RBH No. 8603
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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (202 4)
HOUSE BILL 2982 By: Kane
AS INTRODUCED
An Act relating to retirement; amending 20 O.S. 2021,
Section 1102C, which relates to the Uniform
Retirement System for Justices and Judges ; amending
74 O.S. 2021, Sections 918 and 935.7, which relate to
the Oklahoma Public Employees Retirement System ;
modifying how retirement benefits shall be paid to
certain members; providing that spou se is not
required to consent in writing to election of certain
benefit by member; permitting System to use certain
funds as permitted by federal law; and providing an
effective date.
BE IT ENACTED BY THE PEOP LE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 20 O.S. 2021, Section 1102C, is
amended to read as follows:
Section 1102C. A. Except as otherwise provided for in this
section and Section 1104.2 of this title, members who join the
Uniform Retirement System for Justices and Judges on S eptember 1,
2005, or thereafter, may elect to have the retirement benefit paid
under one of the options provided in this section in lieu of having
it paid in the form stated in Section 1104 of this title. The
election of an option must be made prior to th e member's retirement RBH No. 8603
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date or to receipt of a benefit after termination of service with a
vested benefit. A specific person must be designated as joint
annuitant at the time of the election of Option A or B. Election of
an option is available with respec t to the vested benefit. All
retirement benefits of a married member shall be paid pursuant to
the Option A plan or Option B plan as provided for in this se ction
unless the spouse of a member consents in writing for the unreduced
benefits to be paid as pr ovided for in Section 1104 of t his title.
The spouse of the member is not required to consent in writing to
the election of the Option B plan by the member.
B. The amount of retirement benefit payable under an option
shall be based on the age and sex of t he member and the age and sex
of the joint annuitant at the retirement date, and shall be such
amount as to be the actuarial equivalent of the retirement ben efit
otherwise payable under Section 1104 of this title.
C. The retirement options are:
Option A. Joint and one-half to joint annuitant survivor. A
reduced retirement benefit is payable to the retiree during his or
her lifetime with one -half (1/2) of that amount continued to the
joint annuitant during such joint annuitant 's remaining lifetime, if
any, after the death of the retire e. If the named joint annuitant
dies at any time after the member 's retirement date, but before the
death of the retiree, the retiree shall return to the unreduced
retirement benefit, including any postretirement benefit inc reases, RBH No. 8603
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the member would have r eceived had the member not selected Option A.
The benefit shall be determined at the date of death of the named
joint annuitant. This increase shall become effective the first day
of the month following the date of death of the named joint
annuitant, and shall be payable for the retiree 's remaining
lifetime. The retiree shall notify the Uniform Retirement System
for Justices and Judges of the death of the named joint annuitant in
writing. In the absence of the written noti ce being filed by the
member notifying the Uniform Retirement System for Justices and
Judges of the death of the named joint annuitant within six (6)
months of the date of death, nothing in this subsection shall
require the Uniform Retirement System for Ju stices and Judges to pay
more than six (6) months of retrospective benefits increase.
Option B. Joint and survivor. A reduced retirement benefit is
payable to the retiree during his or her lifetime with that amount
continued to the joint annuitant during the joint annuitant's
remaining lifetime, if any, after the death of the retiree. If the
named joint annuitant dies at any time after the member 's retirement
date, but before the death of the retiree, the retiree shall return
to the unreduced retirement benefit, including any postreti rement
benefit increases, the member would have received had the member not
selected Option B. The benefit shall be determine d at the date of
death of the named joint annuitant. This increase shall become
effective the first day of the month following th e date of death of RBH No. 8603
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the named joint annuitant, and shall be payable for the retiree 's
remaining lifetime. The retiree shall no tify the Uniform Retirement
System for Justices and Judges of the death of the named joint
annuitant in writing. In the absence o f such written notice being
filed by the member notifying the Uniform Retirement System for
Justices and Judges of the death o f the named joint annuitant within
six (6) months of the date of death, nothing in this subsection
shall require the Uniform Retir ement System for Justices and Judges
to pay more than six (6) months of retrospective benefits increase.
