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SENATE FLOOR VERSION
March 26, 2024
ENGROSSED HOUSE
BILL NO. 2991 By: West (Josh) and Munson of
the House
and
Gollihare of the Senate
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. Supp. 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 PEOPLE OF TH E STATE OF OKLAHOMA:
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 entitled, 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 compensation in any municipal fire department
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in the state. If such a member is reemployed 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 the System.
B. With respect to distributions 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 amended, in accordance with the final
regulations under Secti on 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 se venty 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)(iv)(I), Section
401(a)(9)(C)(i)(I) and Sec tion 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,
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was inserted in Section 401(a)(9)(B)(iv)(I) of the Internal Revenue
Code of 1986, as amended (applicable to calendar year 2023) , Section
401(a)(9)(C)(i)(I) and Section 401(a)(9)(C)(ii)(I) of the Internal
Revenue Code of 1986, as amended, and that the further revision of
Section 401(a)(9)(B)(iv) of the Internal Revenue Code of 1986, as
amended, effective for ca lendar years after 2023 with respect 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 December 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 with the regulations
under Section 401(a)(9) of the Internal Rev enue 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 contained herein to the
contrary, in no event shall commencement o f distribution 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 which the member reaches seventy and
one-half (70 1/2) years o f age for a member who attains age se venty
and one-half (70 1/2) before January 1, 2020, or effective for
distributions required to be made after December 31, 2019, but
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before January 1, 2023, the calendar year in which the member
reaches seventy-two (72) years of age for an individual who at tains
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 seventy -three
(73) years of age for an individual who attains age sev enty-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 date of the member.
Effective September 8, 2009, notwithstanding anything to the
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 complied with Section
401(a)(9) of the Internal Revenue Code of 19 86, as amended, 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 198 6, as amended.
C. Any member or beneficiary eligible to receive a monthly
benefit from the System may make an election to waive all or a
portion of monthly benefits.
D. If the requirements of Section 49 -106.5 of this title are
satisfied, a member who, by reason of attainment of normal
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retirement date or age, is separated from service as a public safety
officer with the member 's participating municipality, may elect to
have payment made directly to the provider for qualified health
insurance premiums by de duction from his or her monthly pension
payment, after December 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 election 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 qualified long -term care
insurance contract by deduction from a distribution from the System
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 shall tak e effect and
be in full force from an d after its passage and approval.
COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE
March 26, 2024 - DO PASS