19
843	825		20
844	826		21
845	827		22
846	828		23
847	829		24
848	830
849	831		liability amount of the retirement system using the information
850	832		reported to the retirement system by its actuary in the annual
851	833		valuation and which is computed as of a day certain; and
852	834		4. "Retirement system" means the Teachers' Retirement System of
853	835		Oklahoma.
854	836		B. The board of trustees of the Teachers' Retirement System of
855	837		Oklahoma shall grant a retirement benefit increase to the retired
856	838		members of the system or their beneficiaries according to the
857	839		requirements of this section.
858	840		C. The benefit incr ease may only be implemented if the Consumer
859	841		Price Index-Wage and Clerical Workers (CPI-W) for the calendar year
860	842		preceding the year during which the benefit increase is to be
861	843		granted reflects a positive rate of increase, but the retirement
862	844		benefit increase shall not exceed four percent (4.0%).
863	845		D. The funded ratio of the re tirement system must be at least
864	846		seventy-five percent (75%) after the benefit increase is provided to
865	847		the eligible retirees or beneficiaries. If the grant of a
866	848		retirement benefit increase b ased on the full amount of the increase
867	849		in CPI-W for the applicable year would cause the retirement system
868	850		funded ratio to be less than the figure prescribed by this section,
869	851		the board of trustees shall provide a retirement benefit increase in
870	852		such lesser amount as possible without causing a reduction of the
871	853		funded ratio for the system to be less than the amount prescribed by
872	854		this section. RBH No. 7827
873		-	HB2279 HFLR Page 18
874		-	BOLD FACE denotes Committee Amendments. 1
	855	+	Req. No. 7827 Page 18 1
875	856		2
876	857		3
877	858		4
878	859		5
879	860		6
880	861		7
881	862		8
882	863		9
883	864		10
884	865		11
885	866		12
886	867		13
887	868		14
888	869		15
889	870		16
890	871		17
891	872		18
892	873		19
893	874		20
894	875		21
895	876		22
896	877		23
897	878		24
898	879
899	880		E. For the plan year ending June 30 or July 1, as applic able,
900	881		immediately prior to the effective date of the retirement benefit
901	882		increase otherwise authorized by this section , the rate of return
902	883		for the retirement system assets must have been equal to or in
903	884		excess of the actuarial assumption for the rate of return on sys tem
904	885		assets in effect at the beginning of such plan year.
905	886		F. Only those persons who have been retired for at l east one
906	887		(1) year prior to the effective date of the retirement benefit
907	888		increase shall be eligible for the benefit increase.
908	889		G. If otherwise authorized pursuant to the provisions of this
909	890		section, the retirement benefit increase shall b e effective July 1
910	891		each year.
911	892		SECTION 7. NEW LAW A new section of law to be codified
912	893		in the Oklahoma Stat utes as Section 930.12 of Title 74, unless there
913	894		is created a duplication in numbering, reads as follows:
914	895		A. As used in this section:
915	896		1. "Beneficiary" means either a retired member of the
916	897		retirement system or the survivor or o ther designated beneficiary of
917	898		a retired member of the system;
918	899		2. "CPI-W" means the measure of inflation published by the
919	900		United States Bureau of Labor Statistics for Urban Wage Earne rs and
920	901		Clerical Workers;
921	902		3. "Funded ratio" means the figure derived b y dividing the
922	903		actuarial value of retirement system assets by the ac tuarial accrued RBH No. 7827
923		-	HB2279 HFLR Page 19
924		-	BOLD FACE denotes Committee Amendments. 1
	904	+	Req. No. 7827 Page 19 1
925	905		2
926	906		3
927	907		4
928	908		5
929	909		6
930	910		7
931	911		8
932	912		9
933	913		10
934	914		11
935	915		12
936	916		13
937	917		14
938	918		15
939	919		16
940	920		17
941	921		18
942	922		19
943	923		20
944	924		21
945	925		22
946	926		23
947	927		24
948	928
949	929		liability amount of the retirement system using the information
950	930		reported to the retirement system by i ts actuary in the annual
951	931		valuation and which is computed as of a day certain; and
952	932		4. "Retirement system" means the Oklahoma Public Employees
953	933		Retirement System.
954	934		B. The board of trustees of the Oklahoma Public Employees
955	935		Retirement System shall grant a retirement benefit increase to the
956	936		retired members of the system or their beneficiaries according to
957	937		the requirements of this section.
958	938		C. The benefit increase may only be implemented if the Consumer
959	939		Price Index-Wage and Clerical Workers ( CPI-W) for the calendar year
960	940		preceding the year during which the benefit increase is to be
961	941		granted reflects a positive rate of increase, but the retirement
962	942		benefit increase shall not exceed four percent (4.0%).
963	943		D. The funded ratio of the retirement system must be at least
964	944		ninety percent (90%) after the benefit increase is provided to the
965	945		eligible retirees or beneficiaries. If the grant of a retirement
966	946		benefit increase based on the full amount of the increase in CPI-W
967	947		for the applicable year would cause the retirement system funded
968	948		ratio to be less than the figure prescribed by this section, the
969	949		board of trustees shall provide a retirement benefit increase in
970	950		such lesser amount as possible without causing a reduction of the
971	951		funded ratio for the system to be less than the amount prescribed by
972	952		this section. RBH No. 7827
973		-	HB2279 HFLR Page 20
974		-	BOLD FACE denotes Committee Amendments. 1
	953	+	Req. No. 7827 Page 20 1
975	954		2
976	955		3
977	956		4
978	957		5
979	958		6
980	959		7
981	960		8
982	961		9
983	962		10
984	963		11
985	964		12
986	965		13
987	966		14
988	967		15
989	968		16
990	969		17
991	970		18
992	971		19
993	972		20
994	973		21
995	974		22
996	975		23
997	976		24
998	977
999	978		E. For the plan year ending June 30 or July 1, as applic able,
1000	979		immediately prior to the effective date of the retirement benefit
1001	980		increase otherwise authorized by this section , the rate of return
1002	981		for the retirement system assets must have been equal to or in
1003	982		excess of the actuarial assumption for the rate of return on system
1004	983		assets in effect at the beginning of such plan year.
1005	984		F. Only those persons who have been retired for at l east one
1006	985		(1) year prior to the effective date of the retirement benefit
1007	986		increase shall be eligible for the benefit increase.
1008	987		G. If otherwise authorized pursuant to the provisions of this
1009	988		section, the retirement benefit increase shall b e effective July 1
1010	989		each year.
1011	990		SECTION 8. Section 1 of this act shall become effective October
1012	991		1, 2023.
1013	992		SECTION 9. Sections 2 through 7 of this act shall become
1014	993		effective November 1, 2023.
1015	994
1016		-	COMMITTEE REPORT BY: COMMITTEE ON RULES, dated 03/01/2023 - DO PASS,
1017		-	As Amended and Coauthored.
	995	+	59-1-7827 LRB 02/28/23
	996	+
	997	+