D. If a member who i s eligible to retire in accordance with the
provisions of this section or Section 1104 of this titl e but is not
actually retired or is eligible to vest or has elected a vested
benefit dies, the member 's spouse may elect to receive benefits as a
joint annuitant under Option B, calculated as if the member retired
on the date of death, in lieu of receiving the member's accumulated
contributions. However, no benefits shall be payable before the
date the deceased member would have met the requirements for a
normal or early retirement. The provisions of this paragraph shall
be applicable to a surviving spous e of a deceased member who died
prior to the effective date of this act, but only if no benefits or
distributions have been previously paid.
SECTION 2. AMENDATORY 74 O.S. 2021, Sec tion 918, is
amended to read as follows: RBH No. 8603
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Section 918. (1) Except as otherwise p rovided for in this
section and Section 918.1 of this title, a member may elec t to have
the retirement benefit paid under one of the options provided in
this section in lieu of having it paid in the form stated in Section
915 of this title. The election o f an option must be made at any
time prior to retirement or prior to terminati on of service with a
vested benefit. A specific person must be designated as joint
annuitant at the time of election of Option A or B. Election of an
option is available with r espect to the vested benefit. All
retirement benefits of a married member sha ll be paid pursuant to
the Option A plan or Option B plan as provided for in this section
unless the spouse of a member consents in writing for the benefits
to be paid as provide d for in Section 915 of this title or pursuant
to Option C as provided for in this section. The spouse of the
member is not required to consent in writing to the election of the
Option B plan by the member.
(2) The amount of retirement benefit payable un der an option
shall be based on the age and sex of the member and the age and s ex
of the joint annuitant, and shall be such amount as to be the
actuarial equivalent of the retire ment benefit otherwise payable
under Section 915 of this title.
(3) The retirement options are:
Option A. Joint and one -half to joint annuitant survivor. A
reduced retirement benefit is payable to the retiree during his or RBH No. 8603
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her lifetime with one -half (1/2) of that amount continued to the
joint annuitant during such joint annuitant 's remaining lifetime, if
any, after the death of the retiree. If the named jo int annuitant
dies at any time after the member 's retirement date, but before the
death of the retiree, the retiree shall return to the retirement
benefit, including any post -retirement benefit increases the member
would have received had the member not se lected Option A. The
benefit shall be determined at the date of death of the named joint
annuitant or July 1, 1994, whichever is later. This increase shall
become effective the first day of the month following the date of
death of the named joint annuita nt or July 1, 1994, whichever is
later, and shall be payable for the retiree 's remaining lifetime.
The retiree shall notify the Oklahoma Public Employees Retirement
System of the death of the named joint annuitant in wr iting. In the
absence of the writte n notice being filed by the member notifying
the Oklahoma Public Employees Retirement System of the death of the
named joint annuitant within six (6) months of the date of death ,
nothing in this subsection shall require the Oklahoma Public
Employees Retirement System to pay more than six (6) months of
retrospective benefits increase.
Option B. Joint and survivor. A reduced retirement benefit is
payable to the retiree during his or her lifetime with that amount
continued to the joint annuitant during the j oint annuitant's
remaining lifetime, if any, after the death of the retiree. If the RBH No. 8603
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named joint annuitant dies at any time after the member 's retirement
date, but before the de ath of the retiree, the retiree shall retur n
to the retirement benefit, includi ng any post retirement benefit
increases the member would have received had the member not selected
Option B. The benefit shall be determined at the date of death of
the named joint annuitant or July 1, 1994, whichever is later. This
increase shall becom e effective the first day of the month following
the date of death of the named joint annuitant or July 1, 1994,
whichever is later, and shall be payable for the retiree 's remaining
lifetime. The retiree shall notify th e Oklahoma Public Employees
Retirement System of the death of the named joint annuitant in
writing. In the absence of such written not ice being filed by the
member notifying the Oklahoma Public Employees Retireme nt System of
the death of the named joint a nnuitant within six (6) months of th e
date of death, nothing in this subsection shall require the Oklahoma
Public Employees Retirement System to pay more than six (6) months
of retrospective benefits increase.
