RBH No. 8607
Req. No. 8607 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
HOUSE BILL 2991 By: West (Josh)
AS INTRODUCED
An Act relating to retirement; amending 11 O.S. 2021,
Section 49-106, as amended by Section 1, Chapter 151,
O.S.L. 2023 (11 O.S. Sup p. 2023, Section 49-106),
which relates to the Oklahoma Firefighters Pension
and Retirement System; updating reference; directing
that revisions be taken into account; and declaring
an emergency.
BE IT ENACTED BY THE PEOP LE OF THE STATE OF OK LAHOMA:
SECTION 1. AMENDATORY 11 O.S. 2021, Section 49 -106, as
amended by Section 1, Chapter 151, O.S.L. 2023 (11 O.S. Supp. 2023,
Section 49-106), is amended to read as follows:
Section 49-106. A. Any firefighter w ho reaches the
firefighter's normal retirement date shall be entitl ed, upon written
request, to retire from such service and be paid from the Oklahoma
Firefighters Pension and Retirement System a monthly pension equal
to the member's accrued retirement ben efit; provided, that the
pension shall cease during any period of time the member may
thereafter serve for compe nsation in any municipal fire departme nt RBH No. 8607
Req. No. 8607 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
in the state. If such a member is reemploy ed by a participating
municipality in a position which is no t covered by the System,
retirement shall also include receipt by such member of in-service
distributions from t he System.
B. With respect to distrib utions under the System made for
calendar years beginning on or after January 1, 2005, the System
shall apply the minimum distribution incidental benefit
requirements, incidental benefit requirements, and minimum
distribution requirements of Section 401(a) (9) of the Internal
Revenue Code of 1986, as a mended, in accordance with the final
regulations under Sect ion 401(a)(9) of the Internal Revenue Code of
1986, as amended, including Treasury Regulations Sections
1.401(a)(9)-1 through 1.401(a)(9) -9; provided, however, that for
distributions required to be made after December 31, 2019, for
individuals who attain s eventy and one-half (70 1/2) years of age
after December 31, 2019, but before January 1, 2023, such
distributions shall take into account that age 70 1 /2 was stricken
and age 72 was inserted in Section 401(a)(9)(B)(i v)(I), Section
401(a)(9)(C)(i)(I) and Se ction 401(a)(9)(C)(ii)(I) of the Internal
Revenue Code of 1986, as amended, and, provided further, that for
individuals who attain seventy-two (72) years of age after December
31, 2022, such distributions shall take into account that "age 72"
was stricken and "the applicable age", as defined in Section
401(a)(9)(C)(v) of the Internal Revenue Code of 1986, as amended, RBH No. 8607
Req. No. 8607 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
was inserted in Section 401(a)(9)(B)( iv)(I) of the Internal Revenue
Code of 1986, as amended (applicab le to calendar year 2023) , Section
401(a)(9)(C)(i)(I) and Section 401(a)(9) (C)(ii)(I) of the Inter nal
Revenue Code of 1986, as amended, and that the further revision of
Section 401(a)(9)(B)(iv) of the Internal Revenue Cod e of 1986, as
amended, effective for calendar years after 2023 with r espect to
certain distributions shall be taken into account, in all cases
notwithstanding any provision of the System to the contrary. With
respect to distributions under the System made for calendar years
beginning on or after January 1, 2001, through De cember 31, 2004,
the System shall apply the minimum distribution requirements and
incidental benefit requirements of Section 401(a)(9) of the Internal
Revenue Code of 1986, as amended, in accordance w ith the regulations
under Section 401(a)(9) of the Inter nal Revenue Code of 1986, as
amended, which were proposed in January 2001, notwithstanding any
provision of the System to the contrary. Effective July 1, 1989,
notwithstanding any other provision con tained herein to the
contrary, in no event shall commenc ement of distributio n of the
accrued retirement benefit of a member be delayed beyond April 1 of
the calendar year following the later of:
1. The calendar year in w hich the member reaches seventy and
one-half (70 1/2) years of age for a member who attains age seventy
and one-half (70 1/2) before January 1, 2020, or effective for
distributions required to be made after December 31, 2019, but RBH No. 8607
Req. No. 8607 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
before January 1, 2023, the calendar year in which the member
reaches seventy-two (72) years of age for an indiv idual who attains
age seventy and one-half (70 1/2) after December 31, 2019, or
effective for distributions required to be made after December 31,
2022, the calendar year in which the member reaches sevent y-three
(73) years of age for an individual who attains age seventy-two (72)
after December 31, 2022, or "the applicable age", as defined in
Section 401(a)(9)(C)(v) of the Internal Revenue Code of 1986, as
amended, if later; or
2. The actual retirement da te of the member.
Effective September 8, 2009, notwithst anding anything to t he
contrary of the System, the System, which is a governmental plan
(within the meaning of Section 414(d) of the Internal Revenue Code
of 1986, as amended) is treated as having com plied with Section
401(a)(9) of the Internal Revenue Cod e of 1986, as amende d, for all
years to which Section 401(a)(9) of the Internal Revenue Code of
1986, as amended, applies to the System if the System complies with
a reasonable and good-faith interpretation of Section 401( a)(9) of
the Internal Revenue Code of 1986, as amended.
C. Any member or beneficiary eligible to rec eive a monthly
benefit from the System may make an election to waive all or a
portion of monthly bene fits.
D. If the requirements of Section 49-106.5 of this title are
satisfied, a member who, by reason of at tainment of normal RBH No. 8607
Req. No. 8607 Page 5 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
retirement date or age, is s eparated from service as a public safety
officer with the member's participating municipality, may el ect to
have payment made directl y to the provider for qualified health
insurance premiums by deduction from his or her monthly pension
payment, after Decem ber 31, 2006, in accordance with Section 402(l)
of the Internal Revenue Code of 1986, as amended. For distributions
made after December 29, 2022, the elec tion provided for under
Section 402(l) of the Internal Revenue Code of 1986, as amended, may
be made whether payment of the premiums is made directly to the
provider of the accident or health plan or qu alified long-term care
insurance contract by deduction from a distribution from the Syst em
or is made to the member.
SECTION 2. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act sha ll take effect and
be in full force from and after its p assage and approval.
59-2-8607 CMA 12/04/23
THOMAS E. CUMMINS CONSULTING ACTUARY, INC.
2512 E. 71
st
Street , Suite D ∙ Tulsa, Oklahoma 74136
(918) 492-9658 ∙ (918) 492- 9659
January 2, 2024
Representative Josh West
Room 205
Re: RBH No. 8607
RBH No. 8607 amends the Oklahoma Firefighters Pension and Retirement
System to conform to the Federal requirements for a tax qualified
plan.
RBH No. 8607 is a non fiscal bill as defined by OPLAAA .
I am a member of the American 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