Option C. Life with ten (10) years certain. A reduced
retirement benefit is paya ble to the retiree during his or her
lifetime and if the retiree dies within the ten -year certain period,
measured from the commencement of retirement benefits payments, such
payments will be continued to the beneficiary during the balance of
the ten-year certain period. If the retiree dies within the ten -
year certain period, and there are no living de signated RBH No. 8603
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beneficiaries, the person responsible for the estate of the retiree
may elect for the estate to be paid the bene fits for the remainder
of the term or to receive the present value of the remaining benefit
payments according to rules adopted by the Board of Trustees of the
System. If the retiree predeceases a designated bene ficiary within
the ten-year certain period, and the beneficiary dies after the
beneficiary has begun to receive benefits, the person responsible
for the estate of the beneficiary may elect for the estate to be
paid the benefits for the remainder of the ter m or to receive the
present value of the re maining benefit payments according t o rules
adopted by the Board of Trustees of the System.
(4) If the selection of a joint annuitant would violate the
distribution requirements contained in Section 918.1 of this title,
such selection will not be permitte d.
(5) If a member who is eligible to retire in accordance with
the provisions of Section 914 of this title but is not actually
retired or is eligible to vest or has elected a vested benefit dies,
the member's spouse may elect to receive benefits as a joi nt
annuitant under Option B calculat ed as if the member retired on the
date of death, in lieu of receiving the member 's accumulated
contributions. However, no benefits shall be payable before the
date the deceased member would have met the requirements fo r a
normal or early retirement. The provisions of this paragraph shall
be applicable to a surviving spouse of a deceased member who di ed RBH No. 8603
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prior to the effective date of this act, but only if no benefits or
distributions have been previously paid.
(6) Benefits payable to a joint annuitant sh all accrue from the
first day of the month following the death of a member or retiree
and, in the case of Option A and Option B, shall end on the last day
of the month in which the joint annuitant dies.
SECTION 3. AMENDATORY 7 4 O.S. 2021, Section 935.7, is
amended to read as follows:
Section 935.7 A. Participating employees shall at all times be
vested at one hundred percent (100%) of their accounts co ntaining
solely their employee contributions, and the gains or losses on
these contributions. Pa rticipating employees will have investment
discretion over these accounts within the available options offered
by the Board.
B. Participating employees shall be vested with respect to the
employer matching amounts, and the gains or losses on these funds,
deposited into their define d contribution system account or accounts
according to the following schedule based on years of participating
service:
Year 1 20%
Year 2 40%
Year 3 60%
Year 4 80%
Year 5 and thereafter 100% RBH No. 8603
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C. Participating employees will ha ve investment discretion ov er
all employer contributions.
D. For purposes of determining a participating employee 's right
to withdraw employer matching contributi ons and any investment gains
upon such employer contribution matching amounts, the vesting
percentages apply at the end of each full year of service as
described in subsection B of this section.
E. For participating employees who do not select any investm ent
options, the OPERS Board will establish default investment options
for the contributions received from participating employees and
default investment options for matching employer contributions.
F. To the extent that participants leave employment and have
not vested in all of the employer contributions, the nonvested
employer contributions, i ncluding any gains or losse s, shall be
immediately forfeited to the 401(a) plan and may be used to offset
costs of administering the plan or as permitted by federa l law.
Upon reemployment with an employer and satisfying the eligibility
requirements to become a participant, the reem ployed participant
shall receive credit for previous service and be vested at the same
percentage the participant was vested when servic e was previously
terminated. However, under no circumstances shall the participant
be entitled to any previously forfei ted employer contributions. RBH No. 8603
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SECTION 4. This act shall become effective November 1, 2024.
59-2-8603 CMA 01/03/24
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
2512 E. 71
st
Street , Suite D ∙ Tulsa, Oklahoma 74136
(918) 492-9658 ∙ (918) 492- 9659
January 4, 2024
Representative Kane
Room 202.2
Re: RBH No. 8603
RBH No. 8603 would no longer re quire spousal consent for retirees of
Oklahoma Public Employees Retirement System and Uniform Retirement
System for Justices and Judges to elect Option B. Option B is a
joint and survivor form of benefit payment.
RBH No. 8603 is a non fiscal bill as defin ed by OPLAAA.
I am a member of the Amer ican Academy of Actuaries and meet the
Qualification Standards of the American Academy of Actuaries to
render the actuarial opinion herein.
Thomas E. Cummins
Thomas E. Cummins, MAAA